Lao People's Democrabc Republic FILE CRPY Agrcultural ...documents.worldbank.org/curated/en/225921468263658310/pdf/mul… · Report No. 3215-IA Lao People's Democrabc Republic FILE

Report No. 3215-IA

Lao People's Democrabc Republic FILE CRPYAgrcultural Sector Review(In Two Volumes)

Volume II: AnnexesJune 22, 1981

Projects DepartmentEast Asia and Pacific Regional Office

FOR OFFICIAL USE ONLY

Document of the World Bank

This document has a restricted distribution and may be uised by recipientsonly in the performance of their official duties. Its contents mav not otherwisebe disclosed without World EPank duthorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS

Currency Unit = New Kip (NK)NK 1.00 = $0.10

$1.00 = NK 10NK 1,000,000 = $100,000

ABBREVIATIONS AND ACRONYMS

ADB - Asian Development BankARDP - Agricultural Rehabilitation and Development ProjectFAO - Food and Agriculture Organization (UN)CDI - General Directorate of IrrigationIFAD - International Fund for Agricultural DevelopmentIRRI - International Rice Research InstituteLao PDR - Lao People's Democratic RepublicMOAFI - Ministry of Agriculture, Forestry and IrrigationNBL - National Bank of Laos

SIDA - Swedish aid agency

UNHCR - United Nations high Commission for RefugeesUSAID - United States Agency for International DevelopmentUSBR - United States Bureau of ReclamationUSDMA - United States Defense Mapping AgencyWCC - World Council of ChurchesWFP - World Food Program

FOR OFFICIAL USE ONLY

LAO PEOPLE'S DEMOCRATIC REPUBLIC

AGRICULTURAL SECTOR REVIEWVOLUME II

Table of Contents

Page No.

ANNEX 1: Agricultural Resources 1

ANNEX 2: Rice Production 15

ANNEX 3: The Production of Other Crops 41

ANNEX 4: Livestock Production 60

ANNEX 5: Forestry 80

ANNEX 6: Agricultural Support Services 85

ANNEX 7: Irrigation 104

ANNEX 8: Selected Agricultural Policy Issues 143

ANNEX 9: Bibliography 160

MAPS

IBRD 15051 - Lao PDR: Administrative Divisions and Main Hydrographic SystemsIBRD 15052 - Irrigation Development Program Vientiane PlainIBRD 15053 - Large and Medium Size Irrigation Projects Khammouane and

Savannakhet ProvincesIBRD 15054 - Large and Medium Size Irrigation Profects Cbnsider52d inthe

Champasak, Saravane and Atopeu Provinces

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

ANNEX 1


AGRICULTURAL SECTOR REVIEW

Agricultural Resources

Table of Contents

Page No.

Location and Area . . . . . . . . . . . . . . . . . . . . . . . 1Climate . . . . 1Topography. . . . . . . . . . . . . . . . . . . . . . . . . . . 2Soils . . . . . . . . . . . a . . . a . . . . . . . . . 3Population, Farm Size and Production Units. . . . . . . . . . . 6Transport . . . . * * . * * * * * *.....*.*.*.*...*

TABLES

1. Area and Population Data, by Province, 19792. Monthly Rainfall at Selected Stations3. Mean Monthly Evaporation at Selected Stations4. Temperatures at Selected Stations5. Mean Relative Humidity at Selected Stations, 1951-75

-2-

ANNEX 1Page 1



Agricultural Resources

Location and Area

1. The Lao PDR is a landlocked country located between latitudes 140and 23°N and longitudes 1010 and 1080E in the northwestern portion of theIndochina Peninsula. It has a long border with Viet Nam in the east,relatively short borders with Burma and China to the northwest, a short borderwith Kampuchea in the southwest, and a long border with Thailand to the west.The Mekong River forms the international boundary with Thailand, apart from asmall section in the south between a point just north of Pakse and the KhoneFalls. The country covers 236,800 sq km, which, for administrative purposes,is divided into 13 provinces (Table 1).

Climate

2. The climate is tropical and is largely influenced by the southwestmonsoon, which lasts from May to September/October and brings high rainfall,fairly high temperatures and high humidity. A cooler, dry northeast airstreambegins to dominate from mid-October in the north and early November in thesouth. This reduces rainfall, temperature and humidity, and creates adistinct dry season, which extends until the northeasterly airstream hasdissipated in March. Prior to the onset of the southwest monsoon, very hightemperatures and thunderstorm activity can lead to heavy localized rainfall.

3. Although total average rainfall is high, annual distribution is poorand variability is high in much of the Lao PDR. Average annual rainfall(Table 2) varies from 1,244 mm at Luang Prabang to 3,742 mm on the BolovensPlateau. Xiang Khoang, Vientiane and Savannakhet fall within the 1,395-1,717 mm per year range, and Khammouan has an average annual rainfall of2,451 mm. These variations are directly related to the elevation and localtopography at the recording site, since precipitation generally increases asthe warm, moist air mass of the southwest monsoon is forced upward and cooled.(The highest annual rainfall in Indochina is recorded in the Andammiticmountain range, the natural boundary between Viet Nam and the Lao PDR.) Overfour fifths (83-94%) of average annual rainfall falls in May-October, withpeak precipitation in August/September. A comparison of mean monthly rainfalland evaporation (Table 3) for Vientiane, Pakse and Xiang Khoang shows a largeexcess of rainfall over evaporation for May-September, and a large rainfalldeficit for October-April. The maximum and minimum monthly rainfall dataindicate marked variation around the monthly mean. Unfortunately,probabilities could not be calculated from the data available.

- 3 - ANNEX 1Page 2

4. In practical terms, the effective growing period for most annualcrops is only 5-6 months, or less if the monsoon rains start late or finishearly. Crops may be subject to moisture stress at critical stages of growth,and a 2-3 week dry period is common in June. On the other hand, heavymonsoonal rains often lead to temporary waterlogging, and floods are common inthe lowlands. Without irrigation, crop production in October-April isrestricted to drought-resistant perennials (e.g., tree crops and sugarcane)and annual crops (e.g., cassava) established during the wet season. Thusexcess water or drought are major physical constraints to consistent yieldsand production in much of the Lao PDR. Flood control and drainage works willplay a key role in improving wet season crop production in the lowlands.Irrigation has an important role to play in both lowland and upland areaswhere facilities can be established at a reasonable cost. In the lowland riceareas, supplementary irrigation facilitates timely land preparation andplanting, allows the crop to become well established before flooding starts,and ensures an adequate water supply to finish the crop. Irrigation can alsoallow rice and a range of other crops to be grown in the dry season.

5. Temperature and relative humidity (Tables 4 and 5) are not criticalfactors for year-round crop production, apart from the low temperatures inDecember/January in the northern lowlands and higher uplands. In these areas,December/January temperatures are not optimal for rice production, as theyreduce tillering and cause sterility in flowering crops, though this can beminimized by transplanting dry season irrigated lowland rice in November atclose spacing. This practice is acceptable while there is a shortage of rice,but in the future more attention should be given to growing crops bettersuited to the low temperature regime, e.g. wheat. On the Bolovens Plateau,cool weather and frosts can seriously affect coffee production, though thisproblem has largely been overcome by selecting areas with low frost risk andconverting to the hardier robusta coffee. At high altitudes, production ofcorn, rice and most field crops is restricted to the summer months, due totemperature and rainfall regime. However, in these zones there is consider-able unexploited potential to produce temperate and Mediterranean fruit cropsand vegetables, e.g., apples, pears, peaches, potatoes, etc.

Topography

6. The Lao PDR is predominantly mountainous, with 80% of its landsurface comprising hills and mountains at 200-3,000 m, mostly in the northernhalf of the country and in the mountain ranges to the east. Apart from narrowvalleys of the many rivers flowing to the Mekong, and the extensive Plain ofJars and Bolovens Plateau, there are few flat areas suitable for intensiveagricultural production. Most of the extensive areas of flat land comprisethe flood plains of the Mekong River and its tributaries. Varying amounts ofgently undulating upland are associated with these riverine plains, the most

-4-

ANNEX 1Page 3

extensive of which are: the Vientiane Plain; the narrow plain extending alongthe left bank of the Mekong between Paksane and Khammouan; the Khammouan-Savannakhet Plain, the largest in the country, which includes the flood plainsof the Se Bang Fai and Se Bang Hieng rivers; and a series of plains inChampasak, Saravan and Attopeu associated with the Mekong, Se Done and Se Kongrivers. These are the most intensively cultivated and populated areas in theLao PDR.

Soils

7. Only limited soils data are available for the Lao PDR. No nation-wide reconnaissance survey has been carried out, and the only availablenational soil maps are based on photo interpretation /L or satelliteimagery./2 Semidetailed surveys were carried out for a large portion of theVientiane Plain as part of the Pa Mong project studies. Semidetailed surveys,with mapping at 1:50,000, have been started in parts of Savannakhet andChampasak, including portions of the Bolovens Plateau, but soil analyses havenot yet been completed and maps are still not available. The limitedexpertise in the Soils Division of the Department of Agriculture is now beingused to survey resettlement areas and state farms.

8. Maps based on satellite imagery and interpretation of aerialphotographs indicate that about 80% of the land surface under mountains andhills is composed of Orthic aerisols (FAO-UNESCO nomenclature). Red-yellowpodsolic and reddish-brown lateritic soils predominate. They have a sandyloam to sandy clay surface horizon and clay content increases with depth.Laterite gravel often occurs close to the surface. Shallow depth andstoniness restrict use for agriculture in some areas. These soils have beenheavily leached and are acid with a pH range of 4.5-5.8. They have low cationexchange capacity, rather low water-holding capacity, low base saturation, andgenerally low fertility. The deeper phases on moderate slopes are cultivatedand have some agricultural potential. However, once this land is cleared offorest and cropped, accumulated organic matter and total nitrogen levels droprapidly, hence the rather low yields of upland rice and corn. To sustainpermanent agriculture and economic yields on the better phases of these soils,a farming system needs to be developed that protects the soils against erosionand maintains a minimal level of soil fertility, by using leguminous crops inthe rotation and providing substantial nutrient inputs. Areas with moderateto steep slopes should be strictly conserved for forests.

/1 Atlas of Physical, Economic and Social Resources of the Lower MekongBasin; United Nations, 1968.

/2 Atlas of Thematic Maps of the Lower Mekong Basin, Committee for Coordi-nation of Investigations of the Lower Mekong Basin, April 1977.

