Lao People's Democratic Republic : Urban Environment Improvement Investment Project

Sovereign Project | 53203-001

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

  • 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
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0930-LAO: Urban Environment Improvement Investment Project
Asian Development Fund US$ 10.00 million
Loan 4425-LAO: Urban Environment Improvement Investment Program
Concessional ordinary capital resources lending US$ 35.00 million
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
Sector / Subsector

Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development - Urban sanitation

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

Project Outcome
Description of Outcome

Urban development in Luang Prabang is sustainable, resilient, and inclusive

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Urban infrastructure improved

Enabling environment for inclusive and resilient urban and tourism services strengthened

Women's leadership and employment enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Luang Prabang, Pakse, Savannakhet
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
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 Outputs 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 22 Aug 2023
Approval 07 Dec 2023
Last Review Mission -
Last PDS Update 11 Dec 2023

Grant 0930-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2023 24 Jan 2024 22 Mar 2024 31 Dec 2030 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 26 Apr 2024 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Apr 2024 0.00 0.00 0%

Loan 4425-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2023 24 Jan 2024 22 Mar 2024 31 Dec 2030 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 35.00 Cumulative Contract Awards
ADB 35.00 26 Apr 2024 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Apr 2024 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.

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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

None currently available.


The Access to Information Policy (AIP) 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
53203-001-LAO: Urban Environment Improvement Investment Project Advance Notice Active
Project Management and Implementation Support Consultant Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Urban Environment Improvement Investment Project: Procurement Plan Procurement Plans Oct 2023