Lao People's Democratic Republic: Vientiane Sustainable Urban Transport Project

Sovereign Project | 45041-002

The Asian Development Bank is working with the Lao People’s Democratic Republic to build a bus rapid transit system, and develop other transport solutions, to ease traffic in Vientiane, the country’s fast growing capital. The project is financing over 11 kilometers of dedicated bus lanes, 24 enclosed stations, and over 90 climate-friendly buses. It will also fund new signal lights at key intersections and a central traffic control center, as well as a national vehicle registration system.

Project Details

  • Project Officer
    Mizusawa, Daisuke
    Southeast Asia Department
    Request for information
  • Country/Economy
    Lao People's Democratic Republic
  • Modality
    • Grant
    • Loan
  • Sector
    • Transport
Project Name Vientiane Sustainable Urban Transport Project
Project Number 45041-002
Country / Economy Lao People's Democratic Republic
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0471-LAO: Vientiane Sustainable Urban Transport Project
Global Environment Facility Grant US$ 1.84 million
Grant: Vientiane Sustainable Urban Transport Project
Asia Investment Facility US$ 6.90 million
Loan 3250-LAO: Vientiane Sustainable Urban Transport Project
Asian Development Fund US$ 35.00 million
Loan: Vientiane Sustainable Urban Transport Project
European Investment Bank US$ 20.00 million
Loan 8303-LAO: Vientiane Sustainable Urban Transport Project
OPEC Fund for International Development US$ 15.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Vientiane Sustainable Urban Transport Project (VSUTP) will improve the quality of life in Vientiane by improving access and mobility. The project will do this by establishing a sustainable urban transport management agency (SUTMA), a high-quality public bus transport system, a parking management system, and a national electronic vehicle registration system, and by improving traffic management and accessibility for pedestrians and nonmotorized transport (NMT). The project promotes gender mainstreaming, greenhouse gas reduction, and publicprivate partnership.
Project Rationale and Linkage to Country/Regional Strategy

Vientiane, the capital of the Lao PDR has an estimated population of about 750,000. The principal urbanized areas have an estimated population of 500,000. The central core of the city has a mixture of government, educational, religious, and commercial institutions, as well as residential areas, and is also the tourism center, with many hotels and historical and cultural attractions. Many of the roads in Vientiane are narrow, and many of the intersections operate in an inefficient manner. The total number of private vehicles registered in Vientiane increased at an average annual growth rate of 17% during 2000-2009, and has increased at a growth rate of more than 10% since then, placing Vientiane on an unsustainable transport development path, as the city is starting to experience congestion, increased incidence of road accidents, and deteriorating local air quality. The expanding use of private vehicles is also increasing greenhouse gas emissions. Motorcycles are the primary mode of transport, accounting for 67.0% of daily trips, while public transport only accounts for an estimated 0.6% of daily trips. Public transport in Vientiane is largely provided by privately operated vehicles, particularly tuk-tuks (motorized tricycles). While Vientiane Capital State Bus Company (VCSBC) provides service from the central bus station in the core area to other points in Vientiane, there is no bus service linking points within the core area. VCSBC lacks (i) staff with sufficient skills, (ii) competition, (iii) incentives to improve efficiency, and (iv) capital. There is no parking management system in Vientiane, with no charge for on-street parking and little enforcement of parking regulations.

The project supports the objectives of the Lao PDR's sustainable development strategies, including the Strategic Framework for National Sustainable Development Strategy and the National Rio+20 Report. The National Rio+20 Report specifies the government's long-term sustainable transport strategy and action plan. The project will support achievement of a number of the strategy's goals, including promoting (i) travel without the use of motorized vehicles; (ii) public transport in urban areas; and (iii) bus rapid transit (BRT) in Vientiane.

