Lao People’s Democratic Republic...Greater Mekong Subregion East–West Economic Corridor Agriculture Infrastructure Sector Project (RRP LAO 44138) 10 9 Project Number: 44138 Loan

Greater Mekong Subregion East–West Economic Corridor Agriculture Infrastructure Sector Project (RRP LAO 44138)

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Project Number: 44138 Loan Number(s): August 2013

Lao People’s Democratic Republic

Greater Mekong Subregion

East-West Economic Corridor

Agriculture Infrastructure Sector Project

Project Administration Manual

Contents

ABBREVIATIONS iii

I. PROJECT DESCRIPTION 1

A. Project Rationale, Location and Beneficiaries 1 B. Impact and Outcome 3 C. Outputs 4

II. IMPLEMENTATION PLANS 7

A. Project Readiness Activities 7 B. Overall Project Implementation Plan 9

III. PROJECT MANAGEMENT ARRANGEMENTS 11

A. Project Implementation Organizations – Roles and Responsibilities 11 B. Key Persons Involved in Implementation 18 C. Project Management Structure 19 D. Implementation Arrangements 24

IV. COSTS AND FINANCING 27

A. Detailed Cost Estimates by Expenditure Category 28 B. Allocation and Withdrawal of Loan Proceeds 29 C. Detailed Cost Estimates by the Financier 30 D. Detailed Cost Estimates by Components 31 E. Detailed Cost Estimates by Year 32 F. Contract award and Disbursement S-curve 33 G. Fund Flow Diagram 34

V. FINANCIAL MANAGEMENT 35

A. Financial Management Assessment 35 B. Disbursement 36 C. Accounting 38 D. Auditing 38

VI. PROCUREMENT AND CONSULTING SERVICES 40

A. Advance Actions 40 B. Procurement of Goods, Works and Consulting Services 40 C. Procurement Plan 42 D. International Competitive Bidding Procedures – Advertising 46 E. National Competitive Bidding Procedures 46 F. Consultant's Terms of Reference 47

VII. SAFEGUARDS 63

A. Resettlement 63 B. Environmental Impact 64 C. Ethnic Groups 65

VIII. GENDER AND SOCIAL DIMENSIONS 67

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 70

A. Project Design and Monitoring Framework 70 B. Monitoring 74 C. Evaluation 75

D. Reporting 75 E. Stakeholder Communication Strategy 75

X. ANTICORRUPTION POLICY 78

XI. ACCOUNTABILITY MECHANISM 79

XII. RECORD OF PAM CHANGES 80

APPENDIXES 1. Subproject Eligibility Summary Table: Savannakhet and Saravane Provinces 2. Composition of Steering Committees

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM includes references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

2. The Ministry of Agriculture and Forestry (MAF) and the Savannakhet and Saravane provincial agriculture and forestry offices (PAFO) are wholly responsible for the implementation of the ADB financed project, as agreed jointly between the Recipient and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff are responsible for supporting implementation including ensur ing compliance by MAF and PAFO with their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

3. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.

4. After ADB Board approval of the Project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

Abbreviations

ADB = Asian Development Bank ADF = Asian Development Fund CQS = consultant qualification selection DAFO = district agriculture and forestry office DCO = district coordination office DMF = design and monitoring framework EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan GAP = gender action plan ICB = international competitive bidding IEE = initial environmental examination LARP = land acquisition and resettlement plan LIC = loan implementation consultant MAF = Ministry of Agriculture and Forestry MOF = Ministry of Finance MONRE = Ministry of Natural Resources and Environment NCB = national competitive bidding NGOs = nongovernment organizations NPMO = national project management office NRM = national resource management NSC = national steering committee O&M = operations and maintenance OGC = Office of the General Counsel (ADB) PAFO = provincial agriculture and forestry office PAM = project administration manual PPMO = provincial project management office PPTA = project preparation and technical assistance PPSC = provincial project steering committee QCBS = quality- and cost-based selection RP = resettlement plan SEER = Environment, Natural Resources and Agriculture Division of ADB’s

Southeast Asia Department SIR = subproject investment report SOE = statement of expenditure SPS = safeguard Policy statement SPRSS = summary poverty reduction and social strategy TOR = terms of reference WFP = World Food Programme WUA = water user association WUG = water user group

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I. PROJECT DESCRIPTION

A. Project Rationale, Location and Beneficiaries

1. The Project1 will support the continuing transition of the East–West Economic Corridor (EWEC) from a transport corridor into an inclusive economic growth corridor, in line with the Greater Mekong Subregion (GMS) Strategic Framework.2 It aims to regenerate, replace and upgrade existing but underdeveloped or outdated agricultural infrastructure.3 The Project will be implemented in the two southern provinces of Savannakhet and Saravane which are well within the area of influence of the EWEC. The project will target areas with good agricultural potential with existing irrigation schemes. The agriculture infrastructure investments will include irrigation infrastructure, as well as rural access infrastructure associated with the irrigation schemes. It will support capacity development, with a focus at the farm level, for managing and using the agriculture infrastructure to optimize agricultural outputs by promoting better farming practices. The Project will stimulate rural development, sustainable agriculture, access to markets and trade in agricultural produce, resulting in improved rural livelihoods and poverty reduction. The profitability of small holder farming in subproject areas will be increased by enabling communities to respond to market signals emanating from the EWEC by: increasing the intensity and diversity of agricultural production; quicker and safer access to markets social services, and employment opportunities; while reducing the costs of marketing and agricultural inputs as well post harvest losses.4

2. The GMS Regional Cooperation Strategy and Program (RCSP) focuses on connectivity and competitiveness. Recent investments in physical infrastructure have created new opportunities for economic development and trade which are being supported by ADB projects such as the GMS EWEC Corridor Towns Development Project,5 the Improved Sanitary and Phytosanitary Handling in GMS Trade Project6 and the GMS Sustainable Tourism Development Project.7 The proposed project enhances the ADB supported GMS Core Agricultural Support Project.8 In preparation for the ASEAN Economic Community, coming into effect in 2015, the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS),9 which is also being assisted by ADB, has prioritized cooperation in rice production and food security underpinned by improved infrastructure. At the ACMECS summit in March 2013, Lao PDR and

1 The Project was first published in ADB website on 12 October 2009.

2 The EWEC is an important component of ADB’s commitment to, and involvement in, development of the GMS.

3 The term agricultural infrastructure refers to irrigation (pumping stations, weirs, canals, water management and

control structures) and access infrastructure (low volume rural roads and bridges). 4 The Japanese Fund for Poverty Reduction (JFPR) provided to ADB a grant of $1.2 million to finance TA7728

Technical Assistance to the Lao People’s Democratic Republic for Preparing the Productivity Enhancement Along the EWEC Project. Manila

5 ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Lao

People’s Democratic Republic for the Greater Mekong Subregion East–West Economic Corridor Towns Development Project. Manila.

6 ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Kingdom

of Cambodia and Lao People’s Democratic Republic for the Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project. Manila. ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist Republic of Viet Nam for the Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project. Manila.

7 ADB. 2008. Report and Recommendation of the President to the Board of Directors: Proposed Grant to Lao

People’s Democratic Republic and Proposed Loan to the Socialist Republic of Viet Nam for the Greater Mekong Subregion Sustainable Tourism Development Project. Manila.

8 ADB. 2012. Technical Assistance for Implementing the Greater Mekong Subregion Core Agricultural Support

Project II. Manila. 9 Members are Cambodia, Lao PDR, Myanmar, Thailand and Viet Nam.

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Thailand signed a Memorandum of Understanding to reduce import-export tariffs for Lao agricultural related inputs and produce and to facilitate contract farming to achieve higher quantities and quality of Lao produce.10

3. While the provinces of Savannakhet and Saravane account for 33% of the total rice produced in Lao PDR (917,000mt), the rural populations of both provinces exhibit high levels of poverty and food insecurity.11 They have a combined population of 1,150,000 of which between 35% and 39% are considered poor. Savannakhet has the highest population of the five southern provinces (42%), and also has the highest number of poor districts with the highest proportion (50%) of poor households.12 They have a reported combined area of approximately 312,300 ha under cultivation currently with dry season production supported by irrigation on less than 20% of this area.13

4. Crop yields are below potential and generally farming remains at semi-subsistence levels with little diversification. A major factor constraining agriculture production, especially in the dry season is poor quality and inadequate coverage of agriculture infrastructure. This has resulted in limited areas being planted, reduced yields, a limited variety of produce and hence lower farm incomes. Besides deficiencies in irrigation infrastructure, inadequate rural access infrastructure has resulted in high transport and marketing costs which limit smallholder farmer’s ability to respond to and benefit from EWEC market demand.14 The impacts of investments in agriculture are constrained without better agriculture infrastructure.

5. Improved agriculture infrastructure will enable increases in incomes from both on- and off- farm employment, expand income generation opportunities in particular for women, improve access to markets, schools and hospitals, and increases food availability. Improvements in agriculture infrastructure and capacity building measures will also help foster climate change adaptation and reduce the shocks of extreme climatic conditions such as droughts.

6. Water user groups (WUGs) and water user associations (WUAs) are already established with varying capacities in all of the proposed Project’s subproject areas.15 They are responsible for the maintenance of the existing irrigation schemes. It is often the case that they are doing a remarkable job of keeping old, poorly designed and constructed schemes functioning. The project will assist the WUGs and WUAs to manage the improved agriculture infrastructure and to use it to realize optimal agricultural production.

7. In consultation with the Ministry of Agriculture and Forestry (MAF) and the participating provinces, 27 candidate subprojects from the Provincial Socio-Economic Development Plans have been screened for possible inclusion in the project and were found to meet agreed upon eligibility criteria for preliminary technical, financial, economic, environment and social considerations. An additional criterion was the extent to which the potential subproject could 10

Signed by the Thai and Lao PDR Prime Ministers on 15 March 2013. 11

FAO/WFP Crop and Food Security Assessment Mission to Lao PDR, 18 March 2011 12

Agriculture & Natural Resources Sector Lao PDR (ADB TA 4843 Agriculture and Natural Resources Sector Needs Assessment) Social Issues Roadmap, ADB May 2008

13 Savannakhet has 258,900 ha of arable land and a population of about 800,000. Saravane has 101,500 ha of arable land and a population of about 350,000. Government of the Lao PDR, Ministry of Agriculture and Forestry. 2012. Lao PDR Census of Agriculture 2010/11. Vientiane.

14 The national road total is 17,000 km. Only 3% of district and rural roads in the country are paved and 37% of all roads are in such poor condition that it is not possible to effectively maintain them.

15 WUGs are informal groupings of farmers within a particular irrigation scheme. WUAs are associations with legal standing and legal status which can enter into contracts and undertake commercial activities. One of the institutional challenges within the project area is to convert WUGs to WUAs and to improve the functioning of existing WUAs.

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positively complement other related investments. Feasibility studies were carried out on three of these representative subprojects (RSP) with positive results led by substantial increases in farm incomes, including for poor farmers, from both higher production and increased employment.16 The remaining subprojects have been prioritized and will be subject to full feasibility studies during implementation. Available funding suggests that 25 subprojects will be implemented using ADB loan proceeds.

8. The project is clearly in line with ADB’s GMS RCSP supporting the thrust to strengthen infrastructure and agriculture, as well as the priority to develop the EWEC. Project objectives are consistent with ADB’s country partnership strategy for Lao PDR and its focus on agricultural infrastructure as a means of promoting pro-poor, sustainable growth through private sector development, regional integration, and transforming agriculture from its subsistence orientation into a diversified and commercialized sector.17

9. The proposed design draws on the experience of recent rural development initiatives that ADB has financed, including the ongoing Northern Rural Infrastructure Sector Development Project18 and the Small Holder Development Project19 as well as the completed Northern Community Managed Irrigation Sector Project. It will directly complement the on-going Sustainable Natural Resource Management and Productivity Enhancement Project20 which is providing agricultural development to the two target provinces. It is coordinated with the new International Fund for Agricultural Development financed Southern Laos Food and Nutrition Security and Market Linkages Programme in Saravane province. Recent experiences and approaches found to be successful in the Draft Sector Assistance Program Evaluation have guided the preparation of the design, in particular the need to: prescreen subprojects; limit the geographic coverage; maintain a confined scope of activities; carefully prepare the procurement plan; and take advance actions.

10. The proposed project is consistent with the government’s sector development objectives as presented in its Seventh National Socio-Economic Development Plan (2011-2015), Strategy for Agricultural Development to 2020, Agricultural Master Plan 2011-2015, which promotes the expansion of market-oriented agricultural production in an environmentally sensitive manner. It will be a key component in the Government’s new Southern Rural Development Program (SRDP), which is currently under formulation and expected to be approved in 2013. Importantly it will help to achieve the government’s goal of reducing the rice production deficit, estimated in 2012 at 100,000mt. B. Impact and Outcome

11. The expected impact of the project will be increased household incomes in the subproject areas. The expected outcome will be increased agricultural productivity.

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Subprojects: Beungxe and Phanomxy in Savannakhet and Vapy Neau in Saravane. 17

ADB, Lao PDR Country Partnership Strategy, 2012-2016. 18

ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Lao People’s Democratic Republic for the Northern Rural Infrastructure Sector Development Project. Manila.

19 ADB. 2004. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Lao People’s Democratic Republic for the Northern Community-Managed Irrigation Sector Project. Manila.

20 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Lao People’s Democratic Republic Report and Recommendation of the President to the Board of Directors: Proposed Loan to Lao People’s Democratic Republic for the Sustainable Natural Resource Management and Productivity Enhancement Project. Manila.

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C. Outputs

12. The Project will have three outputs: (i) improved agriculture infrastructure, (ii) increased capacity of farmers to efficiently manage and use agriculture infrastructure, and (iii) efficient project management.

1. Improved Agriculture Infrastructure

13. The activities to improve agriculture infrastructure will be carried out through implementing subprojects selected in accordance with the agreed criteria, and include: (i) civil works to improve irrigation infrastructure in 25 schemes; (ii) constructing low volume rural roads that support the mobility and transport needs of the population in and around the irrigation schemes; and (iii) generating employment during civil works that benefits local people including women and ethnic groups. 14. The first output will include the improvement of medium-scaled pumped and gravity-fed irrigation systems ranging in size from about 200 ha about 1,500 ha, the rehabilitation and or upgrading of agricultural access roads and farm tracks and, the improvement of market facilities. The component will include (i) preparation of subproject feasibility studies, including social and environmental safeguard studies; (ii) preparation of detailed designs and bidding documents; (iii) implementation of civil works, and (iv) construction supervision for quality control.

15. The project will be carried out in a sector modality as it meets the criteria for a sector loan since (i) the borrowing DMC has a sector development plan to meet the priority development needs of the sector; (ii) the borrowing DMC has the institutional capacity to implement the sector development plan; and (iii) the policies applicable to the sector are appropriate and will be improved, if warranted. 16. A longlist of 30 subprojects were identified by the two provinces. These candidate subprojects were screened for prima facia technical, economic, and financial viability; and poverty reduction impact potential. Additionally subprojects with possible significant safeguard issues were eliminated from the list of candidate subprojects. After the screening exercise, 27 subprojects were found to be potentially viable subject to a detailed feasibility study during project implementation. During the PPTA, feasibility studies were carried out on three of the 27 subprojects. They were found to be feasible and provide an indication of the likelihood that the screening exercise provides a good filter for the identification of sound subprojects. It is estimated that 25 of the 27 subprojects will be implemented during the project as per available funding.

17. Eligibility criteria used were as follows: (i) Subprojects should be consistent with government and provincial sector strategies; (ii) Irrigation schemes are medium-sized (above 200 ha and below 1,500 ha); (iii) Subprojects must be shown to be able to deliver agriculture productivity gains and/or contribute to economic development, by increased productivity or improved access; (iv) There must be demonstrated local commitment to the subproject with confirmation by beneficiaries (inclusive of women and ethnic groups), participating kumbans, and district authorities to that effect; (v) Subprojects should be eligible for environmental category 1 under the 2010 EIA sub-decree and ADB category B or C. To qualify as such, subprojects must be fully outside protected areas; (vi) Subprojects do not entail significant resettlement (defined as being ADB resettlement category B or C); (vii) Subprojects have an estimated cost within the range of $500,000 to $3.0 million; (viii) Irrigation rehabilitation costs should not be more than

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$5,000/ha; (ix) Sustainable operation and maintenance of the scheme should appear feasible; and (x) The subproject must have potential and significant pro-poor benefits.

18. Subproject appraisal will ensure technical feasibility, economic viability, consistency with overall project objectives and strict adherence to the social and environmental safeguards of the Government and ADB. Technical specifications of subprojects will be scrutinized and approved by the responsible line agency (supported by the loan implementation consultants) to ensure conformity with established design standards in Lao PDR. Construction contracts will specify preferential employment of local women and men from poor households with equal pay for equal type of work and prohibit construction camps. Local labor will be mobilized through community mobilization initiatives to assist in detailed design (consultation), construction (on-farm tertiary canals) and routine operation and maintenance of the agriculture infrastructure developed.

2. Increased Capacity of Farmers To Efficiently Manage And Use Agriculture Infrastructure

19. The activities to increase the capacity of farmers to efficiently manage and use agriculture infrastructure in all subprojects includes: (i) establishing and implementing agriculture infrastructure management and operation plans; (ii) preparing and implementing WUG and WUA agricultural development plans; and (iii) strengthening WUGs graduate to WUAs. All of these activities have specific gender targets.

20. Varying and often inadequate technical and managerial capacities in the provincial and district agencies and water user groups (WUGs) are contributing to the underperformance of the irrigation systems. Irrigation schemes have tended to be poorly designed and constructed. Resources to regenerate and carry out capital improvements have need inadequate. This leaves systems that are difficult or even impossible to efficiently operate and maintain. Finally, the capacities of the local WUGs are variable but they have tended to show a strong ability to “mend and make do”. They have in most cases kept these irrigation schemes functioning.

21. The second output will therefore provide for capacity building and support to WUGs in basic organization and record keeping, managing fee collection for cost recovery and developing a savings/loan capability so that group members can take out loans to meet small capital costs required for entrepreneurial activity. Technical advice and training on irrigation systems management, operations and maintenance, and water management will be provided and initiatives will be developed for increased involvement by women in running the WUGs. This will be combined with an effort to maximize agriculture production in the areas where irrigation infrastructure will be rehabilitated or expanded.

22. The longer-term sustainability of the agriculture infrastructure depends upon the capacity of the WUGs to efficiently operate the irrigation schemes for optimum production, and to maintain both the irrigation schemes and the local low volume agricultural access roads providing access to the villages, farm holdings and the linkages to the district roads and markets via the district road network. The WUGs will receive support to improve management systems, accounting, reporting and communication with their members. National consultants will be appointed one to each province as WUG Organizational Support specialists to provide the support to the WUGs, arrange for the required training under the project training program and facilitate and arrange advice for the WUGs to assist their development and understanding of their management and technical roles.

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23. Training will be arranged through the effective use of the training providers and will be focused on water resource management, effective irrigation system operation and maintenance, cost recovery, financial management and simple accounting systems and financial reporting. Other training will cover the conduct of public and WUG meetings, the recording of meetings and decisions, dispute resolution and dispute redress mechanisms, among other topics.

24. A consultative group will be established in each subproject area, representative of the WUG and farmer interests and regular consultation will occur to document group concerns, or requests for support and advice, which will be provided within seven days of request. On-site meetings for discussion of new management and operational methods, technological improvements and related matters will be arranged together with short courses and on-the-job training in group-based methodologies appropriate to WUG management, operations and maintenance requirements.

25. WUGs will be assisted to become registered water user associations (WUAs) and to take responsibility for the ownership and thereby the full responsibility for the operation and maintenance of the irrigation scheme and the agricultural access roads. WUGS/WUAS will be provided with assistance to establish asset management plans for the agriculture infrastructure and with the annual review of the O&M planning and programming components of these plans.

26. Agriculture Development Plans: Since the farmer beneficiaries to be involved in the WUGs and WUAs will have a vested interest in maximizing their returns from agriculture production in the irrigated areas the strengthening of the WUGs/WUAs will be accompanied by advice on crops to be grown, agriculture techniques to be followed and processing and market improvement opportunities to be followed. Plans to be prepared for WUG/WUA operation will also include suggested agriculture production and marketing opportunities and guidance.

3. Efficient project management

27. The activities for efficient project management includes meeting timelines for successfully (i) establishing a functional national project management office (NPMO) and two provincial project management offices (PPMO); (ii) recruiting and fielding consultants for project: start-up, implementation, benefit monitoring and safeguard monitoring; and (iii) completing FS and construction works. 28. The NPMO in Vientiane provides overall project management. It is implemented by provincially based PPMOs established within PAFOs in participating provinces. The project will provide sufficient resources for operation and administration, and consulting services to supplement implementation support and technical expertise needed to carry out the subprojects and for the overall project. The Project will also provide support to refurbish premises, equip offices, provide vehicles, as well as provisions for implementing the Project including travel allowances, per diems and office operational budgets.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Indicative Activities

2013 2014

Responsibility Mar Apr May Jun Jul Aug Sept Oct Nov Jan

Aide Memoire signed

X

SEER/MAF

SRM completed X

SEER

Establish project implementation arrangements

X

MAF

Loan negotiations

X

SEER/OGC/MAF/MOF

Advance contracting actions

X

NPMO

ADB Board approval

X

SEER

Government budget inclusion

X

MAF

Loan signing

X ADB/GOL

Government legal opinion provided

X

MOF

Loan effectiveness

X SEER/OGC

ADB =Asian Development Bank; DOPC = Department of Planning and Cooperation; GOL = Government of Lao PDR, MAF = Ministry of Agriculture and Forestry; MOF = Ministry of Finance; NPMO= National Project Management Office; OGC= Office of the General Counsel; SEER= Southeast Asia Environment, Natural Resources and Agriculture Division Source: ADB Staff estimates.

