49387-002: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project | Asian Development Bank

Regional: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project

Sovereign (Public) Project | 49387-002 Status: Approved

The project will help transform secondary GMS central and southern corridor towns into economically inclusive, competitive tourism destinations by improving transport infrastructure, urban environmental services, and capacity to sustainably manage tourism growth. It will boost trade in services and deepen regional cooperation and integration in the GMS and Association of Southeast Asian Nations (ASEAN). About 97,000 residents are expected to directly benefit from climate-resilient infrastructure development and increased access to economic opportunities. Project investments are prioritized in the ASEAN Tourism Strategic Plan 2015 2025, GMS Tourism Sector Strategy 2016 2025, and national tourism strategies

 
Project Name Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Project Number 49387-002
Country Regional
Cambodia
Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0599-REG: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
concessional ordinary capital resources lending / Asian Development Fund US$ 47.00 million
Loan 3701-REG: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
concessional ordinary capital resources lending / Asian Development Fund US$ 30.00 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

Industry and trade / Small and medium enterprise development

Transport / Road transport (non-urban) - Urban roads and traffic management - Water transport (non-urban)

Water and other urban infrastructure and services / Urban flood protection - Urban solid waste management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will help transform secondary GMS central and southern corridor towns into economically inclusive, competitive tourism destinations by improving transport infrastructure, urban environmental services, and capacity to sustainably manage tourism growth. It will boost trade in services and deepen regional cooperation and integration in the GMS and Association of Southeast Asian Nations (ASEAN). About 97,000 residents are expected to directly benefit from climate-resilient infrastructure development and increased access to economic opportunities. Project investments are prioritized in the ASEAN Tourism Strategic Plan 2015 2025, GMS Tourism Sector Strategy 2016 2025, and national tourism strategies
Project Rationale and Linkage to Country/Regional Strategy

Cambodia and the Lao PDR actively promote tourism because it produces substantial national income, local employment, private investment and trade in services. Tourism directly contributes 12.4% to Cambodia's gross domestic product (GDP) and 4.6% to Lao PDR's GDP, generating 70% 78% of service exports and $1.1 billion annual investment. There are about 1.1 million tourism workers in the two countries. Most are women employed by small and medium-sized enterprises (SMEs). Tourist visa on arrival is permitted for 180 countries and 15-day tourist visa exemptions granted to ASEAN citizens. Government efforts to upgrade gateway airports, transnational railways and highways, and secondary roads to facilitate travel and tourism are supported by the Asian Development Bank (ADB) and other development partners. ASEAN and GMS policies to liberalize aviation services and ease cross-border vehicle movements complement physical infrastructure investments.

Even with these strengths and opportunities Cambodia and the Lao PDR rank low in the World Travel & Tourism Competitiveness Index, mainly because secondary destinations lack modern transport infrastructure and quality urban environmental services. Other underlying constraints are inadequate tourism planning, low service standards, and a weak business enabling environment. Consequently, in 2016 the two countries received only 8% of ASEAN's total tourist arrivals. In the same year Cambodia's international tourist arrival growth decelerated to 5%, about half the medium-term rate, and Lao PDR's arrivals fell 9.5% compared to 2015. Fewer visitors and lower spending because of poor sanitation and hygiene reduces economic benefits by about $90 million per year. Average expenditure per visitor in Cambodia ($641) and the Lao PDR ($171) is far below Asia and the Pacific's benchmark $1,500. Imbalances within the countries is also a problem. About half of international tourist arrivals and corresponding visitor expenditure, destination investment, and direct tourism employment accrue to just 3 cities: Phnom Penh, Siem Reap, and Vientiane Capital.

The GMS central and southern corridors are vulnerable to climate change, particularly increasingly severe weather events in Cambodia's coastal zone and flooding in Lao PDR's Mekong and Nam Xong River valleys. Climate vulnerability and risk are exacerbated by limited country capacity to integrate adaptation and mitigation solutions. Countering climate change requires finance and knowledge to retrofit and construct climate-resilient infrastructure and better prepare for natural disasters. Resource-efficiency certification programs, including the ASEAN green hotel standard, and public awareness campaigns to promote lower-carbon travel, emissions offsets, and environmentally-friendly tourism services are also needed.