-5-ANNEX 1Page 4

9. An extensive area (- 280,000 ha) of Dystric Nitosols, largelyderived from basalt, is found on the Bolovens Plateau, with smaller areasoccurring in association with Lithosols north and east of Takhek. These aredeep reddish-brown soils with undulating to rolling topography. They have awell-structured surface horizon of clay loam, whose clay content increaseswith depth. Physical properties, especially water-holding capacity, are good.The soils are moderately acid (pH 5.0-6.3), have moderate cation exchangecapacity and slightly less than 50% base saturation. Organic matter and totalnitrogen levels depend on vegetative cover but are usually higher than in mostupland soils. These soils offer the best potential for upland crop develop-ment but remain largely unexploited. The quite extensive areas of Lithosolsfound in association with Dystric Nitosols near Takhek are shallower red-brownsoils. Shallow depth (10-20 cm) is believed to be the major constraint toeconomic development.

10. The lowland soils bordering the Mekong and its tributaries are themost intensively cultivated areas. Based on the FAO-UNESCO classification,these are largely Gleyic aerisols (low humic gley soils) and Eutric gleysols(undifferentiated recent river alluvia) in the riverine plains. Oldterraces and adjoining uplands are largely Ferric aerisols (red-yellowpodsols with laterite overlaying alluvial sediments), Orthic aerisols(red-yellow podsols and reddish-brown laterite soils) and Ferric cambisols(gray podsolic soils). The red-yellow podsolic soils on the uplandssurrounding the riverine plains have characteristics similar to thosedescribed in para. 8. They are essentially soils of low fertility, withpotential productivity further decreased by shallow depth and underlyinglateritic gravel in some areas.

11. The Vientiane Plain, which has been studied in some detail,/1 israther typical of the main rice growing areas along the Mekong and its tri-butaries. The main land forms and soils are as follows:

(a) The river levees, which border the rivers and major streams.These are free draining, grayish-brown to dark-brown, silty clayloams. They are slightly acid (pH 5.5-6.0), have moderate cationexchange capacity, and rather low levels of organic matter andtotal nitrogen. They are at a higher elevation than the floodplains but may be inundated for short periods. These aremoderately fertile soils, and with good land leveling, irrigationand drainage facilities, they are suitable for a wide range ofirrigated upland crops. However, they usually represent only asmall percentage of the riverine soils. In the Vientiane Plainsurvey, they only constituted about 4% of the potential irrigablearea.

/1 Pa Mong Studies Phase II: 1972, Appendix 1, Land Resources.

-6-

ANNEX IPage 5

(b) The active flood plains, which are subject to flooding every season(depth of flooding depends on local topography). These are rela-tively flat areas, but with localized undulations due to old streamchannels and associated levees. They usually comprise deep, siltyclays, which have poor internal and surface drainage. They areacid soils (pH 4.6-5.4) with moderate cation exchange capacity butrather low nitrogen and phosphate levels. With provision forwater control, these soils are well suited to rice production andusually constitute a large percentage of the riverine plains.

(c) The lowland terraces, which are old alluvial terraces thatrepresent a transitional stage between the active flood plains andsurrounding uplands. Although higher than the active floodplains, they are subject to temporary flooding by high river flowsor runoff from the uplands. The soils are usually deep, sandyclays with poor internal and surface drainage. They are acid (pH4.0-5.0) with low cation exchange capacity, low total nitrogen andlow levels of available phosphate. These soils are well suited torice production, but have lower fertility and require heavierinputs of nitrogen and phosphate to achieve good yields than theactive flood plain soils.

12. Salinity is a problem in small scattered areas, mainly in the oldlowland terraces. For instance, in the Vientiane survey area, only 5% ofthe land was affected. Although salts rise by capillarity and accumulate atthe surface during the dry season, the soils usually crack to depth whendry, and wet season rains leach salts back to the subsoil. With well-designed irrigation and drainage facilities, monoculture rice and goodmanagement, this problem can usually be controlled.

13. Available data indicate that the Lao PDR is rather poorly endowedwith good agricultural soils. In the upland areas, the deep reddish-brownsoils of the Bolovens Plateau and east of Takhek offer the best possibilitiesfor upland crop development. Undoubtedly other small plateaux and valleys inthe upland areas have good potential but were not identified on the reconnais-sance maps. Nevertheless, the general impression is one of rather poor, acidsoils that require substantial inputs and careful management to sustainpermanent agriculture. Depth of soil, slope and erodability would be the keyfactors in determining areas suitable for agriculture and those that should bekept under forest. The lowland riverine areas are also rather infertile, butwith improved water control and adequate inputs of nitrogen and in some casesphosphate, satisfactory yields of rice are attainable. The levee soils,though limited, have good potential to produce a wide range of crops, but onlyafter land leveling and the installation of irrigation and drainage facilitieswill their full potential be realized.

-7-

ANNE X 1Page 6

14. Land Use. Land use in 1979 is summarized below:

Area %('000 ha)

Agricultural crops 764.4 3/aGrasslands 800.0 4Forest land 11,000.0 46Open scrub/woodland 4,000.0 17Other 7,115.6 30

Total 23,680.0 100

/a The total cultivated area as a percentage of aprovince's total land area varies from 1% in XiangKhoang and Attopeu to 6% in Savannakhet and Champasak.

Source: Based on data supplied by the Training Department,MOAFI, Vientiane, March 1980.

Of the very small cropped area, an estimated 265,000 ha (or 35%) is under aslash and burn agricultural system, with upland rice and corn as the majorcrops. As a 3-5 year rotation is practiced, depending on the quality of theland, about 1 million ha may be used for this form of agriculture. Theslightly larger grassland area is reported to be natural grassland and doesnot include the extensive areas of Imperata cylindrica, which has becomeestablished on lands subject to slash and burn agriculture. It includesgrasslands in open wooded areas, and the extensive areas of grassland on thePlain of Jars. Total forest land had been estimated at 15 million ha, butrecent satellite imagery inidicates that the area under effective forest coveris now closer to 11 million ha. The "other" category covers all other land,including home lots, urban areas, waterways, and presumably the extensiveareas used for slash and burn agriculture that are not currently cropped. Nodata are available on the breakdown of this large area.

Population, Farm Size and Production Units

15. Population estimates for 1979 indicate a total population of 3.5million (Table 1) and a growth rate of about 2.4%. About 48% of thepopulation are below the age of 14. About 60% of the population are locatedin Vientiane and the southern provinces, the most populous provinces being

-8-

ANNEX IPag e 7

Vientiane, Savannakhet, Champasak and Saravan. The largest towns areVientiane, Savannakhet, Pakse, Luang Prabang and Takhek (Khammouan). Theaverage family size is about 6.1 based on MOAFI data, which indicate a totalof 584,000 families. About 85-90% of the population rely on agriculture as asource of income. Assuming that 85% of the families (496,000) cultivate land,the average national farm size would be 1.54 ha (based on a cultivated area of764,000 ha).

16. Present government policy is to progressively encourage groups ofabout 50 farmers to pool land resources and form cooperatives. The statisticsindicate that about 2,500 cooperatives covering about 86,000 families, orabout 20% of total farm families, are being formed. However, it is now beingrecognized that farmers are rather reluctant to pool land resources and workas a commune. The Government is also establishing large state farms forcoffee, tree crops, livestock and feedgrain production. In the shorter term,the mix of production units - small private farms, cooperatives at varyingstages of development, and large state farms - will remain, with small privatefarms probably continuing to be the main source of production for some years.Even under the cooperative system, families can cultivate a home lot and raiseand sell livestock independent of the cooperative. The majority of farmersfollow traditional low input/low output methods. Providing effectiveextension, input supply and credit services to all types of production unitswill be essential to achieve substantial increases in agricultural production.

Transport

17. The road network linking major centers is minimal./l The nationalroad network, which is nearing completion, consists of 1,300 km of pavedroads, 5,300 km of gravel and 3,600 km of earth roads. In the north, anextensive road network has been completed with Chinese assistance. A 150 kmsection between Luang Prabang and Nam Buk is under construction. In thenortheast a road links Sam Neua with Hanoi. Route 13 runs about 1,000 km fromLuang Prabang to the southern tip of the country, but only one third is paved;the road requires repair and two major bridges to bring it up to standard.Ongoing projects are progressively upgrading route 13 and completing roadlinks between Xiang Khoang and Vinh, and Savannakhet and Da Nang. However,for the time being, lack of all weather roads seriously limits transportbetween major centers, especially in the wet season. Lack of all-weatherfeeder roads and rural roads is a serious constraint to movement of goods andpeople and to establishing effective agricultural services in many ruralareas.

/1 Communications networks (telephone and/or radio links) are also eitherpoor or nonexistent.

-9-ANNEX 1Page 8

18. Water transport is important in the provinces bordering the Mekongand its tributaries. For most of the year, the Mekong is navigable for smallvessels between Ban Houayxay in the northwest and Savannakhet in the south.The Khemmarat Rapids between Savannakhet and Pakse, and the Khone Falls nearthe Kampuchean border preclude water transport on these sections. Despite theincreasing flow of goods between Viet Nam and the Lao PDR, heavy dependence isstill placed on shipping goods via Thailand.

19. Due to poor road conditions and long distances, air transport isoften the only effective method of transport. There are 16 airfields, butmany are only paved with laterite. Lack of aircraft, trained crews, andnavigation and landing equipment restrict and disrupt flights. For example,it is difficult to land in centers like Xiang Khoang except in fair weather.Vientiane airport sometimes has to be closed due to poor visibility.

- 10 -

ANNEX 1Table 1



Area and Population Data, by Province, 1979

No. ofProvince Area Population No. of members Density

(sq km) ('000) families per family (per sq km)

Phongsaly 15,800 133 20,150 6.6 8.4Luang Namtha 12,900 157 27,643 5.7 12.2Oudomsay 12,400 183 30,473 6.0 14.8Luang Prabang 24,800 320 48,616 6.6 12.9Sayaboury 18,400 244 46,400 5.3 13.3Houaphan 16,300 242 31,307 7.7 14.8Xiang Khoang 19,500 250 25,483 9.8 12.8Vientiane 20,600 564 115,888 4.9 27.4Khammouan 26,400 243 47,416 5.1 9.2Savannakhet 21,700 443 74,935 5.9 20.4Saravan 18,360 331 36,396 9.1 18.0Champasak 17,740 338 67,678 5.0 19.1Attopeu 11,900 112 113,344 9.9 9.4

Total 236.800 3,560 583,729 6.1 15.0

Source: Department of Planning, MOAFI, Vientiane.



