fbpx 46443-003: Second Greater Mekong Subregion Corridor Towns Development Project | Asian Development Bank

Lao People's Democratic Republic: Second Greater Mekong Subregion Corridor Towns Development Project

Sovereign (Public) Project | 46443-003 Status: Active

The Second Greater Mekong Subregion (GMS) Corridor Towns Development Project (the project) will support the Government of Lao PDR in enhancing the competitiveness of two towns, Houayxay and Luang Namtha, which are located along the North–South Economic Corridor (NSEC), one of the three main economic corridors in the Greater Mekong Subregion (GMS). The project will result in improved urban services in the two towns through solid waste management improvement, urban roads and drainage upgrades, riverbank protection, river port upgrades, urban renewal, and urban recreation provision. This project is one of three projects in the second phase of GMS Corridor Towns Development Projects, with the other two projects covering Cambodia and Viet Nam.

Project Details

Project Officer
Ressano Garcia, Antonio Southeast Asia Department Request for information
Country
  • 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 Lao People's Democratic Republic
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3315-LAO: Second Greater Mekong Subregion Corridor Towns Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 37.00 million
Loan 8296-LAO: Second Greater Mekong Subregion Corridor Towns Development Project
ASEAN Infrastructure Fund US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
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

Gender Equity and Mainstreaming 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 2012 2022 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, 2011 2015)
Project Outcome
Description of Outcome Improved urban services in Houayxay and Luang Namtha
Progress Toward Outcome The first urban services to be improved will be solid waste management in each of the project towns, and the Namtha river bridge in Luang Namtha.
Implementation Progress
Description of Project Outputs

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

Priority urban infrastructure investments implemented

Status of Implementation Progress (Outputs, Activities, and Issues) Since approval on 13 November 2015 and declaration of effectiveness on 16 March 2016, topographic surveys and geotechnical investigations for most sub-projects have been completed and detailed engineering design is ongoing. Contracts have been awarded for both Luang Namtha and Houayxay solid waste management packages, and Luang Namtha bridge package. Though behind its implementation schedule, the project has picked up since mid-2018.
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 will be 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 will be ensured. In compliance with ADB's information disclosure and consultation requirements, the safeguard documents will be posted on ADB's website. Stakeholder consultations will continue through formal and informal focus group discussions. A grievance redress mechanism will help to facilitate resolution of complaints regarding project performance. The resettlement plan will be updated and disclosed after detailed design and cleared by ADB prior to contract awards.

Business Opportunities
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 Ressano Garcia, Antonio
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Ministry of Public Works and Transport
Dept of Housing and Urban Planning, Lao
PDR, Lane-Xang Ave., Vientiane Lao PDR
P.O. Box 206
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 28 Sep 2018

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 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 42.00 Cumulative Contract Awards
ADB 37.00 13 Nov 2015 22.02 0.00 60%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 13 Nov 2015 5.88 0.00 16%

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 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 0.00 13 Nov 2015 0.00 5.67 57%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 10.00 13 Nov 2015 0.00 1.47 15%

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.

Title Document Type Document Date
Second Greater Mekong Subregion Corridor Towns Development Project: LNTA4 – Luang Namtha Wastewater Management Land Acquisition and Compensation Plan Resettlement Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: HXYB3 – Houayxay Wastewater Management Land Acquisition and Compensation Plan Resettlement Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: Luang Namtha Initial Environmental Examination Initial Environmental Examination May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: LNTA4 - Luang Namtha Wastewater Management Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: Houayxay Initial Environmental Examination Initial Environmental Examination May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: HXYB1 - Houayxay Urban Roads and Drainage Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: LNTB1 - Luang Namtha Solid Waste Management Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: LNT A2 - Luang Namtha River Bridge Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: HXYB2 - Houayxay Solid Waste Management Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: HXYA2 - Houayxay Ecological Park and Recreation Area Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: HXYB3 - Houayxay Wastewater Management Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: HXYA1 - River Port Rehabilitation and Riverbank Upgrading and Protection Houayxay Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: LNTA3 - Luang Namtha Urban Recreation Facilities Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: LNT A1 – Luang Namtha Urban Village Upgrading, Urban Roads and Drainage Environmental Management Plan Environmental Management Plans May 2019
Second Greater Mekong Subregion Corridor Towns Development Project: LNT A1 – Luang Namtha Urban Village Upgrading, Urban Roads and Drainage Land Acquisition and Compensation Plan Resettlement Plans Nov 2018
Second Greater Mekong Subregion Corridor Towns Development Project: LNT A3 - Luang Namtha Urban Recreation Facilities Subproject Land Acquisition and Compensation Plan Resettlement Plans Oct 2018
Second Greater Mekong Subregion Corridor Towns Development Project: HXY A1 - Houayxay River Port Rehabilitation and Riverbank Upgrading and Protection Subproject Land Acquisition and Compensation Plan Resettlement Plans Oct 2018
Second Greater Mekong Subregion Corridor Towns Development Project: HXY B1 - Houayxay Urban Roads and Drainage Subproject Land Acquisition and Compensation Plan Resettlement Plans Oct 2018
Second Greater Mekong Subregion Corridor Towns Development Project: LNT B1 - Solid Waste Management Subproject Land Acquisition and Compensation Plan Resettlement Plans Sep 2018
Second Greater Mekong Subregion Corridor Towns Development Project: LNT A2 – Namtha River Bridge Subproject Land Acquisition and Compensation Plan Resettlement Plans Sep 2018
Second Greater Mekong Subregion Corridor Towns Development Project: Houayxai Solid Waste Management Subproject Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2018
Second GMS Corridor Towns Development Project (Lao PDR): Safeguards Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Oct 2016
Lao PDR - Second GMS Corridor Towns Development Project, Houayxay and Luang Namtha Towns: Combined Initial Environmental Examination (August 2015) and Environmental Management Plans (June 2015) Initial Environmental Examination Aug 2015
Second GMS Corridor Towns Development Project: Houayxay Subproject Resettlement Plan Resettlement Plans Jun 2015
Second GMS Corridor Towns Development Project: Luang Namtha Subproject Resettlement Plan Resettlement Plans Jun 2015

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 3315/8296-LAO: The Second Greater Mekong Subregion Corridor Towns Development Project [ICB-HXYB1] Invitation for Bids Closed 16 May 2018 27 Jun 2018
1. International Resettlement and Compensation Specialist Individual - Consulting Closed 14 Oct 2017 20 Oct 2017
National Social Safeguards Specialist Individual - Consulting Closed 14 Oct 2017 20 Oct 2017
National Resettlement and Compensation Specialist Individual - Consulting Closed 13 Oct 2017 19 Oct 2017
Asset Registration and Compensation Support Consultant Individual - Consulting Closed 13 Oct 2017 19 Oct 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
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 CONSTRUCTION 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 CONSTRUCTION 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 CONSTRUCTION 1,729,042.00 1,372,860.00