ADB is helping the Lao People’s Democratic Republic improve irrigation in Savannakhet and Saravane provinces, which produce a third of the country’s rice output. The project will revive and update irrigation schemes, construct rural roads to improve access to markets, increase the capacity of farmers to manage and use agriculture infrastructure efficiently, and create jobs for local people.
|Project Name||Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project|
|Country||Lao People's Democratic Republic
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Agriculture, natural resources and rural development / Agricultural production - Irrigation
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
The Greater Mekong Subregion (GMS) East West Economic Corridor (EWEC) provides a conduit for Lao agricultural surpluses to reach the neighboring countries of Thailand and Vietnam and even beyond. There is essentially unlimited demand from these countries for Lao agricultural and rural produce. Better agriculture infrastructure will enable more diversity and value addition to agricultural produce from the target provinces. This will expand sustainable livelihoods opportunities.
The Project aims to regenerate and upgrade existing but underdeveloped or outdated agriculture infrastructures in the two target provinces over a period of eight years. The proposed project is consistent with the government's sector development objectives as presented in its Seventh National Socio-Economic Development Plan (2011-2015), Strategy for Agricultural Development to 2020, Agricultural Master Plan 2011-2015, which promotes the expansion of market-oriented agricultural production in an environmentally sensitive manner. It will be a key component in the Government's new Southern Rural Development Program (SRDP), which is currently under formulation with the support of IFAD.
The design draws upon the experience of recent rural development initiatives that ADB has financed as well as rural development initiatives financed by the World Bank - Poverty Reduction Fund, and by the Japan International Cooperation Agency (JICA) - Participatory Irrigated Agriculture Development Project (PIADP).
|Project Rationale and Linkage to Country/Regional Strategy||
The Project will create critical masses of agriculture infrastructure in identified areas with good agricultural productive potential in order to optimize agricultural output, promote crop diversification and increase production efficiency. Improvements will be made to irrigation schemes including the replacement of worn out pumping stations, repair and/or strengthening of small and medium sized weirs or reservoirs, replacement of diversion weirs, upgrading of rural access and rural market infrastructure.
The improved agriculture infrastructures are expected to enable communities to increase agricultural intensity and diversity; provide quicker and safer access to markets, employment opportunities, and social services; and, reduce costs of rural production and marketing, as well as food wastage. Improved agriculture infrastructure increases incomes from both on- and off-farm employment, decreases the burden of chores on women, and increases food availability even when yields are constant. The Project is therefore pro-poor, will contribute to food security and will be increasingly important for climate change resilience.
|Impact||Increased household incomes in the project areas|
|Description of Outcome||Increased agricultural productivity in the project areas|
|Progress Toward Outcome||The overall physical progress is estimated to be 23.12%. The initial delays in budget reallocation and recruitment of the LIC and EDC.|
|Description of Project Outputs||
Improved agriculture infrastructure
Increased capacity of farmers to manage and use agriculture infrastructure efficiently
Efficient project management
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. The overall progress of the out 1 is estimated to be 11.55%. A total of 25 irrigation subprojects have been identified for improvement. Of these, three are under construction and expected to complete by 31 December 2017; one is under bidding procedure, two are under preparation of the detailed engineering designs, five are under preparation of the feasibility studies (FSs) and another six are under preliminary topographic and geotechnical survey.
2. Overall progress for output 2 is estimated to 0. 15%. Out of the 25 water user groups (WUG) to be established (with 15 to be graduated to become water user associations), three WUGs have been established one each in Vapy Neua, Phnomxai, and Bung Xe subprojects and their capacity building is ongoing. Another three WUGs in Na Theun, Keng Houat and Gnot Bak subprojects are under preparation and expected to complete by 30 June 2017.
3. Overall progress for output 3 is estimated to 11.44%. The implementation of this output is fully satisfactory. NPMO and IAs offices were established as planned. Most of the consultants were recruited, and other consultants will be hired on time. EA submitted a draft project performance monitoring plan (PPMP) on 29 December 2016 which is being reviewed by ADB. Once approved, the PPMP will be updated on a quarterly basis and will be included in the project progress report.
|Geographical Location||Khoueng Savannakhet, Salavan|
|Summary of Environmental and Social Aspects|
Subprojects are mainly limited to the rehabilitation of existing infrastructure, and a screening process has eliminated subprojects with potentially significant negative environmental impacts. This was confirmed during detailed analyses of the three representative subprojects. However, some minor negative environmental effects may occur during the construction process. To strengthen MAF's capacity, additional training for NPMO safeguard staff and PPMOs is included in the project costs. The environmental assessment and review framework and the list of responsibilities for environmental environmental impacts. The paving of roads will reduce dust, which has negative impacts on
human and livestock health, crops, and safety. Measures to improve climate change resilience include stabilizing local environments by integrating soil and water conservation measures into subproject design. Improved irrigation efficiency and sustainable agricultural practices will reduce stresses on water and land resources management are included in the PAM to guide the government to carry out an appropriate level of environmental assessment and to take corresponding measures to deal with potential.
The updated IEEs for the three representatives subprojects have been approved and will be disclosed in early April 2016
No significant resettlement impacts are expected because the majority of agriculture infrastructure will be improved along existing
rights-of-way and will at most require the provision of compensation for roadside trees, crops and/or small structures, with possibly a small amount of land acquisition. Category A subprojects were eliminated during screening. It will be necessary to document the land
acquisition and resettlement status of each subproject during the preparation of feasibility studies. The government and ADB have agreed on a resettlement framework along with procedures, resources, and responsibilities for preparing resettlement plans outlined in the PAM
for potential category B subprojects. Resettlement plans were prepared for the three representative subprojects with no land acquisition needed. Any required resettlement plans will be submitted and approved by ADB before the selected subprojects are implemented.
