ADB is helping the Lao People's Democratic Republic improve agriculture infrastructure in the northern regions to boost farm yields and income. The project will improve irrigation systems and rural access roads together with associated initiatives to enhance agricultural productivity in the provinces of Bokeo, Luang Namtha, Oudomxay and Phongsaly, with a combined population of 760,000 people.
|Project Name||Northern Rural Infrastructure Development Sector Project|
|Country||Lao People's Democratic Republic
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Agriculture, natural resources and rural development / Irrigation - Land-based natural resources management - Rural market infrastructure - Water-based natural resources management
Transport / Road transport (non-urban)
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
The Project will address sector constraints by rehabilitating existing irrigation facilities and, where appropriate, developing new ones, as well as rehabilitating and upgrading rural access roads from district centers and village cluster centers to villages. To enhance the impact of subproject investments, the project will support (i) technical extension services to subproject beneficiaries, (ii) producer groups to coordinate supplies of agricultural produce to markets and/or processors, (iii) contracted agricultural production with price incentives based on quality, and (iv) initiatives to secure tenure and access to land for sedentary agricultural production and land rezoning to protect the integrity of watersheds and reservoirs
above rehabilitated irrigation systems. This will contribute to improving agricultural productivity, diversifying crops, and commercializing the low-performing agriculture sector in the northern region. These investments will be complemented by (i) institutional capacity building for national, provincial, and district agencies towards a sector development approach and (ii) heightened awareness of gender issues and the participation of local communities in designing and efficiently implementing about 25 subprojects. The project will be implemented in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly, which have a combined population of 760,000 people, a third of whom are considered poor.
|Project Rationale and Linkage to Country/Regional Strategy||
The Lao PDR is steadily increasing its exposure to international markets and commercial opportunities and reducing its dependence on traditional subsistence agriculture and logging. Its commitment to free trade and an improved transport network is transforming the northern region's participation in the market economy. Its abundant land resources and high agricultural potential have recommended the Lao PDR to neighboring countries as a potential supplier of agricultural goods, both food for consumption and raw materials for agro-processing. The development of higher-capacity transport corridors linking the People's Republic of China and Thailand, as well as the smaller transport routes east to Viet Nam, have enabled the supply of agricultural produce from northern Lao PDR to its neighbors.
A significant transport network of national and international routes has been developed. However, the coverage of rural access roads connecting these corridors is limited and generally of poor quality, inflating transport costs and constraining Lao competitiveness in regional markets. The commercialization of agriculture is hampered not only by an underdeveloped rural road network but also by the limited opportunities to intensify agricultural production, the predominant livelihood. The northern region is still dominated by subsistence production on lowland rain-fed and irrigated lands, as well as upland cropping on sloping lands, usually under some form of shifting cultivation. In 2007, 60% of the rice area of 75,000 hectares in the four targeted provinces was planted in bunded paddies, of which only 3% were irrigated. Production systems use traditional varieties and few inputs because of limited access to higher-yielding varieties, irrigation, or other production inputs. With the predominance of smallholder and geographically dispersed subsistence production, value addition and marketing are limited to drying, packaging, and the small-scale production of items such as sauces and spices. The more suitable agricultural areas, often located around district centers, have the greatest potential for higher agricultural productivity, production surpluses, and increased participation in the market economy.
|Impact||Improved rural household incomes in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly.|
|Description of Outcome||Increased agricultural productivity in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly|
|Progress Toward Outcome||As of September 2017, all project outputs reached 100% progress. Output achievements are: (i) productivity enhancing rural infrastructure constructed and/or rehabilitated: 100%; (ii) productivity and impact enhancing initiatives adopted: 100%; (iii) capacity of national, provincial, and district agencies strengthened to enable a sector development approach: 100%; and (iv) efficient and effective delivery of subprojects and project management: 99.8%.|
|Description of Project Outputs||
Productivity-enhancing rural infrastructure constructed and/or rehabilitated
Productivity- and impact-enhancing initiatives adopted
Capacity of national, provincial, and district agencies strengthened to enable a sector development approach
Efficient and effective delivery of subprojects and project management
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Five key implementation consultants mobilized within 3 months of grant effectiveness; project performance and monitoring system disaggregated by gender and ethnolinguistic group operational within 12 months of effectiveness. Key implementation consultants were mobilized as planned. A total of 91 staff have been assigned to the current project.
A functional project benefit monitoring and evaluation system, has been established and operationalized. The PBME data is disaggregated by gender and ethnic groups.
Total number of NPMO, PPOs and DCOs staff is 91, out of which 30 are women (33% of total member).
All the 24 PRI subprojects have been completed, comprising a command area of 5,387 hectares (ha) (185% achievement).
A total of 167.5 kilometers of roads and trails have been improved.
Payment for unskilled labor is 80,000 Kip per working day and 150,000 Kip per working day for skilled labor for male and female workers.
Construction works for 26 subprojects showing a total of 1,100 employees, among which 57 (5%) are women .
Some 41 water user groups and six village road maintenance committees are established and registered for all the 26 completed PRI subprojects. The water user groups have 276 members (female: 38%) and the village road maintenance committees have 55 members (female: 33%).
Some 43 farmer production groups (FPGs), comprising 1,269 households, have been established at the 19 completed PRI subprojects including 4 agricultural extension subproject in Oudomxai province with 130 FPG executive committee members (female: 31.5%). The FPGs will be ratified before the project closure.