Monthly Rainfall at Selected Stations

Elevation Period Jan Feb Mar Apr may Jun Jul Aug S9p Oct Nov Dec Total

(m) observ. - -__ -- __ __ _ _ -___ __ _ _ _ _ _ _- -m ------…--------------- ----------------------------------

Luang Prabang 287 1907- Max-la 139.7 130.1 91.0 314.0 383.1 386.0 485.0 540.6 474.5 248.0 116.0 65.0 1,879.0

1965 Mean 14.0 17.7 34.9 102.8 155.7 162.2 232-4 281.1 75.5 75.6 26.5 11.1 1,244.3

Min. 0 0 16.6 11.0 21-0 8.0 51.4 72.4 24.4 - 0 0 493.1

Xiang Khoang 1,149 1906- Max. 45.3 87.0 112.8 273.0 480.0 566.6 522.2 549.8 504.0 136.1 104.1 93-2 2,501.9

1959 tMan 8.0 17.0 48.8 108.1 198.7 253.3 333.3 332.5 207.9 72.5 24.2 8.3 1,715.9

Min. 0 0 10.0 0 50-0 81.1 38.0 44.0 0 6.0 0 0 1,232.3

Vientiane 170 1907- Max. 67.0 66.0 134.0 329.4 439.0 499.2 544-3 618.7 777.0 329-3 108.6 24.3 2,138.0

1965 Mean 7.7 13.6 28.7 99.8 265.2 290.6 254.1 322-3 331.6 97.6 17.4 2.1 1,717.0

Min. 0 0 0 7.0 78.6 102-3 81.4 49.6 99.1 0 0 0 1,199.9

Khammouan 135 1920- Max. 16.5 62.0 90.4 180.8 428-5 906-7 757.9 1,170.8 653.8 334.1 35.0 58.7 2,906.8

1964 Hean 1.7 29.1 41.3 129.3 292.3 434.9 504.3 695.9 525.0 100-6 8.0 6.3 2,451.4

Itin. 0 0 0 54.8 127.5 183.1 181-5 249.9 240.1 9.2 0 0 1,823.5

Savannakhet 140 1927- Max. - 102.0 70.3 453.1 368-1 299.1 481.8 380.6 402-4 145-5 31.0 3.5 1,981.9

1956 Mean 0 22.7 19.6 120.1 215.9 198.3 299.9 221.4 248.6 50.7 7.8 0.4 1,395.5

Min. 0 0 0 14.0 28.0 115.4 191.0 62.1 91.0 0 0 0 1,182.5

Seno 185 1931- Max. 34.3 180.0 50.0 176.2 378.8 630.0 481.0 590.6 653.8 247-0 31.0 3.5 2,303.7

1964 Mean 4.8 26.9 22.: 78.2 206.8 260.1 259.4 289.7 312.6 63.6 6.6 0.3 1,669.1

Min. 0 0 1.9 8.5 28.0 119.6 74.6 62.1 142.3 6.0 0 0 1.260.0

Pakse 96 1929- Max. 12.9 85.8 146.8 188.0 548-1 542.8 736.4 832.2 777.8 230.2 55.6 14.4 2,582.4

1964 Hean 1.2 12.2 18.9 63.4 209.6 280.9 372.1 454.0 382.4 99-4 21.0 2.2 1,929.5

Hin. 0 0 0 - 36.9 81.8 83.8 87.7 23.0 0 0 0 749.4

Belovens (Paksong) 1,200 12Y Mean 14.0 30.5 86.4 178.0 341.0 411.5 892.0 796.0 596.9 243-8 106-7 45.7 3,742.5

a Hax: absolute maximum; Min: absolute minimum.

Source: Atlas of Physical, Economic and Social Resources of the Lower Mekong Basin (UN. Sept. 1968).

I 11

LAO PEOPLE'S DEMIOCRATIC REPUBLIC


Mean Monthly Evaporation at Selected Stations

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total---------------------------------- mm ---------------------------------------

Vientiane /a 143 148 180 177 167 135 140 133 132 158 153 143 1,809

Pakse /b 201 218 259 253 209 168 152 135 133 168 162 192 2,250

Xiang Khoang /c 118 130 162 158 161 150 146 135 137 155 138 121 1,711

/a Source: ADB's Appraisal Report of Casier Sud (October 1979).

/b Source: DHV's Consultant Report on the Houei Van He Irrigation Project (1979). (The figuresare probably overestimated).

/c DHV's Consultant Report on the Xiang Khoang Irrigation Project (1979).

(D >4HWT


ACRICULTURAL SECTOR REVIEW

TemPeratures at Selected Stations

Jan Feb Mar Apr Hay . Jun Jul Aug Sep Oct Nov Dec_________________________________ - ---- _________ --------------- C ---------------------------------------------------------------

_oc.

Luang Prabang /a mean 20.8 23.0 25.6 27.9 28.6 28.5 27.8 27.6 27-4 26.0 23.5 20.7mean max. 27.4 30.5 33.2 (42.2) 34.5 34.0 32.4 31.7 31.4 31.7 30.7 28.7 26.4

mean min. (3.1) 14.2 (8.u) 15.2 18.0 21.3 23.5 24-3 24.0 25.7 23.0 (8.8) 21.0 (7.0) 17.9 (2.7) 14.6

Xiang Khoang /b mean 14.5 17.3 19.3 20.9 22.2 22.5 22.0 21.8 21.4 19.5 17.2 14.1

mean max. 22.8 24.4 25.6 26.7 (33.3) 26.7 26.7 25.6 26.1 26.7 26.1 24.4 23.3

mean mi. (2.2) 9.0 (3.0) 10.7 (7.2) 12.4 16.0 18-2 19.3 19.3 19.3 19.3 (6.1) 14.9 (1.5) 12.9 (-3.0) 9.6

Vientiane /a mean 21.3 22.9 25.6 27.9 28.7 28.3 27.8 27.5 27.3 25.9 23.3 20.4

mean max. 28.1 30.2 32.7 (40.8) 34.2 32.8 31.4 31.1 30.6 30.6 30.7 30.0 28.0

mean min. (3.1) 15.3 (9-8) 17.8 21.0 23.2 24.2 24.6 24.4 24.4 23.8 (15.7) 22.5 (8.2) 19.4 (5.3) 16.0

Khaouan / mean 21.1 23.3 26.1 28.3 28-3 27.8 26.7 26.7 26.7 25.6 23.9 22.2

mean max. 28.9 30.0 32.2 (40-0) 34.4 32.8 31.1 29.4 30.0 30.0 30.6 30.0 28.9 tmean sin. (3.3) 13.3 (7.8) 16.7 19.4 22.8 23.9 24-4 23.9 23.9 23.3 20.0 (10.0) 17.8 (5.6) 15.0

Savannakhet /a mean 21.5 23.8 27.1 (44.0) 28.9 28.4 27-5 26.9 26.2 26.1 24.8 22.4 21.0mean wax. 29.3 31.1 33.6 34.7 34.1 32.0 31.3 30.1 30.7 29.9 28.7 28.1mean sin. (1.2) 13.7 (6.5) 17.4 21.2 23.7 24.5 24.1 23-5 23.4 23.0 (11.0) 21).7 (4.7) 17.0 (2.9) 15.2

Seno La oiean 20.6 23.3 26.5 (40.4) 26.9 27.7 27.0 26.7 26.2 25.9 24.9 22.8 20.5mean max. 28.0 30.4 33.0 34.2 32.8 31-0 30.7 29.9 30.1 29.7 28.7 27.4

mean sin. (2.2) 14.0 (9.0) 17.3 20.9 23.2 23.8 24-1 23.7 23.6 23.2 (14.2) 21.0 (8.5) 18.4 (3.5) 15.1

Pakse /a mean 24.6 26.6 28.8 (39-7) 29.8 28-7 27-5 27.0 26.6 26.6 26.5 25.4 23.2

mean max. 30.9 32.6 34.2 34.6 32.8 31-0 30.4 30.0 30.1 30.7 30.6 30.3mean sin. (7.0) 18.0 (12.5) 20.6 23.2 15.0 24.7 24-5 24.2 23.9 23.7 (17.2) 22.6 (13.0) 20.1 (10.2) 18.5

La General Directorate of Irrigation (Vientiane).

ft Source: Atlas of Physical, Economic and Social Resources of the Lower Mekong BIain (UN, Sept. 1968)

Note: Figures between brackets are abaolute minimal, or maximal, temperatures.

IEP!

- 14 -ANNEX 1Table 5



Mean Relative Humidity at Selected Stations, 1951-75

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Luang Prabang 82 77 75 78 82 88 89 90 89 87 85 85

Xiang Khoang /a 76 71 70 72 72 76 79 82 78 72 69 72

Vientiane 72 69 68 69 79 84 84 85 85 79 75 75

Savannakhet 68 65 64 65 73 78 79 81 80 74 70 69

Seno 69 66 64 67 77 83 83 86 85 78 75 72

Pakse 63 61 60 65 75 82 84 86 85 79 71 67

/a Figures for nine years only; from Atlas of Physical, Economic and SocialResources of the Lower Mekong Basin (UN, Sept. 1968).

Source: General Directorate of Irrigation (Vientiane).

- 15 -

ANNEX 2



Rice Production

Table of Contents

Page No.

Production Trends and Regional Distribution . . . . . . . . . . . . 1Rice Varieties . . . . . . . . . . . . . . . . . . . . . . 2Cropping Calendars . . . . . . . ... . . . . . . . . . . . 4Land Preparation and Planting . . . . . . . . . . . . . . . . . . . 4Pests and Diseases . . . . . . . . . . . . . . . . . . . . . . . . . 5Fertilizers . . . . . . . . . . . a . . . . . . . . . . . . . . . . 5Water Control . . . . . . . . . . . . . .... .. . 8Harvesting, Processing and Storage . . . . . . . . . . 8Paddy Supply and Demand . . . . . . . . . . . . . . . . . . . . . . 9The Potential for Increasing Production . . . . . . . . . . . 11Proposed Strategy for Increasing Production . . . . . . . . . 12

TABLES

1. Total Paddy Production2. Paddy Production by Type, 1977-793. Paddy Production by Type and Province, 1977-794. Results of Rice Variety Trials, 1976 Wet Season5. Availability of Labor and Animal Power6. Results of Paddy Extension Program in the Vientiane Plain, 1979 Wet

Season7. Estimated Rice Milling and Storage Capacity for Selected Provinces8. Paddy Production by Type and Province, 19799. Estimated Paddy Demand and Deficit, by Province10. Impact of Paddy Consumption Estimates on Total Paddy Deficit11. Paddy Deficit Projections and Increased Yield Requirements, 1985

- 16 -ANNEX 2Page 1



Rice Production /1

1. Glutinous rice is the staple food of the Lao PDR. Under normalconditions, about 680,000 ha are planted each wet season, about 60% inlowland areas. Most of this land is on the flood plains of the Mekong Riverand its tributaries, and much of it is subject to flooding. The balancecomprises upland areas where paddy is largely grown under a slash and burnshifting cultivation system, which is vulnerable to drought. Less than 5%of the paddy area is irrigated. Yields are low due to the vagaries ofclimate and flooding, and traditional production methods. Productionfluctuates markedly from year to year, due almost entirely to variation inthe harvested area.

