Lao People's Democratic Republic : Second Greater Mekong Subregion Corridor Towns Development Project
The Second Greater Mekong Subregion (GMS) Corridor Towns Development Project (the project) represents the second phase of the ongoing GMS Corridor Towns Development Project in Cambodia, Lao PDR and Viet Nam. It supports the first four strategic thrusts of the GMS Strategic Framework 20122022 namely (i) strengthening infrastructure linkages; (ii) facilitating cross-border trade, investment, and tourism; (iii) enhancing private sector participation and competitiveness; and (iv) developing human resources. The focus on corridor town development follows an approach that will maximize the economic benefits of increased trade and traffic flows along the major transport corridors in the GMS with the expected positive impacts resulting from accelerated investments in strategically located towns and cities, and added value on economic growth through development oriented on green growth and climate resilience.
Project Details
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Project Officer
Thu, Kyaw
Sectors Group
Request for information -
Country/Economy
Lao People's Democratic Republic -
Sector
- Water and other urban infrastructure and services
| Project Name | Second Greater Mekong Subregion Corridor Towns Development Project | ||||||||
| Project Number | 46443-003 | ||||||||
| Country / Economy | Lao People's Democratic Republic |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage - Urban flood protection - Urban solid waste management |
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| Gender | Effective gender mainstreaming | ||||||||
| Description | The Second Greater Mekong Subregion (GMS) Corridor Towns Development Project (the project) represents the second phase of the ongoing GMS Corridor Towns Development Project in Cambodia, Lao PDR and Viet Nam. It supports the first four strategic thrusts of the GMS Strategic Framework 20122022 namely (i) strengthening infrastructure linkages; (ii) facilitating cross-border trade, investment, and tourism; (iii) enhancing private sector participation and competitiveness; and (iv) developing human resources. The focus on corridor town development follows an approach that will maximize the economic benefits of increased trade and traffic flows along the major transport corridors in the GMS with the expected positive impacts resulting from accelerated investments in strategically located towns and cities, and added value on economic growth through development oriented on green growth and climate resilience. The objective is to strengthen competitiveness of the GMS economic corridors through environmental infrastructure. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Towns along the North-South Economic Corridor (NSEC) which links Lao PDR with People's Republic of China (PRC), Thailand and Myanmar are well positioned to serve as dynamic centers of investment and economic growth. The strategic location of the corridor towns provides the stimulus for increased trade and investment. Access to markets will provide many incentives for local economies in the hinterlands of the corridor towns. Given these development opportunities, and with the rapid growth of the urban population and expansion of these areas, several corridor towns are now facing demands for urban infrastructure and essential support services. Two project towns in Lao PDR along the NSEC, which traverses the region from the city of Kunming in Yunnan Province of the PRC to Bangkok, Thailand, were selected as project areas on the basis of their economic potential, environmental infrastructure constraints and expressed commitments. Houayxay is a medium-sized town and the administrative capital of Bokeo Province in the north-western part of Lao PDR and lies in proximate distance to the country's border with Myanmar and Thailand. Luang Namtha Town is the administrative capital of the Luang Namtha Province in the north-western part of Lao PDR bordering PRC and Myanmar. Luang Namtha Town is strategically located in proximate distance to the Lao PDR-PRC border. The project is in line with the ADB Country Partnership Strategy for Lao PDR; ADB's Urban Operational Plan which encourages economic competiveness of cities, green development, and inclusive growth; the GrEEEn Cities Approach, which has been piloted in several cities in Viet Nam, Thailand, Myanmar, Malaysia, and Indonesia; ADB's Water Operational Plan; the GMS Strategic Framework; and the GMS Regional Investment Framework Implementation Plan (2014-2018). The towns under this project were selected and prioritized under the GMS Regional Investment Framework, as towns that are both localized within the GMS economic corridors and directly contribute to economic and urban development. | ||||||||
| Impact | Maintain economic growth, achieve poverty reduction targets, ensure sustainable development, and support regional integration in the towns of Houayxay and Luang Namtha (Seventh Five-Year National Socio-Economic Development Plan, 20112015) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Improved urban services in Houayxay and Luang Namtha |
| Progress Toward Outcome | Project closing date was on 30 Jun 2023. All envisaged project activities have been completed. Minor finishing works on the last civil work packages are being done (during the defects liability period). Both provincial governments have provided written commitments to ensure budget availability for O&M of the project assets. The project's soft components have been completed. |
| Implementation Progress | |
| Description of Project Outputs | 1. The SLEDPs developed 2. Priority urban infrastructure investments implemented 3. Institutional capacities for managing public investments strengthened 4. Community awareness of project activities and environmental sustainability improved |