Compensation, allowances, operation, and administration costs, surveys, monitoring, and reporting will be financed from loan proceeds. An adequate budget for resettlement plan preparation and implementation will be allocated accordingly as well as provision of resettlement specialists.
The updated LACRs of the three representative subprojects have been approved and disclosed
|Indigenous Peoples||The population in the project area is predominantly Lao-Thai, with Mon-Khmer groups generally found in the uplands of Saravane. Project activities will not cause involuntary changes in the ethnic groups' farming and livelihoods system or their cultural practice and ancestral domains. Any possible negative impact, such as loss of temporary crops and livelihoods, will be avoided if possible or will be compensated accordingly. Impacts on ethnic groups in these areas are expected to be overwhelmingly positive since the subprojects will be aimed at overall economic and social improvement of the total population. Specific measures to deal with potential negative impacts and to encourage participation and contribution of ethnic groups based on their unique social and cultural characteristics require customized approaches and interventions. In the general design of some subprojects, there may be opportunities for ethnic groups to participate in and/or benefit from the subproject activities. An ethnic group planning framework agreed upon by the government and ADB has been prepared to address this situation. It will guide the preparation of an ethnic group plan for potential category B subprojects based on ADB's Safeguard Policy Statement (2009). ADB will approve the ethnic group plans before the subproject is implemented.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
All consultants and entities will be selected and engaged in accordance with the ADB's Guidelines on the Use of Consultants. Consulting services requirement is estimated at 127 person months of international expertise and 523 person months of national expertise for a total of 650 person months. The loan implementation consultants (LICs) will be recruited from a qualified consulting firm which will require 97 person months of international expertise and 210 person months of national expertise for a total of 307 person months. Individual consultants will require 3 person months of international expertise and 123 person months of national expertise for a total of 126 person months.
The NPMO will recruit the LICs from a consulting firm following QCBS (90:10) procedures. National consultants for preparation of feasibility studies, detailed design, and preparation of bidding documents and supervision of construction, as well as the safeguard monitoring entities will be recruited by the NPMO following CQS procedures.
|Procurement||All procurement under the ADB loan will be undertaken in accordance with ADB's Procurement Guidelines (April 2010, as amended from time to time). Procurement of civil works packages and goods will be carried out by the NPMO and the PPMOs. Civil works packages valued at more than $1.0 million equivalent and packages for goods valued at more than $0.5 million equivalent will be procured following International Competitive Bidding (ICB) procedures. Civil works packages valued at less than $1.0 million equivalent but more than $100,000 equivalent, and packages for goods valued at less than $0.5 million equivalent but more than $100,000 equivalent, will be procured following national competitive bidding (NCB) procedures. For works and goods packages valued below $100,000 equivalent, shopping procedures acceptable to ADB will be followed.|
|Responsible ADB Officer||Inthavong, Vanthong|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Lao Resident Mission|
Ministry of Agriculture and Forestry
Department of Livestock and Fisheries
Ministry of Agriculture and Forestry
|Concept Clearance||15 Feb 2013|
|Fact Finding||22 Feb 2013 to 15 Mar 2013|
|MRM||17 May 2013|
|Approval||20 Sep 2013|
|Last Review Mission||-|
|Last PDS Update||29 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|20 Sep 2013||11 Oct 2013||07 Nov 2013||30 Jun 2022||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||60.60||Cumulative Contract Awards|
|ADB||60.00||20 Sep 2013||19.23||0.00||34%|
|Cofinancing||0.00||20 Sep 2013||11.56||0.00||20%|
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.
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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.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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Requests for information may also be directed to the InfoUnit.
|Tender Title||Type||Status||Posting Date||Deadline|
|3024-LAO: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (AISP) [W26]||Invitation for Bids||Active||23 Oct 2017||22 Nov 2017|
|3024-LAO: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (AISP) [W7]||Invitation for Bids||Active||23 Oct 2017||22 Nov 2017|
|3024-LAO: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (AISP) [W6]||Invitation for Bids||Active||23 Oct 2017||23 Nov 2017|
|3024-LAO: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (AISP) [W5]||Invitation for Bids||Active||21 Aug 2017||20 Sep 2017|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|KENG HOUAT IRRIGATION AND ACCESS ROAD IMPROVEMENT SUBPROJECT||Loan 3024||26 Dec 2017||HOUANGSANASAY CONSTRUCTION SOLE CO., LTD||VIENTIANE CAPITAL CITY LAO PEOPLE'S DEM REP||Ministry of Agriculture & Forestry-Irrigation Dep||CONSTRUCTION||1521756||1521756|
|NA THEUN IRRIGATION AND ACCESS ROAD IMPROVEMENT SUBPROJECT||Loan 3024||23 Nov 2017||SOMSAVANH CHALEUN CO., LTD||PHONSAVANH VILLAGE, PAKSE DISTRICT CHAMPASACK PROVINCE LAO PEOPLE'S DEM REP||Ministry of Agriculture & Forestry-Irrigation Dep||CONSTRUCTION||1083453||1083453|
|Various Expenditure from Oct16 to Jan17||Loan 3024||01 Mar 2017||Various||Various Lao PDR||Ministry of Agriculture and Forestry - Irrigation Department||Others||178853.81||178853.81|
|Rehabilitation of Head Works at Bung Xe, Phamonxay and Vapy Neua Subprojects||Loan 3024||06 Feb 2017||Chanthasen Irr. Arch. Rd&B Cons&Mai. Co., Ltd.||Km2 Village, Saravan District Saravan Province Lao PDR||Ministry of Agriculture and Forestry - Irrigation Department||Construction||1197537.34||1197537.34|
|Title||Document Type||Document Date|
|Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project: Procurement Plan||Procurement Plans||Jun 2017|