50099-003: Fourth Greater Mekong Subregion Corridor Towns Development Project | Asian Development Bank

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

Sovereign (Public) Project | 50099-003 Status: Approved

The project will support the government of the Lao PDR in improving urban environmental services and enhance regional economic connectivity in the towns of Paksan and Thakhek, two towns located along the North-South Economic Corridor in the Greater Mekong Subregion (GMS). It will finance: (i) sewage networks and eight small-scale wastewater treatment facilities to improve sanitation; (ii) two controlled landfills and solid waste collection vehicles for municipal waste to improve waste collection and management, (iii) improved drainage and riverbank protection, (iv) rehabilitation of the old-town center to promote regional tourism in Thakhek, and; (v) city master plans to promote regional economic connectivity. The project will accelerate urban node development along the GMS North-South Economic Corridor in Lao PDR.

Project Details

Project Officer
Vemuri, Sasank Southeast Asia Department Request for information
Country
  • Lao People's Democratic Republic
Modality
  • Grant
Sector
  • Water and other urban infrastructure and services
 
Project Name Fourth Greater Mekong Subregion Corridor Towns Development Project
Project Number 50099-003
Country Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0606-LAO: Fourth Greater Mekong Subregion Corridor Towns Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 48.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will support the government of the Lao PDR in improving urban environmental services and enhance regional economic connectivity in the towns of Paksan and Thakhek, two towns located along the North-South Economic Corridor in the Greater Mekong Subregion (GMS). It will finance: (i) sewage networks and eight small-scale wastewater treatment facilities to improve sanitation; (ii) two controlled landfills and solid waste collection vehicles for municipal waste to improve waste collection and management, (iii) improved drainage and riverbank protection, (iv) rehabilitation of the old-town center to promote regional tourism in Thakhek, and; (v) city master plans to promote regional economic connectivity. The project will accelerate urban node development along the GMS North-South Economic Corridor in Lao PDR.
Project Rationale and Linkage to Country/Regional Strategy

Macroeconomic context. The Lao PDR has had a strong track record in sustaining a high level of economic growth. During 2011 2016, the average gross domestic product (GDP) rate was 7.5% and was the per capita GDP was $2,027 in 2016. Despite the high rate of recent growth, 23.2% of Lao citizens live below the official poverty line. According to Laos' Five-Year National Socio-Economic Development Plan (2016 2020), a significant outstanding issue from the previous five-year plan is a lack of inclusive socio-economic development and environmental protection. The current plan highlights the need to address challenges pertaining to rapid urbanization, such as waste management, traffic safety, migration and other socio-economic issues. A key strategy priority of the Government of is the objective to promote economic diversification, profound structural change and enhance competitiveness.

Project in a regional context. ADB assistance will build on its long-standing institutional support for the Greater Mekong Subregion (GMS) Economic Cooperation Program. Urban development in the GMS focuses on economic corridor development and spatial and urban systems as part of spatial planning on a regional basis that links urban areas. Bolikhamxay Province and Khammoune Province are Lao PDR's gateways between the regional economies of Thailand and Viet Nam, and Paksan and Thakhek specifically are situated on the GMS North-South Economic Corridor, along the routes which link Vientiane with its closest seaport, Vung Anh in Viet Nam, and with the other regional capital city Ha Noi. The GMS Program's near and medium project pipeline, the GMS Regional Investment Framework 2022, includes projects in the roads and bridges, rail, inland waterways, and tourism sectors which also have linkage with these projects in Paksan and Thakhek. This includes the planned Vientiane-Ha Noi Expressway, Mekong Bridge at Bunkan-Paksan, Port Construction and Improvement (in Vientiane, Paksan, Thakhek, and Savannakhet), and the recently endorsed expansion of the GMS Economic Corridors. ADB will generate synergies among its operations and complement other development partner assistance.

Impact Balanced regional and local development achieved
Project Outcome
Description of Outcome Urban services in Paksan and Thakhek improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Urban environmental infrastructure improved

Institutional effectiveness improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Muang Pakxan, Thakhek
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Two initial environmental examination reports (IEEs) and two environmental management plans (EMPs), one per town, have been prepared based on preliminary designs. The IEEs and EMPs were disclosed on the ADB website on 5 July 2018. Ministry of Natural Resources and Environment approval will be obtained prior to awarding civil works contracts. The EMPs define mitigation and monitoring measures for identified impacts, institutional arrangements and budget for implementation. The government will oversee EMP implementation with support of consulting services. Baseline and periodic environmental monitoring of environmental receptors have been included in the costs. Public and stakeholder consultations informed project design and will continue during implementation. A grievance redress mechanism will help to facilitate resolution of complaints regarding project performance.