Production Trends and Regional Distribution

2. According to official estimates, from 1969 to 1979, annual averageyields were almost constant, at 1.13-1.26 ton/ha (Table 1), with nosignificant changes in production beyond the normal fluctuationsattributable to seasonal effects and the reduced planted area due to war.Analysis of official production estimates for 1977-79 (Table 2) reveals thatthe harvested area and production reached record lows of about 560,000 haand 690,000 ton, respectively, in 1977. Reduction of the planted area wasdue to the aftermath of war and adjustment to a new political system, andreduction in the harvested area was due to drought damage. In 1978, therewas a partial recovery, but flooding reduced the harvested area. By

/1 Statistics for this annex were provided by the Department of Planning,Ministry of Agriculture, Forestry and Irrigation (MOAFI) Vientiane.Present data can only be used to indicate general trends, becausethere are no physical checks on cropped area and yields, and data arebased on subjective field observations by MOAFI personnel at thesubdistrict level. Shortages of trained manpower and resources inthe field are likely to result in substantial errors, especially in themore remote areas. The MOAFI is progressively upgrading its datacollection system through training programs for field personnel. Itwill revise and update these data as more reliable statistics becomeavailable.

- 17 -

ANNEX 2Page 2

contrast, favorable conditions in 1979 led to a dramatic increase in thearea harvested (to almost 690,000 ha) and record production of about 867,000ton. With the present low levels of management and yields, the maximumfluctuation in production due to seasonal effects is of the order of 15%.In some seasons, flood losses in the lowlands may be partially offset byhigher rainfall and production in the upland rice areas. Conversely,drought and low production in the uplands will probably coincide with afavorable, flood-free season in the lowlands. These factors tend to reducethe incidence of major year to year fluctuations.

3. The major paddy producing provinces, in declining order ofimportance, are Savannakhet, Vientiane, Champasak, Khammouan, Saravan,and Luang Prabang (Table 3). These provinces accounted for 70% ofnational production in 1979, largely due to the extensive lowland paddyareas bordering the Mekong River and its tributaries, and the location ofhalf the existing wet season irrigation facilities in these provinces. Bycontrast, Phongsaly, Xiang Khoang and Attopeu together accounted for lessthan 10% of national production in 1979. About 70% of upland paddyproduction is located in Luang Prabang, Oudomsay, Luang Namtha, Houaphan,Savannakhet and Vientiane. Dry season irrigated paddy only accounts forabout 2% of the harvested area and production; it is spread over many smallschemes in all provinces, with 65% of the area concentrated in Savannakhet,Vientiane and Houaphan. The data indicate that since 1977, production hasincreased substantially in most provinces and decreased only in Oudomsay,Sayaboury and Champasak. The increase in yields appears to be a significantfactor in Phongsaly, Luang Namtha, Vientiane, Khammouan, Saravan andAttopeu, while a reduction in the average yield has influenced results inSayaboury and Champasak.

Rice Varieties

4. About 90% of the paddy area is planted to a wide range of nativevarieties, which have developed by a process of natural selection and farmerselection to suit varying environmental conditions in the paddy producingareas. About 800 distinct lines were contributed to the IRRI germ plasmbank prior to the revolution. They are predominantly long-strawed, glutinousvarieties adapted to low fertility conditions and traditional culturalmethods. Varieties that have evolved under local and flood plain conditionsare 150-180 cm tall and are mostly photosensitive with a set flowering datein October. These characteristics ensure that the crop does not floweruntil the main danger of flood has passed and increase the chance ofsurvival under deep water conditions. Duration ranges from 150 to 180 daysdepending on the occurrence of reliable monsoon rains and seeding date. Inrecent years, an improved Thai glutinous variety, San Pathong, which iswidely grown in northern and northeastern Thailand, has gained popularity

- 18 -

ANNEX 2

Page 3

with Lao farmers, due to its good eating quality, consistent yield andsuperior resistance to lodging compared to local vaieties. Some short-strawed (115 cm) and shorter duration (130 days) varieties adapted to ashorter growing season have evolved in upland areas. Diseases and insectpests are not reported as severe problems for native varieties, butsusceptibility to lodging is a serious weakness of some lowland varieties.However, many of the native varieties have only low to moderate resistanceto major rice diseases (e.g. blast and yellow-orange virus).

5. In the late 1960s and early 1970s, the Department of Agriculturehad good contacts with IRRI and the Thai Rice Department. These led to theintroduction of several IRRI breeding lines, some based on Lao breedingmaterial, and the Thai Rice Division's RD series of varieties 1, 2, 3, 4 and7, and San Pathong. An active screening and selection program led to theidentification and release of several improved varieties adapted to lowlandrice areas. Unfortunately, due to the loss of technical personnel,restricted facilities and budget, and the present rather tenuous links withIRRI, the current program is very restricted. The main characteristics ofimproved varieties now available are summarized below:

StrawVariety Type length Duration Yield potential

San Pathong Glutinous 150 cm 150 days 3-4 ton/haIR 253 " 90-100 cm 135 days 4-5 ton/haIR 848 " 90-100 cm 125 days 4-5 ton/haIR 789 " - 125 days 4-5 ton/haC4 63 Nonglutinous 110 cm 125 days 4-5 ton/haRD 7 it 115 cm 125 days 4-5 ton/haIR 841 " - 125 days 4-5 ton/haIR 2823

Note: These data are tentative and need to be verified by theDepartment of Agriculture. IR numbers refer in most cases toIRRI breeding lines that have been screened, selected and released bythis Department.

The only variety trial results released to the mission are presented inTable 4. While there is an urgent need to strengthen the varietal screeningand selection program, the existing varietal base is adequate to more thandouble average yields in the lowland areas, given improved management methodsand minimal use of fertilizer and insecticides.

- 19 -

ANNEX 2Page 4

Cropping Calendars

6. Cropping calendars are determined by rainfall distribution, therisk of flooding in August/September, temperature regime in the cool season,and the availability of animal power for land preparation. In all areas,the timing of land preparation and seeding for the wet season crop is gearedto the onset of the southwest monsoon rains, which normally commence in Mlay.As there is sometimes a weak start to the monsoon and a pronounced 2-3 weekdry spell in June, seeding may be delayed until late June/early July. Inpractice, land preparation, seeding and/or transplanting are staggered fromMay through July, with the highest rate of transplanting in the lowlandsusually occurring in late June/July. As most native varieties are photo-sensitive and flower in October, the harvest is concentrated in November/December regardless of planting date. Late rains and late planting reducethe vegetative growth period of photosensitive varieties and often result inan appreciable yield reduction. Further, in flood prone areas, where theobjective is to have the crop well established before the onset of floods,late planting increases the risk of flood damage. Wet season irrigation isimportant for facilitating timely planting. With irrigated dry seasoncropping, low temperatures in January, which can seriously reduce tilleringand induce high infertility in flowering crops, are the key determinants ofplanting date. Using early maturing varieties in the wet season can helpminimize these effects, by allowing the dry season crop to be wellestablished by late November/early December.

Land Preparation and Planting

7. Land preparation in most rice areas is carried out using buffaloand oxen, and wooden frame plows and harrows. In upland areas, scrub isslashed and burned in February-April. Cultivation may be limited tor'dibbling" in the rice seed and weeding the established crop; alternatively,the land is cultivated to kill weeds and seed is broadcast. In lowlandareas, land is prepared using the buffalo as soon as sufficient rain hasfallen to soften the soil and facilitate plowing and preparing the seedbed.A second plowing and/or harrowing is carried out 2-3 weeks later to killweeds and prepare the land for transplanting. Due partly to inadequatewater during land preparation, fields are not sufficiently leveled, leadingto poor water control, and variable growth and yields.

8. The 1979 statistics (Table 5) indicate a national average of aboutone buffalo per hectare of cultivated field crops. It normally takes 18-20buffalo-days to fully prepare 1 ha of lowland paddy, and cultivation andplanting are now spread over about eight weeks. Lack of animal power shouldnot be a serious constraint, except when late rains delay plowing andshorten available cultivation time. Nevertheless, the data indicate ashortage of animal power in Luang Nlamtha, Oudomsay, Xiang Khoang andChampasak.

- 20 -

ANNEX 2Page 5

9. Most paddy in lowland areas is transplanted, though broadcastingmay be practiced in some flood prone areas to facilitate early establishmentof the crop or where late rains delay operations and create a laborshortage. The seeding rate is high (35-40 kg/ha) due to the rather lowquality of "farmer" seed, and seed is often mixed. The use of old seedlings(40 days old or more) results in excessive root damage, a severe check attransplanting and increased susceptibility to disease.

Pests and Diseases

10. Most of the common rice diseases and pests are present in theLao PDR. The most prevalent rice diseases are "Blast" (Pyricularia oryzae),brown spot (Helminthosporium) and yellow-orange virus on the traditionalvarieties. The major insect pests are several species of stemborer (Chilospp. Sesamiainferens, Tryporyza incertulas), army worm (Spodoprera),greenleaf hopper (Nephotettix), brown plant hopper (Nilparvata lugens),gallmidge (Pachydiplosis oryzae), leaf roller (Cnaphalocrocis. sp.) and ricebug (Leptocorisa spp.).

11. With present low fertility and the single crop system, lossesfrom pests and diseases are not a serious problem. The UNDP, which began atechnical assistance project focusing on crop protection in 1977, producedpreliminary estimates that suggest a wet season crop loss of about 10% inthe average year. However, losses may be much higher in some localities andseasons. No assessment has yet been made of crop losses caused by rats, butthe general impression is that these losses are only severe in the northernprovinces. While present crop losses due to pests and diseases do not appearserious, greater use of nitrogen fertilizer and dry season irrigated croppingwill undoubtedly increase the incidence of insect pests and diseases, as wellas the severity of crop losses. Dry season crops are particularlysusceptible to pest attack due to the carry over of insects from the wetseason crop, and the scattered and limited nature of plantings.

12. In 1979, only 38 tons of pesticides were imported for distributionin Vientiane, Luang Prabang, Champasak and Savannakhet, although nationalrequirements for all crops are probably in excess of 800 tons, based on aminimum pest control program using about 2 kg per ha. There is also anacute shortage of spraying equipment, trained personnel, and operatingbudget for plant protection.