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The Modified Project Readiness Filters

Key Project Preparation

Elements

Stage of Project Preparation

Fact-finding

14 March 2013

Negotiations 20 June 2013

Approval 20 September 2013

Effectiveness 14 January 2014

1. Project Administration Manual (PAM)

Discussed and drafted.

Prepared and agreed.

No change Updated to include advanced actions and status.

2. a. Environment Assessment and Framework (EARF) - Initial Environment Examination (IEE) for three RSPs.

b. Social Impact Assessment.

c. Resettlement Framework (RF) - Land Acquisition & Resettlement Plans for representative subprojects.

d. Ethnic Group Development Framework (EGDF)

Agreed

By SRM government concurrence to frameworks (6 May 2013).

Safeguard activities financed by loan proceeds.

No change No change.

3. Monitoring and evaluation Plan

Indicators in DMF agreed.

No change No change No Change

4. Project Management (PM) Project organization chart, staffing and responsibilities agreed.

Office space availability confirmed.

Key project staff identified. Project Coordinator and deputies. Financial and procurement management staff.

Reconfirmed. NPMO operational with key staff on board

5. Recruitment of

a. LIC (firm)

b. Individual start up consultants.

ToR drafted. RFP drafted.

Draft RFP and evaluation criteria confirmed. EOI advertised.

Individual consultants short listed.

Short list approved and RFP issued.

Individual consultants identified.

6. Recruitment of:

a. Baseline survey and SIA consultants (firm);

b. detailed design and supervision consultants (firm);

c. individual consultants.

ToR drafted RFP drafted

Draft RFP and evaluation criteria confirmed. EOI advertised for the firms.

Individual consultants short listed.

7. Standard procurement documents

N/A Standard bidding documents for good and civil works drafted.

Bidding documents for vehicles, motorcycles, office equipment drafted.

Bidding documents issued.

8. Government counterpart funds

Agreed Confirmed.

9. Legal opinion

Draft legal opinion submitted to ADB

Legal opinion submitted to ADB

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B. Overall Project Implementation Plan

Indicative Activities 13 2014 2015 2016 2017 2018 2019 2020 2021

Quarter 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Loan Approval

Loan Effectiveness

A DMF

1. Rehabilitated Rural Infrastructure

1.1 Phase I (Representative Subprojects)

Preparation of Detailed Designs

Preparation of Bidding Documents

Construction Contracts for Subprojects Awarded

Supervision of Implementation

Operation

1.2 Phase II Subprojects

Feasibility, Design, Supervise, Operate

1.3 Phase III Subprojects

Feasibility, Design, Supervise, Operate

2. Improved Capacity (Training)

2.1 WUG Organizational and O&M Strengthening

2.2 Project Management, Procurement, Process

2.3 National Consultant – Bidding and Supervision

2.4 Base line and Monitoring and Evaluation

2.5 Road Safety Training

3. Efficient Project Implementation Management

3.1 Establish Project Management Structure

3.2 Loan Implementation Consultants

4 Consultant Selection

4.1 Loan Implementation Consultants

Short listing, Prepare RFP

Proposal Preparation, Evaluation and Contract

4.2 Recruitment of National Consultants (detailed Design)

4.2.1 Detailed design

4.2.2 HIV/AIDS awareness

4.2.3 Road safety awareness

4.3 Safeguard Monitoring Entities (3 Phases)

5. Resettlement Plan


Prepare RPs

Implement RPs


Indicative Activities 13 2014 2015 2016 2017 2018 2019 2020 2021

Quarter 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4


6. Environmental Management Plan


Preparation of Subproject IEEs and EMPs

Implementation of EMP



7. Gender Action Plan

7.1 Phase I ( representative Subprojects)

Preparation of GAP Workshop

Gender Awareness Implementation GAP

Monitoring of GAP



8. Ethnic Group Plans

8.1 Phase I (Representative) Not Required


Preparation of EGP Workshops

Implementation of EGP

Monitoring of EGP


9. WUG/WUA Organizational Strengthening.

7.1 WUG/WUA Infrastructure, O&M, Awareness

7.2 WUG/WUA Water and Asset management

9. ADB Review

9.1 Inception

9.2 Annual Review

9.3 Mid-term Review

9.4 Project Completion Report

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

Project Organizations Management Roles and Responsibilities

Executing Agency (EA)

Ministry of Agriculture and Forestry

As the EA, MAF will be responsible for overall project management and coordination. MAF shall establish a National Project Management Office (NPMO). MAF will manage Government and ADB project funds and will be responsible for loan covenant compliance, adherence to

safeguard policies, overall management and coordination of project implementation. The MAF will be responsible for the administration and staffing of the NPMO. The NPMO will also provide secretariat services to the National Steering Committee (NSC)

The NPMO will be responsible for the day to day implementation of project activities at national level. Among others, the NPMO will be responsible for:

(i) overall coordination and management of the project;

(ii) preparation of project workplan and budget;

(iii) ensure that agreed criteria for subproject selection, prioritization and implementation are complied.

(iv) provide guidance and coordinate all implementing agencies to implement the Project Performance Management System (PPMS);

(v) monitor project schedules, funds flow and participation of various beneficiaries in the project activities;

(vi) undertake periodic review missions; midterm project reviews both independently and jointly with ADB;

(vii) establish and manage one imprest account for the ADB loan;

(viii) consolidate sub-accounts, one for each of the two PPMOs, and facilitate timely fund replenishments;

(ix) arrange for adequate counterpart financing

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in accordance with the Loan Agreement and project implementation schedule, as updated;

(x) prepare and submit withdrawal applications to ADB;

(xi) recruit three consulting firms for loan implementation consultant (LIC), Social Impact Assessments (SIA) and engineering consultants; as well as individual consultants for start-up support;

LIC (international) to carry out the feasibility studies (FS), prepare the SIR, implementation and benefit monitoring and evaluation, training and monitoring the implementation of safeguards;

The Social Impact Assessment consulting firm will carry out a baseline survey for monitoring and evaluation to provide information for the LIC to prepare the FSs.

engineering consultants (national) to carry out detailed design, preparation of bid documents, and construction supervision;

(xii) procurement of civil works contracts for subproject construction;

(xiii) procurement at n a t i o n a l l e v e l of office equipment;

(xiv) procurement of a l l vehicles; (xv) arrangement for annual audit of project

accounts; (xvi) submission of financial statements to ADB; (xvii) preparation of quarterly project progress

reports, completion report, and other reports as required.

(xviii) monitor effectiveness of safeguard implementation procedures and also project conformity with ADB anti-corruption policies and accountability mechanism;

(xix) analyze the measurable benefits of the capacity building and training programs to beneficiaries;

(xx) ensure compliance with agreed procurement plan and ADB procedures;

(xxi) based on agreed procurement plan, forecast annual contract awards and disbursement targets and monitor quarterly achievements; and

(xxii) prepare project financial statements and arrange for annual audits thereon,

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synthesize PPMO’s reports and prepare consolidated project progress reports including audit and project completion report.

Steering Committees National Steering

Committee (NSC)

There are three levels of coordination that collectively are referred to as the NSC: national, provincial and district. The NSC will be established by MAF to ensure interagency cooperation. To enhance coordination and increase project synergies, the NSC will be composed and structured the same as, and with the relevant members of, the steering committee for the Sustainable Natural Resource Management and Productivity Enhancement Project (Grant 0144/0145). The NSC members and positions are in Appendix 2 PAM. The NSC will meet annually to:

(i) review implementation progress; (ii) approve grouping year of subprojects for

which feasibility studies will be carried out by the NPMO;

(iii) review allocation of funds for subprojects based on approved feasibility studies;

(iv) review annual work-plans and budgets; and,

(v) provide overall guidance on the implementation of the Project.

MAF Departments:

Agriculture (i) provide inputs to the project under their respective mandates; and

Agriculture Extension and Cooperatives;

(ii) support coordination with their respective provincial unit under PAFO/DAFO

Irrigation

Planning and Cooperation

NPMO Staff to be reviewed for Government concurrence

Project Coordinator Qualification: University degree in relevant subject. English language fluency is preferred or an effective arrangement for interpretation is put is place. Experience: Project director or deputy director on at least one previous ADB financed investment project. Staff experience on at three ODA

14

financed projects. Responsibilities: (i) Overall management of the project implementation; (ii) Ensure adherence to the project loan agreement and covenants; (iii) Ensure timely delivery of inputs and reports; (iv) Liaison among the government stakeholders and the ADB; (v) Coordinate implementation between the NPMO and the provincial authorities and management units on financial and administrative issues; and (vi) Support the regular ADB project review missions.

Deputy Project Coordinator – Finance and Administration

Qualification: University degree in financial and administration management. English language ability at University level. Experience: Project deputy director or financial staff on at least one previous ADB financed investment project. Staff experience on at two ODA financed projects. Responsibilities: (i) Overall management of the project finances and administration; (ii) Ensure financial and auditing procedures acceptable to ADB are followed; (iii) Ensure timely delivery of financial reports; (iv) Liaison among the government stakeholders and the ADB; and, (v) Coordinate financial management between the NPMO and the provincial authorities and management units.

Chief Accountant

Qualification: University degree in accounting and/or financial management. English language ability at University level. Experience: Project financial staff on at least one previous ADB financed investment project. Responsibilities: (i) Manage project finances; (ii) Prepare financial reports acceptable to ADB; and (iii) Provide guidance and training to provincial financial and accounting staff.

Procurement Officer

Qualification: University degree or master degree. Fluent written and verbal English language ability. Experience: Experience in procurement using ADB or any multilateral funding agency

15

procurement/selection guidelines. Has a Certification in Procurement. Understands the tasks described below: (i) Manage project procurement; (ii) Follow and draft revisions to the project procurement plan; (iii) Provide guidance and training to provincial procurement staff to ensure adherence to ADB requirements; (iv) Assist the NPMO Director to set up and maintain an effective monitoring and recording system on procurement; (v) Manage the whole procurement process for goods and works and non-consulting services according to project Procurement Plan, as approved by the authorised State body of Lao PDR, and the Bank’s Procurement Guidelines, that includes:

Assist the NPMO Coordinator in preparing the technical specifications of goods/works;

Assist in advertising of the Invitation for Bids/Quotations;

Identify the sources of supply, evaluate the eligibility and qualifications in order to prepare the list of suppliers/contractors for contracts procured using shopping in consultation with the agency;

Prepare bidding documents/request for quotations, bids/quotations evaluation reports, contract conditions including issues of performance guarantee, advance payment guarantee, insurance, liquidated damages, contract execution schedule, payments, delays, compensation events, contract extension, quality control, disputes, claims parties' obligations and so on in accordance with the sample documents applied for this Project;

(vi) Manage the process of the selection and employment of project consultants according to project Procurement Plan, as approved by the authorised State body of Lao PDR, and the Bank’s Consultant Guidelines, that includes:

Prepare/comment Terms of Reference (TORs), request for expression of interest; short-list of consultants, RFPs, draft contracts, etc.;

Prepare evaluation reports and contract

16

negotiation with selected consultants;

Monitor and supervise the contract implementation, including issues off claims and disputes, compensation events and so on;

(vii) Work with the Bank staff to make sure all the procurement processes are in line with the Bank’s regulations and procedures. (viii) Work with other project consultants to ensure the effectiveness and efficiency of all procurements under the project. (ix) Manage all procurement documents and prepare reports as required and the Bank

Provincial Steering Committee

A Provincial Project Steering Committee (PPSC), chaired by provincial vice governors will be established in each of the provinces of Savannakhet and Saravane to ensure inter-agency coordination at provincial level. The PPSC will meet annually or as needed for specific issue:

(i) review implementation progress; (ii) review provincial work-plans and budgets;

and (iii) review Feasibility Studies and Subproject

Investment Reports (SIRs).

Implementing

Agencies (IAs)

Provincial Government (PGov) of Saravane and Savannakhet

PGov will be responsible for provincial project management and coordination through PAFO, which in turn shall establish a provincial project management office (PPMO). The PPMO will be responsible for the day to day implementation of project activities at provincial level including:

(i) Coordinating WUG/WUA development and agricultural extension training;

(ii) Strengthen and development of producer groups;

(iii) establishment and management of sub-accounts;

(iv) procurement of office equipment; (v) coordination of project activities at

provincial level; (vi) reviewing feasibility studies and detailed

designs; and (vii) liaison with the district coordination offices. District

Coordination Offices (DCO)

DCOs will be established within participating district agriculture and forestry offices (DAFO). The DCO will assist in implementation at the district level, and will be responsible for:

17

(i) assistance with all community development activities;

(ii) facilitate WUG graduation to WUA; (iii) assistance with various surveys;

(iv) coordination of resettlement activities; (v) coordination of environment management

activities; (vi) coordination of all other safeguard and

gender activities; (vii) assistance in the identification of

associated initiatives; (viii) monitoring of implementation of

subprojects; and (ix) report on progress of implementation.

Water User Groups WUGs and Water User Associations (WUA)

The WUG/WUA in each subproject will be responsible for:

(i) assisting with subproject coordination and participation of local stakeholders and vulnerable or disadvantaged groups including women and ethnic group;

(ii) supporting the consultants to carry out the FS, detailed designs and safeguard assessments and plans;

(iii) support the implementation of the subprojects;

(iv) support the implementation of safeguard plans;

(v) provide inputs to prepare the asset management and agriculture development plans; and

(vi) fully participate in, and support the implementation of the plans.

ADB (i) Provide financing for 99% of the project cost through an ADF loan in accordance with the Loan Agreements

(ii) Monitor project implementation arrangements, disbursements, procurement, consultant selection, and reporting;

(iii) monitor schedules of activities, including funds flow;

(iv) review compliance with agreed procurement procedures;

(v) review compliance with Loan Covenants; (vi) monitor effectiveness of safeguard

procedures (vii) monitor project conformity with ADB anti-

corruption policies;

18

(viii) undertake a periodic review missions; and (ix) undertake midterm project review jointly

with the Government.

B. Key Persons Involved in Implementation

Executing Agency Ministry of Agriculture and Forestry

Nouanedeng Rajvong Deputy Director General Department of Irrigation Ministry of Agriculture and Forestry

NPMO

Mr. Saylom Chansouk National Project Coordinator Department of Irrigation Ministry of Agriculture and Forestry

ADB Environment, Natural Resources, and Agriculture Division

Javed H. Mir, Director Southeast Asia Department Telephone No.: +63 2 632 6234 Fax No.: +63 2 636 2231 Email address: [email protected] 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines

David Salter, Mission Leader Sr. Natural Resources and Agriculture Specialist Southeast Asia Department Telephone No.: +856 21 250 444 Ext. 138 Email address: [email protected]

mailto:[email protected]

mailto:[email protected]

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C. Project Management Structure

29. The Executing Agency (EA) for the proposed Project will be MAF. MAF will be responsible for overall project coordination and management. The EA shall ensure that these personnel are assigned to key management positions and empowered to manage the Project.

30. MAF will establish a National Project Management Office (NPMO). The NPMO will be responsible for: (i) overall coordination and project delivery. This will include reporting on Project progress to the EA and to ADB; (ii) technical support for subproject design and approval. This will include preparation of Subproject Investment Reports (SIR) and Detailed Designs, the recruitment of consultants, and the procurement of civil works; and (iii) subproject implementation. This will include construction supervision.

31. The NPMO will be managed by a full time Project Coordinator who has been involved in the management and implementation of similar types of ADB projects. The Project Coordinator will be supported by two Deputy Coordinators who have experience in managing ADB financed rural infrastructure projects. One Deputy Coordinator will be responsible for technical aspects. The other Deputy Coordinator will be responsible for administrative aspects. The NPMO will be further staffed by appropriately skilled technical, administration, and accounting staff. The names and biodata of the Project Coordinator and Deputy Coordinators were provided after loan negotiations and will be reconfirmed upon project approval.

32. To ensure inter-agency cooperation at the national level, a National Steering Committee (NSC) will be established within MAF. The NSC will be chaired by a Vice Minister of MAF and will include representation from relevant stakeholders. The NSC will meet annually or as required to review overall implementation progress, annual work-plans and budgets, and provide overall policy guidance. The NPMO will provide secretariat services to the NSC.

33. The Provincial Governments of Savannakhet and Saravane will be the Project implementing agencies (IA). The Provincial Governments shall nominate one Vice Governor to assume overall responsibility for implementation coordination in each province. The Vice Governor shall chair a Provincial Project Steering Committee (PPSC) which shall meet once a year or as needed. The PPSC shall include representation from the governors from the participating districts and provincial departments. The PPSC shall review implementation progress and ensure adequate levels of coordination between key agencies. The Vice Governor shall represent the province on the NSC.

34. Each provincial government shall delegate responsibility for Provincial level Project implementation activities to the respective Provincial Agriculture and Forestry Offices (PAFO). The PAFO shall be responsible for reporting to the both the assigned Provincial Vice Governor and to the NPMO. Each PAFO shall establish a provincial project management office (PPMO). The PPMOs will provide day to day project support for the implementation of the subprojects. They will facilitate input from relevant provincial line departments for the subproject design and implementation. The PPMOs will be managed by a Provincial Project Manager from the PAFO and one full time Deputy Manager. The PPMOs will provide secretarial services to the PPSCs.

35. Subproject implementation support will be provided by the PPMO with the assistance of the District Coordination Office (DCO) in each participating district. Routine reporting will be maintained by the DCO and PPMO to MAF and ADB through the NPMO.

Chart 1: Project Organization Structure

Asian Development Bank Ministry of Finance

Ministry of Agriculture and Forestry

National Project Management Office

National Steering Committee

Provincial Project Steering Committee

Provincial Project Management Office

District Coordinating Offices

Water User Groups/Water User Associations

Provincial Agricultural and Forestry Office

Relevant MAF Departments

Agriculture

Agricultural Extension and Cooperatives

Irrigation

Planning and Cooperation

20

Chart 2: National Project Management Office

National Project Coordinator

Deputy Coordinator Administration and Finance

Deputy Coordinator Technical

Finance Administration

Chief Accountant

Assistant Accountant

Implementation Safeguards

Disbursement Officer

Procurement Officer

Admin Assistants (2)

Secretaries (2)

Translators (2)

Drivers (2)

Irrigation Engineer Comm.

Dev/Gender/ EGs Officer

Rural Roads Engineer

M&E Engineer

Implementation Planning/Contract

Management Officer

Resettlement and Environment Officer

21

Chart 3: Provincial Project Management Office

Provincial Project Coordinator

(Full-time)

Deputy Coordinator

Finance and Administration Implementation Safeguards

Chief Accountant

Contract Management Officer

Planning Officer Comm. Dev/Gender EGs Officer

Irrigation Engineer Resettlement and Environment Officer

Secretary Rural Road Engineer

Driver

22

23

District Project

Coordinator

-time) Deputy District Project

Coordinator

Chart 4: District Coordination Office

Implementation Planning Safeguards

Implementation Monitoring Coordinator

Agriculture Extension Officer

Safeguard/Comm. Dev Officer

Administrative Support

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D. Implementation Arrangements

1. Subprojects Rehabilitation Works

36. Subproject rehabilitation works will be undertaken in three phases. The first phase will comprise the implementation of the three representative subprojects for which feasibility studies (FS) have been completed and safeguards prepared. Recruitment of national engineering consultants for preparation of detailed design, bidding documents and for supervision of construction will begin as part of advance action prior to loan effectiveness and will be finalized shortly after loan effectiveness. Construction for the three subprojects is planned to begin immediately after the rainy season in November 2014. During this phase FSs and detailed design for the next 10 subprojects will be undertaken by the loan implementation consultants (LIC) and the detailed design and preparation of bidding documents will be undertaken by the engineering consultants.

37. The second phase will comprise the construction of the 10 subprojects prepared in Phase 1 and the preparation of feasibility studies and detailed designs and bidding documents for the remaining subprojects. The number will depend on the funds remaining after bids are let for the Phase 2 subprojects. Construction of Phase 2 subprojects is expected to begin immediately after the rainy season in November 2015.

38. The third phase will comprise approximately 12 subprojects depending on the remaining funds available or more subprojects is expected to begin immediately after the rainy season in November 2016.