To help address these constraints the project builds on the ongoing GMS Tourism Infrastructure for Inclusive Growth Project by strategically financing climate-resilient road, water transport, and urban infrastructure in areas with comparative tourism advantages. Priority investments include (i) road improvements to decongest urban areas and link secondary towns with nearby tourist attractions; (ii) coastal and river passenger ports to increase handling capacity and provide private operators with the facilities needed to expand water transport and recreation services; (iii) storm water drains and riverbank protection in flood-prone areas; and (iv) modern solid waste and septic management systems with expanded collection services, materials recovery, and hygienic disposal facilities

Impact Sustainable, inclusive, and more balanced tourism development achieved.
Project Outcome
Description of Outcome Tourism competitiveness of secondary towns in Cambodia and the Lao PDR increased.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Output 1. Urban-rural access infrastructure and urban environmental services improved.

Output2. Capacity to implement ASEAN tourism standards strengthened.

Output 3. Institutional capacity for tourism destination management and infrastructure O&M strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Cambodia - Nation-wide; Lao People's Democratic Republic - Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The safeguards categorization for environment is B. IEEs and EMPs for each infrastructure subprojects have been prepared in compliance with the Governments' regulatory requirements and ADB's Safeguards Policy Statement (SPS, 2009).
Involuntary Resettlement The safeguards categorization for involuntary resettlement is B. Potential land acquisition impacts were assessed in accordance with ADB''s SPS (2009). Resettlement Plans have been prepared for Preah Sihanouk province, Cambodia; and Vientiane province, Lao PDR following ADB's SPS (2009) and were endorsed by the respective Governments. Project information was disclosed to all affected persons during project preparation. The Resettlement Plans will be updated based on detailed engineering designs.
Indigenous Peoples The safeguards categorization for indigenous peoples is B. There will be positive impacts on the livelihoods of any indigenous people living within proposed project areas. Negative impacts are not expected. The Indigenous People's Plan was prepared based on meaningful consultation with all ethnic groups living in project areas, and in compliance with ADB's SPS (2009) and endorsed by the Government. The plan will be updated based on detailed engineering designs.
Stakeholder Communication, Participation, and Consultation
During Project Design

The main stakeholders are: (i) urban and rural residents living in/near secondary towns in the GMS economic corridors, including ethnic groups and women; (ii) owners and operators of tourism-related enterprises, and; (iii) public agencies responsible for tourism, urban environmental management, and urban-rural transportation networks. A series of national and site-specific workshops including women, men, ethnic groups, youth and the elderly will be conducted in each country to gain the views of project stakeholders on project scope, implementation arrangements, community participation and grievance redress mechanisms, and other social, environmental and economic aspects of the project.

Representatives of nongovernment organizations, civil society, mass organizations, community-based organizations, and private sector associations will participate in workshops and focus group discussions to formulate the project's participation plan and stakeholder communication strategy. Household surveys and focus groups discussions with key stakeholders will establish baseline conditions and provide opportunities for stakeholders to provide inputs into the design of infrastructure and capacity building programs.

The project information was shared with civil society organizations active in tourism and urban development in CLMV, including several international nongovernment organizations, non-profit associations, tourism industry associations, and foundations that provide skills training for the urban and rural poor, and support women's and child protection.

