Lao People's Democratic Republic : Urban Environment Improvement Investment Project
The proposed project will support sustainable, inclusive, and resilient urban development in Luang Prabang, a city in the Greater Mekong Subregion (GMS) north-south economic corridor affected by environmental degradation, climate change, disasters, and diminishing livability. Multisector project investments will (i) improve the quality and coverage of urban infrastructure and services, (ii) strengthen institutions and capacity to foster climate and disaster resilient development pathways, (iii) promote inclusive and gender-responsive urban planning, and (iv) enhance women's leadership and economic empowerment. The project is expected to benefit 104,500 residents and 1.3 million annual visitors by 2031.
Project Details
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Project Officer
Schipani, Steven M.
Sectors Group
Request for information -
Country/Economy
Lao People's Democratic Republic -
Sector
- Water and other urban infrastructure and services
| Project Name | Urban Environment Improvement Investment Project | ||||||||
| Project Number | 53203-001 | ||||||||
| Country / Economy | Lao People's Democratic Republic |
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| Project Status | Proposed | ||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP4: Making cities more livable OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development - Urban sanitation |
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| Gender | Gender equity theme | ||||||||
| Description | The proposed project will support sustainable, inclusive, and resilient urban development in Luang Prabang, a city in the Greater Mekong Subregion (GMS) north-south economic corridor affected by environmental degradation, climate change, disasters, and diminishing livability. Multisector project investments will (i) improve the quality and coverage of urban infrastructure and services, (ii) strengthen institutions and capacity to foster climate and disaster resilient development pathways, (iii) promote inclusive and gender-responsive urban planning, and (iv) enhance women's leadership and economic empowerment. The project is expected to benefit 104,500 residents and 1.3 million annual visitors by 2031. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Economic growth in the Lao PDR averaged nearly 7.0% per year from 1990 to 2020, driven by capital intensive hydropower, mining, and transport investments that did not support significant formal job creation. Border closures and restricted movement of people and goods due to the coronavirus disease pandemic caused gross domestic product (GDP) to contract by 0.5% in 2020, exacerbating high external public debt and inflation. Other disasters reduce GDP by up to 2% per year. While GDP growth expanded by 2.3% in 2021 and 2.5% in 2022 after borders reopened and the Lao-Peoples Republic of China (PRC) railway started operations, precarious public debt continues to hold back public investment. The removal of travel and transport restrictions helped international tourist arrivals rebound from zero in 2021 to 1.3 million in 2022 and boosted domestic trips by 76% to 1.4 million over the same period. Tourism and other primarily urban-based services comprise 38.8% of GDP and are among the few sectors creating economic diversification opportunities and jobs that can absorb Lao PDR's surplus agricultural workforce. Sustainable urbanization is crucial to accelerate economic development and drive structural transformation. | ||||||||
| Impact | Quality of life and sustainability of Luang Prabang City improved |
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| Outcome | Urban development in Luang Prabang is sustainable, resilient, and inclusive. |
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| Outputs | Urban infrastructure improved Enabling environment for inclusive and resilient urban and tourism services strengthened. Women's leadership and employment enhanced. |
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| Geographical Location | Nation-wide, Luang Prabang, Pakse, Savannakhet | ||||||||
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
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| Consulting Services | A consulting firm (the consultant) will be recruited to provide project management and implementation support |
| Procurement | Procurement activities include (i) works and goods packages to deliver Output 1 subprojects, (ii) goods packages to support Output 2 urban master planning and integrated solid waste management capacity building, (iii) goods packages for vehicles and office equipment and software to facilitate project implementation; and (v) consulting services to support the EA and IA with Output 1, 2 and 3 implementation, project management, and external audits. |
| Responsible ADB Officer | Schipani, Steven M. |
| 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 | 11 Nov 2020 |
| Fact Finding | 19 Jun 2023 to 23 Jun 2023 |
| MRM | 23 Aug 2023 |
| Approval | - |
| Last Review Mission | - |
| Last PDS Update | 18 Nov 2020 |
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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| Title | Document Type | Document Date |
|---|---|---|
| Urban Environment Improvement Investment Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Oct 2020 |
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 |
|---|---|---|
| Urban Environment Improvement Investment Project: Initial Environmental Examination and Environmental Management Plan | Initial Environmental Examination | Jul 2023 |
| Urban Environment Improvement Investment Project: Resettlement and Ethnic Groups Development Plan | Combined Resettlement Plan and Indigenous Peoples Plans | Jul 2023 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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Tenders
Contracts Awarded
Procurement Plan
None currently available.