39. Eligible subprojects will undergo the following implementation steps:

(i) preparation of FS - including studies and plans for social and economic safeguards;

(ii) survey and preparation of detailed design;

(iii) preparation of bidding documentation;

(iv) preparation of SIRs;

(v) tendering for construction works;

(vi) construction of subproject infrastructures;

(vii) commissioning; and,

(viii) initial operation and maintenance

40. The LIC, to be recruited by the NPMO and on behalf of MAF, will carry out FSs that includes engineering, social, economic, and safeguards studies and will prepare subproject investment reports (SIRs). They will ensure that the subprojects to be taken up for construction meet the following criteria:

25

(i) the project is shown to be technically feasible and the expected benefits have been clearly identified. If the estimated economic rate of return is below 12%, an EIRR of 10% is acceptable in the presence of substantial level of benefits that cannot be readily quantified;

(ii) procurement packages have been clearly identified, methods of procurement and cost estimates have been clearly identified and recorded and all sources of funding have been identified and agreed/confirmed;

(iii) the relevant subproject investment report contains a detailed financing plan for operation and maintenance, including nomination of the entity responsible for operation and allocation of a sufficient budget amount and corresponding source of agreed funding from the relevant Project province and other concerned parties;

(iv) public hearings on the subproject proposal have been held in concerned kumbans, or villages and measures for future public consultation and supervision are identified;

(v) completed IEE showing that the subproject has no major negative environmental impacts, and mitigation measures have been defined for potential negative impacts;

(vi) confirmation that the subproject has no significant resettlement impacts, and if such Subproject is categorized as Category B, a resettlement plan has been prepared in accordance with the Resettlement Framework, and Recipient’s laws and regulations, and ADB’s Safeguard Policy Statement; and

(vii) where necessary, a Resettlement Plan and an Ethnic Group Development Plan have been prepared.

41. If a candidate subproject does not meet the criteria provided above, it will be replaced by the next priority candidate subproject for the respective province.

42. The LIC shall ensure that: (i) appropriate technical standards are incorporated in the design and that costs reflect realistic market estimates rather than existing cost norms; and (ii) ADB’s and the government’s social and environmental safeguards requirements are duly addressed.

43. Once the LIC have reviewed the FS, the engineering consultants will carry out the detailed designs. The detailed designs will be reviewed by the LIC. Once the review is completed the SIR will be packaged. There after the engineering consultants shall prepare the tender documents for the civil works. The LIC and the NPMO will review the bidding documents before they are tendered.

44. The PPMO and DCO will assist the surveys at all stages as necessary and the relevant line agencies will provide support to the LIC and engineering consultants as required.

45. After the contractor has mobilized the NPMO will issue an order for the engineering consulting firm to carry out supervision of construction works. The LIC will monitor the implementation of social and environmental safeguard measures identified in the Resettlement

26

Plan (RP), the Environmental Management Plan (EMP), the Gender Action Plan (GAP) and the Ethnic Groups’ Plan (EGP). The PPMO and DCO will provide assistance and support to both the engineering consultants and the LIC in the implementation of the subprojects.

2. Increased Capacity to Efficiently Develop, Manage and Use Irrigation Infrastructure and Optimize Agricultural Productivity

46. In order to help farmers to maximize agriculture productivity, assistance will be provided by the project, in each subproject irrigation scheme to work with the WUA/WUGs to:

(i) diagnose factors, over and above the physical limitations of the infrastructure, that inhibit increased productivity. These could include:

a. limited of technical skills and knowledge to manage water and the control structures in the schemes;

b. funding the schemes operation and maintenance through water fee collection;

c. management of the water user fees collected. This will include developing a sliding scale whereby the project will financially assist the WUG/WUAs to implement management plans. The annual amount of assistance will be reduced to zero by the end of the project as the WUG/WUAs improve their financial capacities;

d. agronomic skills;

e. access to inputs including seed and fertilizers; and

f. knowledge of market potential for alternative crops and low market prices for rice among others;

(ii) on a participatory basis with the WUAs/WUGs and PPMOs and DCOs come up with plans for each WUG/WUA to address these problems in order to maximize production once infrastructure has been rehabilitated or upgraded. This will include measures to assist WUGs to graduate to WUAs;

(iii) provide training to the PPMOs and DCOs to enable them to help the WUGs/WUAs to implement their plans;

(iv) backstop and support the PPMOs and the DCOs in particular in their work with the WUGs/WUAs; andas and when required provide specialized guidance and training directly to WUGs and WUAs in any of the areas of identified need or deficiency.

47. The ADB G144/5-LAO Sustainable Natural Resources Management and Productivity Enhancement Project (SNR), is currently building farmer group and extension service capacities within the target provinces. A key objective is of the SNR is building the capacities within the PAFOs and DAFOs. The SNR is laying a good foundation for further capacity building at the provincial levels that will enhance implementation of the new project.

48. The CDTA 8086-LAO Supporting Decentralized Rural Infrastructure Development (SDR) will provide dedicated resources to support the second output of the new project directly aimed at the farm level and the WUGs and WUAs.

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IV. COSTS AND FINANCING

49. The total project cost is estimated at $60.6 million. The Government has requested a loan in various currencies equivalent to SDR 39,359 from ADB’s Special Funds resources to help finance the project.21 The loan will have a 32 year term, including a grace period of 8 years, an interest rate of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions set forth in the draft loan agreement. This will be directed at infrastructure subprojects (including associated initiatives), capacity building, project management and consulting services, all inclusive of taxes and duties, which will be financed from the Loan. The Government will finance the equivalent of $0.6 million (about 1 %) for key staff remuneration to assist with project management and implementation.

Table 1: Financing Plan22

Source Amount ($ million)

Share of Total (%)

Asian Development Bank 60.00 99.00 Government 0.60 1.00

Total 60.60 100.00 Source: Asian Development Bank estimates.

50. TA8086-LAO Supporting Decentralized Rural Infrastructure Development will be used to fund consulting services for the second output subject to ADB management approval of a minor change of scope. These resources are not reflected in Table 1. 51. Detailed cost estimates, allocation and withdrawal of loan proceeds, fund flow diagrams, and S-curves of contract award and disbursement are in Sections A-G that follow.

21

ADB will finance taxes and duties, land acquisition and resettlement (LAR) costs, interest during implementation, recurrent costs (i.e. incremental project management costs), transportation costs, and interest and bank charges related to the imprest account. Financing of these items will help ensure smooth implementation. The following principles were followed in determining the amount of taxes and duties to financed by ADB: (i) the amount does not represent an excessive share of the project; (ii) the traxes and duties apply only to ADB-financed expenditures; (iii) the amount is within the thresholds identified during CPS preparation process; and (iv) financing of taxes and duties is material and relevant to the success of the project.

22 The Government counterpart contribution will finance full time permanent staff deputed to the project.

A. Detailed Cost Estimates by Expenditure Category

Expenditure Accounts Project Cost Summary

% % Total

(KIP 100 Million) (US$ '000) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

I. Investment Costs

A. Civil Works

1. Civil w ork 1,596.3 1,517.9 3,114.2 19,953.94 18,973.94 38,927.88 49 77

2. Civil Work Operation & Maintenance 142.0 - 142.0 1,775.00 - 1,775.00 - 3

Subtotal 1,738.3 1,517.9 3,256.2 21,728.94 18,973.94 40,702.88 47 80

B. Vehicles, Equipment & Furnitures

1. Vehicle 11.8 11.8 23.7 148.00 148.00 296.00 50 1

2. Equipment & Furnitures 14.7 53.9 68.7 184.30 674.21 858.50 79 2

Subtotal 26.6 65.8 92.4 332.30 822.21 1,154.50 71 2

C. Training & Capacity Building 3.1 7.2 10.3 38.60 90.00 128.60 70 -

D. Consulting Services 257.7 150.9 408.6 3,221.29 1,886.50 5,107.79 37 10

Total Investment Costs 2,025.7 1,741.8 3,767.5 25,321.12 21,772.64 47,093.77 46 93

II. Recurrent Costs

A. Incremental Allowances & Operating Costs

1. Incremental allow ances 100.3 27.1 127.4 1,253.24 338.64 1,591.88 21 3

2. Operating Cost funded by Government 37.6 - 37.6 469.53 - 469.53 - 1

Subtotal 137.8 27.1 164.9 1,722.76 338.64 2,061.40 16 4

B. Operations & Maintenance of Vehicles & Equipment 106.0 31.2 137.2 1,324.62 390.58 1,715.20 23 3

Total Recurrent Costs 243.8 58.3 302.1 3,047.38 729.22 3,776.60 19 7

Total BASELINE COSTS 2,269.5 1,800.1 4,069.6 28,368.51 22,501.86 50,870.37 44 100

Physical Contingencies - - - - - - - -

Price Contingencies 417.2 115.3 532.5 5,215.47 1,440.87 6,656.34 22 13

Total PROJECT COSTS 2,686.7 1,915.4 4,602.1 33,583.98 23,942.73 57,526.71 42 113

Interest During Implementation - 245.9 245.9 - 3,073.30 3,073.30 100 6

Total Costs to be Financed 2,686.7 2,161.3 4,848.0 33,583.98 27,016.03 60,600.01 45 119

a Inclusive of taxes and duties financed by the loan. Other notes: (i) Very minor differences due to rounding; (ii) Civil work costs include UXO clearance, if required and other subproject appraisal/ approval costs required by the Government

28

29

B. Allocation and Withdrawal of Loan Proceeds

CATEGORY ADB Financing

Item Amount Allocated ($000)

Basis for Withdrawal from the Loan Account

Category Sub-category

1. Civil Works 43,932,350 100% of total expenditure

claimed.

2. Vehicles, Equipment & Furniture

1,239,030

2a. Vehicles 302,780 100% of total expenditure

claimed.

2b. Equipment & Furniture

936,250 100% of total expenditure

claimed.

3. Consulting Services 5,286,840 100% of total expenditure

claimed.

4. Training 136,300 100% of total expenditure claimed.

5. Incremental Allowances

1,952,290 100% of total expenditure claimed.

6. Operations & Maintenance during Implementation

4,379,890

6a. For Civil Works 2,295,760 100% of total expenditure

claimed.

6b. For Vehicles and Equipment

2,084,130 100% of total expenditure

claimed.

7. Interest during Implementation

3,073,300 100% of amount due

Total: 60,000.000

C. Detailed Cost Estimates by the Financier

Expenditure Accounts by Financiers

(US$ '000)

Government ADB Loan Total

Amount % Amount % Amount %

I. Investment Costs

A. Civil Works

1. Civil work 0.00 - 43,932.35 100.0 43,932.35 72.5

2. Civil Work Operation & Maintenance - - 2,295.76 100.0 2,295.76 3.8

Subtotal 0.00 - 46,228.12 100.0 46,228.12 76.3


1. Vehicle 0.00 - 302.78 100.0 302.78 0.5

2. Equipment & Furnitures 0.00 - 936.25 100.0 936.25 1.5

Subtotal 0.00 - 1,239.02 100.0 1,239.02 2.0

C. Training & Capacity Building 0.00 - 136.30 100.0 136.30 0.2

D. Consulting Services 0.00 - 5,286.84 100.0 5,286.84 8.7

Total Investment Costs 0.00 - 52,890.28 100.0 52,890.28 87.3

II. Recurrent Costs


1. Incremental allowances 0.00 - 1,952.29 100.0 1,952.29 3.2

2. Salary Cost funded by Government 600.01 100.0 - - 600.01 1.0

Subtotal 600.01 23.5 1,952.29 76.5 2,552.30 4.2

B. Operations & Maintenance of Vehicles & Equipment 0.00 - 2,084.13 100.0 2,084.13 3.4

Total Recurrent Costs 600.01 12.9 4,036.42 87.1 4,636.43 7.7

600.01 1.0 56,926.70 99.0 57,526.71 94.9

Interest During Implementation - - 3,073.30 100.0 3,073.30 5.1

600.01 1.0 60,000.00 99.0 60,600.01 100.0

Note: (i) ADB will finance tax and duties of $4.71million; (ii) Contingency is included in each budget item; (iii) ADB ADF will finance interest during construction; (iv) Civil work costs include UXO clearance, if required and other subproject appraisal/ approval costs required by the Government; (v) Incremental allowances include

field and travel allowances for project staff but not include any salaries/remunerations other than travel costs and DSA for the government officials who work for the Project; and (vi) ADB loan proceeds will finance the cost of project audits.

30

31

D. Detailed Cost Estimates by Components

Expenditure Accounts by Components - Totals Including Contingencies

(US$ '000)

Farmers' Project

Agricultural Capacity Management

Infrastructure Improvementand Support Total

I. Investment Costs

A. Civil Works

1. Civil w ork 43,080.41 554.73 297.21 43,932.35

2. Civil Work Operation & Maintenance 2,295.76 - - 2,295.76

Subtotal 45,376.17 554.73 297.21 46,228.12


1. Vehicle - - 302.78 302.78

2. Equipment & Furnitures - 562.67 373.57 936.25

Subtotal - 562.67 676.35 1,239.02

C. Training & Capacity Building - 104.47 31.83 136.30

D. Consulting Services - - 5,286.84 5,286.84

Total Investment Costs 45,376.17 1,221.88 6,292.23 52,890.28

II. Recurrent Costs


1. Incremental allow ances - 446.55 1,505.75 1,952.29

2. Operating Cost funded by Government - - 600.01 600.01

Subtotal - 446.55 2,105.75 2,552.30

B. Operations & Maintenance of Vehicles & Equipment - 859.37 1,224.77 2,084.13

Total Recurrent Costs - 1,305.91 3,330.52 4,636.43

Total PROJECT COSTS 45,376.17 2,527.79 9,622.74 57,526.71

Taxes 4,284.07 128.12 298.57 4,710.77

Foreign Exchange 20,297.29 1,114.98 2,530.47 23,942.73

Note: (i) Costs exclude the Interest During Construction; (ii) Civil work costs include UXO clearance, if required and other subproject appraisal/ approval costs required by the Government

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E. Detailed Cost Estimates by Year

Expenditure Accounts by Years -- Totals Including Contingencies

(US$ '000)

Totals Including Contingencies

2014 2015 2016 2017 2018 2019 2020 2021 Total

I. Investment Costs

A. Civil Works

1. Civil w ork 221.45 5,071.99 10,421.07 13,866.17 8,858.84 5,492.83 - - 43,932.35

2. Civil Work Operation & Maintenance - - 85.97 391.16 789.84 497.60 348.32 182.87 2,295.76

Subtotal 221.45 5,071.99 10,507.04 14,257.33 9,648.68 5,990.43 348.32 182.87 46,228.12


1. Vehicle 293.44 - - - 9.34 - - - 302.78

2. Equipment & Furnitures 89.32 166.62 234.15 107.34 91.13 70.10 82.14 95.45 936.25

Subtotal 382.76 166.62 234.15 107.34 100.47 70.10 82.14 95.45 1,239.02

C. Training & Capacity Building 35.80 28.02 28.71 41.25 2.53 - - - 136.30

D. Consulting Services 1,060.55 1,547.16 1,458.07 507.10 165.96 187.54 156.46 204.01 5,286.84

Total Investment Costs 1,700.56 6,813.79 12,227.97 14,913.01 9,917.64 6,248.06 586.92 482.33 52,890.28

II. Recurrent Costs


1. Incremental allow ances 100.61 159.61 227.81 269.02 279.90 292.12 304.91 318.31 1,952.29

2. Operating Cost funded by Government 19.57 39.91 62.22 86.56 90.89 95.43 100.21 105.22 600.01

Subtotal 120.18 199.52 290.03 355.58 370.79 387.55 405.12 423.53 2,552.30

B. Operations & Maintenance of Vehicles & Equipment 133.61 189.69 259.52 275.57 287.35 299.68 312.60 326.12 2,084.13

Total Recurrent Costs 253.79 389.21 549.54 631.15 658.14 687.23 717.71 749.65 4,636.43

Total PROJECT COSTS before Interest During Construction (IDC) 1,954.35 7,202.99 12,777.52 15,544.17 10,575.78 6,935.30 1,304.64 1,231.97 57,526.71

III. Interest During Construction (IDC) 4.84 37.35 123.42 258.98 404.11 702.67 762.20 779.73 3,073.30

-

IV. Total PROJECT COSTS 1,959.19 7,240.35 12,900.93 15,803.15 10,979.89 7,637.96 2,066.84 2,011.71 60,600.01

Note: Civil work costs include UXO clearance, if required and other subproject appraisal/ approval costs required by the Government

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83

F. Contract award and Disbursement S-curve

0

10

20

30

40

50

60

70

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Jul-

20

Jan

-21

Jul-

21

Amount($ million)

Month

Culmulative disbursements

Culmulative contract awards

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32

G. Fund Flow Diagram

Legend: Direct payment Imprest Fund a Payments less than $100,000 should generally be made from the imprest or sub-accounts, but may also be made by direct payment if necessary.

MOF

Saravane Provincial Project Management

Office Sub-Account 2

Savannakhet Provincial Project Management Office Sub-Account 1

Paymentsa over $100,000

PAFO and DAFO Operating Expenses

Works, goods and equipment under $100,000

WUG/WUA Training costs

PAFO and DAFO Operating Expenses


WUG/WUA Training costs

National Project Office

Operating Expenses


Training costs

Other miscellaneous payments

Imprest Account

Asian Development Bank

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V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

52. A Financial Management Assessment (FMA) is presented in Supplementary Appendix 17. A risk assessment was carried out for the Project and a risk management plan was prepared (linked document 16). The main findings of the risk assessment regarding financial management are summarized below.

53. There is a medium risk associated with lack of accountability with respect to utilization of public and donor funds. To reduce this risk, financial management training will be provided to accounting, disbursement, and financial management specialist and supporting personnel appointed to the NPMO, as well as to PPMOs immediately upon project effectiveness. In addition financial management at provincial and district level will be monitored closely, and corrective actions such as incremental training and/or commendation will be implemented if needed. Cash payments will also be minimized through the use of project bank accounts to ensure that loan funds are used properly and in accordance with the requirements of the Project. The counterpart funds will be only for salaries of government staff working for the Project. Potential overlapping budget in financing investment activities will be closely monitored.

54. The potential of leakage of project funds is considered low. Nevertheless, to further reduce the risk associated with this a number of measures have been built into the project design, including:

(i) the use of complete legal documents and project procedures on investment management and proper procurement/bidding:

(ii) the introduction of investment monitoring from subproject preparation to implementation through a project website and other public monitoring mechanisms;

(iii) strengthening inspection and control through the appointment of internationally qualified auditors through a private sector firm that will be harmonized with the World Bank’s pre-qualified firms to conduct independent audits which would identify opportunities for potential leakage; and

(iv) adopting international accounting software for the NPMO using double entry

accounting procedures that allow a trace of transactions to be followed during audit and other reviews.

55. The project will prepare terms of reference (TORs) that define duties, responsibilities, lines of supervision, and limits of authority for all officers, managers, and staff. The following responsibilities will be performed by different units or persons:

(i) authorization to execute a transaction;

(ii) recording of the transaction; and

(iii) custody of assets involved in the transaction

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56. The bank reconciliation will be prepared by someone other than those who approve payments. Accounting software must be capable of generating reports identifying expenditures in accordance with project components, expenditure accounts, disbursement categories, and sources of funds. 57. Controls will be in place concerning the preparation and approval of transactions, ensuring that all transactions are correctly made and adequately explained. The chart of accounts will be able to account for and report on project activities and disbursement categories. The cost allocations to the various funding sources will be made accurately and in accordance with established agreements. The general ledger and subsidiary ledgers will be reconciled and in balance. 58. All accounting and supporting documents will be retained on a permanent basis in a defined system that allows authorized users easy access. Regular monitoring and internal audit functions will be built up to monitor transactions along the line from central government to provincial, and subproject levels. Such control procedures will be documented in the Government’s Project Implementation Manual. B. Disbursement

59. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),23 and detailed arrangements agreed upon between the government and ADB.

60. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),24 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. ADB and the Government will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list to all subprojects.

1. Imprest Account and Statement of Expenditures

61. Except as ADB may otherwise agree, immediately after Loan Effectiveness, the MOF will establish and operate an Imprest account in the Bank of Lao PDR to receive ADF Loan funds for the Project. The ceiling of the imprest account is 10% of the Loan amount, and the currency of the imprest account will be in US dollars. In addition, two sub-accounts will be established and managed by PPMOs in the two provinces. The sub-accounts will be used to provide cash resources to meet operations of the PPMOs and other provincial training initiatives and are relatively small. The imprest and sub-accounts will be administered and replenished in accordance with standard procedures outlined in the ADB’s Loan Disbursement Handbook (2012, as amended from time to time) and are to be used exclusively for ADB’s share of eligible expenditures. The NPMO is accountable and responsible for proper use of the imprest account, including advances to the sub-accounts. All accounts will be audited annually by an independent private auditor acceptable to the Government and the ADB.25

23

Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf. Follow

the format provided in Appendix 30 of the Loan Disbursement Handbook 24

Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf 25

The government, ADB are harmonizing auditing practices in Lao and the project will cooperate with the harmonization.

http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf

http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf

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62. The NPMO may request for initial and additional advances to the imprest account based on an Estimate of Expenditure Sheet26 setting out the estimated expenditures to be financed through the account for the forthcoming six (6) months. Supporting documents should be submitted to ADB or retained by the EA in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time).when liquidating or replenishing the imprest account.

