Lao People's Democratic Republic: Flood and Drought Mitigation and Management Project

Sovereign (Public) Project | 53368-001

The Project will assist the Lao Peoples Democratic Republic to implement its National Water Management Strategy and Action Plan 2030 in the three central provinces of Bolikhamxai, Khammouan, and Vientiane Capital. Extreme flooding in wet seasons and extreme droughts in dry seasons are taking place within the same year and areas, making it urgent to tackle them simultaneously in order to increase water supply for crop diversification and to ultimately improve nutrition. The Project has four outputs: (i) Flood water harnessed, and damages reduced, (ii) water reliability during droughts reduced, (iii) agro-meteorological systems modernized, and (iv) nutrition awareness and facilities improved. The project will support post COVID-19 economic recovery and rural resilience by (i) generating rural employment through construction; (ii) increasing incomes through the reduction of flood damages and losses and diversification into high value crops; and (iii) investing in better diets and sanitation.

Project Details

  • Project Officer
    Sadeghi, Niloofar
    Southeast Asia Department
    Request for information
  • Country
    Lao People's Democratic Republic
  • Sector
    • Agriculture, natural resources and rural development
Project Name Flood and Drought Mitigation and Management Project
Project Number 53368-001
Country Lao People's Democratic Republic
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Flood and Drought Water Management Project
concessional ordinary capital resources lending / Asian Development Fund US$ 1.50 million
Loan: Water Management Project
concessional ordinary capital resources lending / Asian Development Fund US$ 30.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Sector / Subsector

Agriculture, natural resources and rural development / Irrigation - Rural flood protection - Rural sanitation - Rural water supply services - Water-based natural resources management

Gender Equity and Mainstreaming Gender equity
Description The Project will assist the Lao Peoples Democratic Republic to implement its National Water Management Strategy and Action Plan 2030 in the three central provinces of Bolikhamxai, Khammouan, and Vientiane Capital. Extreme flooding in wet seasons and extreme droughts in dry seasons are taking place within the same year and areas, making it urgent to tackle them simultaneously in order to increase water supply for crop diversification and to ultimately improve nutrition. The Project has four outputs: (i) Flood water harnessed, and damages reduced, (ii) water reliability during droughts reduced, (iii) agro-meteorological systems modernized, and (iv) nutrition awareness and facilities improved. The project will support post COVID-19 economic recovery and rural resilience by (i) generating rural employment through construction; (ii) increasing incomes through the reduction of flood damages and losses and diversification into high value crops; and (iii) investing in better diets and sanitation.
Project Rationale and Linkage to Country/Regional Strategy

Lao PDR is highly vulnerable to extreme weather events with annual expected losses ranging from 2.8% to 3.6% of the GDP. Projected increases in the incidence of extreme heat during the growing season of staple crops, such as rice, are expected to cause reductions in yields, particularly for poorer communities operating subsistence and rain-fed agriculture. Impacts of floods and droughts are further exacerbated by human activities including conversion of land use from natural conditions. Losses due to floods and droughts were highest in Vientiane Capital and Khammouan provinces during the 2018 flooding season. Flood-plain irrigations adjacent to rivers face additional risks from flooding due to the poorly regulated operations of hydro-power reservoirs. The Bolikhamxai province uplands use gravity-fed irrigation, and although command areas are smaller, they play an important role in local food security and economic growth, especially among ethnic communities. In all three provinces, the frequency of inundation constrains agriculture development through repeated damages to productive rural infrastructure, crop losses, and limited market chain development. The agrometeorological information systems are unable to produce adequate and timely data for modelling impacts and forecasting extreme weather events. Moreover, floods and droughts limit production and nutritional variety leaving many young rural people stunted due to poor dietary options which is exacerbated by lack of awareness. Malnutrition is estimated to cost the country about 2.4% of its GDP annually.

The project will contribute to four operational priorities of ADB Strategy 2030: addressing remaining poverty and reducing inequalities; accelerating progress in gender equality; tackling climate change, building climate and disaster resilience, enhancing environmental sustainability; and promoting rural development and food security. It is also aligned with ADB Country Partnership Strategy, 2017-2020 and is included in the Country Operations Business Plan for Lao PDR, 2020-2022.

Impact Financial and economic losses from floods and droughts reduced and dietary diversity enhanced.
Outcome Climate resilience and livelihoods of agricultural communities improved.
Outputs

Flood water harnessed and damages reduced

Water reliability during droughts improved

Agrometeorological information systems modernized

Nutrition awareness and facilities improved

Geographical Location Nation-wide, Bolikhamsai, Khammouan, Vientiane
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
Responsible ADB Officer Sadeghi, Niloofar
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Agriculture and Forestry (MAF)
Patuxay Monument Naxay Village, Xaysatha District, Vientiane Capital, Lao PDR
Timetable
Concept Clearance 19 Oct 2020
Fact Finding 09 Dec 2022 to 16 Dec 2022
MRM 10 Jan 2023
Approval -
Last Review Mission -
Last PDS Update 20 Oct 2020

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