Some 16 catchment management plans have been completed covering 2,337 square kilometers, and the remaining plans will be finished within the implementation period.
The 33 training programs in technical, social, geographic information systems, project benefit monitoring and evaluation (M&E), operation and maintenance, value chain development, and financial management have been completed. There have been a total of 2,981 trainees, including 855 women (29%), from the national project management office (NPMO), the provincial project offices, the district coordination offices, and beneficiaries.
The project achievement under this activity has been mainly to establish an M&E system at the project level. M&E program, supported by FAO, has started in DOPC in February 2012. NPMO continues to coordinate with FAO and DOPC in establishing the M&E Unit in DOPC.
The Project provided support to this unit on M&E trainings to provincial and district level in Bokeo, Luangnamtha, Phongsaly and Oudomxay provinces.
Female-focused extension services designed for and delivered to women, with 30% of extension training for women. Poultry raising programs, to support the incomes of poor households and women have been implemented in 13 villages, delivering 6,162 chickens to 104 households. Wet season and dry season crop demonstration activities were implemented in all subprojects. Several study tours were organized, focusing on contract farming, with a total of 280 participants (female: 30%). Contract farming arrangements for commodities such as tea, pumpkin, and rice were successfully tested in 18 completed subprojects, involving 21 FPGs (851 households).
|Geographical Location||Khoueng Bokeo, Khoueng Oudomxai, Khoueng Phongsali, Louangnamtha|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||In the case of rural access road rehabilitation and upgrading, subprojects are limited to existing alignments and will most likely involve limited cut and fill, minor widening, and little realignment. For irrigation rehabilitation and development, feasibility studies will ensure that water off-take during the dry season allows sufficient flows to maintain the riparian ecosystem and ensure adequate resources for downstream users. The introduction of land zoning in the catchment areas of reservoirs will minimize inappropriate land use and reduce the risk of siltation while assuring dry season flows. Environment category A subprojects will be ineligible for financing under the proposed project. Technical specialists continue to prepare national and provincial environmental assessments and management plans for each subproject.|
Little resettlement is anticipated as subprojects will rehabilitate existing infrastructure and require insignificant land acquisition. Further, subprojects will be prescreened before grant effectiveness to ensure they do not entail significant resettlement. Only category B and C subprojects will be eligible for financing under the proposed project. Any minor compensation that may be needed will be provided in accordance with resettlement plans prepared for each subproject based on the guidelines outlined in the resettlement framework
agreed with the government.
|Indigenous Peoples||The otherwise dominant Lao-Thai ethnic group is a minority in each of the four target provinces, where the main ethnic groups are Mon-Khmer in Bokeo and Oudomxay and Chine-Tibet in Luang Namtha and Phongsaly. The principles followed in all subproject preparation will be consultation, inclusion, and preferential access to employment opportunities for vulnerable ethnic minority groups. As with socioeconomic baseline surveys, all data collected will be disaggregated by ethno-linguistic group, age (where appropriate), and gender to allow the monitoring and evaluation of beneficiary inclusion. The project is category B for indigenous peoples because (i) most people in the four provinces are ethnic minorities who generally have higher poverty rates than the nationally dominant Lao-Thai group and (ii) impacts are expected to be positive. The prescreening of subprojects and consultation processes will exclude subprojects that would disadvantage any groups. Indigenous peoples plans for each approved subproject will detail requirements for inclusion, benefit measuring, and monitoring.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations with key stakeholders were undertaken during project formulation and processing.|
|During Project Implementation||Continuous consultations with stakeholders (villagers, women) are being conducted to ensure that subprojects are prioritized and safeguard awareness is ensured.|
|Consulting Services||All consultants have been recruited according to ADB's Guidelines on the Use of Consultants (2010 as amended from time to time). The Project has engaged a consulting firm to provide project implementation support including policy development at national level. Engagement of consultants for the preparation of subprojects and safeguard monitoring during implementation is ongoing.|
|Procurement||All procurement of goods and works are being undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).|
|Responsible ADB Officer||Phanouvong, Sisavanh|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Lao Resident Mission|
Ministry of Agriculture and Forestry
Department of Livestock and Fisheries
Ministry of Agriculture and Forestry
|Concept Clearance||26 Jan 2011|
|Fact Finding||19 Aug 2010 to 07 Sep 2010|
|MRM||30 Apr 2010|
|Approval||26 Nov 2010|
|Last Review Mission||-|
|PDS Creation Date||16 Apr 2010|
|Last PDS Update||28 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Nov 2010||08 Dec 2010||08 Mar 2011||31 Aug 2017||-||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||23.00||Cumulative Contract Awards|
|ADB||23.00||26 Nov 2010||22.55||0.00||98%|
|Cofinancing||0.00||26 Nov 2010||24.57||0.00||107%|
|Status of Covenants|
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Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation
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|Tender Title||Type||Status||Posting Date||Deadline|
|Construction Supervision for Nam Beng and Nam Oun Irrigation Rehabilitation Subproject in Oudomxay Province||Firm - Consulting||Closed||13 Jul 2017||11 Aug 2017|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Northern Rural Infrastructure Development Sector Project: Procurement Plan||Procurement Plans||Jun 2017|
|Northern Rural Infrastructure Development Sector Project - Additional Financing: Procurement Plan||Procurement Plans||Nov 2016|