63. The statement of expenditures (SOE) procedure may be used to reimburse eligible expenditures and to liquidate advances provided in accordance with the ADB’s Loan Disbursement Handbook (2012, as amended from time to time) and detailed arrangements agreed upon between the Borrower and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedures shall not exceed the equivalent of $100,000. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB. The NPMO will be responsible for ensuring that SOEs are operated in accordance with ADB’s requirement. 64. Before the submission of the first withdrawal application, the borrower shall submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The borrower is to consolidate claims to meet this limit for reimbursement and imprest fund procedures. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing. Sample forms for withdrawal of loan proceeds, replenishment of imprest accounts and SOE can be downloaded from the ADB website.27

65. In some subprojects there may be very minor land acquisition, all within the parameters of a Category B for involuntary resettlement. There will be no resettlement. With regard to ADB financing of land acquisition, to ensure that ADB funds are delivered to the intended beneficiaries, the ADB fund will be disbursed based on actual resettlement plan for each subproject. Signed receipts by affected households will be required to substantiate actual land acquisition and resettlement expenses.

2. Direct payment

66. As required, loan proceeds may be disbursed directly to contractors for goods, works and consulting services by ADB in accordance with the approved contracts between the executing agency and the contractors, using direct payment procedures..

3. Disbursement and liquidation procedures for counterpart funds

67. Government counterpart funds shall be used to finance salaries of staff seconded to the Project through the regular payroll mechanism for Government employees.

26

Available in Appendix 9B of the Loan Disbursement Handbook. 27

Available at hhtp://Ifis.adb.org/gfis/download.isp

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C. Accounting

68. MAF and the EA through NPMO will maintain separate books and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles. The NPMO will be responsible for:

(i) preparing disbursement projections; (ii) requesting budgetary allocations for counterpart funds; (iii) collecting supporting documents; (iv) collecting and verifying replenishment requests from the PPMOs; and (v) preparing and sending withdrawal applications to ADB

D. Auditing

69. The independent private auditor will provide an audit management letter and auditor’s opinions which cover (i) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework; (ii) whether loan and grant proceeds were used only for the purposes of the project or not; (iii) the level of compliance for each financial covenant contained in the legal agreements for the project; (iv) compliance with the imprest fund procedure; and (v) compliance with use of the SOE procedure certifying (a) to the eligibility of those expenditures claimed under SOE procedures, and (b) proper use of the procedure in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time) and the project documents.

70. ADB’s new Public Communications Policy (PCP) was approved on 25 October 2011 and became effective on 2 April 2012. The PCP is intended to expand and speed up the release of information to the public to increase transparency and accountability. It is harmonized with the disclosure policies of other multilateral development banks. According to the PCP, annual audited project financial statements (APFS) for sovereign projects financed by ADB (loan and grant) will be posted on ADB’s website. This new requirement will apply to the Project for which the invitation to negotiate is issued by ADB on or after 2 April 2012. The PCP also states that the procedures for the disclosure of audited APFS has been discussed and agreed with the Government and will be incorporated into the loan agreements and other supporting documents of the Project.

71. The NPMO will cause the detailed consolidated project financial statements to be

audited in accordance with international standards on auditing by a private auditor acceptable to ADB. The audited financial statements will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the executing agency. Audit coverage will include a statement verifying whether or not the funds disbursed by ADB were used for the purposes for which they were provided, as well as separate opinions on:

(i) utilization of the imprest account and sub-accounts;

(ii) the statement of expenditures, including whether the amount claimed is duly supported and verified;

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(iii) whether the NPMO and each PPMOs are operating the imprest and advance accounts in accordance with ADB procedures; and

(iv) compliance with financial covenants specified in the loan agreements

72. ADB reserves the right to verify the project's financial statements to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. ADB reserves the right to verify the project's financial statements to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

73. The government and MAF have been made aware of ADB‘s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements28. ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower/grantee), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial statements to confirm that the share of ADB‘s financing is used in accordance with ADB‘s policies and procedures.

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

(ii) When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months.

(iii) When audited project financial statements have not been received within 12 months after the due date, ADB may suspend the loan."

74. Public disclosure of the audited project financial statements will be guided by ADB’s Public Communications Policy (2011).29 After review, ADB will disclose the project financial statements and the auditor’s opinion within 30 days of the date of their receipt by posting them on ADB’s website. The Audited Management Letter will not be disclosed.

28

ADB Policy on delayed submission of audited project financial statements 29

Available from: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

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VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Actions

75. With the assistance of consultants funded by the PPTA, the NPMO will conduct advance action for the recruitment of start-up, LIC and engineering consultants and also prepare draft bidding documents for vehicles, motorcycles, office equipment. The NPMO will initiate recruitment of LIC and engineering consultants including issuing invitation for Expressions of Interests, short-listing of potential firms, invitation to submit proposals and evaluation of proposal. ADB support of advance does not commit ADB to approve the loan project or to finance the recruitment cost.

B. Procurement of Goods, Works and Consulting Services

1. Procurement of Goods and Services

76. All procurement under the ADB loan will be undertaken in accordance with ADB’s Procurement Guidelines (April 2010, as amended from time to time).

77. Procurement of civil works packages and goods will be carried out by the NPMO and the PPMOs. Civil works packages valued at more than $1.0 million equivalent and packages for goods valued at more than $0.5 million equivalent will be procured following International Competitive Bidding (ICB) procedures. Civil works packages valued at less than $1.0 million equivalent but more than $100,000 equivalent, and packages for goods valued at less than $0.5 million equivalent but more than $100,000 equivalent, will be procured following national competitive bidding (NCB) procedures. For works and goods packages valued below $100,000 equivalent, shopping procedures acceptable to ADB will be followed.

78. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Sections C and D below.

2. Consulting Services

79. All consultants and nongovernment organizations (NGOs) to be financed by the ADB loan will be recruited according to ADB’s Guidelines on the Use of Consultants (April 2010, as amended from time to time).30

80. Five types of consulting packages will be recruited under the project:

(i) Loan Implementation Consultant (LIC). This will entail the recruitment of an international consulting firm with national and international expertise to carry out subproject feasibility studies, assist project implementation, assist in project benefit monitoring and evaluation, and carry out social and environmental safeguards review;

(ii) Baseline survey and Social Impact Assessment Consultants: A national firm

will be recruited to gather baseline data for the feasibility studies and will monitor the social impacts of the project on the beneficiaries.

30

Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

http://www.adb.org/documents/handbooks/project-implementation/

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(iii) Engineering Consultants: A national firm will be recruited to carry out detailed

design, the preparation of bidding documents and construction supervision of the subprojects;

(iv) Capacity Building and Training consultants: National and international

consultants will be recruited through a firm to undertake Component 2 of the Project. Financing and recruitment will be through Capacity Building Technical Assistance 8086 Supporting Decentralized Rural Infrastructure Development (TA-8086)31;

(v) Institutions, NGOs and firms financed by the loan to carry out special

studies recruited by NPMO. For awareness road safety, and HIV/AIDS; (vi) Individual consultants. International and national consultants will be recruited

by the NPMO to assist with start-up activities at the beginning of the project implementation period. Their prime task will be to assist with the implementation of the first three representative subprojects prior to the recruitment of the LIC. Individual consultants will also include a national procurement specialist and a national financial management specialist. Other individual consultants may be hired as, and when, required.

81. Total quantifiable consulting services at this point are estimated at 100 person months of international expertise and 347 person months of national expertise for a total of 447 person months. The LIC will consist of individual start up consultants, individual consultants and consultants hired through a firm.

The individual start up consultants will consist of 3 person months of international consultancy and 18 person months of national consultants.

The individual consultants will consist of 119 person months of national consultants.

The loan implementation consultants recruited through a firm will consist of 97 person months of international expertise and 210 person months of national expertise for a total of 307 person months.

82. It is not yet possible to quantify the requirement for engineering consultants (all of whom will be national and from a firm) since the requirement will depend on the individual designs resulting from the feasibility studies undertaken during project implementation.

83. Not included in the above total consultant requirement are those for the second output – capacity building. The requirement is estimated to be approximately 27 person month of international and 190 person month of national expertise. This will be financed by the TA-8086, which will require approval for a change of implementation arrangements to align its activities with the second output.

84. Five types of consulting packages will be recruited by the NPMO under the Project and are fully described in the PAM. For road safety awareness campaigns, and HIV/AIDS,

31

Subject to the approval of a change of scope in TA 8086.

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consulting entities will be engaged/recruited by the NPMO using Consultant Qualification Selection (CQS).

C. Procurement Plan

1. Basic Data

Program Name: GMS East West Economic Corridor Rural Infrastructure Project

Country: Lao PDR Executing Agency: Ministry of Agriculture and Forestry (MAF)

Loan Amount: ADB - $60 million

Loan Number: 44138

Date of First Procurement Plan: Date of this Procurement Plan:

2. Process Thresholds, Review and 18-month Procurement Plan

a. Project Procurement Thresholds

85. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Method Threshold

ICB works ≥ $1,000,000

ICB goods ≥ $500,000

NCB works a Below $1,000,000 but ≥ $100,000

NCB goods a Below $500,000 but ≥ $100,000

Shopping b

Below $100,000

Community participation works b Below $50,000

ICB = international competitive bidding, NCB = national competitive bidding a NCB procedures are described in Section D of this procurement plan.

b For the procurement of items below $10,000, the executing and implementing agencies may purchase the items directly from suppliers, and in such cases, ADB should be satisfied that the price paid is reasonable.

b. ADB Post and Prior Review

86. Except as ADB may otherwise agree, the following prior- or post-review requirements apply to various procurement and consultant recruitment methods used for the Project.

Procurement Method Prior or Post Comments

For Goods and Works

International Competitive Bidding (ICB) - works

Prior

ICB - goods Prior

National Competitive Bidding Prior for the first bidding NPMO must commit to using the format of

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83

Procurement Method Prior or Post Comments

(NCB) - works document and bid evaluation report. Post review for all thereafter.

the documents reviewed and approved by ADB. If such commitment is provided, post review shall apply after the first document has been cleared by ADB.

NCB - goods

Prior for the first bidding document and bid evaluation report. Post review for all thereafter.

NPMO and the PPMOs must commit to using the format of the documents reviewed and approved by ADB. If such commitment is provided, post review shall apply after the first documents have been cleared by ADB.

Shopping Post

Community participation works

Post

For Consultant Recruitment

Quality and Cost Based Selection (QCBS) (90:10)

Prior The NPMO will recruit implementation consultants using full technical proposals.

Consultant Qualification Selection (CQS)

Prior .

Fixed Budget Selection (FBS) Prior

Single Source Selection (SSS) Prior For exceptional cases.

Individual Consultants (IC) Prior Use individual selection procedures.

NPMO = National project management office; PPMO = Provincial Project Management Office. Note: For international competitive bidding, invitations for bids, invitations for prequalification, draft prequalification documents, draft bidding documents, prequalification, and bid evaluation reports will be submitted to ADB for prior review and approval.

c. Goods Estimated to Cost $0.5 Million and Works Contracts Estimated to Cost $1 million and above

87. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Contract Value ($’000)

Recruitment Method

Advertisement Date (quarter/year)

Comments

Civil Works for Subprojects

1,000 to 1,800 ICB Q1 2015

ICB = international competitive bidding; NCB = national competitive bidding

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d. Consulting Services Contracts Estimated to Cost $100,000 and above

General Description

Contract Value ($’000)

Recruitment Method

International or National

Assignment

Advertisement Date

(quarter/year) Comments

Loan implementation consultants (LIC)

$2,967

QCBS (90:10)

International / national

Q4 2013 By NPMO

Engineering Consultants

$1,334 QCBS (80:20) National Q4 2013 Detailed design and construction supervision.

Financial Audit $115 FBS National Q2/2014 External commercial auditors.

Baseline survey & SIA

$333 CQS National Q2/2014 By NPMO

Individual and start up consultants

$185 to $222

ICS National Q4 2013 Procurement specialist, financial management specialist, start up international specialist

CQS = consultants qualifications selection; CS = construction supervision; DD = detailed design; FBS = fixed budget selection; FS = feasibility study; NPMO = national project management office; PBD = preparation of bid documents, QCBS = quality cost-based selection.

e. Goods Contracts Less than $0.5 Million, Works Contracts Less than

$1 Million and Consulting Services Contracts Less than $100,000

88. The following table groups smaller-value goods, works and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General

Description

Contract Value

($’000)

Number of

Contracts

Procurement /

Recruitment Method

Comments

Office Construction/Rehab. $25 to $77 Several shopping For NPMO, PPMO, DCO, WUAs and WUGs

4WD Vehicles $303 1 NCB By NPMO

Motorcycles $10 to $55 Several shopping By PPMOs, DAFOs

Office Equipment $10 to $30 Several shopping For NPMO, PPMOs and DCOs

Office Furniture $7- $20 Several shopping For NPMO, PPMOs and DCOs

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General

Description

Contract Value

($’000)

Number of

Contracts

Procurement /

Recruitment Method

Comments

Independent monitoring services for EMP and Compensation

$53 1 CQS By NMPO

Start-Up Consultant $71 1 ICS By NMPO

CQS = consultants qualifications selection; CS = construction supervision; DCO = district coordination office; DD = detailed design; FBS = fixed budget selection; FS = feasibility study; NPMO = national project management office; PBD = preparation of bid documents, PPO = provincial project office; QCBS = quality, cost-based selection.

f. Indicative List of Packages Required Under the Project

89. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the Project.

General Description

Estimated Value

(cumulative, $’000)

Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable

Comments

Works

Civil works for subprojects

$27,000 Several ICB Not Applicable

NPMO

Civil works for subprojects

$15,840 Several NCB Not Applicable

NPMO

NPMO Office Construction

$77 1 shopping Not Applicable

NPMO

Office Refurbishment PPMO


PPMO

Office Refurbishment DCOs


PPMO

Office Construction WUA/WUG Offices


PPMO with DCOs

Goods

4WD Vehicles $303 1 NCB Not Applicable

NPMO

Motorcycles $10 to $55 Several shopping Not Applicable

NPMO

Office Equipment $10 to $30 Several shopping Not Applicable

By NPMO &PPMOs

Office Furniture $7- $20 Several shopping Not Applicable

As above

Consulting Services

Loan Implementation Consultants (LIC)

$2,967

1 QCBS (90:10)

Not Applicable

NPMO FTP

Engineering Consultants

$1,334 1 QCBS (80:20) Not Applicable

NPMO STP

External Financial Audit

$115 1 FBS Not applicable

NPMO

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General Description

Estimated Value

(cumulative, $’000)

Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable

Comments

Independent Monitoring services

$53 1 CQS Not Applicable

NPMO

Baseline survey &SIA

$333 2 CQS Not Applicable

NPMO

Individual Consultants

$488 3 ICS Not Applicable

NPMO

BTP = Biodata Proposal; CQS = Consultants Qualifications Selection; DCO = District Coordinating Office; FBS = Fixed Budget Selection; FTP = Full Technical proposal; ICB = International Competitive Bidding; QCBS = Quality – and Cost Based Selection; NPMO = National project management office; PPMO = Provincial Project Management Office; STP = Simplified Technical Proposal; SIA= Social Impact Assessment

D. International Competitive Bidding Procedures – Advertising 90. Bidding of ICB contracts shall be advertised on ADB’s website via the posting of the Procurement Plan. E. National Competitive Bidding Procedures

a. General

91. The procedures to be followed for NCB procurement shall be those set forth for “Public Bidding” in Prime Minister’s Decree No. 03/PM of the Lao People’s Democratic Republic, effective 9 January 2004, and Implementing Rules and Regulations effective 12 March 2004, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines (2010 as amended from time to time).

b. Application

92. Contract packages subject to NCB procedures will be those identified as such in the Project Procurement Plan. Any changes to the mode of procurement from those provided in the Procurement Plan shall be made through updating of the Procurement Plan, and only with prior approval of ADB.

c. Eligibility

93. Bidders shall not be declared ineligible or prohibited from bidding on the basis of barring procedures or sanction lists, except individuals and firms sanctioned by ADB, without prior approval of ADB. National sanction lists may only be applied with ADB approval. A firm declared ineligible by ADB cannot participate in bidding for an ADB-financed contract during the period of time determined by ADB.

d. Procurement Documents

94. The standard procurement documents provided with MOF, Procurement Monitoring Office shall be used to the extent possible. The first draft English language version of the procurement documents shall be submitted for ADB review and approval, regardless of the estimated contract amount, in accordance with agreed review procedures (post and prior

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review). The ADB-approved procurement documents will then be used as a model for all procurement financed by ADB for the Project, and need not be subjected to further review unless specified in the procurement plan.

e. Preferences

95. Preferences are as follows:

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Suppliers and contractors shall not be required to purchase local goods or supplies or materials.

f. Rejection of all Bids and Rebidding

96. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.

g. National Sanctions List

97. National sanctions lists may be applied only with prior approval of ADB.

h. Corruption Policy

98. A bidder declared ineligible by ADB, based on a determination by ADB that the bidder has engaged in corrupt, fraudulent, collusive, or coercive practices in competing for or in executing an ADB-financed contract shall be ineligible to be awarded an ADB-financed contract during the period of time determined by ADB.

i. Disclosure of Decisions on Contract Awards

99. At the same time that notification on award of contract is given to the successful bidder, the results of the bid evaluation shall be published in a local newspaper or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each Bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, (iv) name of the winning Bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. The executing agency/implementing agency shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected.

j. Member Country Restrictions

100. Bidders must be nationals of member countries of ADB, and offered goods, works and services must be produced in and supplied from member countries of ADB.

F. Consultants’ Terms of Reference

1. Background

101. All consultants and entities will be selected and engaged in accordance with the ADB’s Guidelines on the Use of Consultants. The NPMO will recruit the LICs from a consulting firm following QCBS (90:10) procedures. National consultants for preparation of feasibility studies, Baseline surveys and SIA, detailed design, and preparation of bidding documents and

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supervision of construction, as well as the safeguard monitoring entities will be recruited by the NPMO following CQS procedures. The terms of reference (TORs) outlined in this section relate to the LIC whereas the TORs in the following section relates to the agricultural productivity enhancement component. TORs for the Baseline surveys and SIA will be prepared as an advance action. TORs for the other packages will be developed by the LIC team leader. These detailed TORs will then be incorporated in the Project Administration Manual (PAM) at a later date. The outputs and deliverables from all consulting services shall be in accordance with the Government policies, and in support of the development strategies of the target provinces, and the needs of the beneficiaries.

102. Advance action has been initiated to ensure that the team is fielded shortly after loan effectiveness to provide support and advice to the NPMO and the PPMOs throughout the Project, with a greater concentration in the first 4 years of implementation. Approximately 80% of the person-months are planned to be utilized by the end of 2018. After this initial intensive support, the NPMO and PPMOs will have built the necessary capacity to carry out all duties independently with limited ongoing support.

2. Loan Implementation Consultants (Individual)

103. Individual consultants shall consist of both short term consultants who will assist with the start- up objectives and those who will continue to provide specialist support over the entire project. The start-up consultants’ TORs are provided below. The TORs for the longer term national procurement and the financial management consultants will be finalized as an advance action. In total, three international and 137 national person-months of individual consultants will be recruited.

Table 2: Individual Consultants

2014 2015 2016 2017 2018 2019 2020 2021 Total

International

Start up specialist 3 0 0 0 0 0 0 0 3

National

Start up project management specialist 6 0 0 0 0 0 0 0 6

Start up resettlement and social safeguard specialist 6 0 0 0 0 0 0 0 6

Start up procurement specialist 6 0 0 0 0 0 0 0 6

Procurement Specialista 0 10 10 5 5 5 5 5 45

Financial management specialista 4 10 10 10 10 10 10 10 74

Subtotal Individual 22 20 20 15 15 15 15 15 137

Total 23 20 20 15 15 15 15 15 140 a ToR to be prepared as an advance action.

3. Individual Start-up Consultants Terms of Reference

a. International Start-Up Project Management Specialist (3 person-months)

104. Qualifications: A master’s degree or equivalent in engineering, agronomy, or a related discipline. Experience: Preferably 15 years of experience in rural in providing consulting

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services in rural infrastructure development in developing countries in the humid tropics, preferably in environments with similar characteristics to the mountainous areas of Lao PDR. Experience with the implementation of ADB projects is an advantage.

