Lao People's Democratic Republic : Fourth Greater Mekong Subregion Corridor Towns Development Project
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
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Project Officer
Thu, Kyaw
Sectors Group
Request for information -
Country/Economy
Lao People's Democratic Republic -
Modality
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Sector
- Water and other urban infrastructure and services
| Project Name | Fourth Greater Mekong Subregion Corridor Towns Development Project | ||||
| Project Number | 50099-003 | ||||
| Country / Economy | Lao People's Democratic Republic |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Grant |
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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 |
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| Sector / Subsector | Water and other urban infrastructure and services / Other urban services - Urban flood protection - Urban sanitation - Urban solid waste management |
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| Gender | 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 20112016, 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 (20162020), 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. |
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| Impact | Balanced regional and local development achieved |
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| Project Outcome | |
|---|---|
| Description of Outcome | Urban services in Paksan and Thakhek improved |
| Progress Toward Outcome | To date, seven (7) major civil works contracts have been awarded. An additional four (4) contracts are expected for award between Q4 2023 to Q2 2024. Due to delays in awarding the main civil works packages and implementing the capacity building activities of the projects due to COVID-19 related restrictions, an extension of the grant closing date for two years has been approved to have sufficient time to complete all project activities. |
| Implementation Progress | |
| Description of Project Outputs | Urban environmental infrastructure improved Institutional effectiveness improved |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Being implemented. The Paksan and Thakhek Stormwater Drainage have been awarded on 29 Nov 2021 and 1 Sep 2022, respectively. As of end June 2023, physical progress for Paksan and Thakhek are 100.00% and 55.92%, respectively.Being implemented. The Paksan DEWATS was awarded on 2 Aug 2023, with initial works ongoing. Thakhek DEWATS was awarded on 29 Nov 2022, with actual construction progress of 23% against the planned 20%.Being implemented. The Paksan DEWATS was awarded on 2 Aug 2023, with initial works ongoing. Thakhek DEWATS was awarded on 29 Nov 2022, with actual construction progress of 23% against the planned 20%.Being implemented. The Paksan and Thakhek Municipal Solid Waste have been awarded on 29 Jan 2021 and 24 Dec 2021, respectively. As of end June 2023, physical progress for Paksan and Thakhek are 99.71% and 53.03%, respectively.Being implemented. The Paksan Riverbank Protection subproject was awarded on 3 Apr 2023, with actual construction progress of 2.47%.The pre-design was completed in Aug 2022. The public consultation meeting and DED presentation to local authorities/people was completed in May 2023. The final BD submission and IFB expected by Q4 2023.Not yet due. Subprojects are still under construction.Being implemented. Project training masterplan has been developed. PIC has supported to conduct 12 on the job training courses for PCU, PIUs, and Contractors. Achieved. PCU has 15 staff, including 8 women (53.3%).Achieved. PIUs have 29 staff, including 15 women (51.7%). Women's representation in Thakhek and Paksan are 53.8% (7/13) and 50.0% (8/16), respectively. Being implemented. The Urban Development Master Plans (UDMP) contract was signed on 11 Nov 2022. The updated inception report was completed and submitted on 28 Mar 2023. Conduct of topographic survey is also ongoing, from Feb 2023 to 30 Jun 2023.Being implemented. The survey for collecting data for tariff roadmap, O&M and CP was conducted in July 2022. Tariff Road Map and Corporate Plan (including for O&M fund) is expected to be submitted in July 2023. Training on Tariff Roadmap also expected to be completed by Jul 2023. |