During Project Implementation
Business Opportunities
Procurement Procurement and consultant recruitment will follow ADB's Procurement Policy and Procurement Regulations for ADB Borrowers (2017) and government regulations acceptable to ADB.
Responsible ADB Officer Schipani, Steven M.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Ministry of Economy and Finance
[email protected]
Street 92, Sangkat Wat Phnom
Khan Daun Penh, Phnom Penh City
Cambodia
Ministry of Tourism
Lot 3A, St. 169, Sangkat Vealong, Khan 7 Makara,
Phnom Penh
Cambodia
Timetable
Concept Clearance 14 Mar 2016
Fact Finding 09 Jan 2018 to 19 Jan 2018
MRM 20 Apr 2018
Approval 31 Aug 2018
Last Review Mission -
Last PDS Update 31 Aug 2018

Grant 0599-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2018 16 Oct 2018 - 30 Jun 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 49.69 Cumulative Contract Awards
ADB 47.00 31 Aug 2018 0.00 0.00 0%
Counterpart 2.69 Cumulative Disbursements
Cofinancing 0.00 31 Aug 2018 0.00 0.00 0%

Loan 3701-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2018 24 Oct 2018 - 30 Jun 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 30.00 31 Aug 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 31 Aug 2018 0.00 0.00 0%

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.

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
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3701-CAM: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project Loan Agreement (Ordinary Resources) Oct 2018
Grant Agreement (Special Operations) for Grant 0599-LAO: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project Grant Agreement Oct 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Gender Action Plan Gender Action Plans Aug 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Report and Recommendation of the President Reports and Recommendations of the President Aug 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Cambodia Project Administration Manual Project/Program Administration Manual May 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Cambodia Procurement Plan Procurement Plans May 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Lao People's Democratic Republic Procurement Plan Procurement Plans May 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Lao People's Democratic Republic Project Administration Manual Project/Program Administration Manual May 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Concept Paper Concept Papers Mar 2016
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Mar 2016

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
Greater Mekong Sub Region Tourism Infrastructure for Inclusive Growth Project - Luang Prabang, Oudomxay, and Khammouane Provinces, Lao PDR: Safeguards Monitoring Report (1 June - 31 December 2017) Social Monitoring Reports Jul 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Vientiane Province Resettlement Plan Resettlement Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project - Champasak Province: Environmental Management Plan Environmental Management Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project - Vientiane Province: Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project - Preah Sihanouk Subprojects: Environmental Management Plan Environmental Management Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Champasak and Vientiane Provinces, Lao PDR Initial Environmental Examination Initial Environmental Examination Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Resettlement Due Diligence Report Safeguards Due Diligence Reports Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project - Kep Subproject: Environmental Management Plan Environmental Management Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Kep and Preah Sihanouk, Cambodia Initial Environmental Examination Initial Environmental Examination Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project - Vientiane Province: Environmental Management Plan Environmental Management Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Kep and Preah Sihanouk, Cambodia Updated Initial Environmental Examination Initial Environmental Examination Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project - Vientiane Province: Updated Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Preah Sihanouk Province Resettlement Plan Resettlement Plans Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Champasak and Vientiane Provinces Updated Initial Environmental Examination Initial Environmental Examination Jan 2018
Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project: Vientiane Province Updated Resettlement Plan Resettlement Plans Jan 2018

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) 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
National Financial Management Specialist Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
National Gender Specialist Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
National Procurement Specialist Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
National Tourism Specialist / Deputy Team Leader Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
National Tourism Standards Specialist Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
International Tourism Specialist/Co-Team Leader Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
National Monitoring and Evaluation Specialist Individual - Consulting Closed 20 Nov 2018 29 Nov 2018
National Financial Management and Procurement Specialist Individual - Consulting Closed 15 Nov 2018 28 Nov 2018
National Tourism Specialist / Deputy Team Leader Individual - Consulting Closed 15 Nov 2018 28 Nov 2018
International Financial Management and Procurement Specialist Individual - Consulting Closed 15 Nov 2018 28 Nov 2018
International Tourism Specialist / Co-Team Leader Individual - Consulting Closed 15 Nov 2018 28 Nov 2018
Project Management and Civil Engineering Support (PMCES) Firm - Consulting Closed 28 Aug 2018 26 Sep 2018
Project Management and Civil Engineering Support (PCMES) Firm - Consulting Closed 30 Jul 2018 29 Aug 2018

Contracts Awarded

No contracts awarded for this project were found