105. This expert will provide implementation support to the NPMO after loan effectiveness and will coordinate the inputs of the other individual start-up consultants under the Project. In addition, the expert will also have technical specialist skills - a rural infrastructure engineer so he/she can also support technical specialists in their respective areas. The specialist will be based in the NPMO and directly support the Project Director and the two Deputy Directors. The specialist will preferably have 15 years of experience in rural infrastructure development. Experience in Lao PDR working in similar projects will be considered an asset. Duties of the specialist will include the following:

(i) Supervise the work of the individual start-up national consultants team to ensure that inputs and activities are of a high quality and effective;

(ii) Ensure that a technical review is undertaken for initial subproject feasibility studies and recommendations are provided;

(iii) Assist the PDR in the initial scheduling and planning of project implementation;

(iv) Provide advice and guidance on procurement, disbursement and liquidation of expenditures following ADB procedures;

(v) Assist in the preliminary design, planning and supervision of the monitoring of: implementation safeguards and benefits;

(vi) Ensure that appropriate levels of community participation are undertaken by domestic consulting firms engaged to prepare subproject feasibility studies; and ensure that pro-poor measures identified in the community consultations are designed and carried out;

(vii) Ensure that safeguard officers (SO) are appointed to and operational in each NPMO and that the safeguard studies are undertaken for each of the subprojects;

(viii) Lead the individual start-up national consultants in assisting the NPMO to review technical and safeguard aspects of SIRs and investment studies;

(ix) Identify areas of weakness in subproject feasibility studies presentation and provide assistance as appropriate to strengthen provincial and district capacities;

(x) Bring safeguard issues identified by other consultants, SOs or the monitoring teams to the attention of the NPMO and PPMOs, accompanied by recommendations for action;

(xi) Bring project implementation or O&M issues identified by other consultants or the monitoring teams to the attention of the NPMO and relevant PPMOs, accompanied by recommendations for action; and

(xii) Assist the NPMO and PPMOs to resolve safeguard and implementation problems and issues that may arise from time to time.

b. National Project Management Specialist (6 person-months)

106. Qualifications: An undergraduate degree in civil or agricultural engineering or a related discipline. Experience: Preferably with 10 years of experience in designing, constructing and

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operating productive rural infrastructure in Lao. Experience in working with slope stabilization, erosion prevention, and stream flow hydrology will be a valuable asset. Experience with the implementation of ADB projects is an advantage.

107. This position will support the International Start-Up Project Management Specialist to provide implementation support after loan effectiveness and to coordinate the other individual start-up consultants under the Project. The position will also have technical specialist skills - a rural infrastructure engineer so he/she can also support technical specialists in their respective areas. The specialist will be based in the NPMO and directly support the Project Director and the Deputy Directors. Assist the International Start-Up Project Management Specialist to manage start-up activities and, liaise with Government, ADB and other stakeholders. Specific tasks will include but will not be limited to:

(i) Provide support to the International Start-Up Project Management Specialist in its management and technical duties as listed above.

(ii) With the International Start-Up Project Management Specialist, coordinate the work of the other individual start-up consultants and ensure that consultant inputs and start-up activities are of a high quality and effective; and

(iii) Provide assistance and technical review for initial SIRs and Investment Studies.

c. National Procurement Specialist (6 person-months) 108. Qualifications: The national procurement expert will have tertiary qualifications from an established and recognized institution and will be fluent in the English language. Experience: The consultant will have demonstrated knowledge and understanding of ADB procurement procedures and rural infrastructure engineering; preferably experience with the project implementation of ADB-financed projects. The consultant will also have good skills in communicating in English.

109. Under the close supervision of the NPMO, the consultant shall work closely with other government staff assigned to the Project to ensure smooth start-up of project implementation. The consultant will assist the EA and IAs to undertake (i) recruitment of consultants, and (ii) preparing for project procurement in compliance with Project documents (e.g., loan agreement, the report and recommendation of the president [RRP], the project administration manual [PAM], procurement plan, project safeguards documents) and other Government and ADB requirements; including ADB’s Guidelines on Procurement and the Use of Consultants (April 2010, as amended from time to time), and ADB’s Safeguard Policy Statements (2009). Duties of the specialist will include the following:

(i) Recruitment of consultants. The consultant will facilitate the preparation of required documents related to the recruitment of the Project’s initial consultancy requirement. In close coordination with the NPMO (and subject to review and approval of NPMO and ADB), the consultant will: a) Finalize the detailed terms of reference for each assignment (a) by using

initial material developed during the PPTA, and (b) through consultative meetings with relevant agencies of the Government to determine the detailed requirements to properly carry out the assignment;

b) Develop detailed cost estimates for the assignment that is acceptable to both ADB and the NPMO;

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c) Develop the evaluation criteria to be used (a) in determining firms to be short-listed for a subject assignment, and (b) when assessing technical and financial proposals submitted by short-listed firms;

d) Prepare the draft request for proposal (RFP) to be used for the consultancy recruitment, including the Data Sheet, using updated templates available in the ADB website; and

e) Translate all required outputs to the English language, whenever necessary.

(ii) Procurement Competitive Bidding. The consultant will facilitate the preparation of required documents related to procurement to be carried out by the NPMO under the Project. In close coordination with the NPMO (and subject to review and approval of NPMO and ADB), the consultant’s will: a) Monitor the Government’s approval of the government requirements/technical

specifications of civil works/goods to be procured; The specifications must be drafted to permit the widest possible competition and, at the same time, present a clear statement of the required standards of materials, plant, other supplies, and workmanship to be provided;

b) Based on the technical design of the civil works to be procured, the consultant will prepare the Employer’s Requirements (ERQ); To the extent possible, the ERQ shall include (a) specifications, (b) drawings, and if available (c) supplementary information (e.g., compliance with loan covenants, Government's core labor standards, and safeguard requirements);

c) Develop the evaluation and qualification criteria, which will be used to evaluate the bids and qualify bidders if the bidding was not preceded by a prequalification exercise and post-qualification is applied;

d) Identify provisions (e.g., data and contractual requirements) that need to be specified in the procurement contract through consultative meetings with relevant agencies of the Government;

e) Prepare the draft bidding document to be used for the procurement, including the Bid Data Sheet, using updated templates available in the ADB website; and

f) Translate all required outputs to the English language, whenever necessary.

d. National Resettlement/Social Safeguards Specialist (6 person-months)

110. Qualifications: The specialist will have tertiary qualifications in an appropriate discipline. Experience: The national specialist will also be an experienced specialist preferably with 5 years of practical experience. The national specialist will be conversant with the resettlement laws of Lao and will also have considerable experience in internationally financed development projects where resettlement was an issue.

111. The specialist will assume responsibility for reviewing land acquisition and resettlement procedures and the briefing of NPMO and PPMO staff on any changes which need to be made to make those procedures conform to ADB and Government of Lao requirements. The consultant will ensure that these procedures are being applied as intended. The specialist will be based at the NPMO and will travel throughout the project area as required, answering to the international start-up project management specialist and the NPMO. Specific tasks of the consultant will include the following:

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(i) Review and provide recommendations regarding the PPTA consultant’s Final Report and the recommendations on land acquisition and resettlement therein;

(ii) Review and provide recommendations regarding the LARP prepared by the NPMO appointed safeguards consultants to prepare the safeguard studies for all subprojects;

(iii) Make recommendations to develop the LARPs to a standard acceptable to ADB and have those changes incorporated in the SIRs and Investment Studies;

(iv) Visit participating provinces, as required, and brief the PPCs, PPMOs and participating district staff on the land acquisition and resettlement requirements and, specifically how they differ from standard government procedures in light of ADB policies;

(v) Brief local consultants recruited to undertake LARP in the preparation and reporting procedures to be followed;

(vi) Review and provide recommendations regarding random selected LARP as they are being prepared and make suggestions for improvements;

(vii) Review and provide recommendations regarding LARP submitted with the subproject feasibility studies;

(viii) Liaise with the safeguards officers in PPMOs and randomly review LARP being undertaken by the provincial and district governments and report anomalies to the NPMO and relevant PPMO; and

(ix) Assist in developing and implementing the training program on the land acquisition and resettlement aspects of the Project.

4. Loan Implementation Consultants (From a Firm)

112. A qualified international firm will be recruited to (i) assist the NPMO to implement the project and meet the reporting and procedural requirements of ADB; (ii) undertake subproject feasibility studies including technical design and costing, economic and financial analysis and safeguards review and compliance; (iii) help to oversee detailed design and construction supervision by national consultants; (iv) assist in project benefit monitoring and evaluation, (v) carry out social and environmental safeguards monitoring and review during the construction and post-construction period; and (vi) cooperate and coordinate implementation activities with those of the TA grant financed capacity building consultants.

113. The LIC services comprise a total of 307 person-months made up of 97 person-months of international specialists and 210 person-months of national specialists. Advance action for recruitment of the LIC has been approved by ADB to facilitate the timely mobilization of consultants and the advertisement for their recruitment will be posted on ADB’s website on 4Q 2013. The estimated requirement for consultant expertise is outlined below.

Table 3: Loan Implementation Consultants Inputs by Year (Person-months)

2014 2015 2016 2017 2018 2019 2020 2021 Total

1. International Consultants

Project Management and Rural Infrastructure Specialist/ Team Leader 6 11 11 6 2 2 2 4 44

Agricultural economist 0 2 1 0 0 0 0 0 3

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2014 2015 2016 2017 2018 2019 2020 2021 Total

Rural Roads Engineer 2 2 0 0 0 0 0 0 4

Irrigation Engineer (2) 6 10 6 6 0 0 0 0 28

Bio Engineer 0 1 0 0 0 0 0 0 1

Benefit Monitoring and Evaluation Specialist 2 1 1 1 0 1 0 1 7

Environmental specialist 1 1 0 0 0 0 0 0 2

Resettlement and Ethnic Group Specialist 1 1 0 1 0 0 0 0 3

Poverty and Gender specialist 1 1 0 1 0 0 0 0 3

Unallocated 1 0 0 1 0 0 0 0 2

Subtotal Firm international 20 30 19 16 2 3 2 5 97

2. National Consultants

Deputy Team Leader - Project Management and Rural Infrastructure Specialist 6 11 11 11 11 11 11 11 83

Irrigation Engineers (4) 12 20 12 12 0 0 0 0 56

Agricultural economist 0 6 6 1 0 0 0 0 13

Rural Roads Engineer (2) 4 4 0 0 0 0 0 0 8

Bio Engineer 0 2 0 0 0 0 0 0 2

Benefit Monitoring and Evaluation Specialists 2 2 2 2 2 2 2 2 16

Environmental Specialist 2 2 2 2 0 0 0 0 8

Resettlement and Ethnic Group Specialist 2 2 2 2 0 0 0 0 8

Poverty and Gender Specialist 3 3 3 3 1 1 1 1 16

Firm national subtotal 31 52 38 33 14 14 14 14 210

Firm total international and national 51 82 57 49 16 17 16 19 307

5. Terms of Reference

a. Project Management and Rural Infrastructure Specialist/Team Leader (international, 44 person-months)

114. Qualifications: A master’s degree or equivalent in engineering, agronomy, or a related discipline. Experience: Preferably with 15 years of experience providing consulting services in rural infrastructure development in developing countries in the humid tropics, preferably in environments with similar characteristics to the project area. Preferably with 10 years of experience in the implementation of multilaterally funded development projects, preferably projects with ADB funding

115. This expert will provide implementation support to the NMPO after loan effectiveness and will coordinate the other specialist inputs under the project. In addition, the expert will also have technical specialist skills so he/she can also support technical specialists in their respective areas. The specialist will be based in the NPMO and directly support the Project Coordinator and the two Deputy Coordinators. Duties of the specialist will include the following:

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(i) Establish the overall Project Quality Assurance regime;

(ii) Supervise the consulting team and ensure that inputs and activities of both the international and national consultants are of a high quality and effective;

(iii) Assist the NPMO in the scheduling and planning of project implementation;

(iv) Provide advice and guidance on procurement, disbursement and liquidation of expenditures following ADB procedures;

(v) Ensure that baseline surveys and annual surveys are carried out to obtain the necessary information to measure implementation and impact performance;

(vi) Coordinate and supervise feasibility studies of the subprojects ensuring that all technical, economic, financial, social and environmental due diligence is undertaken;

(vii) Provide technical advice and guidance on the more complex subprojects during feasibility study preparation;

(viii) Assist in the design, planning and supervision of the monitoring of: implementation safeguards and benefits;

(ix) Supervise the review of detailed designs of the subprojects prepared by the national engineering consulting firm recruited for that purpose;

(x) Ensure that appropriate levels of community participation are undertaken in the detailed design activities;

(xi) Prepare the subproject investment reports (SIRs) for submission to and review by the NPMO and help to identify replacement subprojects for any subprojects deemed unfeasible;

(xii) Lead the consulting team in assisting the NPMO to review technical and safeguard aspects of SIRs and investment studies;

(xiii) Assist the NPMO to review and oversee construction supervision activities undertaken by the national engineering consulting firm

(xiv) Ensure the pro-poor measures identified in the community consultations are designed and carried out;

(xv) Together with the TA grant funded capacity building consultants consultants, assist the NPMO in addressing O&M issues in subprojects and at the broader provincial level;

(xvi) Supervise the safeguard and social monitoring during construction implementation;

(xvii) Assist the NPMO to resolve safeguard and implementation problems and issues that may arise from time to time;

(xviii) Participate in the mid-term review; and

(xix) Lead a team to prepare the project completion report.

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b. Project Management and Rural Infrastructure Specialist/Deputy Team Leader (national, 83 person-months)

116. Qualifications: An undergraduate degree in civil or agricultural engineering or a related discipline. Experience: Preferably with 10 years of experience in designing, constructing and operating agricultural infrastructure in Southeast Asia preferably with experience in Lao PDR. Experience with implementing multilaterally funded development projects, preferably with ADB funding.

117. This position will support the Team Leader to provide implementation support after loan effectiveness and to coordinate the other specialists’ inputs under the project. The position will also have technical specialist skills so he/she can also support technical specialists in their respective areas. The specialist will be based in the NPMO and directly support the Project Coordinator and the Deputy Coordinators. Assist the Team Leader (TL) to manage LIC national consultants, especially during the implementation of feasibility studies and, liaise with Government, ADB and other stakeholders. Specific tasks will include but will not be limited to:

(i) Provide support to the Team Leader in the management and technical duties as listed above;

(ii) With the Team Leader, supervise the consulting team and ensure that inputs and activities of both the international and national consultants are of a high quality and effective;

(iii) Closely supervise national experts during the preparation of feasibility studies;

(iv) Liaise closely with the national engineering consulting firm during detailed design and construction supervision of the subprojects.

(v) Help to prepare the SIRs;

(vi) Fill the position and duties of the Team Leader when the Team Leader is out of the country.

c. Irrigation Engineers (2 experts for 28 person-months international and

four experts for 56 person-months national)

118. Qualifications: The international specialists will have qualifications from an internationally recognized institution, preferably with post graduate qualifications in irrigation engineering. The national specialists will have tertiary qualifications from a recognized national or international institution, preferably with a post graduate degree in irrigation engineering. The specialists will be familiar with working in large multinational teams.

119. Experience: The international specialists will preferably have 10 years of experience as consulting engineers. The national specialists will preferably have 7 years of experience as consulting engineers.

120. The proposed positions are required to undertake the feasibility studies for the subprojects and to assure that design quality will be maintained and that there is adequate technical support available during the preparation of detailed designs and construction supervision. Specific tasks of the specialists will include the following:

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(i) Establish the Quality Assurance Regime for the irrigation subprojects;

(ii) Prepare construction supervision quality control guidelines to be followed by the national consultants appointed to carry out this task. This shall specifically address the quality control of materials and the construction processes;

(iii) Carry out field inspections of the project sites including interviews with intended farmer beneficiaries and officials/members of WUAs/WUGs

(iv) Undertake the necessary technical surveys to allow the preparation of the layout and technical design of proposed subproject works (this may be subcontracted if this considered the most suitable approach)

(v) Recommend improvements in the design of irrigation structures in irrigation related subprojects to improve efficiency of water utilization and facilitate efficient water management during the operational phase;

(vi) Ensure that canal design is appropriate given the characteristics of the command area and cropping alternatives;

(vii) Prepare technical designs of the subprojects to feasibility study level and prepare costs to a level to allow economic and financial due diligence to be undertaken;

(viii) During the design phase pay special attention to minimizing any disturbance to the natural environment and mitigating and corrective measures as appropriate;

(ix) Audit the design for safety and provide guidance accordingly to mitigate any potential hazards;

(x) Brief consulting engineers engaged to prepare detailed designs on the proposed changes and explain the reasons for these changes;

(xi) Review detailed designs and assist with the preparation of subproject investment reports;

(xii) Review the first years’ operations of each subproject in order to identify and correct and design or construction deficiency and ensure that O&M activities are being undertaken as planned and required.

d. Rural Road Engineers (1 expert for 4 person-months international and 2 experts for 8 person-months national)

121. Qualifications: The international specialists will have qualifications from an internationally recognized institution, preferably with post graduate qualifications in road engineering. The national specialists will have tertiary qualifications from a recognized national or international institution, preferably with a post graduate degree in road engineering. The specialists will be familiar with working in large multinational teams.

122. The international specialists will preferably have 10 years of experience as consulting engineers. The national specialists will preferably have 7 years of experience as consulting engineers.

123. With the emphasis being on quality of design and construction, the specialists will review access requirements for the irrigation subprojects and prepare proposals for inclusion in the the subproject design. Specific tasks of the specialists will include the following:

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(i) Within those subprojects where the need or desirability for improved access was indicated during the screening process undertaken site investigations and provide recommendations on the type of access recommended and the design level specifications for such access;

(ii) Provide costs and design drawings for the access proposals for inclusion in the feasibility studies and the SIRs;

(iii) Estimate traffic volumes and benefits of improvement for inclusion in the subproject economic and financial analyses;

(iv) Review, assess, and provide recommendations regarding the O&M requirements of the alignment to be rehabilitated and recommend the optimum level of O&M needed for maintenance of the function of the road;

(v) Assist in the preparation of quality assurance guidelines to be followed for rural road rehabilitation funded under the Project;

(vi) Assist in the preparation of construction supervision guidelines to be followed by the national engineering consultants appointed to carry out this task. This should nominate the types and frequency of materials testing such as routine quality monitoring of compaction etc;

e. Bioengineer (international for 1 person-month, national 2 for person-

months)

124. Qualifications and experience: Degree in agricultural engineering, crop science, soil science, forestry or equivalent with more than 10 years experience of bio-engineering in tropical and sub-tropical developing countries. Experience in the region, especially in GMS and Lao PDR, is desirable.

125. Responsibilities: Identify approaches for agriculture infrastructure sustainability and climate resilience for the investment project in general and the subprojects. The tasks of the Bio-Engineer include but are not limited to:

(i) Coordinate with the other engineers and the environment/climate change specialist in the application of bio-engineering techniques for soil and water stabilization.

(ii) Review the subproject designs and apply the guidelines and approaches developed during the Project PPTA to protect the agriculture infrastructure against soil erosion, shallow planar sliding on sloping terrain, improve surface drainage and reduce slumping; and

(iii) Establish and implement a regular monitoring and analysis system for the Project to record the effectiveness of the measures against control sites.

f. Agricultural Economist (international, 3 person-months; national 13

person-months) 126. Qualifications: The specialists will have tertiary qualifications from an established and recognized institution and will be fluent in the English language. They will be familiar with economic and financial analysis requirements and methodologies used for internationally funded.

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127. Experience: The economists will preferably have 10 years of experience in the economic analysis of rural infrastructure development projects preferably financed by ODA donors.

128. The economists will be responsible for undertaking economic and financial due diligence of the feasibility studies. The international specialist will work together with the national specialist at the initiation of field studies to ensure that the approaches and methodologies being used meet acceptable international standards. This will be done by working on two or three of the larger subprojects. Subsequently, the national economist will complete the analysis required for the balance of the subprojects. Specific tasks for the position include the following:

(i) Review the economic and financial analyses done by the PPTA consultants and determine the appropriateness of the models and assumptions used.

(ii) Make any necessary adjustments considered necessary and review input costs and expected benefits;

(iii) Determine likely cropping patterns and consequent benefits of each of the subproject schemes.

(iv) Assess likely benefits from access road construction/improvement

(v) On the basis of capital and recurrent costs assessed by the irrigation and road engineers undertake an economic analysis of each subproject and determine an expected economic internal rate of return

(vi) Examine likely operational costs and determine appropriate water user fees for electricity (where relevant) and scheme operation and maintenance.

(vii) Review farm budgets and expected farmer income to determine the capacity to fund operation and maintenance costs;

(viii) Contribute to the assessment of the subprojects’ viability and feasibility in the feasibility studies and SIRs;

(ix) Suggest measures to enhance or improve economic and financial viability in the case of subprojects with promising social benefits but marginal economic and/or financial rates of return

g. Project Benefit Monitoring and Evaluation Specialists (international 7 person-months, national 16 person-months)

129. Qualifications: The specialists will have tertiary qualifications in rural development or a related field. Experience: The specialists will preferably have 5 years of experience as monitoring and evaluation specialists or in a related area.