| Geographical Location | Muang Pakxan, Thakhek |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | A total of 10 (10) IEEs/EMPs for both Paksan and Thakhek reflecting DED have already been submitted, cleared, and disclosed on the ADB website. Thakhek Riverbank Protection was split into two packages (Zone B and Non-Zone B). Preparation of the updated IEE/EMP for the Thakhek Riverbank subproject (Zone B) is ongoing and will be finalized prior commencement of bidding. The IEE/EMP for the Thakhek Urban Renewal Heritage Conservation (TK-CW05) is also pending preparation and submission to ADB. Once cleared the due diligence will be disclosed to the ADB website. The government will oversee EMP implementation with the 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 is in place and will continue to help to facilitate resolution of any unforeseen environment related 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. It is expected that the project sites will experience short-term, localized impacts during construction, which will be site-specific and reversible (such as surface water quality deterioration, noise, dust, traffic, and waste generation), and can be avoided, minimized, or mitigated to an acceptable level with good construction practices and mitigation measures as defined in the EMPs and the corresponding site-specific construction EMPs (CEMPs) to be prepared and implemented by the contractors. |
| Involuntary Resettlement | A total of nine (9) RPs have been finalized and disclosed to date. 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 involve strategic corridor towns development plan (urban master plan and development priorities), disaster risk management, and socioeconomic surveys 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 consultations and participation meetings were also conducted for informing and 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. Safeguards consultations will continue throughout implementation as required per the IEEs, EMPs and RPs, and for any confirmation of final design, project variations and updated safeguards due diligence documents and in case of any major grievances. |
| 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) Shopping5 contracts $420,000 |
| Responsible ADB Officer | Thu, Kyaw |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Water and Urban Development Sector Office (SG-WUD) |
| Executing Agencies |
Ministry of Public Works and Transport |
| Timetable | |
|---|---|
| Concept Clearance | 30 Sep 2016 |
| Fact Finding | 03 Apr 2018 to 10 Apr 2018 |
| MRM | 23 Jul 2018 |
| Approval | 14 Sep 2018 |
| Last Review Mission | - |
| Last PDS Update | 26 Oct 2023 |
Grant 0606-LAO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 Sep 2018 | 16 Oct 2018 | 13 Dec 2018 | 30 Jun 2024 | 30 Jun 2026 | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 54.06 | Cumulative Contract Awards | |||
| ADB | 48.00 | 26 Oct 2023 | 28.00 | 0.00 | 58% |
| Counterpart | 6.06 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 26 Oct 2023 | 12.83 | 0.00 | 27% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | 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.
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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
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ADB to Improve Environmental Services in Two GMS Corridor Towns in Lao PDR
ADB's Board of Directors has approved a $48 million grant to help improve urban environmental services and enhance economic connectivity in two of the least developed towns along the GMS Central Corridor in the Lao PDR.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Paksan DEWATS Units | Grant 0606 | 02 Aug 2023 | Sengmixay Intergrate Sole Co. Ltd. | Anousonexay Village, Paksan District, Bolikhamxay Province | Ministry of Public Works and Transport | 2,896,664.44 | — |
| Paksan Riverbank Protection | Grant 0606 | 03 Apr 2023 | Supthavy Construction Maintenance Complete Sole Co., Ltd. | Nalao Village, Sikhottabong District, Vientiane Capital | Ministry of Public Works and Transport | 3,272,781.18 | — |
| Thakhek DEWATS Units | Grant 0606 | 29 Nov 2022 | Supthavy Construction Maintenance Complete Co., Ltd. | Nalao Village, Sikhottabong District, Vientiane Capital | Ministry of Public Works and Transport | 1,650,083.51 | — |
| Thakhek Stormwater Drainage | Grant 0606 | 01 Sep 2022 | Sengmixay Integrate Sole Co. Ltd. | Anousonexay Village, Paksan District, Bolikhamxay Province | Ministry of Public Works and Transport | 4,415,659.92 | — |
| Thakhek Municipal Solid Waste | Grant 0606 | 24 Dec 2021 | LMX-R8CE-TSC JV | LAO PDR | Ministry of Public Works and Transport | 3,509,239.26 | — |
| PROJECT IMPLEMENTATION CONSULTANT (CS-01) | Grant 0606 | 11 Mar 2019 | ASIAN MANAGEMENT AND DEVELOPMENT INSTITUTE | VIETNAM VIET NAM SOC REP OF | Ministry of Public Works and Transportation(MPWT) | 3,540,137.00 | — |
| INTERNATIONAL SAFEGUARDS SPECIALIST (RESETTLEMENT) | Grant 0606 | 29 Apr 2019 | CHAKRIT DUANGJAI | SAM WA TAWAN TOK KHLONG SAM WA BANGKOK THAILAND | Ministry of Public Works and Transportation(MPWT) | 156,100.00 | — |
| VARIOUS INDIVIDUAL CONSULTANTS. | Grant 0606 | 24 May 2019 | VARIOUS INDIVIDUAL CONSULTANTS | LAO PEOPLE'S DEMOCRATIC REPUBLIC LAO PEOPLE'S DEM REP | Ministry of Public Works and Transportation(MPWT) | 105,000.00 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Fourth Greater Mekong Subregion Corridor Towns Development Project: Procurement Plan | Procurement Plans | Jan 2023 |