Fertilizers

13. No fertilizer response data from controlled field experiments weremade available to the mission. Some work has apparently been carried outon nitrogen response, but no reliable data are available on the response tophosphate. Extrapolating from similar areas in Thailand, it can be safelystated that nitrogen is the major nutrient deficiency. Phosphate may be alimiting factor in parts of the lowlands once high-yielding varieties andnitrogen applications are introduced. Potash is rarely a limiting factor on

- 21 -ANNEX 2Page 6

alluvial lowland rice soils. Nitrogen and phosphate are expected to belimiting factors in all upland rice areas. An imbalance of micronutrientsand toxicity are also expected in some upland soils. Areas with these typesof problems will need to be defined.

14. Currently, fertilizer use is negligible at around 300 tons peryear, compared to a potential demand of 20,000-30,000 tons, calculated atabout 20 kg of N/ha. Fertilizer use is common only in areas of the VientianePlain covered by project extension programs (elsewhere some farmers douse animal manure). In recent years, the main constraints to fertilizer usehave been the lack of foreign exchange, of extension, credit and distribu-tion systems, and of yield response data over a range of environmentalconditions. The progressive solution of these problems is a prequisite forachieving economic production increases by using fertilizer. The mainconsideration in promoting fertilizer use will then be potential profita-bility. Crucial factors will be the potential physical response and riskfactor in each major production situation, and the relative prices offertilizer and paddy. Assuming nitrogen to be the key nutrient element, thepotential for the economic use of nitrogen is indicated by the followingtable:

Kg paddy needed per kg Napplied to achieve a

benefit/cost ratio of 2:1 /aFertilizer Current official paddy prices

Cost of N (NK/kg) /b(NK/kg) /b 0.8 0.9 1.0 1.1 1.2

Ammophos 16:20:0 /c 18.0 22.5 20.0 18.0 16.4 15.0Urea 46:0:0 /c 7.0 8.8 7.8 7.0 6.4 5.8Ammophos-urea mix /d 10.5 13.1 11.7 10.5 9.6 8.8

/a The minimum ratio needed for use of fertilizer to be attractive underaverage farm conditions.

/b New Kip (NK) per kg, based on an exchange rate of NK 10.0 = $1.00.

/c Price of urea c.i.f. Thannaleng estimated at $320/ton.Price of ammophos c.i.f. Thannaleng estimated at $290/ton.

/d Based on mix of urea and ammophos actually used in the ongoingextension program in the Vientiane Plain.

- 22 - ANNEX 2Page 7

15. Without conclusive evidence that phosphate is required, thechances of achieving a worthwhile response to nitrogen are more than doubledby using urea, and the investment cost is halved. Under a wide range offarm conditions, Thai fertilizer response data indicate a kg paddy:kg Napplied ratio of from 6:1 under unfavorable conditions to 20:1 in morefavorable parts of central and northern Thailand. The average figure fornortheastern Thailand for 1976/77 farm trials is about 12:1./i Bycomparison, farm yield data (supplied by the UNDP/FAO consultant, seeTable 6) for the 1979 wet season extension program on 150 ha in theVientiane Plain indicate an average ratio of 18:1, with a low of 11:1, using40-45 kg N/ha on traditional varieties. This result is partly due to theeffects of good seed, and improved management and pest control, which wereincluded in the management package. Nevertheless, it indicates that theaverage ratio of 12:1 achieved in northeastern Thailand should be attainablein an average year, when flooding or drought at critical stages of growthare not a serious constraint to production. Higher ratios could be expectedwith the introduction of nitrogen-responsive, high-yielding varieties,which achieved average yields of 3 ton/ha in the Vientiane Plain extensionprogram. While the use of urea and ammophos-urea mixes appears attractiveand profitable at current paddy and fertilizer prices, an appreciable fallin the exchange rate of the Kip would upset the above relationships andrequire adjustments in paddy prices.

16. The prospects of achieving an economic response to fertilizer inmoderate risk areas of the Lao PDR are good at current fertilizer and paddyprices. However, in view of the shortage of foreign exchange and the risingprice of fertilizer, initial use should be restricted to areas with the bestpotential. Further, the Government should give high priority to theefficient use of animal manure and compost, and to developing technology toproduce the nitrogen-fixing water fern, Azolla, which is widely used inChina and Viet Nam and has produced promising results on a trial basis innortheastern Thailand. The main prerequisites for successful commercialproduction of Azolla are a reliable water supply, a moderate supply ofsoluble phosphate fertilizer, and insecticide to control insect pests.Production rates of 5 tons fresh Azolla (350 kg dry matter) per ha per weekcan be achieved in well-managed ponds. Depending on N fixation rates, thisis equivalent to 14-20 kg N per ha per week. The product may be used asgreen manure or stock feed. Trials on the production and incorporation ofAzolla in paddy fields have produced paddy yield responses equivalent to30 kg N/ha.

/1 Strategy for Fertilizer Development in Thailand, InternationalFertilizer Development Center, October 1979.

- 23 -ANNEX 2Page 8

Water Control

17. Water control is a major problem in the lowlands. Extensive areasare regularly flooded in August and September, and in some years higherportions of the riverine plains are subject to drought. No reliable dataare available on the depth, duration and frequency of flooding or on theextent of the areas affected. However, in much of the lowland rice areabordering the Mekong and its tributaries, farmers have little alternativebut to plant as early as possible and use long-strawed, photosensitivevarieties to minimize the effects of flood. Although about 30,000 ha areirrigated in the wet season, the mission had no opportunity to assess theeffectiveness of water supply, management and control. Reportedly about10,000 ha are irrigated in the dry season (Annex 7).

18. The mission visited some schemes operating under the extensionprogram in the Vientiane Plain. These appeared to be well managed, andfarmers reported that water supply was adequate and reliable, and that dryseason rice crops were well developed. However, inadequate land leveling wasmentioned as a constraint (para. 7). All other small schemes visited inVientiane, Savannakhet and Champasak were in poor condition. Many pumpingstations were only partially operational due to lack of constructionmaterials, spare parts or diesel fuel. Most distribution and drainagesystems have been poorly designed and lack adequate control structures,leading to variable depth and uneven distribution of water. Some localfield personnel had limited technical knowledge of the design, layout andoperation of irrigaton schemes and water management. Rice crops weresuffering moisture stress and had very low yield potential. These generalobservations are confirmed by the statistics. Average dry season riceyields for 1979 fall within the 0.5-2.2 ton/ha range, with a mean of 1.5ton/ha. These problems are likely to severely restrict the effectiveness ofwet season irrigation. Top priorities for the irrigation program are now torehabilitate and complete existing schemes, mran them with trained fieldpersonnel who can operate and maintain the system effectively, and ensurethat adequate materials and budgets are available.

Harvesting, Processing and Storage

19. The rice crop is harvested and threshed by hand, then the threshedgrain is sun-dried on mats and winnowed by hand. A few pedal threshers andhand-operated mechanical winnowers were observed in the Vientiane Plainarea. Most farms have a well-constructed wooden paddy store with a 1-3 toncapacity adjacent to the farm house. No data are available on on-farmstorage losses; while paddy is less susceptible to insect attack than milledrice, appreciable storage losses are suspected in the absence of aneffective extension program and insecticides. MOAFI personnel reportedthat, traditionally, farmers sold about half their surplus production as


paddy and half as milled rice. There is clearly a big advantage in sellingas milled rice. In some areas, the free market price of milled rice isalmost double the price of paddy. Further, when the farmer sells rice hekeeps the by-products of milling for feeding poultry and pigs or fishraising. Under current regulations, private farmers and cooperatives areobliged to pay taxes in terms of paddy, which reduces potential income andbenefits from milling by-products.

20. No national inventory of milling facilities is available (theavailable statistics are summarized in Table 7). Most milling for villageand district consumption is carried out by hand pounding and numerous lowcapacity, privately owned steel rice hullers. Many units do not work due topoor maintenance and lack of spare parts. Milling return is of the order of50-55% due to poor operation, lack of supervision and millers' commonpractice of retaining milling by-products as the milling charge. (Farmersin Vientiane engaged in pig and poultry raising reported a charge of NK 7per 70 kg bag of paddy milled if they wished to retain the by-products.) Thelarger mills are under joint private sector-government management or whollygovernment operated. They usually have old, inefficient milling equipmentand milling returns do not exceed 62%. Most are powered by diesel or steam,but only 30-40% are operational due to lack of spare parts and maintenance.The statistics indicate that in 1979, the available milling capacity couldonly handle about 6% of the crop harvested. In rural areas, families canget by with hand pounding. The most pressing problem is to provideefficient milling facilities that can supply good quality rice to the urbanpopulation.

21. The data in Table 7 also indicate a lack of effective storageat the district and provincial levels. An FAO mission /1 reported thatstorage capacity was inadequate and mostly substandard. Heavy infestationof foodgrains was reported in the stores visited, and no facilities wereavailable for effective pest control. The lack of regional storagerepresents a serious constraint to effective distribution of rice, andstorage losses are substantial.

Paddy Supply and Demand

22. The sector mission feels that the official yield data used inTables 1-3 probably overstate actual yields. In northeastern Thailand, theaverage yield for all paddy areas is about 1.3 ton/ha; the average yield onthe 6% of the area irrigated is about 2.6 ton/ha, and on the rainfed areas,about 1.2 ton/ha. The level of inputs is lower in the Lao PDR, but thecountry has a larger percentage of riverine alluvial soils in its lowlands

/1 A Policy and Action Plan for Strengthening National Food Security inLao PDR: FAO Report ESC (FSAS/Lao), January 1979.

- 25 -ANNEX 2Page 10

than northeastern Thailand. These data, plus the observations of this andother missions, led the mission members to consider 1.2 ton/ha a betterestimate of paddy yields in lowland areas than the official estimate ofabout 1.4 ton/ha. Only about 7% of the lowland areas are irrigated, buteven here, yields are also low. The upland paddy yield is likely to varymore (according to rainfall) as water is not ponded in the field. Yieldswould range from about 0.6 to 1.0 ton/ha, with an average of about 0.8 ton/ha (Table 8).

23. Table 9 presents paddy production figures for 1979 and estimatesof paddy demand and deficits by province for 1979, 1985, 1990 and 2000,using 1979 as the base production year. Population growth rates of 2.3% and2.0% - which may be optimistic - are assumed for 1979-90 and 1990-2000,respectively. Rice consumption, estimated at 180 kg of rice or 300 kg ofpaddy per capita per year, is in line with estimates of glutinous riceconsumption in northeastern Thailand./1 Based on the 1979 planted area,seed requirements would add about 28,000 ton of paddy per year to totaldemand. On the other hand, the production of corn (21,000 ton) andstarchy root crops (68,00 ton fresh roots) would more than compensate forseed usage. The base data are crude and Table 9 is only indicative of thereal situation.