| Status of Implementation Progress (Outputs, Activities, and Issues) | The Strategic Local Economic Development Plans (SLEDPs) prepared under the project have been endorsed in Dec 2019 by the government and being utilized. The civil work packages have been completed and handed over (or) in the process of handover to the relevant government agencies for operation: a) Contract HXYB2 Houayxay Solid Waste Management was signed on May 2018 and completed in Dec 2021, b) Contract LNTB1 Luang Namtha Solid Waste Management works commenced in Mar 2019 and completed in Dec 2021, c) HXYA1 Houayxay River Port Rehabilitation, Riverbank Upgrading and Protection contract was signed in Sep2019 and completed in Dec 2021, d) LNTA3 Namtha Urban Recreational Facilities contract was signed on 14 March 2019 and completed in Jun 2023, e) HXYB3 Houayxay Wastewater Management was signed in Oct 2019 and completed in Aug 2021, f) LNTA4 Luang Namtha Wastewater Management contract was signed in Nov 2019 and completed in Jun 2023, g) HXYA2 Phase 1 Ecopark contract signed in Dec 2019 and completed in Jul 2022, h) HXYA2 Phase 2 Ecopark contract signed in Dec 2020 and completed in Dec 2021, i) HXYB1 Houayxay Urban Roads and Drainage contract signed in Jan 2019 and completed in May 2022, j) LNTA1: Luang Namtha Urban Village Upgrading, Urban Roads and Drainage contract signed in Mar 2019 and completed in Jan 2022. A total of 16.05 km of drainage channels or covered drains were built in Houayxay, plus additional 0.35 km of roads i.e., a total of 16.40 km, with associated side drains were constructed. Total length of concrete roads with drainage built in Luang Namtha is 30.12 km, and a total 24.2 km of drainage channels including road side drains was constructed in Luang Namtha. Length of riverside walkways built and upgraded in Houayxay were: 4.44 km (HXYA1= 1.48 km, HXYA2-I = 2.62 km and HXYA2-II = 0.34). Houayxay ecological park area completed is 45.20 Ha in total. Of the 10 subprojects, 48 (13%) out of 363 unskilled laborers are women. On operation and maintenance of landfill, 7 (44%) women out of 16 total worked at Luang Namtha landfill site and 32 (70%) women out of 46 total worked at Houayxay landfill site operations. 275 (76%) out of 363 total construction personnel employed are of local origin. Solid waste bill collection efficiencies are: for Luang Namtha: Year 2019: 95%, Year 2020: 98%, Year 2021: 92% and Year 2022: 83% (Oct-2022). For Houayxay: Year 2020: 89.2%, Year 2021: 94.8% and Year 2022: 93.3% (Oct-2022). A total of 6 community awareness campaigns have been conducted under the project. There were substantial delays in completing the activities due to COVID-19 but these have been completed after the loan extension. |
| Geographical Location | Huay Xai, Louangnamtha |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The project is classified as Category B for environment in accordance with the ADB's safeguards policy statement (SPS) 2009. One initial environmental examination (IEE) report and two environmental management plans (EMPs) (one per town) have been prepared. |
| Involuntary Resettlement | The safeguard category for involuntary resettlement is B. Two resettlement plan (RPs), on per town, are prepared for components which will trigger land acquisition and resettlement (LAR) impacts. |
| Indigenous Peoples | Indigenous peoples safeguards are not triggered by any project component in Houayxay or Luang Namtha, and the safeguard category for indigenous peoples is C in accordance with the requirements of the SPS (2009). |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | The Ministry of Public Works and Transport (MPWT) is the executing agency (EA) for the project, through the Department of Housing and Urban Planning (DHUP). It provides overall policy guidance and oversee implementation in accordance with the objectives and scope of the project. Under DHUP, a Project Coordination Unit (PCU) serves as the technical team, working closely with project implementation units (PIUs) to be established at provincial level. The project's Central Project Steering Committee (CPSC) and Provincial Project Steering Committee (PPSCs) have been established. Each of the steering committees are convened annually or on an as-needed basis. Effective monitoring and public consultation with all stakeholders and affected people at all stages of subprojects implementation are ensured. In compliance with ADB's information disclosure and consultation requirements, the safeguard documents will be posted on ADB's website. Stakeholder consultations are conducted through formal and informal focus group discussions. A grievance redress mechanism helps to facilitate resolution of complaints regarding project performance. The resettlement plan was updated and disclosed after detailed design and cleared by ADB prior to contract awards. |
| Business Opportunities | |
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| Consulting Services | ADB-funded consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). |
| Procurement | All procurement under the ADB loan will be in accordance with ADB's Procurement Guidelines (2015, as amended from time to time) |
| Responsible ADB Officer | Thu, Kyaw |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Water and Urban Development Sector Office (SG-WUD) |
| Executing Agencies |
Ministry of Public Works and Transport |
| Timetable | |
|---|---|
| Concept Clearance | 01 Jun 2015 |
| Fact Finding | 21 May 2015 to 27 May 2015 |
| MRM | 21 Aug 2015 |
| Approval | 13 Nov 2015 |
| Last Review Mission | - |
| Last PDS Update | 25 Oct 2023 |
Loan 3315-LAO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 13 Nov 2015 | 18 Dec 2015 | 16 Mar 2016 | 30 Jun 2021 | 30 Jun 2023 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 42.00 | Cumulative Contract Awards | |||
| ADB | 37.00 | 25 Oct 2023 | 35.59 | 0.00 | 97% |
| Counterpart | 5.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 25 Oct 2023 | 36.45 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 8296-LAO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 13 Nov 2015 | 18 Dec 2015 | 16 Mar 2016 | 30 Jun 2021 | 30 Jun 2023 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 25 Oct 2023 | 0.00 | 9.23 | 92% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 10.00 | 25 Oct 2023 | 0.00 | 9.87 | 99% |
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.