130. The specialists will assist in overall benefit monitoring survey design and provide the principles for analyzing the results. In addition, the specialists will be responsible for establishing performance monitoring of the implementation of subprojects to facilitate reporting to the Government and ADB. Specific tasks of the specialists will include the following:

(i) Recruit a national firm or institution to carry out baseline surveys in each of the subproject areas and guide the firm or institution during its work;

(ii) With reference to the Project DMF and within the context of the baseline surveys and together with NPMO staff, design a monitoring system based on measurable inputs, outputs and outcomes. The system shall be disaggregated by gender and

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age. PPMOs and DPMOs will play a major role in collecting the monitoring data needed;

(iii) Together with NPMO staff, brief PPMOs and DPMOs on their duties and responsibilities under the project monitoring system;

(iv) Undertake an initial survey in two or three of the major subprojects together with PAFO and DAFO staff and adjust the data requirements and data collection procedures as needed to meet on the ground conditions;

(v) Document procedures and agreed data requirements along with the duties of the PPMO and DPMO staff providing monitoring schedules for each subproject;

(vi) Periodically review the data being collected, analyze results and report any deficiencies, problems, issues or shortcomings to the NPMO;

(vii) Prepare a PBME report at the end of the project for inclusion into the EA’s project completion report

h. Environmental Specialists (international, 2 person-months; national, 8 person-months)

131. Qualifications: The specialist(s) will have appropriate tertiary qualifications in environmental science, natural resource management or a related discipline from a recognized institution.

132. The specialist(s) will have more than eight years of experience working in the field of environmental management, environmental monitoring, for internationally funded development projects, some of which will have been undertaken in Lao PDR or elsewhere in the Mekong sub-region, and will be familiar with the laws of Lao PDR associated with the environment. The specialist(s) shall have experience in internationally funded development projects as an environmentalist and be familiar with ADB’s safeguard requirements.

133. The national specialist will also have considerable experience in environmental monitoring and will be familiar with the laws of Lao PDR associated with the environment as well as having had experience in internationally funded development projects, preferably related to infrastructure development, as an environmentalist. Training skills would also be an advantage to the international and national specialists.

134. Very few environmental concerns were identified during subproject screening and subprojects with major environmental issues were excluded from the project by definition. The main role of the specialists will thus be undertake any due diligence required, prepare environmental guidelines for contractors and monitor that the guidelines are being followed during the construction period. Specific tasks of the specialists will include the following:

(i) Review the project scope, the range of subprojects and the nature of works planned, paying specific attention to any environmental issues identified during the screening process;

(ii) Visit each proposed subproject and liaise with the Provincial Office for Natural Resources and the Environment to ensure that all environmental concerns of the subprojects have been identified and documented.

(iii) With reference to the results of the field visits, revise and update the environmental documentation and requirements prepared during the PPTA;

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(iv) For subprojects with no environmental concerns prepare a due diligence report documenting the fact that no IEE will be required;

(v) Review subproject construction schedules with NPMO, prepare a schedule for IEE preparation for any subprojects where one will be required and undertake IEEs according to the schedule;

(vi) With reference to the documentation prepared by the PPTA consultants, prepare an environmental management plan for the construction phase of the project. The plan will include guidelines for contractors requiring good environmental management practices, the opportunity for input from participation beneficiaries and a grievance mechanism;

(x) Periodically review construction activities during the construction phase to ensure compliance with the guidelines;

(xi) Liaise with the PONRE officers in each province and make spot checks during implementation to ensure that environmental plans are being properly implemented.

(xii) Assist in the preparation and implementation of training activities with regard to the environmental aspects of the Project. i. Resettlement and Ethnic Group Specialists (3 person-months

international and 8 person-months national)

135. Qualifications: The specialists will have tertiary qualifications in an appropriate discipline. Experience: The international specialist will have more than 10 years' experience working in the field of land legislation, land acquisition and resettlement for internationally funded development projects, some of which will have been undertaken in Southeast Asia, preferably Lao PDR. The national specialist will also be an experienced specialist with a minimum of 5 years practical experience. The national specialist will be conversant with the land legislation of Lao PDR and will also have experience in internationally financed development projects where land acquisition was an issue. Both experts will be fully experienced with ADB’s safeguard policy, especially as it relates to land acquisition, resettlement and Ethnic Groups.

136. Very few of the subprojects have been identified as requiring land acquisition and any subprojects which would evoke a Category A rating under the ADB policy have been removed from the project scope. Some of the villages participating in the project do have Ethnic Groups among their population either as a majority or a substantial group. The specialists will thus assume responsibility for reviewing subproject construction plans and detailed design and (i) ensuring that either no land acquisition is required and documenting that fact or (ii) ensuring that in the few places where land acquisition is needed that required land acquisition and resettlement procedures are followed with particular attention being paid to those subprojects which include ethnic groups among their beneficiary population. Specific tasks of the specialists will include the following:

(i) Inspect all proposed subprojects and review the likelihood and scope of any involuntary land acquisition which may be required, especially in areas with significant numbers of Ethnic Groups;

(ii) Review the land acquisition and resettlement frameworks and Ethnic Group Planning frameworks and other documentation prepared during the PPTA and make adjustments to meet the realities observed on the ground;

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(iii) Document subprojects without land acquisition and resettlement concerns where preparation of a resettlement plan will not be required and justify this fact;

(iv) In conjunction with NPMO determine the subprojects where land acquisition will be required, especially those with a significant number of Ethnic Group and prepare a schedule for resettlement plan preparation, linking it to the schedule for feasibility studies and detailed design;

(v) Prepare resettlement plans where required in accordance with ADB policies and procedures. Special attention will be paid to those subprojects with Ethnic Group and special measures will be designed for them if required;;

(vi) Undertake periodic reviews to ensure that the resettlement plans are being implemented as and procedures are being followed.

j. Poverty and Gender Specialists (3 person-months international and 16

person-months national)

137. Qualifications: The international specialist will have tertiary qualifications from an internationally recognized institution. The national specialist will have similar qualifications from a national educational institution.

138. The international specialist will preferably have 10 years of experience in the South East Asia environment, including experience on gender mainstreaming and capacity building strategy development. At least three years' experience will have been obtained in Lao PDR. The national specialist will preferably have 10 years of experience in related fields on internationally funded projects.

139. The safeguard requirements of the ADB seek to improve the benefits of the project to the poor and the disadvantaged groups within the target area. This will require specialist expertise in identifying affected groups and in accommodating their interests wherever feasible. The poverty and gender specialists will be needed to support project initiatives in community development including gender activities. There will be capacity building in these areas that will also form part of the responsibilities of the specialists. Specific tasks of the specialists will include the following:

(i) Prepare and undertake orientation sessions on poverty and gender issues, GAP and implementation responsibility with key EA/IA staff, provincial authorities

(ii) Assist the NPMO and PPMOs in preparing GAP annual plan and implementing provincial GAP, ensuring achieving gender related targets set in DMF and project GAP.

(iii) Provide technical gender inputs to different project interventions, including delivering gender sensitization workshop, developing and guiding NPMO/PPMOs in applying sex-and ethnicity disaggregated M&E system to monitoring GAP and DMF target achievement, and providing gender inputs to stakeholders’ capacity building strategy.

(iv) Working with Training coordinators and key training to integrate gender and poverty relevant contents in all AI related training program and ensure participatory training methodology build in to encourage women and ethnic group active participation.

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(v) In coordination with the Ethnic Group’s specialist, provide guidance to the local specialist in identifying interventions to achieve ethnic group participation in subprojects, particularly amongst the women

(vi) Monitor community involvement in subproject implementation, including O&M operation and bring issues or problems to the attention of the NPMO and relevant PPMOs;

(vii) Document the results of the GAP implementation and make recommendations for changes in order to achieve GAP target, ensuring vulnerable groups, including women, ethnic group can benefit equally as other groups.;

(viii) Working with M&E specialist to support and mentor NPMO/PPMOs in planning and M&E of GAP implementation as well as report to ADB on regular basis.

5. Capacity Building Consultants (CPC)

140. The capacity building component will be provided by TA8086 SDR. The following are the estimated required inputs.

Table 4: Capacity Building Consultants - Inputs by Year

(person-months)

2014 2015 2016 2017 2018 2019 2020 2021 Total

1. International Consultants

Water user group specialist (Savannakhet) 2 4 2 1 0 0 0 0 9

Water user group specialist (Saravane) 2 4 1 0 0 0 0 0 7

Community Development Specialist 1 1 0 1 0 0 0 0 3

Agronomist 1 2 1 0 0 0 0 0 4

PAFO/DAFO Training specialist 2 2 0 0 0 0 0 0 4

Subtotal 8 13 4 2 0 0 0 0 27

2. National Consultants

Water User Group Specialists (Savannakhet): 3 persons 9 33 33 3 3 3 3 3 90

Water User Group Specialists (Saravane):two persons 6 22 22 2 2 2 2 2 60

Agronomist 2 6 0 0 0 0 0 0 8

WUG/WUA financial management trainers (2) 2 6 4 4 4 4 4 4 32

Subtotal 19 67 59 9 9 9 9 9 190

Total 27 80 63 11 9 9 9 9 217

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VII. SAFEGUARDS

141. The primary focus of the Project is to improve agriculture productivity and forge linkages with local and international markets for raw and processed agricultural goods. This will be achieved largely through improvements to existing rural infrastructure and also by means of associated initiatives that will facilitate improved productivity and benefit to smallholders. Potential subprojects will be screened to ensure conformity with project criteria which include strict adherence to safeguard regulations of the ADB and the Government of Lao, including environmental and social impact on the population in general and on vulnerable groups in particular. Criteria for selection of subprojects virtually eliminated subprojects with potential significant impact on environment, and resettlement and land compensation matters. Consideration will also be given during the subproject selection process to ensure that women and vulnerable groups as well as Ethnic Groups will derive significant benefits from the selected subprojects and that any potential negative impact can be mitigated.

A. Resettlement

142. Little impact is anticipated from resettlement in view of the fact that subprojects comprise rehabilitation of existing infrastructure, involving existing irrigation systems and road alignments and do not require significant land acquisition. Furthermore, subprojects have been screened during the preparation stage to ensure they do not entail significant resettlement. Only Category B and C subprojects will be eligible for financing under the proposed Project. As such, the three pilot subprojects for Bung Xe (Cat C), Phanomxay (Cat B), and Vapy Neua (Cat B). Resettlement plans have been prepared for each in accordance with the Resettlement Framework agreed with the Government (web-linked document 11). The resettlement plans will guide implementation of mitigation measures for adverse social impacts as well as procedures for grievance redress among others.

143. Most of the civil works will involve either rehabilitation of existing irrigation facilities or rehabilitation and possibly upgrading of minor rural access roads, primarily village roads and farm access tracks, and construction work will be carried out primarily within the existing rights-of-way. There may be cases of minor land acquisition /compensation for asset removal or displacement – such as trees, fences, or minor land acquisition – along existing alignments to accommodate minor widening or straightening of roads/tracks to reflect improved design standards; but in the sparsely populated rural areas where the alignments are located, this risk is low and manageable. Compensation for temporary use of land during construction may also be required. In the case of rehabilitation of irrigation facilities, the most likely resettlement issue will come from minor relocation of delivery canals to improve water utilization efficiency. In such cases, it is likely that alternative land can be provided in a suitable location to the affected persons within the command area. There will also be some temporary loss of production during the dry season requiring compensation but as the purpose of most small scale irrigation schemes is primarily to complement wet season water supplies, the impact during the dry season when works will be undertaken will be minimal. Furthermore the participation of local beneficiaries during the detailed design phase will minimize the impact from both lost production and land replacement.

144. In the rare cases where a screened subproject is found during the feasibility study to present more significant resettlement issues which cannot be mitigated, the subproject will be replaced by a new subproject meeting the eligibility criteria. In such a case if a new subproject is proposed which was not included in the list of eligible subprojects, screening will be undertaken by a consultant acceptable to ADB to ensure its conformity with subproject eligibility criteria. Any minor compensation that may be needed will be provided in accordance with resettlement plans prepared for each subproject based upon the guidelines outlined in the Resettlement Framework. Implementation of resettlement plans will be monitored periodically, and the Government will

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submit to ADB bi-annual reports on their implementation. Qualified safeguard officers will be appointed to each PPMO to ensure conformity with the resettlement plans prepared for each subproject. These will be supported by independent safeguard monitoring entities that will be engaged by the NPMO. B. Environmental Impact

145. Given the candidate subproject screening before selection, there is little likelihood of subprojects having significant negative environmental impacts that cannot be mitigated. An environmental assessment and review framework (EARF) has been prepared as linked document 10. It provides guidance for the preparation and implementation of mitigation measures when minor environmental issues arise through environmental management plans (EMP). 146. In order to ensure that subprojects fit ADB environmental category B or C, or are environmental category 1 under the 2010 EIA subdecree, they will be screened for potential impacts. Subprojects located immediately adjacent to protected areas and that could lead to encroachment or higher risk of exploitation of natural resources in protected areas will be excluded. Most eligible subprojects are considered as Category B of ADB’s environmental classification as they may result in some adverse environmental impacts which can be largely mitigated. For projects in this category an Initial Environmental Examination (IEE) is required to determine the need for an Environmental Impact Assessment (EIA). IEEs were carried out for the three RSPs along with EMPs that can fully mitigate the minor environmental issues identified. 147. Subprojects will be selected by the national steering committee on the recommendation of the National Project Management Office (NPMO). Subproject will be identified by the Provincial Agriculture and Forestry Offices (PAFOs) and will be screened according to eligibility criteria. The eligibility criteria are: (i) compliance with Agriculture and Natural Resources (ANR) sector strategies of the central and provincial government, (ii) support agricultural productivity and economic development (subprojects must be shown to be able to deliver agriculture productivity gains and/or contribute to economic development, by increased productivity or improved access), (iii) should not entail significant adverse environmental impacts that are irreversible, diverse, or unprecedented, or affect an area larger than the sites or facilities subject to physical works; and any lesser impacts should be appropriately mitigated, (iv) no project activity will be implemented in an area of critical habitat for biodiversity, and the project will not significantly convert or degrade any natural habitat, (v) not entail significant resettlement (defined as having more than 200 affected persons) and (vi) have an estimated cost within the range of $500,000 to $3 million. The selected eligible subprojects and their priority shall be ratified by the provincial steering committee before referral to the NPMO. 148. In the case of rural access road rehabilitation and upgrading, subprojects are limited to existing alignments and will most likely involve limited cut and fill, minor widening and realignment. For irrigation rehabilitation and development, feasibility studies will ensure that water off-take during the dry season allows sufficient flows to maintain the riparian ecosystem and ensure there are adequate resources for down-stream users. Environment Category A subprojects will be ineligible and will not be financed under the proposed Project. Any subproject which may be reclassified under Category A for environment during the feasibility study will be removed from the list of eligible subprojects and will be replaced by a new subproject that meets the eligibility criteria. In such a case as in the case for resettlement issues, if a new subproject is proposed which was not included in the list of eligible subprojects, screening will be undertaken by a consultant acceptable to ADB to ensure its conformity with subproject eligibility criteria. Support in the preparation of consistent and well thought out environmental assessments and management plan preparation for each subproject will be provided at national and provincial levels.

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C. Ethnic Groups

149. The Ethnic Group’s Planning Framework has been developed for the overall project (Web-linked document 15) and sets out the requirements for screening of subprojects and for processes to be followed in the preparation of each of the subprojects. The analysis for the three representative subprojects has found no presence of ethnic groups however there is the possibility of subprojects in areas where ethnic groups are present. The main concerns will be communication difficulties, particularly for women, together with opportunity to access project benefits. Mitigation measures provided for in the Ethnic Group Planning Framework for the Project include effective consultation requirements and positive discrimination for employment during the construction phase; membership of committees; and capacity building for disadvantage and vulnerable ethnic groups. All monitoring and evaluation data will be disaggregated for the ethno-linguistic groups encountered.

150. The proposed project will focus on rehabilitation of existing irrigation systems and roads and therefore will not be involved in sequestration of any land that could be considered ‘ancestral domains’. Any lands that are required will be for infrastructure works and as these are rehabilitative works areas required will be minimal and will be dealt with through routine land acquisition, compensation and resettlement procedures. Screening procedures for each subproject will eliminate subprojects that will result in ethnic groups being disadvantaged.

151. The following table sets out the specific elements to be addressed in each Ethnic Group Plan (EGP) and it should be noted that many of these are similar to those in the GAP framework to support a combined GAP/EGP, where appropriate.

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Project Component Ethnic Group’s Planning Framework Element

1. Production and

productivity enhancing agriculture infrastructure constructed and/or rehabilitated.

Documented evidence of consultation with ethnic groups (women and

men) demonstrating their support prior to subproject approval.

Selection criteria for subprojects should ensure the use of local labor and

avoidance of construction camps.

Local contractors will preferentially employ women and men from poor ethnic group

households in construction activities.

Equal access to work and equal pay for women and men for work of equal type.

Safe working conditions for both men and women workers. Local contractors will not

employ child labor.

Ensure appropriate prevention programs are implemented for HIV and human

trafficking in all road rehabilitation subprojects.

2. Productivity and

impact enhancing

initiatives.

Representation of ethnic groups in WUGs.

Representation of ethnic groups on all subproject management committees (marketing

initiatives, producer groups and etc.).Capacity building for ethnic groups to enable

participation in subproject and community

decision-making delivered in local language and using appropriate methodology

(i.e. participation and negotiation training, marketing skills and numeracy training).

Representation of ethnic groups in project study tours. Extension services designed for

and delivered to ethnic groups.

Deliver a sanitation awareness raising campaign for domestic water subprojects and

provide for construction of essential sanitation.

3. Capacities of national, provincial and district agencies strengthened to enable a sector development approach.

Safeguard (EGP) training for implementing agencies at n a t i o n a l , provincial and

district levels (i.e. NPMO, PPOs, DCOs and other stakeholders).

Ongoing training and mentoring by International and National Specialists will be

provided to provincial and district staff to enable effective preparation and monitoring of

individual EGPs for each subproject.

Assistance (budgets) provided for capacity building of the Village Mediation

Committees where these have not had the recent round of training.

Assistance (budgets) provided for capacity building of village and district level

committees of the Lao Front for National Construction where this relates to promoting

and meeting the needs of ethnic groups in subproject areas.

4. Efficient and effective delivery of subprojects and Project management.

Safeguard (Ethnic Group) specialists included in national and provincial subproject

implementation teams.

Social Impact Analysis and an EGP will be prepared for each subproject.

All monitoring and evaluation data disaggregated by ethnic groupings (4 ethno-

linguistic groupings).

NPMO and PPOs responsible for monitoring and reporting of EGP performance

indicators, including ethnic group participation, training and employment targets.

EGP performance included in mid-term reviews.

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VIII. GENDER AND SOCIAL DIMENSIONS

152. Women play a significant role in agricultural production: they do most of the farm work including transplanting, weeding, and harvesting, threshing and post-production activities as well as spend long hours performing off-farm and household chores such as collecting firewood, preparing meals and caring for children. Yet women’s contribution is often undervalued, and as mechanization and commercialization of agriculture occurs men typically assume greater control of land, farming equipment and marketing ventures. Men also tend to take control of women’s traditional livelihood activities such as rice milling and the raising of small livestock once the process is mechanized or external resources are provided. Water user groups formed to operate and maintain irrigation facilities, are almost exclusively under the control of men, even though the cash needed to pay water user fees often comes from the trading and other productive activities of women in the community.

153. In the Savannakhet and Saravane subprojects, gender issues observed and raised by women and men included: women have lower education and literacy levels than men; women are not members of irrigation Water User Groups, except as cashiers; women did not want to be water distributors as it involved culturally unacceptable heavy work, often at night; men almost exclusively hold committee positions on community organizations (except Lao Women’s Union (LWU)); the male household head is invited to community meetings and women are excluded; if women do attend community meetings, men do the talking and decision making while women lack confidence to voice their opinions; both men and women take part in road and irrigation canal maintenance; women walk more than men and use local roads; almost all poor households are headed by women; female headed households (due to death, divorce or males working away) struggle financially because they have to hire replacement male labor, especially for male only jobs such as spraying; poor female headed households are vulnerable to shocks and do no risk taking credit or trying new crops.

154. The proposed Project is classified as ‘Effective Gender Mainstreaming’ (EGM) under the Asian Development Bank’s (ADB) guidelines (March 2010). A Gender Action Plan (GAP) has been prepared that is consistent with ADB’s Policy on Gender and Development (1998) and the Ministry of Agriculture and Forestry’s Strategy for Advancement of Women in the Agriculture and Forestry Sector 2011-2015. This GAP, summarized in Table 1, is designed to ensure that both men and women have full and equitable access to the Project’s resources and benefits. It particularly emphasizes building women’s leadership capacity and skills to enable women and men to develop gender sensitive and systematic village level planning, implementation, monitoring and evaluation.

155. The NPMO will be responsible for the implementation of the GAP and will be supported by a gender specialist hired by the Project. His/her tasks include facilitating the participation of women in Project activities and strengthening capacity of PAFO and DAFO. Implementation of the GAP will be overseen by the PAFO Women’s Advancement Units. The gender specialist will work closely with DAFO’s nominated staff for Women’s Advancement, as well as village women’s unions, youth unions, and village authorities in the Project area. The estimated costs of implementation of the GAP have been incorporated in the overall Project cost estimates.

156. Progress monitoring and evaluation of the action plan will be incorporated into the overall monitoring and evaluation plan for the project, including review missions and reflected in progress reports. The designated PAFO and DAFO officers, with assistance from the consultant team, will ensure implementation and monitoring of the GAP. Gender awareness training will be conducted for government staff, consultants, contractors, and community-level institutions

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associated with delivering project outputs. Sex-disaggregated indicators for project performance monitoring and evaluation will build on the monitoring system of PAFO and DAFO. The midterm review for the Project will be an opportunity to review targets and specific gender actions against overall project progress and target achievement. The following table sets out the specific elements to be addressed in each GAP and it should be noted that many of these are similar to those in the EGP framework to support a combined GAP/EGP, where appropriate.