The project supports the strategic priorities of the Asian Development Bank (ADB) for 2014-2020 stipulated in ADB''s Midterm Review of Strategy 2020 by improving the enabling environment for inclusive growth through capacity building, increasing assistance for sustainable transport, mobilizing private sector investment, facilitating access to global and regional funds, and contributing to ADB''s cofinancing target. The project is consistent with ADB''s country partnership strategy, 2012-2016 for the Lao PDR, which has as its overarching objective inclusive and sustainable economic growth and poverty reduction, with a focus on improved urban services to meet the challenges of the rapid urbanization agenda. The project is supported by ADB''s Sustainable Transport Initiative and is included in ADB''s Lao PDR Transport Sector Assessment, Strategy, and Roadmap.

Impact

An environmentally sustainable and pedestrian-friendly transport system developed in Vientiane

Project Outcome
Description of Outcome

Improved urban transport operations and capacity in Vientiane

Progress Toward Outcome Due to the project implementation delay, in May 2020, ADB approved the first extension of Loan 3250 and Grant 0471 closing dates by 24 months, from 31 December 2020 to 31 December 2022, upon receipt of the government's request. In September 2020, ADB approved the first extension of Loan 8303 closing date by 29 months, from 31 January 2020 to 30 June 2022. Furthermore, in January 2022, ADB approved the second extension of Loan 3250 and Grant 0471 closing dates by 24 months, from 31 December 2022 to 31 December 2024, and Loan 8303 closing date by 34 months, from 30 June 2022 to 30 April 2025, given the government's request. The DOT has committed to complete the project and commence the BRT, pedicab, and parking by end of 2024.
Implementation Progress
Description of Project Outputs

