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
Southeast Asia Department
Request for information -
Country/Economy
Lao People's Democratic Republic -
Modality
-
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 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 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, five (5) major civil works contracts have been awarded. An additional six (6) contracts are expected for award between Q1-Q4 2023. Due to delays in awarding the main civil works packages, as well as implementing the capacity building activities of the projects that have been exacerbated due to COVID-19 related restrictions for the past two years, 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) | Contracts for (a) Paksan Municipal Solid Waste, (b) Thakhek Municipal Solid Waste, (c) Paksan Stormwater Drainage, (d) Thakhek Stormwater Drainage, and (e) Thakhek DEWATS have been awarded. Preparation of the bid evaluation report is ongoing the for Paksan Riverbank Protection and Paksan DEWATS subprojects, targeted for contract award in Q1 2023. Thakhek Riverbank Protection and Thakhek Urban Heritage subprojects are planned for bidding in Q1 and Q2 2023, respectively. |
| 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 seven (7) IEEs/EMPs for both Paksan and Thakhek reflecting DED have already been submitted, cleared, and disclosed on the ADB website. The IEE/EMP for the Thakhek Riverbank Protection (RB-CW04/Lot 2) was initially cleared by ADB on 17 February 2022 but was put on hold for disclosure given discussions ongoing by the project team on some potential design changes. Splitting the package into two (2) packages was proposed. A revised draft consolidated IEE with two (2) separate EMPs for the Thakhek Riverbank Protection was submitted to ADB for review. 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 eight (8) 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 $420,000 |
| Responsible ADB Officer | Thu, Kyaw |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Urban Development and Water Division, SERD |
| Executing Agencies |
Ministry of Public Works and Transport |
| Timetable | |
|---|---|
| Concept Clearance | 30 Sep 2016 |
| Fact Finding | 03 Apr 2018 to 10 Apr 2018 |
| MRM | 23 Jul 2018 |
| Approval | 14 Sep 2018 |
| Last Review Mission | - |
| Last PDS Update | 25 Jan 2023 |
Grant 0606-LAO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 Sep 2018 | 16 Oct 2018 | 13 Dec 2018 | 30 Jun 2024 | 30 Jun 2026 | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 54.06 | Cumulative Contract Awards | |||
| ADB | 48.00 | 25 Jan 2023 | 20.87 | 0.00 | 43% |
| Counterpart | 6.06 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 25 Jan 2023 | 8.56 | 0.00 | 18% |
| 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$) |
|---|---|---|---|---|---|---|
| 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 |