Table 5: Gender Action Plan

Project Outputs- Components

Actions Responsibilities

1: Improved agriculture infrastructure

Women will comprise 50% of participants in consultations related to decision-making on irrigation system planning and implementation.

Documented evidence of consultation with local women and women’s groups (including poor women and women from ethnic groups prior to subproject approval.

Village level community liaison officers will comprise one male and one female.

Consultations will be held with women’s and men’s groups on road improvements.

Consultations will be held with women’s and men’s groups on the design of upgraded markets.

Ensure the design of upgraded markets include provision of adequate number of separate male and female toilets with adequate lighting.

Ensure the design of upgraded markets allocate separate market spaces for women vendors/ shop owners.

Road shoulders will have sealed surfaces to enable carts with wheels to reduce burden on women and girls who haul/carry water and other goods in rural areas.

For the safety of children and pedestrians, roads will have traffic calming and other safety measures to slow traffic in villages. All roads will include road safety signs.

Community based road safety information will include community members and at least 50% of community facilitators will be women. Any material developed will be gender sensitive and in an appropriate language.

Local contractors will employ at least 30% women in construction/ rehabilitation and labor-intensive maintenance through local contractor bidding document provisions: (i) training will be provided to women in construction & maintenance works; (ii) awareness campaign will be provided by contractors through village community liaison officers to encourage women to participate.

Equal pay for men and women for work of equal type.

Safe working conditions for both men and women workers will be established. Workers will be briefed on basic construction safety practices and accident prevention. The WUG will appoint a person to be responsible for following up on construction site safety measures.

100% female headed households will have equitable access to water for irrigation.

Implementing agencies will ensure land use certificates are updated in both spouses' names.

NPMO, Project consultants, PPMO - PAFO/DAFO, contractors, gender specialist, resettlement specialist

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Project Outputs- Components

Actions Responsibilities

2: Increased capacity of farmers to efficiently manage and use agriculture infrastructure.

45% of trainees in technical training related to irrigation O&M and development of infrastructure are women 32

45% participation of female farmers in skill training (eg. communication, contract negotiation, conflict resolution, planning, monitoring, evaluation)

30% of committee members in water user groups are women

Activities involving Water User Group members include both husband and wife, not only head of the household

At least 35% of PAFO/DAFO staff that receive training and study tours are female

Coordinate with PAFO/DAFO Women’s Advancement Unit

Project consultant, NPMO, village authorities, PPMO - PAFO/DAFO, WUG, gender specialist, institutional specialist


At least 30% of NPMO staff will be women

Workshops will be conducted to introduce the GAP to all stakeholders.

Gender training related to agriculture and infrastructure will be conducted for all staff, subproject implementers, consultants, and contractors, village authorities, and Water User Groups at subproject commencement.

The Project will ensure that adequate funds are allocated for GAP implementation

The NPMO will monitor the impact of the Project on women, reporting the results of these actions through the collection and analysis of sex-disaggregated data

Gender Specialists will be included as part of the provincial subproject implementation teams.

Updates on GAP performance will be included in project progress reports and mid-term reviews.

Project consultant, NPMO, gender specialist and all consultants

32 The Ministry of Agriculture and Forestry’s Strategy for Advancement of Women in the Agriculture and Forestry Sector

2011-2015 has targets to increase the number of female staff trained to at least 35% (of total participants) and increase the number of female farmers in vocational training to at least 45% (of total participants).

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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

Design Summary Performance Targets and Indicators

with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

Impact Increased household incomes in the project areas

By 2023: Average annual household income in the subproject areas increases to KN24 million (baseline KN11 million in 2013)

MAF and PAFO statistics PCR

Assumptions GMS demand for Lao PDR agricultural outputs remains strong

Progressive adoption of sustainable agriculture practices

Rice prices remain remunerative to farmers

Risk Catastrophic climatic events lead to premature deterioration of agriculture infrastructure

Outcome Increased agricultural productivity in the project areas

By December 2021: Annual rice yield increased from 3.0 tons/ha in 2013 to 4.5 tons/ha

Intensity of rice cultivations rises from 140% in 2013 to 180%

About 72,000 people have access to improved agriculture infrastructure

PPMS Annual crop production statistical reports from MAF and PAFO PCR

Assumption GMS trading regulations and procedures are progressively improved

Risk Extreme climatic events disrupt subproject implementation or damage agriculture infrastructure

Outputs 1. Improved agriculture infrastructure

By June 2019:

Improvements to the irrigation infrastructure in 25 schemes for 12,000 ha of wet season and 9,000 ha for dry season crops (baseline: 12,000 ha wet season

a and

4,800 ha dry season in 2013)

75 kilometers of low volume rural roads improved or rehabilitated

$8 million in local wages generated from the project construction activities, with 30% of the wages for women under equal pay conditions

PPMS Subproject completion reports

Assumption Relevant engineering and construction capabilities exist in Lao PDR

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2. Increased capacity of farmers to manage and use agriculture infrastructure efficiently

Agriculture infrastructure management and operation plans established and under implementation in all subprojects by June 2019

Full recovery of routine O&M costs in all subprojects by June 2021

30% women are members of WUG and WUA management committees by December 2015

WUG and WUA agricultural development plans prepared and under implementation in all subprojects by June 2019

15 WUGs graduate to become WUAs by June 2021

PPMS

Training completion reports

Assumptions Sufficient capacities in WUGs and WUAs to absorb training Current market oriented agriculture and trade policies continue to be progressively pursued


NPMO staffed by December 2013 (30% women)

All subproject baseline surveys completed by June 2015

Feasibility studies completed and approved in three phases: June 2014, September 2014, and June 2015

Construction works completed in three phases: December 2016, June 2017, and January 2019

PPMS

NPMO’s quarterly reports

Risk Shortage of qualified government staff

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Activities with Milestones 1. Improved agriculture infrastructure 1.1 Phase 1 construction works – three representative subprojects 1.1.1 Prepare and approve feasibility study by NPMO by June

2014 1.1.2 Prepare and approve detailed design by NPMO by

December 2014 1.1.3 Procurement of civil works by March 2015 1.1.4 Construction activities completed by December 2016 1.2 Phase 2 construction works – 10 top priority subprojects

(over and above three representative subprojects) 1.2.1 Prepare and approve feasibility study by NPMO by

September 2014 1.2.2 Prepare and approve detailed design by NPMO by March

2015 1.2.3 Procurement of civil works by August 2015 1.2.4 Construction activities completed by June 2017 1.3 Phase 3 construction works – Remaining subprojects

depending on funding availability (about 12) 1.3.1 Prepare and approve feasibility study by NPMO by June

2015 1.3.2 Prepare and approve detailed design by NPMO by

December 2016 1.3.3 Procurement of civil works by February 2017 1.3.4 Construction activities completed by January 2019 1.4 Commissioning and O&M under way by November 2019

Inputs

Total costs: $60.6 million

Loan

ADB ADF: $60.0 million

Item Amount

($ million)

Civil Works 43.93 Vehicles 0.30 Equipment and furniture 0.94 Consultants 5.29 Training 0.14 Project management and operating costs

1.95

O&M during implementation

4.38

Interest charge 3.07 Government: $0.6 million Item Amount ($ million) Government salaries 0.60

2. Increased capacity of farmers to manage and use agriculture infrastructure efficiently 2.1 On-the-job training of the NPMO and PPMOs in ADB

procedures, including as appropriate consultant recruitment, feasibility study evaluation, tender document preparation, construction supervision, and financial accounting and reporting in accordance with ADB requirements by international and national start-up consultants by June 2014

2.2 Specific staff training for NPMO and PPMO staff (35% female participation) by qualified training institutions by December 2016

2.3 Safeguard training for NPMO, PPMO, and district coordination office staff by June 2016

2.4 Intermittent study tours (35% female participation). Visits to ongoing rural development projects in Lao PDR. Later study tours to be decided in conjunction with project implementation consultants by December 2015.

2.5 Establishment of monitoring and evaluation system and training in its use by June 2015

2.6 Strengthening of WUGs and WUAs in subproject areas through community organization and training in technical, financial, and management aspects of field level irrigation scheme management by June 2021

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3. Efficient project management 3.1 Vehicles, equipment, and office space for NPMO and

PPMOs procured by September 2014 3.2 Incremental staff recruited for NPMO and PPMOs by March

2014 3.3 NPMO and PPMO set up and fully functional by June 2014 3.4 International start-up advisor (intermittent) and national start-

up consultant (full time) recruited by April 2014 3.5 Project implementation consultants recruited and fielded by

July 2015 3.6 Implementation monitoring consultants recruited and fielded

by October 2014 3.7 Safeguard monitoring consultants recruited and fielded by

October 2014 3.8 Gender action plan implementation arrangements are in

place and functional by January 2015 3.9 Prepare progress reports and submit to ADB on a regular

basis ADB = Asian Development Bank, ADF = Asian Development Fund, GMS = Greater Mekong Subregion, ha = hectare, Lao PDR = Lao People’s Democratic Republic, MAF = Ministry of Agriculture and Forestry, NPMO = national project management office, O&M = operation and maintenance, PAFO = Provincial Agriculture and Forestry Office, PCR = project completion report, PPMS = project performance management system, PPMO = provincial project management office, WUA = water users association, WUG = water users group. a The wet season benefit of the improved irrigation infrastructure will be much higher efficiency in irrigation water

delivery to the current command areas. Sources: Asian Development Bank estimates.

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B. Monitoring

1. Project performance monitoring system (PPMS)

157. A PPMS will be developed and implemented by the NPMO with the assistance of the LIC. The PBMS will collect information at subproject level to identify the current socio-economic conditions of target beneficiaries and to assess the impact of the subprojects. The PBMS will be based on measurable inputs, outputs and outcomes to be collected during baseline surveys and throughout project implementation. Domestic universities and institutes will be appointed by NPMO as a subcontract of the LIC to undertake baseline surveys and subsequent PBMS activities.

2. Compliance monitoring 158. The Government and MoF have agreed with ADB on certain covenants for the proposed Project, which are set forth in the loan and project agreements including the following:

i. Only subprojects that have been screened by the LIC or other ADB approved consultant, shall be financed by ADB loan funds

ii. The Government will ensure that adequate funds are allocated for the periodic maintenance of infrastructure to maintain the infrastructure in functional order; and

iii. The Government will also ensure that a grievance mechanism is established for affected people in the participating districts.

159. ADB will monitor compliance with those covenants throughout project effectiveness and implementation via regular review missions, quarterly progress reports submitted by the NPMO, and review of project accounts and procurement procedures.

3. Safeguards monitoring 160. Safeguard monitoring will be undertaken by the safeguard experts on the LIC team. If needed the Project will support the recruitment of Safeguard Monitoring entities from domestic universities and institutes, to ensure that all recommendations and mitigation measures under the EMPs, the EGPs, and the RPs, of each subproject are being implemented in accordance to the plans.

4. Gender and social dimensions monitoring33

161. All data, in accordance with Prime Minister’s Decree No.140/PM dated 20 August 2002 and guideline paper No. 018/NPMO of 10 January 2005, will be disaggregated by sex and age, urban and rural women, and women of ethnic groups. Routine monitoring by the safeguard monitoring entities to be recruited under the Project will focus on assessing progress and compliance with GAPs, identifying constraints and developing remedial actions to effectively address these. Monitoring results will be part of the six monthly progress reports and assessment / evaluations of the GAP will be an essential element of all reviews.

33

ADB's Handbook on Social Analysis: A Working Document, is available at: http://www.adb.org/Documents/Handbooks/social-analysis/default.asp, Staff Guide to Consultation and Participation: http://www.adb.org/participation/toolkit-staff-guide.asp, and, CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations: http://www.adb.org/Documents/Books/CSO-Staff-Guide/default.asp

http://www.adb.org/Documents/Handbooks/social-analysis/default.asp

http://www.adb.org/participation/toolkit-staff-guide.asp

http://www.adb.org/Documents/Books/CSO-Staff-Guide/default.asp

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C. Evaluation

162. ADB will conduct regular (at least twice per year) reviews throughout project implementation to assess implementation performance and achievement of project outcomes and objectives, examine financial progress, and identify issues and constraints affecting the Project and work out time-bound action plans for their resolution. 163. A Midterm Review will also be undertaken within 48 months of loan effectiveness. This review will include a comprehensive evaluation of project implementation arrangements, detailed evaluation of the scope and implementation process and progress of subprojects, feedback from the PBMS, performance of consultants, capacity building progress, and possible reallocation of loan proceeds. During this more significant review, the impact from agricultural productivity and the pro-poor initiatives linked to infrastructure development will be assessed as will the allocation by provisions for the maintenance of the infrastructure developed under the Project. Remedial action will be instituted as required. 164. Within 12 months of physical completion of the Project, ADB will conduct a project completion mission to carry out a preliminary assessment of the success of the Project to achieve its physical, and socio-economic developmental objectives, as well as to review compliance with ADB requirements and loan covenants. D. Reporting

165. The NPMO will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure the project continues to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

166. The Project is designed to improve the welfare of rural inhabitants in Savannakhet and Saravane provinces, through a series of investments in priority rural infrastructure aimed to improve agriculture productivity and market efficiency together with improved agricultural access to and use of materials, knowledge, production inputs and markets.

167. Project preparation has been conducted with stakeholder agencies in the Government of Lao PDR at national, provincial and district levels including MAF, Ministries of Planning and Investment, Public Works and Transport, Water Resources and Environment Administration, and the National Land Management Authority. Consultations have also been held with the mass organizations, the LWU and the Lao National Front which has responsibility for ethnic group affairs. Specific meetings have been held in the participating provinces and with village-based organizations focusing on irrigation/water management arrangements and issues, and constraints to agriculture production. Requirements for ensuring appropriate levels of consultation for subproject proposal preparation have been developed.

168. Initial subproject proposal preparation includes consultation requirements involving documented evidence of inclusive consultation with all stakeholders and communities in the

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subproject catchment area and participant information on numbers of women and men by ethnic grouping. Subproject socio-economic / gender surveys that identify vulnerable groups to provide basis for specific consultation and participation mechanisms will be followed during implementation.

169. During the Project, the process of consultation will continue throughout the feasibility study, detailed design and implementation phases of each subproject to afford community groups the opportunity to voice their views on how the subproject is to be designed, implemented and operated. This will be particularly important in the design of operation and maintenance and agriculture productivity plans in each subproject area.

1. Participation 170. It is anticipated that the community will be mobilized in a number of different ways during subproject design, implementation and operation. During subproject design and preparation stages community participation will consist primarily of their contribution through the consultation process.

171. During the construction phase, significant opportunities will arise for active participation, particularly for poor household to benefit from the subproject through provision of wage labor to the contractors. This will be encouraged through the bidding documents which will request the contractors to investigate this option, whenever possible.

172. The community will also be required to participate in the O&M of the completed infrastructure whenever possible through provision of labor and funds through WUG fees and charges. Participation in the implementation of operation and maintenance and agriculture productivity plans will be an integral part of project activities.

2. Awareness 173. Experience has demonstrated the importance of community participation in achieving sustainable development including appropriate and well-designed infrastructure. To ensure adequate participation of the community, it must first be well-informed and there must be adequate opportunities for everyone to participate if they wish.

174. Information about the Project and the subprojects in particular, including the objectives, potential environmental impact, implementation arrangements, resettlement and compensation matters, gender issues, issues of concerns for ethnic groups will be provided to beneficiaries. Information will be provided through village meetings, pamphlets, and other announcements in both Lao language and the language(s) of the communities whenever appropriate. The community will be fully informed of issues such as their right to participate in this subproject and to be compensated for any loss of property including productive land and / or assets as well as gender equity and other relevant policies. Separate meetings and discussions will be arranged with the people who are directly affected by land acquisition and/or resettlement issues. The community and particularly the affected households will be provided with detailed guidance and procedures regarding resettlement and compensation.

175. A summary in the form of a consultation and communication plan is incorporated in the following table.

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CONSULTATION AND PARTICIPATION PLAN

Stakeholder Group Objective of their Intervention. Why are they included?

Type of participation

Participation method Timing/Key Decision Events Method Who will be

responsible

Provincial PAFO (PPO)

To implement, manage, and supervise the overall project and subprojects within the province; to ensure coordination between inter-government agencies; to report to ADB and National government

Control and shared decision making

Meetings; project directives; overseeing the relevant RAP, GAP and EPP

NPMO ADB Implementation consultants

Throughout project; subproject feasibility approval; provincial monitoring

District DAFO (DCO) To implement district subprojects; provide technical support to farmers and water user groups; improve skills and capacity

Shared responsibility, information sharing, consultation, training

Meetings; training courses and workshops; technical advice

Implementation consultants; PAFO; WAU

Subproject planning, implementation and monitoring

Village Authorities To implement subprojects at the village level; mobilize community participation and contributions; promote community awareness; ensure participation by women, ethnic groups, farmers; resolve grievances

Information sharing, shared responsibility, training

Baseline information gathering; planning; coordination meetings; training; communication to villagers and marginal groups; mediation; RAP, GAP and EPP

Village leader and deputies; LWU, National Front, Farmers Association representatives at village level


Water User Groups To improve management capacity in financial control, administration, accountability, communication; to improve irrigation operation and maintenance

Consultations; shared decision making; control

Baseline information gathering; training and technical advice; communication to farmers

Implementation consultant; DAFO

Subproject planning, implementation and monitoring; WUG management and maintenance decisions

Farmers To improve farming and income generation opportunities; improve ownership and develop commitment to maintain infrastructure; ensure farmers are better informed about irrigation operations

Consultations; information sharing;

Baseline information gathering; training and technical advice; meetings; monitoring

Implementation consultant; DAFO; WUG; village authorities


Women To improve gender equality and ensure full participation of women in the project

Consultation; information sharing; control

Baseline information gathering; training and technical advice; meetings;

Implementation consultant; PAFO WAU; DAFO; Village authorities


Poor and Vulnerable HHs

To ensure their participation and that they benefit from the project

Consultation; information sharing; control

Baseline information gathering; consultations; employment

Implementation consultant; contractor

Subproject planning, implementation; impact monitoring

Private businesses To ensure they benefit from the project Consultation; information sharing

Meetings; consultations; technical advice and training

Implementation consultant; District Authorities; DAFO


Resettlement Affected Persons

To understand project impacts on livelihoods and assets; to make affected people aware of their rights; ensure appropriate compensation

Consultation; information sharing; shared decision making

Baseline information; socio-economic surveys; impact monitoring surveys

Implementation consultant; Village authorities; PAFO

Subproject resettlement planning; compensation

Key: ADB – Asian Development Bank; DAFO- District Agriculture and Forestry Office; GAP – Gender Action Plan; HH – Household; EGP – Ethnic Group Plan; LWU – Lao Women’s Union; NPMO - National project management office); PAFO – Provincial Agriculture and Forestry Office: PPO - Provincial Project Office; DPWT – Department (Provincial) Public Works; RAP – Resettlement Action Plan; WAU – Women’s Advancement Unit; WUG – Water Users Group

78

32

X. ANTICORRUPTION POLICY

176. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with MAF and Governor’s offices for Savvankhet and Saravane. Consistent with its commitment to good governance, accountability, and transparency ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.34 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB- financed activity and may not be awarded any contracts under the Project.35

177. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the loan regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of MAF, NPMO, the PPOs, and DCOs, as well as all contractors, suppliers, consultants, and other service providers as they relate to the Project. Individuals/ entities on ADB’s anticorruption debarment list are ineligible to participate in ADB- financed activity and may not be awarded any contracts under the Project.36 The project design and implementation arrangements provide for mitigation of corruption risks. Risks associated with project management, including procurement and disbursement, will be mitigated by the engagement of GIC to advise and assist in the procurement of goods and services, and the engagement of other consultants. The Project will also establish a website or establish a subpage under the existing MAF’s website in which it will disclose implementation progress; bid notifications and their results; and provide grievance mechanism against any corrupt practice. References on ADB's Anticorruption Policy can be accessed through the following link: http://www.adb.org/Integrity/.

34

Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 35

ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp 36

ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp

http://www.adb.org/Integrity/

http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf

http://www.adb.org/integrity/unit.asp

http://www.adb.org/integrity/unit.asp

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77

XI. ACCOUNTABILITY MECHANISM

178. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.37

37

For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

http://www.adb.org/Accountability-Mechanism/default.asp

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32

XII. RECORD OF PAM CHANGES

179. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

10

81

Appendix 1: Subproject Eligibility Summary Table

No Name of Scheme Eligible Current (wet

season) cropped Area (ha)

Design Dry Season

Irrigation Command

(ha)

Current Dry

Season Irrigated Area (ha)

Expected Dry Season

Irrigated Area on Completion

(ha)

Irrigation Works to be Undertaken

Access improvements to be

investigated

Cost Est.