1. An urban transport management section (UTMS) for Vientiane established

2. High-quality bus services and bus rapid transit (BRT) operating in Vientiane

3. Traffic management in the core area of Vientiane improved

4. Paid parking system and national vehicle registration system established

5. Accessibility for pedestrians and other NMT (non-motorized transport) in the core area of Vientiane improved

6. Institutional capacity of MPWT and UTMS in establishment and operation of the new urban transport system strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) To manage the new transport system, including BRT, pedicab, and parking, the DOT plans to establish the Urban Transport Management Section (UTMS) under the Department of Public Works and Transport (DPWT) of Vientiane Capital Administration (VCA) expected in December 2022 as the first step for a sustainable urban transport management agency (SUTMA). Staffing of the UTMS will be done by VCA in phases with the initial set-up comprising of 9 staff including members of the current PCU 3 (30%) out of 9 staff are women. The staff received capacity building training from TRTA in September 2022. The recruitment of three individual consultants to help the UTMS manage the new transport system is about to complete. DOT expects to mobilize the consultants in December 2022 to coincide with the establishment and manning of the UTMS. The project set up quota (30%) for women in the advertisement for recruiting BRT services staff. DMF targets have been updated following approval of extension of Loan 3250 and Grant 0471 on 19 May 2020 based on Borrower request. BRT is expected to be established and fully operated by Q4 2024, following BRT detailed design approval in Q4 2022, procurement of intelligent transport system and station services, bus and equipment supply, and automatic fare collection system (EQ1, EQ2, and EQ5) expected from Q4 2022 to Q2 2023, procurement of civil works for bus lanes, stations, BRT depot, maintenance facility, and control center (CW1A, CW1B, and CW1C) expected from Q4 2022 to Q2 2023, and engagement of a service contractor for BRT operation in Q2 2024. Due to the lowered PIC's performance, the DOT needs to accelerate the design and procurement activities. The DOT plans to complete traffic management improvement through civil works implementation (CW1E) in Q2 2024. Due to the delay of the project implementation and urgent requirements, the government prioritized this component and developed and implemented an EVR system on its own. The Vientiane Capital has been operating the system to register all vehicles in the country. The system is expected to facilitate enforcement of parking regulations. The DOT plans to gradually roll out on-street paid parking scheme from Q4 2022, in addition to the adoption of new parking regulations by VCA expected in December 2022 and procurement of a parking management contractor from Q2 2023. The DOT has designed that the parking revenue will be used to subsidize part of the BRT operating cost during first year of BRT operation and Vientiane Capital State Bus Enterprise (VCSBE) operation. The DOT plans to select an operator for NMT (i.e., electric rickshaw) in Q4 2023 and procure pedicabs (EQ3) in Q2 2023 to launch an electric rickshaw program after Q4 2023. Civil works for NMT and pedestrianization (CW1D) is expected to be completed in Q2 2024.
Geographical Location Vientiane
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is category B for environment, and an initial environmental examination (IEE) has been prepared based on ADB's Safeguard Policy Statement (2009). The IEE has been disclosed on ADB's website. The project does not involve major civil works. Adverse impacts such as elevated noise levels, dust emissions, traffic disturbances, and other construction-related impacts will be experienced in the vicinity of the project sites. These impacts, however, are considered minor, being short term and localized in nature. The parking and traffic management systems will involve works of a minor nature with negligible environmental impacts. During operation, the overall environmental impact of the project will be beneficial. The project will contribute to reduced traffic congestion, improved conditions for walking and cycling, improved community livability, and better air quality. The project will reduce emissions of greenhouse gases by shifting transport demand from private vehicles to buses. Potential adverse impacts from operation of the bus depot and bus staging areas are considered insignificant and can be addressed through good design and implementation of mitigation measures specified in the environmental management plan (EMP) included in the IEE. The EMP includes environmental mitigation measures for all project phases, and monitoring requirements and responsibilities for EMP implementation. The EMP will be incorporated in the civil works contract documents. Public consultations have been conducted for the project, and a grievance redress mechanism will be developed to facilitate resolution of project-related environmental impacts. The IEE and EMP will be updated as (i) the location of the BRT corridor has been changed and two depots have been added in the project scope, and therefore (ii) there would be environmental impacts that are not captured by the 2014 IEE (in terms of the area of impacts) although the nature of expected impacts are the same as that in the 2014 IEE. The BRT corridor has been changed starting from Fa Ngum Park - Patuxay via Souphanouvong-Setthathirath-Mahosod-Nongbone roads (Package CW1A) and other section from Patuxay on Kaysone Phomvihane to intersection of 450-year road with turning left to NOUL (Package CW1B).
Involuntary Resettlement The project is categorized as B for involuntary resettlement in accordance with ADB's Safeguard Policy Statement. All affected land and structures identified are owned by government organizations. The proposed stations for the BRT system will only require clearance of small strips of government right-of-way land and public parks. Structures affected are roadside pavements and curbsides, streetlights, electricity poles, sewage intakes, and tree and garden fences. For the proposed bus staging areas, the project will acquire the entire compound (with three office buildings) owned by the Institute of Mass Media and Culture (about 2,700 square meters) and a portion of land with no structures (about 1,500 square meters) owned by the Vientiane Department of Education and Sports. The area for the depot (about 1.7 hectares) is vacant land and is owned by the MPWT. No previous land acquisition occurred in anticipation of ADB financing. Due diligence has been conducted to confirm that the depot site to be used by the project is not used by any person (i) who may be economically displaced, (ii) whose structures have been or will be demolished, and/or (iii) who will be restricted from using the specified area. All affected organizations have been consulted, and key information in the resettlement plan such as project entitlements, grievance redress, institutional arrangements, schedule, and cost estimates have been discussed and disclosed during the preparation of the resettlement plan. MPWT/PIC is updating the resettlement plan (RP) based on the additional scope (i.e., the section of BRT corridor and the number of depots from 1 to 3) and is developing stand-alone RPs for CW1A, CW1B, and CW1C (original CW1 package to be split into 5 individual packages CW1A to CW1E) to address the involuntary resettlement impacts pertaining to land acquisition and temporary business closure. There are no permanent nor temporary involuntary resettlement impacts under packages CW1D and CW1E.
Indigenous Peoples The project is categorized as C for indigenous peoples in accordance with ADB''s Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design Widespread consultations have been conducted with community members and business owners along the BRT route, as well as the Tuk-Tuk Association, Taxi Association, independent taxi drivers, Pick-up and Van Association, international nongovernment organizations, and the government. To encourage more meaningful participation, numerous interviews and small focus group sessions with stakeholders have also been conducted. Native language information materials about the project have been provided at these consultative meetings. The draft stakeholder communication strategy, which will be finalized during project implementation, will ensure the ongoing participation of key stakeholders during project implementation. Consultations have been conducted with nongovernment organizations and various transport associations (e.g., the Tuk-Tuk Association, Taxi Association, and Pick-up and Van Association), and these stakeholders will continue to be consulted during implementation.
During Project Implementation MPWT has established a hotline system with telephone number 1518 to allow public feedback on the project. The hotline was officially lunched on 1 November 2017. Dissemination of clarifications to any complaints will be publicized in Pasaxon newspaper, MPWT website, www.mpwt.gov.la and newsletter of MPWT. The Project Implementation Consultants (PIC) will implement all consultation activities in coordination with ADB, MPWT, DOT, and Vientiane Capital. As of June 2021, the following consultation meetings and training on resettlement were conducted: (i) Chanthabouly and Sisattanak District Resettlement Committee on 9 July 2020; (ii) Xaysettha District Resettlement Committee on 10 July 2020; (iii) Xaithany and Sikhottabong Districts Resettlement Committee on 19 August 2020. Regarding the resettlement, resettlement survey/detailed measurement survey (DMS) including social economic survey of affected households (SESAH) were conducted in September 2020. The resettlement plan for civil works Package CW1A and CW1B is being updated.
Business Opportunities
Consulting Services