24. The data indicate a current deficit of 331,000 ton of paddy(198,600 ton of rice at 60% milling), rising to 486,000 ton in 1985. Thesedeficits decline to 189,000 ton and 324,000 ton paddy, respectively, if percapita consumption is reduced to 260 kg paddy per year, the national averagefor Thailand (Table 10). If official production figures are used, thecurrent deficit is 201,000 ton of paddy, rising to 356,000 ton in 1985.Such large variations highlight the importance of establishing realisticproduction and consumption data for representative regions in the Lao PDR asa basis for sound planning. Assuming 300 kg paddy per capita per year as arealistic average figure, Table 9 indicates that currently about 62% of thenational deficit occurs in provinces north of Vientiane. All the northernprovinces are in deficit, with the most critical shortages (less than 200 kgper capita) in Xiang Khoang, Sayaboury, Phongsaly, Luang Prabang andHouaphan (Table 11). The availability of paddy per capita for this regionwas about 166 kg in 1979. In Vientiane and provinces to the south, there isalso an overall deficit, but the average availability of paddy in 1979 was238 kg per capita. Vientiane, Khammouan, Savannakhet, Saravan and Attopeuare in deficit, with the most critical shortages in Vientiane, Saravan and

/1 Thai Rice Production and Consumption, Yuvares Gaesuwan, Amar Siamwalla,Delane E. Welsch, June 1974.

Domestic Rice Consumption in Thailand 1973, Suthiporn Chirapanda,Chongchet Chanprasert, June 1974.

Departnent of Agricultural Economics, Kasetsaart University, Bangkok.


Attopeu. Only Champasak is currently in surplus (700 ton), but the surpluswill disappear by 1985 unless production increases. Further, due to theconcentration of population in Vientiane and the southern provinces,distribution of the national deficit would change to about 53% for thenorthern provinces and 47% for Vientiane and the southern provinces in 1990.In summary, to achieve self-sufficiency, production needs to be 66% abovepresent levels by 1985, and 86% higher by 1990.

25. Table 11 projects the per capita availability of paddy and thepotential deficit in 1985, based on 1979 production levels. It shows theyield increases required on all paddy land and on lowland paddy areas onlyto meet the 1985 requirements. On a national basis, the average yield wouldhave to be increased by 0.71 ton/ha on all paddy land or by 1.18 ton/ha onlowland paddy areas. These figures represent yield increases of 60% and98%, respectively. Xiang Khoang, Sayaboury, Attopeu, Luang Prabang,Saravan, Phongsaly, Vientiane, Houaphan and Oudomsay would face the lowestavailability of paddy (less than 200 kg/capita) in 1985.

The Potential for Increasing Production

26. Expansion of the planted area has been the basis for increasedproduction in recent years. Nationally, there is a surplus of good agricul-tural land. (However, in provinces severely affected by the war, such asXiang Khoang, unexploded ordnance reduces the area of good agriculturalland that can be cultivated.) The main constraint to area expansion in theimmediate future is the availability of labor and animal power (seeTable 5). Available data suggest capacity for expansion in Sayaboury,Saravan and Attopeu, if suitable land is available. Xiang Khoang clearlyhas surplus labor but is short of animal power. While there is undoubtedlysome scope for increasing the planted area, much of the deficit will have tobe met by increasing yields on the existing planted area.

27. The prospects are good for increasing yields on lowland areas withadequate rainfall or supplementary irrigation. The results of the 1979Vientiane Plain extension program (Table 6) and discussions with Departmentof Agriculture and FAO/UNDP technical personnel indicate the followingrelationships between level of management and yield potential:


AverageRice variety/management system Inputs yield

(ton/ha)

1. Traditional variety, No fertilizer 0.8traditional management No agrochemicals

2. Traditional varieties, good No fertilizer 1.2seed, improved cultural No agrochemicalstechniques

3. Traditional varieties, good 40-45 kg N, 12-13 kg P205/ha 1.8seed, improved cultural Minimal pest controltechniques

4. High-yielding variety, good 40-45 kg N, 12-13 kg P205/ha 3.0seed & improved cultural Minimal pest controltechniques

No critical data are available on the effects of flood and drought insuppressing yields in systems 1 and 2. Water supply and control werereasonable in systems 3 and 4. However, FAO/UNDP personnel felt that landlevel and water control were key factors contributing to yield variationswithin a particular system. Therefore, the degree of water control is a keyconstraint under average farm conditions. This highlights the importance offlood control, irrigation facilities and land leveling in lowland areas, ifthese can be provided at economic cost within the limits of the budget.

28. No data are available on the potential impact of improved varietiesand management techniques on upland rice. There is undoubtedly scope forachieving an average of at least 1.5 ton/ha using low input technology,for example, by introducing good seed of improved, short duration varieties,which are better adapted to the rainfall pattern; improved culturaltechniques; minimal pest control; and moderate fertilizer application inareas with reasonably reliable rainfall. However, little progress can bemade until a suitable low input technology package has been developed andevaluated at representative sites, and a viable extension and input supplyservice has been developed.

Proposed Strategy for Increasing Production

29. The Lao PDR currently faces an acute shortage of foreign exchangeand a lack of trained technicians in the agricultural sector. Most farmershave little or no knowledge of modern methods of rice production. Thisindicates the need for a simple, low technology, non-capital-intensive


approach to increasing rice production in the short term (1980-85). Sincecommunications are rather poor, especially in the north, and transport andstorage facilities are limited, it would be appropriate in the immediatefuture to produce as much rice as possible in the region or province whereit is required. As communications, transport and storage facilitiesimprove, provinces with the major potential will naturally take over the keyproduction role. The potential to increase corn production should not beneglected in some of the northern provinces, where it is an importantcomponent of the diet. Within a region or province, efforts should befocussed initially on areas with the greatest potential to increaseproduction. As additional resources (manpower, facilities and budget)become available, the production program could be progressively extended tomore marginal areas.

30. As water availability and control are the key physical constraintsto production, the short-term priorities are:

(a) upgrading all existing and ongoing irrigation projects to fulleffectiveness in terms of physical facilities, trained manpower,supplies and budget for O&M, and reliable water supply and control;establishing effective extension, seed input supply and creditservices to realize an average yield of 2-3 ton per ha by 1985 on80,000 ha of wet season and 55,000 ha of dry season irrigatedpaddy;

(b) establishing an effective extension, seed supply and crop pro--tection service for other rice areas, to the extent allowed byavailable resources and known technology, giving priority to areaswith good potential. Due to the higher risk factor, emphasisshould be placed initially on introducing low cost technology,i.e. good seed of improved varieties, correct seedling age andplanting distance, use of fertilizer and insecticides on seedbeds, and minimum pest control on the field crop. Techniciansassociated with the Vientiane extension program are confident thatthis low cost approach could, in an average year, give a 40-50%increase over the existing very low yields; and

(c) establishing a modest but effective regional adaptive researchsystem to complement the above programs. This system shouldscreen the best varieties and techniques developed in othercountries of the region. It should concentrate on developing lowcost component technology for rice, corn, soybean, mungbean,peanut, cassava and other appropriate field crops, as well asdeveloping suitable cropping systems for the country's mainagricultural zones. Ultimately, the introduction of improvedshort duration crop varieties and more intensive cropping systemswill play the major role in reducing risk, and raisingproductivity and the incomes of rural families in rainfed areas.

- 29 -

ANNEX 2Page 14

In addition to supporting the extension service, data collectedand trials executed in 1981-85 would be used in formulating cropproduction programs for the second five-year plan.

31. Impact of the Proposed Program. The potential impact of theproposed program depends on the orientation of agricultural developmentprojects implemented over 1980-85 and the ability of MOAFI to mobilizeavailable resources. With careful planning and appropriate developmentprojects, existing irrigation projects and those under construction could bebrought up to full effectiveness by 1985. This task should receiveprecedence over the development of new schemes. A well-planned agriculturalservices project could cover most of the lowland rice area with an effectiveextension service and basic input supply system, plus providing a creditservice for the 80,000 ha of irrigated land by 1985 (Annex 7, Table 3).These services would require about 400 field extension workers, about 20rice production specialists, 40-50 credit officers, and support staff forinput supply.

32. The appropriate strategy for achieving self-sufficiency by 1990should be based on the experience gained in implementing the proposedprogram and information coming from the regional adaptive research program.By 1985, this should have defined areas of rainfed lowland where theapplication of field fertilizer is profitable and developed a low costpackage to increase upland rice production.

- 30 - ANNEX 2

Table 1



Total Paddy Production

Year Area Yield Production('000 ha) (ton/ha) ('000 ton)

1968/69 656 1.21 791

1969/70 665 1.24 826

1970/71 670 1.24 833

1971/72 665 1.13 749

1972/73 665 1.13 754

1973/74 665 1.23 815

1974/75 686 1.22 835

1975/76 n.a. n.a. n.a.

1976/77 561 1.24 693

1977/78 578 1.25 724

1978/79 689 1.26 867

Sources: 1968/69 to 1974/75: Annual Statistical Bulletin, 1975, Committee forCoordination of Investigations of the Lower Mekong Basin.

1976/77 to 1978/79: Statistics Division, Department of Planning,MOAFI, Vientiane.




Paddy Production by Type, 1977-79

Lowland Upland Dry seasonpaddy paddy paddy Total

--------------------- Area ('000 ha) ----------------

1977 330 228 3.1 561.01978 355 216 7.5 579.01979 414 265 10.3 689.0X change + (+25) (+16) (+232) (+23)

-------------------- Yield (ton/ha) ----------------------

1977 1.43 0.95 1.22 1.241978 1.41 0.99 1.18 1.251979 1.39 1.05 1.45 1.26

- …------------------ Production (ton) --------------------

1977 473 216 3.7 693.11978 501 214 8.8 723.71979 574 278 15.0 866.9% change + (+21) (+29) (+305) (+25)

Source: Statistics Division, Department of Planning, MOAFI, Vientiane.