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
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| National Expert (Park Management and Capacity Building) | Loan 3315 | 13 Dec 2021 | KHAMPHAT BOULOM | VIENTIANE, LAO PDR | Ministry of Public Works and Transport | 124,227.65 | 124,227.65 |
| ADDITIONAL URBAN VILLAGE ROADS,DRAINAGE AND BRIDGES IN LUANG NAMTHA PROVINCE | Loan 3315 | 18 Dec 2020 | XAYYA CONSTR & RENOVATIIN SOLE CO LTD. | LUANG NAMTHA,LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 2,975,710.83 | 2,362,714.40 |
| HOUAYXAY ECOLOGICAL PARK AND RECREATIONAL AREA, RIVERSIDE ROAD AND WALKWAY | Loan 3315 | 30 Dec 2020 | LSM CONSTRUCTION SOLE CO. LTD | VIENTIANE,LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 1,885,729.62 | 1,497,269.32 |
| HOUAYXAY ECOLOGICAL PARK & RECREATION AREA, RIVERSIDE ROAD & WALKWAY | Loan 3315 | 22 Jan 2020 | KHAMFONG GROUP SOLE CO.LTD. | VIENTIANE,LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 2,105,534.07 | 1,671,794.05 |
| HXYB1 HOUAYXAY URBAN ROADS AND DRAINAGE | Loan 3315 | 13 Feb 2019 | MP CONSTRUCTION SOLE CO.,LTD. | VIENTIANE, LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 6,495,501.61 | 5,157,428.28 |
| LUANG NAMTHA URBAN VILLAGE UPGRADING, URBAN ROADS AND DRAINAGE | Loan 3315 | 27 Mar 2019 | KHAMFONG SOLE CO. LTD. | VIENTIANE CAPITAL LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 7,458,704.36 | 5,922,211.26 |
| LUANG NAMTHA URBAN RECREATION FACILITIES (LNTA3) | Loan 3315 | 27 Mar 2019 | HOUANGSANASAY CONSTRUCTION SITE | VIENTIANE CAPITAL LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 1,533,893.01 | 1,217,911.04 |
| HXYA1/NCB/2017 HOUAYXAY RIVERPORT REHABILITATION AND RIVERBANK UPGRADING AND PROTECTION | Loan 3315 | 23 Sep 2019 | MP CONSTRUCTION SOLE CO.,LTD. | VIENTIANE, LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 1,933,083.25 | 1,534,868.10 |
| LUANGNAMTHA WASTEWATER MANAGEMENT | Loan 3315 | 27 Nov 2019 | HOUANGSANASAY CONSTRUCTION SOLE CO. LTD. | XAYSOMBOUN VILLAGE,LUANGNAMTHA DISTRICT LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 1,191,664.54 | 946,181.64 |
| LUANG NAMTHA SOLID WASTE MANAGEMENT | Loan 3315 | 10 Oct 2018 | VSP CONSTRUCTION CO. LTD. | VIENTIANE,LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 1,617,836.00 | 1,284,562.00 |
| NAMTHA RIVER BRIDGE FOR LUANG NAMTHA PROVINCE | Loan 3315 | 27 Sep 2018 | CHAMPAKHAM ROAD-BRIDGE BUILDING CONSTRUCTION | CHAMPAKHAM PROV, LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 2,324,428.00 | 1,845,596.00 |
| HOUAYXAY SOLID WASTE MANAGEMENT | Loan 3315 | 07 Sep 2018 | PHET DEVELOPMENT CONSTRUCTION & BRIDGE, | SYSAVATH VILLAGE,CHANTHABOURY DISTRICT VIENTIANE,LAO PDR LAO PEOPLE'S DEM REP | Ministry of Public Works and Transport | 1,729,042.00 | 1,372,860.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Second Greater Mekong Subregion Corridor Towns Development Project: Procurement Plan | Procurement Plans | May 2022 |