All consulting services to be financed out of the proceeds of ADB will be recruited according to ADB''s Guidelines on the Use of Consultants (March 2013, as amended from time to time). Please see project procurement plan on ADB website. The Urban Transport Advisor - I mobilized on 7 October 2016. The project external auditors (C5), Accmin Consulting and Services Co. Ltd., mobilized on 26 April 2018.

The Project Implementation Consultants (PIC), with funding from the EU (EU-AIF) and administered by the European Investment Bank (EIB), mobilized on 23 July 2018.

Procurement All goods and works to be partially or fully financed out of the proceeds of ADB shall be subject to and governed by ADB''s Procurement Guidelines (April 2015, as amended from time to time). Please see project procurement plan on ADB website.
Responsible ADB Officer Mizusawa, Daisuke
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Public Works and Transport
Timetable
Concept Clearance 12 Dec 2011
Fact Finding 18 Mar 2014 to 28 Mar 2014
MRM 21 Aug 2014
Approval 10 Mar 2015
Last Review Mission -
Last PDS Update 30 Nov 2022

Grant 0471-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Mar 2015 03 Mar 2016 29 Aug 2016 31 Dec 2020 31 Dec 2024 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.84 Cumulative Contract Awards
ADB 0.00 19 Jan 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.84 19 Jan 2023 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan 3250-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Mar 2015 12 Mar 2015 29 Aug 2016 31 Dec 2020 31 Dec 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 49.55 Cumulative Contract Awards
ADB 35.00 19 Jan 2023 1.18 0.00 4%
Counterpart 14.55 Cumulative Disbursements
Cofinancing 0.00 19 Jan 2023 1.29 0.00 4%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan 8303-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Jul 2015 09 Oct 2015 04 Feb 2016 31 Jan 2020 30 Apr 2025 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.00 Cumulative Contract Awards
ADB 0.00 19 Jan 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 15.00 19 Jan 2023 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