32 - ANNEX 2Table 3

LAO PEOPLE' S DW3CRATIC REPUBLIC


Paddy Production by TvDe and Province. 1977-79

Phong- Luang Oudot- Luang Saya- 8ua- Xiang Visn- Iham- Savan- Sars- CbIasaly Na-tha say Prabang boury phan rhoang tiane onuan nakh.t van pasak Attop.u Total

Lowland PaddyArea (ha)

1977 6.466 10.392 8,418 10.192 15,459 10,716 10.530 47.853 39.697 61.011 23.685 77,943 7.237 329.5991978 5,910 7,580 9,610 11,230 12,860 15,220 14,100 83,700 35,660 72,100 37,860 41,800 7,440 355,0701979 7,440 8.730 9,640 8,460 13,680 16,720 17,200 70,000 47.160 91,100 34,760 81.080 7,870 413,840

Yield (ton/ha)1977 0.95 0.57 1.50 1.50 1.50 1.64 1.21 1.23 0.71 1.50 1.01 2.20 0.83 1.44197d 1.40 1.40 1.50 1.50 1.50 1.40 1.20 1.50 1.40 1.40 1.20 1.40 1.70 1.411979 1.40 1.40 1.40 1.50 1.13 1.40 1.40 1.40 1.50 1.40 1.33 1.30 1.80 1.39

Pro.uction (ton)1977 6.140 5.923 12,627 15.288 23.188 17,533 12,746 58,710 28,043 91.516 23,874 171,474 5.984 473,0461978 8.270 10,610 14,410 16,840 19,290 21,310 16.920 125.550 49.920 100.940 45,430 58.520 12.650 500,6601979 10.420 12.220 13,500 12.690 15,520 23.400 24.080 98,000 70.740 127.340 46,230 105,400 14,170 573,910

U1pland PAddyArea (ha)

1977 21,326 12.165 41,672 36.398 15,466 23,653 8,114 12.242 9.760 10.935 23,865 9,799 2,933 228,3281978 19.590 11,890 28.080 35.710 13,450 25,340 8,500 13,200 12.560 15,660 15,000 10.800 6.640 216,4201979 15.280 25,480 34,020 41,250 19.650 30,900 6,600 21,000 11.600 24,000 14.660 13.980 6.370 264.790

Yield (ton/ha)1977 0.73 0.58 1.10 1.03 1.39 0.92 0.88 1.03 0.76 0.90 0.69 1.20 0.66 0.951978 0.90 0.90 0.70 1.33 1.20 1.10 0.81 0.79 1.00 0.90 1.00 0.73 1.20 0.991979 0.96 1.29 1.06 1.20 0.83 1.00 0.90 1.00 1.12 0.92 1.20 0.90 0.90 1.05

Production (ton)1977 15,513 7.055 45,839 37,490 21,528 21,740 7,100 12,609 7.412 9,842 16.466 11,759 1.933 216,2861978 17.630 10.700 19,660 47.490 16,140 27,880 6.880 10.400 12.560 14.090 15.000 7.840 7.970 214.2401979 14.670 32,810 36.060 49,500 16,280 30,900 5.940 21,000 13.000 22.000 17.590 12,580 5.740 278,070

Dry Season PaddyArea (ha)

1977 - - 2 35 39 1,236 12 743 120 713 - 163 - 3,0631978 740 9 56 326 110 1,749 314 1,564 260 1,644 226 480 7 7.4851979 590 50 70 550 780 1,980 590 2,120 240 2.440 120 800 10 10.340

Yield (ton/ha)1977 - - 2.00 1.00 2.00 1.25 1.08 1.30 1.10 1.00 - 1.60 - 1.221976 1.20 1.11 1.43 1.17 1.82 1.25 1.20 1.23 1.31 1.10 1.11 0.81 1.43 1.181979 1.19 1.00 1.14 1.20 1.79 1.23 0.51 2.23 1.50 1.20 1.33 1.43 2.00 1.45

Production (ton)1977 - - 4 35 78 1,546 13 966 132 713 - 261 - 3,7481978 890 10 80 380 200 2,180 377 1,930 340 1.810 250 390 10 8,8471979 700 50 SO 660 1.400 2,430 300 4,730 360 2,930 160 1.140 20 14,960

Total Are (ha)1977 27,792 22.557 50,092 46,625 30,964 35,605 18.656 60.838 49.577 72.659 47,550 87.905 10,170 560,9901978 26,240 19,479 37,746 47,266 26,420 42,309 22,914 98,464 48.480 89,404 53,086 53,080 14.087 578,9751979 23.310 34.260 43.730 50.260 34,110 49,600 24,390 93,120 59,000 117.540 49,540 95,860 14.250 688.970Z change + (-16) (+52) (-13) (+8) (+10) (+39) (+31) (+53) (+19) (462) (+4) (+9) (+40) (+23)

Average Yield (ton/ha)1977 0.78 0.58 1.17 1.13 1.45 1.15 1.06 1.19 0.72 1.40 0.85 2.09 0.78 1.241978 1.02 1.09 0.90 1.37 1.35 1.21 1.06 1.40 1.30 1.31 1.14 1.26 1.46 1.251979 1.11 L.32 1.14 1.25 0.97 1.14 1.24 1.33 1.43 1.30 1.29 1.24 1.40 1.26

Total Production (ton)1977 21,653 12,978 58,470 52,813 44,794 40,819 19,859 72,285 35,587 102.071 40,340 183.494 7.917 693.0801978 26.790 21,320 34,150 64,710 35,630 51,370 24.177 137.880 62,820 116,840 60,680 66,750 20.630 723.7471979 25,790 45.080 49,640 62,850 33,200 56.730 30.320 123.730 84.100 152,470 63.980 119,120 19,930 866.9401 change (+19) (+247) (-15) (+19) (-26) (+39) (+53) (+71) (+136) (+49) (+59) (-35) (+152) (+25)

Source: Statistics Diviaion. Department of Planning, t4OAFI. Vientiane, March 1980.

- 33 - ANNEX 2Table 4



Results of Rice Variety Trials, 1976 Wet Season

Height Duration Flowering 1,000 grain Yield(cm) (days) date weight (gm) (kg/ha)

Local VarietiesDu Yon 115 135 Oct 1 35.4 3,145San Pathong 168 151 Oct 27 31.2 3,220Du Nang Nuan 166 158 Oct 24 30.0 3,509Du Dang 154 142 Oct 8 27.0 3,313Man Ped 161 161 Oct 28 40.0 2,946Ki Tom Yei 169 158 Oct 25 35.1 3,102Khao Khae 178 159 Oct 26 34.5 3,441Hom Pama 172 163 Oct 30 32.8 3,444Khao Kun 161 161 Oct 28 39.5 2,896Pong Rang 178 156 Oct 23 33.5 2,911

IRRI Selections2061-139 99 132 Sep 29 35.1 3,7051713-192-23 92 133 Sep 30 22.5 3,644789-75-4-1 95 135 Oct 1 30.7 2,9111100-43-3-2 94 130 Sep 27 31.7 2,894883-10-3-2 97 133 Oct 4 32.5 4,20920 104 143 Oct 9 22.7 4,6061529-45-3 91 138 Oct 4 20.8 3,8481529-88-1 90 138 Oct 4 22.3 3,7801529-117-2 99 138 Oct 4 25.0 4,1801529-35-3 97 138 Oct 4 26.9 4,035

Note: All varieties were sown on June 19 and transplanted on July 12, 1976.All varieties received 30 kg N and 30 kg P205/ha.

Source: Salakham Rice Experiment Station, Department of Agriculture.

34 - ANNEX 2Table 5



Availability of Labor and Animal Power

Cultivated area /a Population per Work force /b perProvince per buffalo (ha) cultivated ha cultivated ha

Phongsaly 1.06 5.13 1.54

Luang Namtha 1.88 4.31 1.29

Oudomsay 1.35 3.46 1.04

Luang Prabang 0.90 5.33 1.60

Sayaboury 0.70 6.34 1.90

Houaphan 1.00 4.59 1.38

Xiang Khoang 2.37 9.64 2.89

Vientiane 1.08 5.52 1.66

Khammouan 0.72 3.89 1.17

Savannakhet 1.11 3.35 1.01

Saravan 0.97 6.19 1.86

Champasak 1.25 3.30 0.99

Attopeu 0.53 7.44 2.23

Average 1.00 4.68 1.40

/a Includes all crops.

/b Assuming 30% of population are effective work force.

Note: It is estimated that a minimum of one worker and one buffalo are requiredto cultivate one ha of paddy by traditional methods.

Source: Mission estimates, based on MOAFI statistical data.

LAO PEOPLE'S DE1OCRATIC REPUBLIC


Results of Paddy Extension Program in the Vientiane Plain, 1979 Wet Season

Traditional methods Improved cultural techniquesLocal rice varieties /a Local rice varieties /b IRRI varieties /c

Cooperative /d Area Yield Production Area Yield Production Area Yield Production(ha) (ton/ha) (ton) (ha) (ton/ha) (ton) (ha) (ton/ha) (ton)

Dondou 11.0 0.80 8.80 2.5 2.52 6.31 4.5 3.75 16.89Pafang 44.0 0.76 33.49 9.7 1.49 14.49 10.3 2.42 24.93Chom Thong 50.0 0.61 30.72 33.0 2.24 73-99 10.0 3.47 34.72Homtay (A) 9.0 0.77 6.93 3.0 1.34 4.03 23.0 1.89 43.47Homtay (B) 11.0 0.58 6.35 4.5 1.75 7.88 - - -

Thinphya 10.0 0.74 7.36 3.5 1.23 4.32 1.5 2.87 4.31Sithantay 11.0 1.82 20.00 6.0 1.83 11.00 5.0 2.20 11.00 IDongphosy - - - 6.0 1.25 7.50 6.0 2.07 12.39

Thannaleng - - - - - - 21.0 3.15 66.19

Thamouang (A) - - - 1.1 2.45 2.70 2.9 3.10 9.00

Thamouang (B) - - - 1.0 1.86 1.86 3.0 3.39 10.16

Pawa - - - - 3.0 1.77 5.30 7.0 2.89 20.24

Xiang Khoang 146.0 0.81 118.29 3.5 1.25 4.39 11.5 6.00 69.01Thapha - - - 2.0 1.90 3.80 13.0 2.40 31.20

Thinthene - - - 8.0 1.74 13.89 12.0 3.21 38.49

Simano Nena 196.0 0.69 136.80 6.7 2.81 18.80 6.8 2.65 18.00Simano Tay 142.0 0.79 112.00 9.6 2.40 23.00 6.4 2.66 17.00Nalong - - - 14.7 1.61 23.65 17.8 3.93 69.89

Dong Long 189.0 0.89 169.00 26.0 1.46 38.03 1.0 1.84 1.84

Total 819.0 0.79 649.74 143.8 1.84 264.94 162.7 3.07 498.73

/a Production on representative areas adjacent to "extension areas" where farmers followed tradi-tional methods without use of fertilizers and pesticides.

