Lao People's Democratic Republic : Pakse Urban Environmental Improvement Project

Water and other urban infrastructure and services / Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban solid waste management

Pakse is the largest urban center in the southern Lao PDR and the capital of Champasack province. Since the mid-1990s, it has grown to become a regional commercial and service center in the country and the Greater Mekong Subregion (GMS). It is becoming an important tourism hub and staging post for the southern Lao PDR and the GMS. Pakse is strategically located on the regional road network (Road 13) and on an interconnector link from the East-West Economic Corridor to the Southern Economic Corridor in the GMS. Pakse district's population in 2010 was 77,647; this is expected to double by 2030 based on annual growth of 3%. The population of greater Pakse urban area in 2011 was about 107,600; this is expected to grow to 138,700 by 2020 and 176,100 by 2030. Champasack's gross domestic product growth has averaged 9.8% since 2006, driven largely by industry and services, accounting for 60% of total economic output in 2010 compared to 49% in 2006. Revenue from tourism, banking, transport, and construction have also surged. Pakse has significant natural attractions and is near major cultural and heritage sites such as Wat Phou. Tourism development has helped stimulate local investment in tourism-related facilities and generate local employment. Since 2005, tourist arrivals in Champasack Province have grown by an average of 20% per year, especially via the Cambodia and Thailand borders.

Despite these growth opportunities, Pakse is experiencing rapid environmental degradation caused by significant urbanization and economic growth pressures. It has witnessed an increase in traffic, tourists, and commercial activities. Improvement of basic urban and environmental infrastructure and strengthening of local capacity to plan and manage urban growth are key steps in developing Pakse as a sustainable, livable, and competitive city.

The project is in line with the Lao PDR's Seventh National Socioeconomic Development Plan, 2011-2015. The project focuses on achieving sustainable and inclusive development by transforming the key urban growth area into a competitive and green urban center--a strategy central to the government's draft national urban sector strategy and local socioeconomic development plans. The project is also in line with the GMS strategy to transform transport corridors into economic corridors. It has synergies with ADB's GMS Sustainable Tourism Development Project and the proposed GMS Corridor Towns Development Project. The country partnership strategy of the Asian Development Bank (ADB) for the Lao PDR, 2012-2016 also emphasizes stronger rural-urban linkages through improved urban services and municipal infrastructure. The project is consistent with ADB's Urban Operational Plan, 2011-2020 under Strategy 2020, which fosters competitive, inclusive, and green cities by improving performance in economic, equity, and environment areas.

Improved competitiveness of Pakse as a regional economic and tourism center of Southern Lao PDR

Increased quality, reliability, and coverage of urban infrastructure and environmental improvements in greater Pakse urban area.

City-wide environmental improvements - improved solid waste management system

City-wide environmental improvements - strengthened flood protection and drainage

City-wide environmental improvements - Reinforced riverbank protection along the Xedon River

Community-driven urban environmental improvements - improved solid waste collection and management; improved household sanitation.

Strengthened Capacity for Provincial Urban Planning and Services

Strengthened capacity for project management and implementation

Output 1: City wide environmental improvements - ongoing, the BER for major civil works (drainage, riverbank erosion protection and landfill improvement) are under process.

Output 2: The community-driven urban environmental improvements - ongoing, the detailed design for CEI work is completed.

Output 3: Strengthened capacity for provincial urban planning and services - Ongoing, the P-UDAA's corporate plan is under review by PMIU with support from consultant team.

Output 4: Strengthened Capacity for project management and implementation, ongoing, various trainings, study tours and workshops were conducted to enhance capacity of the project staff.