$ mill

Remarks/ Issues

Savannakhet Province

Representative Subprojects

1 Bung Xe 1 and 2 YES 420 420 Rice (257) 420 Remedial redesign and repair of pump intakes on Xe Bangfai River, repair and lining of main canal on Bung Xe 1 system, upgrading of intake pipelines and rehabilitation of secondary and tertiary canals

Upgrading of three internal agricultural farm roads linked with embankment repairs. Construction of 5.3 km of low volume concrete pavements of adequate width for low volume local and farm traffic.

2.12 1. Bung Xe 1 and 2 are two interconnected schemes in Xaybouli District, each served by pump stations operating from moored pontoons located on the Xe Bangfai River. 2. The schemes were last rehabilitated in 1989/91 and are failing through age and a lack of adequate O&M 3. A comprehensive feasibility study for the representative subproject was completed during the project PPTA. 4. Schemes are operated by well established WUGs but strengthening for resource management, O&M and financial management is required.

2 Phanomxay YES 200 250 Rice (70)

250 Remedial redesign and rehabilitation of pump intake of the Xe Sang Xoy River, repair and relining of the main canal, the upgrading of the intake pipeline and the rehabilitation of secondary and tertiary canals. Extension to service a 50 ha area south of Road No. 9.

Two agriculture access roads are associated with the subproject, one to the north side of national road No. 9 and the second to the south of national road No. 9. The access improvements consist of 5.9 km of narrow concrete pavement suitable for low volume local and farm traffic.

1.66 1. The Phanomxay subproject located in Phalanxay District was last rehabilitated and expanded in 1997 as a joint initiative between the Savannakhet PAFO and the WUG. The scheme is failing through age and a lack of adequate O&M. 2. A comprehensive feasibility study for the representative subproject was completed during the project PPTA. 3. A feature of the subproject is an integrated tourism opportunity associated with dinosaur footprints in the Xe Sang Xoy riverbed within the subproject site. The access improvements north from Road No. 9 will provide for bus access and parking, and pedestrian entry to the dinosaur site. The narrow agriculture road south on Road No. 9 provides access to the Spirit Forest, a site of local cultural significance.

82



Design Dry Season

Irrigation Command

(ha)

Current Dry


Expected Dry Season


(ha)



investigated

Cost Est.

$ mill

Remarks/ Issues

4. There is a WUG in existence and strengthening for resource management, O&M and financial management is required.

Screened Subprojects (Proposed by PAFO)

1 Houay Thouat (gravity)

YES 1,000 720 Rice (400) Cash crops (320)

1,000 Remedial redesign and repair of head works; repair and extension of main canal; repair and extension of secondaries; possible construction of selective tertiary system; Repair of dike toe protection at reservoir side

Possible appropriate spot improvement pavements; environmental optimised design; raise and protect a section of approximate 500 m in the north–west area and installing appropriate cross drainage

3.0 for Irr + access works and 1.0 for repair of dike protection.

1.Scheme is 13 years old 2.Serious damage to head works due to design deficiencies which will get worse if remedial action not taken; Detailed design study necessary to optimise interventions 3. Main canal road needs repairs in some wet areas spots.

2 Gnot Bak (gravity)

YES 550 500 Rice and cash crops (250)

550 Rehabilitation and possible lining of secondary canals and construction of tertiary canals.

5 km access road improvement and possible internal agricultural access along the secondary canals

2.0 1. Emphasis on water management and –efficiency; 2. Research water availability 3. Investigate options to improve access road

3 Houay-Xay (electric pump)

NO

400 350 Rice (350) No major capital investment necessary

No access issues identified

– Only minor technical defaults / deferred maintenance. No capital investments required; maintenance of pump and steel conveyance pipe needed.

4 Phouheua-Sao-Va (electric pump)

YES

312 760 Rice (760) 1240 (this excludes

the 120 ha wetland which is proposed to

be drained)

Main canal lining (5 km)

Appropriate spot improvement and pavements in flood area. Approximately a total of 11 km internal access roads (along canals); 5 km road Ph.Sao–Va; along main canal; protect and improve drainage of hill section of road in

6.2 Schemes 4, 5, 6 are part of one scheme with three water intakes from the Xe Bangfai River and should be considered as one in the FS. The North–Western part of the area are subject to regular (once in 3 to 4 yrs) serious flooding, destroying earth canals and roads. Appropriate environmental optimised design options to be applied. Attention should be paid to the low wetland area (of approx 120 ha); draining and cultivating this would have potentially serious environmental and land

5 Dang Savanh (electric pump)

YES

450 Rehabilitation and reconstruction of secondary canals and lining

6 Had-Kham-Dee (electric pump)

YES

350 Possible lining of the main canal of Had–Kham–Dee

83



Design Dry Season

Irrigation Command

(ha)

Current Dry


Expected Dry Season


(ha)



investigated

Cost Est.

$ mill

Remarks/ Issues

Ph.Sao–Va; appropriate pavements of embankment roads in Had–Kham–Dee

acquisition impact;

7 Bungtalae (replacement of shortlisted Phalan-Neua-already FS conducted)

YES 700 200 50 150+ New electric pump; 2 x 75 kW; new lined main canal 2-3 km

6 km internal access 1.2 Bungtalae and Na-Kang-Xe both benefit from the same newly constructed barrage across the river; Seed production, small holder support, animal raising

8 Na-kang-xe YES 390 70 0 200 Replace broken diesel pumps with electric; 2-3 km main canal

1-2 km internal access roads

0.9

9 Phak-ka-da NO 0 0 0 ? Complete new system New internal access ? Likely land acquisition

10 Houay-hin-khan NO 0 0 0 ? Complete new system New internal access ? Likely land acquisition

11 Nam-pong-na NO 296 not designed

3 50 max Complete new canal system; new barrage across river

Possible improvement of 12 km extern access rd

1 - 1.5 Likely land acquisition

12 Na-tur YES 230 500 50 500 New intake weir, 6 km rehab lined main canal, 3 km new, 7 km secondary canal

Access is district road (35 km to Vilabouly); needs improvements

1.4 >80% is other crops than rice; market in development zone; high potential

13 Houay-lae YES 30 350 0 400 2 km rehab and 1 km extension; raising crest level of intake weir, 2km secondary canals

Minor internal access 0.8 High potential for crop diversification and increased areal and production; traders interested to buy.

14 Houay-sa-khouang YES 208 150 100 150-500 Repair gates, flush, 2 km main lined canal, possible lining of 6 km sec canals.

No access issues reported at the time of scoping

0.8 Rice seed production potential; new rice seed station established; currently no surplus crops; high potential for cash earning

15 Phak-Kha (electric pump)

YES

350 180 Current total irrigated area (50): Rice (21) Cash crop

Expansion to 350 ha would require 4 km

additional main canal, a new weir and a

Major repairs of lined canal sections; new lining (1.2 km main, lining of secondary canals, repair of current syphon and

Appropriate environmental optimised design of agricultural access along the canals; estimated 4 km.

1.4 for rehab and access up to 2.2

Very erodible soils in the area; under scouring risk and channel erosion are high. Much care should be taken to ensure stabilisation of embankments and canals; protection measures against leakage. Lining of conveyance canals necessary; cost benefit

84



Design Dry Season

Irrigation Command

(ha)

Current Dry


Expected Dry Season


(ha)



investigated

Cost Est.

$ mill

Remarks/ Issues

(29) syphon to cross the main road;

lining and repairs would bring back the

irrigated area to 180 ha

reconstruction of embankments

including extension.

and risk assessment necessary to decide on expansion of the system.

16 Dong-Boune (diesel pump)

YES

350 300 Rice (73) 300 Replacement of pump; investigate possible improvement of retaining dam. Research water availability in dry season and replenishment.

Appropriate environmental optimised design of agricultural access to fields and intake; estimated length 3 km.

1.2 Replacement of diesel pump with more cost efficient and higher capacity electric pump to reduce costs/ha significantly (currently 2 mill Kip per ha) and increase efficiency of water use at tail end. Strong and active WUG; relatively high yields of 4.5 t/ha

17 Heuane-Hine (electric pump)

YES

300 129 Cash crops and rice (60)

300 Rehabilitation repair and lining of main canal; minor repair of pump

Appropriate environmental optimised design of agricultural access of approx 2 km

1.4 Canal water levels too low for part of command area and gradients of canal bed need redesign and correction. Investigate siltation prevention at intake.

18 Khan-Tha-Chane (electric pump)

YES

300 200 Cash crops (93); rice (0.5)

280 Repair of 1 of 2 pumps; repair of conveyance pipe; investigate lining options and construction of new secondary canal

Consider access to Khmer tourist site (ancient temple); investigate need and options for improvements of agricultural access

1.4 WUA is strong and fully certified. Ex DIDM scheme.

19 Dong-Savang-Thong

YES 0 150 143 300 2-3 km new lined main canal; 2 additional 75 kW pumps

7 km internal access; floods resilient

1.4 Wet season no crops, due to flood risks; dependence on dry season irrigation; traders interested; already 30% sold; double rice production potential; strong WUG

20 Houay-San NO 30 30 30 50 (?) 2 km additional lined main canal; additional pump, improve and increase existing canal capacity

2 km internal access > 0.8 Severe water shortage at source; regular (3yr return) floods

85



Design Dry Season

Irrigation Command

(ha)

Current Dry


Expected Dry Season


(ha)



investigated

Cost Est.

$ mill

Remarks/ Issues

Saravane Province

Representative Subproject

1 Vapy Neua YES 220 220 Rice (77)

270 Remedial redesign and rehabilitation of pump intake of the Xe Done River, repair and relining of the main canal, the upgrading of the intake pipeline and the rehabilitation of secondary and tertiary canals. Extension to service a 50 ha area downstream of the existing area.

Rehabilitation of the existing agriculture access road (Farm Road 1: 2.9 km) entering the main irrigation command area to the north of road No. 15, and the secondary access (Farm Road 2: 1.9 km) linking between Farm Road 1 and the main district road running to the north of Road No. 15

1.66 1. The Vapy Neua subproject located in Vapy District was constructed in 1997/98 through a joint initiative between DOA and the WUG. The scheme is failing through inadequate design features, age and a lack of adequate O&M. 2. A comprehensive feasibility study for the representative subproject was completed during the project PPTA. 3. There is a WUG in existence and strengthening for resource management, O&M and financial management is required.

Screened Subprojects (Proposed by PAFO)

1 Nong-Deng (gravity)

NO 2500 2000 1500 2000 Selected improvements of the L2 secondary canal with a CA of 430 ha and repair of the weir.

None Selected part of the scheme does not show serious technical problems. The scheme should be looked at in totality; not one secondary canal in isolation. Furthermore social disputes had been reported in this scheme during earlier consultations in the PPTA pre–feasibility visits

2 Dong-Mon (gravity)

YES

360 360 Rice (330); Vegetables for consumpt’n (30)

550 (+600 additional from second source)

Main and secondary canal improvements (lining options) of approximately 3 km; redesign for supplementary water conveyance from second source (for 600 additional ha)

Investigate options for canal embankment protection for access.

1.0 Government signed a contract of 2 mill for the construction of a supplementary intake to be conveyed through the existing system; this will require redesign and new construction of part of the system

3 Sout-Ta-Vali (gravity)

YES

255 255 Rice (255) 255 Rehabilitation/improvement of secondary

Investigate appropriate improvements of the

1.2 Tail end is above current command of the scheme; strengthening of WUG; 80% do not

86



Design Dry Season

Irrigation Command

(ha)

Current Dry


Expected Dry Season


(ha)



investigated

Cost Est.

$ mill

Remarks/ Issues

canals; possible lining and raise level. Improve off–takes and structures.

access road (7 km) to Rd 20

pay water charges.

4 Houay-lath (gravity)

YES

360 300 Rice and cash crops (300)

300 Improvements of structures and off–takes and spot lining of main canal; investigate efficiency of rotation over secondaries; rehabilitation/improvement of secondary canals

Investigate appropriate improvements of the access road (8km) to Rd 15

1.5 Scheme constructed in 1997 for resettlement (2006) of Pakho ethnic group. Currently 3.5 t/ha and two crops per year. Improvement of cluster water management needed between the 5 villages (6 sec canals/5 WUGs)

5 Na-Khoi-Sao (gravity)

YES

490 300 Rice (200) Cash crops (100)

350 Minor repair of leaks at the weir; Improve off–takes and structures and spot lining of main and secondary canals.

Investigate improvement of 2 km access road and 5 km agricultural roads

2.0 Long main canal (14 km) and 17 km secondary canals. Investigate improved water management; agricultural extension and support to WUG

6 Vapy Tai YES 250 100 30 150 to 250 3x75 kW pump, 3 km lined canal; for expansion to 250-total: 5x75 kW, 5 km lined canal, increase capacity of first section of 250 m.

4 km internal access 1/1.8 Highly market oriented. Already 60% surplus sold; rice seed production

7 Ban-Doub (SNRMPEP supporting activities in area)

NO 25 18 28 50 Rehab intake (+reservoir), weir; Repair main canal 1 km and sec. canal 1,5 km. Add water off-take structures between 700 m to 1,500 m.

None 0.8 Not very familiar with irrigation; weak WUG; training input substantial, small scheme, little economic potential growth

8 Cha-Lan-Xe YES 50 90 50 150 to 300 To expand to 300ha: 5 km lined canal (3 km extension), 2x75kW additional pumps,

3 km internal access 0.9 Now 50% selling in wet season, 100% of dry season produce

9 Don-Mouang YES 290 150 120 290 4x75KW pumps (2 add 3 km internal access 1.5 Soil not very fertile and low quality hence low

87



Design Dry Season

Irrigation Command

(ha)

Current Dry


Expected Dry Season


(ha)



investigated

Cost Est.

$ mill

Remarks/ Issues

and 2 replacement), 2.3+2 km lined canal,

prices; economic benefit from quantity. Now 50% selling in wet season, 100% of dry season produce

10 Keng-Houat

YES 233 200 70 233 (Keng Houat) + 67

(additional CA in Na Theun

area) + 286 (Na Theun) = 586

Total 4 replacement and 4 additional 75 kW pumps, or fewer larger pumps; total 8.5 km lined canal; some repair of off takes/division boxes

Total 5 km access road and 9 km internal access improvement (flood resilient) 3

The two schemes pump from the same river into one command area and should be studied as one scheme for efficiency; very strong WUGs and market oriented

11 Na-Theun YES 286 286 80

10

88

Appendix 2: Composition of Steering Committees

I. National Stering Committee,NSC

No.

Name and Surname Position Organizations NSC Positions

Dr. Ty Phommasack Vice Minister MAF Head of the Committee 2 Dr. Khampheuy Phanthachone Vice Provincial Governor of

Savannakhet Province Provincial Governor Office

Deputy Head

3 Mr. Siheng Homsombath Vice Provincial Governor of Saravan Province

Provincial Governor Office

Deputy Head

4 Mr. Xaypradeth Choulamany Director General of DOPC MAF Secretaiate

5 Mr. Nouanedeng Rajvong Deputy Director General of DOI

MAF Member

6 Mr. Angkhansada Mouangkham Deputy Director General of Dept. External Finace Relation

MOF Member

7 Mr. Bouasavath Inthavanh Deputy Director General of DIC

MPI Member

8 Mr. Saysamone Phothilath Deputy Director General of Dept. of Forestry Resources Managemant

MONRE Member

9 Ms. Phonedavanh Phinsavanh Deputy Directore General of Cabinet Office of LWU

LWU Member

II. National Project Coordinator(NPCO)

No.

Name and Surname Position Organizations NPC Positions

1 Mr. Saylom Chansouk Deputy Director of Administration Division, DOI

DOI, MAF National Project Coordinator(NPC)

2 Mr. Chindaphone DOI, MAF Deputy National Project Coordinator,

(Administration)

3 Mr. Vongsackda Vongxay DOI, MAF Deputy National Project Coordinator, (Technical)

III. Provincial and District Steering Committee, Provincial Project Coordinator and District Project Coordinator

3.1 Savannakhet Province

89

Stering Committee

Name and Surname Position Organizations PSC Positions

1 Dr. Khampheuy Phanthachone Vice Provincial Governor of Savannakhet Province

Provincial Governor Office

President

2 Mr. Vilaysouk Khennavong Director of PAFO PAFO Vice President

3 Mr. Kongkham Xaypangna DD of DPI DPI Member 4 Mr. Sengaloun Silapangna DD of DOF DOF Member

5 Mr. Phouthone Gnodbounheuang

DD of DONRE DONRE Member

6 Mr. Ouvong Voravong DD of DPWT DPWT Member

7 Mr. Khamloui Gnadtivong Head of Irrigation Division PAFO Member

8 Mr. Sounthala Tonphanith Head of PC Division PAFO Member 9 Mr. Sing Phachansithi Project Coordinator PAFO Secretariate

3.1.1. Savannakhet Provincial Project Coordination and responsibility

No.

Name and Surname Position Organizations PPC Positions

1 Mr. Sing Phachansithi Irrigation Technical Staff PAFO Project Coordinator

2 Mr. Phaisane Kayone PlanningTechnical Staff PAFO Deputy Project Coordinatoir

3 Mr. Phonekeo Southimad Administration Technical Staff PAFO Projec Acountant 4 Mr. Bounouane Sihanouvong Irrigation Technical Staff PAFO Project Planning

Technician

5 Ms. Palina Ounkeomanivong State Audit Technical Staff PAFO Project Contract Management Staff

6 Mr. Bounvanh Phachansithi Irrigation Technical Staff,Vilabouly

Vilabouly District Project Irrigation Technical Staff

7 Mr. Sisouphanh Senggnasouline

Administration Technical Staff PAFO Project Safeguards Staff

8 Ms. Sisomphone Bouphavanh Agri. Ext, Technical Staff PAFO Proj. Community Development, Gender,and Ethnic staff

9 Ms. La Boungnalith Animal raising and fishery Staff

PAFO Project Resettlement staff

1 Ms. Paphatsone Mangkhala Administration Technical Staff PAFO Project Assistant/Secretary

90

0

11

Mr. Somchai Xayalath Driver PAFO Project Admin istration

3.1.2. District Stering Committee and Project Coordination of Phalanxai District( Phalanxai Subproject), DSC, DPC

No.

Name and Surname Position Organizations DSC Positions

1 Mr. Sonesavanh Chansima Dep District Governor District Governor Office

Member of PSC, President of DSC

2 Mr. Vilaysack Langsoumixay Head of DAFO DAFO Vice President of DSC

3 Mr. Daovieng Phaxaysombath Head of District Planning Office

DPIO Member

4 Mr. Paphandeth Thadthabersy Head of OPWT OPWT Member 5 Mr. Khamhou Souphalack District Finacial Sataff DFO Member

6 Mr. Phoukhong Keopaseuth DAFO staff DAFO District Project Coordinator

3.1.3. District Stering Committee and Project Coordination of Xayboury District( Xayboury Subproject), DSC, DPC

No.

Name and Surname Position Organizations DSC Positions

1 Ms. Sisavath Khottavongsa Dep District Governor District Governor Office

Member of PSC, President of DSC

2 Mr. Sinthalay Ninnasopha Acting, Head of DAFO DAFO Vice President of DSC 3 Mr. Khamphoui Paosavath Head of District Finacial Office DFO Member

4 Mr. Phoulom Sihavong Head of District Planning Office

DPIO Member

5 Mr. Sivilay Phasavath Head of OPWT OPWT Member 6 Mr. Keooudone Chanthavongsa DAFO staff DAFO District Project Coordinator

3.2. Saravanh Province Stering Committee(PSC)

No.

Name and Surname Position Organizations PSC Positions

1 Mr. Siheng Homsombath Vice Provincial Governor of Provincial President of PSC

91

Saravan Province Governor Office

2 Mr. Vilakone Volasane Director of PAFO PAFO Vice President of PSC 3 Mr. Bounheng Xayasen Dep Director of DPI DPI Member

4 Mr. Ounheuane Silisamouth Dep Director of DONRE DONRE Member 5 Mr. Khanthalack Phoxay Dep Director of DOF DOF Member

6 Mr. Sithanonxay Ninsouliyavong Dep Director of DPWT DPWT Member 7 Ms. Douangmala Sisamouth Dep Director of LWU LWU Member

8 Mr. Vannalack Laliamthavixay Dep of Saravan District Governor

Saravan District Gov. Office

Member

9 Mr. Nouphet Chomlasy Dep of Vapy District Governor Vapy District Gov. Office

Member

10

Mr. Bouthanh Leudethmounsone

Dep of Khongxedone District Governor

Khongxedone District Gov. Office

Member

3.2.1. Saravan Provincial Project Coordination and responsibility,PPC

No.

Name and Surname Position Organizations PPC Positions

1 Mr. Khampheuy Bandasack Provincial Project Coordinator

2 Ms. Bounhieng Phouisombath Dep.Provincial Project Coordinator

3 Ms. Paliphone Malichansy Finacial and Accountant of Project

4 Mr. Kaiphone Phoumarath Project Planning Staff

5 Mr. Bouala Dalavanh Project Irrigation Technical Staff

6 Ms. Bouasavanh Homedouangphachanh

Project Safeguards Staff

7 Mr. Kongthavivanh Thopakan Project civil engineer staff