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 Access to Information Policy (AIP) 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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Title Document Type Document Date
Vientiane Sustainable Urban Transport Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Dec 2022
Vientiane Sustainable Urban Transport Project: Procurement Plan Procurement Plans Oct 2022
Amendment to Grant Agreement (Externally Financed) for Grant 0471-LAO: Vientiane Sustainable Urban Transport Project Grant Agreement Sep 2022
Amendment to Loan Agreement (Special Operations) for Loan 3250-LAO: Vientiane Sustainable Urban Transport Project Loan Agreement (Special Operations) Sep 2022
Vientiane Sustainable Urban Transport Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Dec 2021
Vientiane Sustainable Urban Transport Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2021
Vientiane Sustainable Urban Transport Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jun 2019
Vientiane Sustainable Urban Transport Project: Audited Project Financial Statements (29 August 2016-31 December 2017) Audited Project Financial Statements Jun 2018
Grant Agreement (Externally Financed) for Grant 0471-LAO: Vientiane Sustainable Urban Transport Project Grant Agreement Mar 2016
Loan Agreement (Special Operations) for Loan 3520-LAO: Vientiane Sustainable Urban Transport Project Loan Agreement (Special Operations) Mar 2015
Vientiane Sustainable Urban Transport Project: Report and Recommendation of the President Reports and Recommendations of the President Feb 2015
Vientiane Sustainable Urban Transport Project: Gender Action Plan Gender Action Plans Feb 2015
Vientiane Sustainable Urban Transport Project: Project Administration Manual Project/Program Administration Manual Feb 2015
Vientiane Sustainable Urban Transport Project Concept Papers Nov 2011

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.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
ADB Loan No. 3250-LAO (SF): Vientiane Sustainable Urban Transport Project (VSUTP) [VSUTP-ICB-CW1E-2022] Invitation for Bids Active 28 Dec 2022 16 Feb 2023
ADB Loan No. 3250-LAO (SF): Vientiane Sustainable Urban Transport Project (VSUTP) [VSUTP-ICB-CW1D-2022] Invitation for Bids Active 21 Dec 2022 15 Feb 2023
ADB Loan No. 3250-LAO (SF): Vientiane Sustainable Urban Transport Project (VSUTP) [VSUTP- ICB-EQ1-2022] Invitation for Bids Closed 23 Nov 2022 04 Jan 2023
ADB Loan No. 3250-LAO (SF): Vientiane Sustainable Urban Transport Project (VSUTP) [VSUTP- ICB-EQ5-2022] Invitation for Bids Closed 23 Nov 2022 04 Jan 2023
ADB Loan No. 3250-LAO (SF): Vientiane Sustainable Urban Transport Project (VSUTP) [VSUTP- ICB-EQ3-2022] Invitation for Bids Closed 21 Oct 2022 01 Dec 2022
Marketing Expert Individual - Consulting Closed 21 May 2022 04 Jun 2022
Urban Transport Operation Expert Individual - Consulting Closed 21 May 2022 04 Jun 2022
Urban Transport Planner Individual - Consulting Closed 21 May 2022 04 Jun 2022
External Auditor - Phase II Firm - Consulting Closed 25 Apr 2022 09 May 2022
International Advisor II (Urban Transport Advisor II) Individual - Consulting Closed 27 Jan 2021 02 Feb 2021
External Auditor Firm - Consulting Closed 30 Sep 2017 29 Oct 2017
LAO: Vientiane Sustainable Urban Transport Project Advance Notice Archived 08 Nov 2014

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
International Advisor II Loan 3250 13 Feb 2022 Stefan Ekelund | Ban Sangveuy, Sisatanak DistrictVientiane Capital, Lao PDR Ministry of Public Works and Transport 186,875.00 186,875.00
PACKAGE C-5: EXTERNAL AUDITOR Loan 3250 25 Apr 2018 ACCMIN CONSULTING & SERVICES CO. LTD. | UNIT 32, NONGTENG VILLAGE SIKOTTABONG DISTRICT, VIENTIANE CAPITAL LAO PEOPLE'S DEM REP Ministry of Public Works and Transport 107,740.00 107,740.00

Procurement Plan