All project sites have been selected to avoid impacts on sensitive environmental receptors. The construction of wastewater treatment plants and controlled landfills and closure of existing dumpsites, improved drainage, flood protection and improved amenity facilities will have significant environmental and health benefits. During construction there will be short-term, localized impacts such as surface water quality deterioration, noise, dust, traffic, and waste generation. During operation, key risks are effluent and leachate management. All discharges will be treated to the required national standards and will be closely monitored. Construction and operational environmental impacts and risks can be prevented or minimized to an acceptable degree through effective implementation of the EMP and capacity building.

Involuntary Resettlement A resettlement plan (RP) has been prepared for each town following consultations with affected households. The RPs will be uploaded onto the ADB website and will be updated at the detailed design stage. An external monitor has been allocated to monitor implementation. The RPs also set out the grievance redress mechanism and institutional mechanisms for the implementation of the RPs. In total, 507 HHs (219 HHs in Pakxan and 288 HHs in Thakhek) will be affected, however, the impacts to the majority of HHs (468 HHs) will be minor. 39 HHs are identified as severely affected, either needing relocation (24 HHs from the riverbank and 6 HHs from the solid waste facility component) or losing more than 10% of their income due to land acquisition (9 HHs). A total of 39,718 square meters (m2) of residential land (12,213 m2 in Pakxan and 27,505 m2 in Thakhek) and 107,339 m2 of agriculture land (50,348 m2 in Pakxan and 56,955 m2 in Thakhek) will be acquired by the project from 219 HHs in Pakxan and 288 HHs in Thakhek. Upon completion of detailed engineering design, a rapid evaluation shall be conducted to confirm categorization and, should the project severely affect 200 people, rendering the project as a category A, a comprehensive social impact assessment will be conducted to further develop the resettlement plan.
Indigenous Peoples The Lao PDR encompasses multiple ethnic groups, but the subprojects do not cause any adverse impacts on their identity, social customs, culture, or areas of spiritual importance or interfere with their socio-cultural beliefs and livelihood systems.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation activities under the project involves with strategic corridor towns development plan (urban master plan and development priorities), disaster risk management and socioeconomic survey for project design. Particularly for gender aspect, women's priorities for the project, based on extensive consultations, include reduced local flooding, improved urban services, and affordable urban services. The safeguards consultation and participation meeting also conducted for finalizing the IEE and RPs.
During Project Implementation Communities will be informed of project benefits and responsibilities through public awareness campaigns. The project will cooperate with the Lao Women Union to ensure women's participation and benefits. Empowerment of poor and vulnerable people will be strengthened through enhanced security of employment measures.
Business Opportunities
Consulting Services

PISCB consultants (QCBS, 90:10, full technical proposal)*

*ADB funded consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

341 person-months

$ 3.66 million

Procurement

Procurement:

International competitive bidding

9 contracts

$ 43.16 million

All procurement under the ADB grant will be in accordance with ADB's Procurement Guidelines (2015, as amended from time to time)

Shopping 5 contracts $420,000

Responsible ADB Officer Vemuri, Sasank
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Ministry of Public Works and Transport
4th Floor Eastern Building
Corner Norodom Boulevard Street 106
Phnom Penh, Cambodia
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 30 Sep 2016
Fact Finding 03 Apr 2018 to 10 Apr 2018
MRM 23 Jul 2018
Approval 14 Sep 2018
Last Review Mission -
Last PDS Update 14 Sep 2018

Grant 0606-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Sep 2018 16 Oct 2018 - 30 Jun 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 54.06 Cumulative Contract Awards
ADB 48.00 14 Sep 2018 0.00 0.00 0%
Counterpart 6.06 Cumulative Disbursements
Cofinancing 0.00 14 Sep 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.

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 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
Project Implementation Consultants Firm - Consulting Closed 29 Jun 2018 28 Jul 2018

Contracts Awarded

No contracts awarded for this project were found