Lb Mainly Thai variety San Pathong, with good seed, improved cultural techniques, 90 kg 16:20.0 and X

68 kg 46.0.0 per ha with minimal pest control. F-

/c IRRI varieties, e.g. IR848, IR253, IR789, with good seed, improved cultural techniques, 90 kg O N

16:20.0 and 68 kg 46.0.0 per ha with minimal pest control./d All cooperatives are in the Hatsaifong District, except for Dong Long in the Saythany District.

Source: FAO Office, Vientiane, March 1980.

- 36 - ANNEX 2

Table 7



Estimated Rice Milling and Storage Capacity for Selected Provinces

Vien- Savanna- Champa- Khamm- Xiangtiane /a khet /a sak /a ouan /b Khoang /b

Total Milling FacilitiesMills 79 10 14 5Hullers 481 34 20 215 2

Total 560 44 34 220 2

Operational FacilitiesMills 28 7 6 - -Hullers 125 5 8 - -

Total 153 12 14 - -

Capacity (ton/year) 105,200 18,800 17,600 62,400 600

Storage (ton)Collection 5,500 3,900 2,500 - -Rice mills operational 6,000 1,500 4,400 - -

Reserve 2,000 2,000 - - -

Total 13,500 7,400 6,900 2,000 limited

Paddy Production 1979(Ton) 123,730 152,470 119,120 84,100 30,320

/a World Bank Report No. 2842-LA, Agricultural Rehabilitation and DevelopmentProject III, March 1980.

/b Asian Development Bank Report No. IAO-AP7, Agricultural Support FacilitiesProject, Phase I, December 1979.

LAO PEOPLE'S DEHOCRATIC REPUBLIC

AGRICULTURAL SECTOR REVIEN

Paddy Production by Type and Province. 1979

Phong- Luang Oudou- Luang Saya- Houa- Xiang Vien- Khaw- Savan- Sara- Cha_n-aaly Naitha say Prabang boury phan Khoang tiane oouan nakhet van pasak Attopeu Total

Lowland PaddYArea (ha) 7,440 8,730 9,640 8,460 13,680 16,720 17,200 70,000 47,160 91,100 34,760 81,080 7,870 413,840Yield (ton/hia) 1.22 1.22 1.22 1.29 1.00 1.22 1.22 1.22 1.29 1.22 1.15 1.12 1.40 1.20ProductLion (too) 9,100 10,650 11,760 10,910 13,680 20,600 20,980 85,400 60,840 111,142 39,970 90,760 11,018 496,610

Uplaud laddvArea (lIa) 15,280 25,480 34,020 41,250 19,650 30,900 6,600 21,000 11,600 24,000 14,660 13,980 6,370 264,790Yield (ton/ha) 0.78 1.04 0.86 0.97 0.67 0.81 0.73 0.81 0.91 0.74 0.97 0.73 0.73 0.85 wProduction (toli) 11,920 26,500 29,260 40,000 13,150 25,030 4,820 17,000 10,560 17,760 14,220 10,200 4,650 225,070

Dry Seasoni PaddyArea (la) 590 50 70 550 780 1,980 590 2,120 240 2,440 120 800 10 10,340Yield (ton/Iea) 1.19 1.00 1.14 1.20 1.79 1.23 0.51 2.23 1.50 1.20 1.33 1.43 2.00 1.45PLuductio., (ton) 700 50 80 660 1,400 2,430 300 4,730 360 2,930 160 1,140 20 14,960

Total Productton 21.72U 31,200 41,100 51.570 28.230 47,860 26.100 107.130 71.760 131,832 54,350 102,100 15,688 736,640

Source: MisaIon estimates that asawne lower yields for lowland and upland paddy than the official yields used in Tablesa 1-3.



Estimated Paddy Demand and Deficit, by Province

ActualEstimated production

population ('000) /a Estimated demand for Paddy (ton) /b (t on) Estimated Paddy deficit (ton) /c1979/d 1985 1990 2000 1979 1985 1990 2000 1979 1979 1985 1990 2000

North ZonePhongsaly 133 152 171 208 39,900 45,600 51,300 62,400 21,720 18,180 23,880 29,580 40,680Luang Namtha 157 180 202 246 47,100 54?000 60,600 73,800 37,200 9,900 16,800 23,400 36,600Oudomsay 183 210 235 286 54,900 63,000 70,500 85,800 41,100 13,800 21,900 29,400 44,700Luang Prabang 320 367 411 5'01 96,000 110,100 123,300 150,300 51,570 44,430 58,530 71,730 98,730Sayaboury 244 280 313 382 73,200 84,000 93,900 114,600 28,230 44,970 55,770 65,670 86,370Uouaphan 242 277 311 379 72,600 83,100 93,300 113,700 47,860 24,740 35,240 45,440 65,840Xiang KhoanL 250 286 321 391 75,000 85,800 96,300 117,300 26,100 48,900 59,700 70,200 91,200

Subtotal 1,529 1.752 1.964 2.393 458.700 525.600 589.200 717.900 253.780 204.920 271,820 335,420 464,120

South ZoneVientiane 564 646 724 883 169,200 193,800 217,200 264,900 107,130 62,070 86,670 110,070 157,770 1Khammouan 243 278 312 380 72,900 83,400 93,600 114,000 71,760 1,140 11,640 21,840 42,240 tSavannakbet 443 508 569 693 132,900 152,400 170,700 207,900 131,832 1,068 20,568 38,868 76,068 XSaravan 331 379 425 518 99,300 113,700 127,500 155,400 54,350 44,950 59,350 73,150 101,050Champasak 338 387 434 529 101,400 116,100 130,200 158,700 102,100 (+700) 14,000 28,100 56,600Attopeu 112 128 144 175 33,600 38,400 43,200 52,500 15,688 17,912 22,712 27,512 36,812

Subtotal 2.031 2.326 2.608 3,178 .609.300 697.800 782.400 953.400 482.860 126,440 214.940 299.540 470,540

Total 3.560 4.078 4.572 5.571 1.068.000 1.223.400 1.371.600 1.671,300 736,640 331.360 486.760 634.960 934,660

(+) denotes surplus.

/a Assumed growth rates: 2.3% for 1979-90; 2.0% for 1990-2000./b Demand based on 300 kg paddy, or 180 kg rice, per capita per year./c 1979 taken as base production year, and using production figures from Table 8.Id Department of Planning and Foreign Relations, September 1979.

Note: Based on the 1979 planted area, seed requirements would add about 28,000 tons to demand.

I, i1(D A~

I-. Ir



Impact of Paddy Consumption Estimates on Total Paddy Deficit

Per capitaconsumption Zone Estimated demand for paddy (ton) Estimated paddy deficit (ton)

(kg) /a 1979 1985 1990 2000 1979 1985 1990 2000

300/b North 458,700 525,600 589,200 717,900 204,920 271,820 335,420 464,120South 609,300 697,800 782,400 953,400 126,440 214,940 299,540 470,540

Total 1,068,000 1,223,400 1,371,600 1,671,300 331,360 486,760 634,960 934,660 1

280 North 428,120 490,560 549,920 670,040 174,340 236,780 296,140 416,260South 568,680 651,280 730,240 889,840 85,820 168,420 247,380 406,980

Total 996,800 1,-141,840 1,280,160 1,559,880 260,160 405,200 543,520 823,240

260/c North 397,540 455,520 510,640 622,180 143,760 201,740 256,860 368,400South 528,060 604,760 679,080 826,280 45,200 121,900 196,220 343,420

Total 925,600 1,060,280 1,189,720 1,448,460 188,960 323,640 453,080 711,820

/a North zone - all provinces north of Vientiane.

/b Average per capita paddy consumption in northeastern Thailand and estimate used by Lao PDR.

/c Approximate per capita paddy consumption for Kingdom of Thailand.

(DX

- 40 - ANNEX 2

Table 11



Paddy Deficit Proiections and Increased Yield Requirements, 1985

Increased yieldPaddy available Paddy deficit requirement /a

(kg/capita) (ton) (ton/ha) on:Province 1979 1985 /b 1985 jb All land Lowland

Phongsaly 163* 143* 23,880 1.02 3.21

Luang Namtha 237 207 16,800 0.49 1.92

Oudomsay 225 196* 21,900 0.50 2.27

Luang Prabang 161* 141* 58,530 1.16 6.92

Sayaboury 116* 101* 55,770 1.64 4.08

Houaphan 198* 173* 35,240 0.71 2.11

Xiang Khoang 104* 91* 59,700 2.45 3.47

Vientiane 190* 166* 86,670 0.93 1.24

Khammouan 295 258 11,640 0.20 0.25

Savannakhet 298 260 20,568 0.17 0.23

Saravan 164* 143* 59,350 1.20 1.71

Champasak 302 264 14,000 0.15 0.17

Attopeu 140* 123* 22,712 1.59 2.89

Total 207 181 486,760 0.71 1.18

* Provinces facing a critical shortage of paddy.

/a Based on 1979 harvested area and 1985 deficits.

/b Based on 1979 production.

- 41 -

ANNEX 3



The Production of Other Crops

Table of Contents

Page No.

Grain Production . . . . . . . . . . . . . . . . . . . . . . . 1Root Crops . . . . . . . . . . . . . .. .. . . .. . . . . . . 3Sugarcane. . . . . . . . . . . . . . . . . . . . . . . . . . . 4Leguminous Field Crops . .. . .... .... ..... ... 5Cotton ......................... .................... 7Tobacco . . . .... .... ....... .... .... .... ............ 8coffee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Vegetables and Fruit Trees . . . . . . . . . . . . . . . . . . 11

Conclusions . . . ....... ....... ..................... 11

TABLES

1. Summary of Crop Production, 19792. Crop Production, 1974-793. Production of Corn, Root Crops and Sugarcane, by Province, 1977-794. Production of Leguminous Field Crops, by Province, 1977-795. Production of Coffee, Tobacco and Cotton, by Province, 1977-796. Production of Vregetables, Fruits and Tea, by Province, 1977-79

- 42 - ANNEX 3

Page 1



The Production of Other Crops /I

1. Crops other than rice are relatively insignificant in terms of theircontribution to the agricultural economy (Table 1). Less than 5% of the LaoPDR's land is cultivated, and the rice crop accounts for 90% of this area(see Annex 2). Apart from rice, the most significant edible crops are corn,root crops and vegetables. Coffee and tobacco are the most important cropswith export potential, but current production is low (Table 2).

Grain Production

2. Corn. Planted area, yields and production have declined since1977 (Table 3), probably at least partly due to the incidence of downymildew disease, which increased dramatically in the region during the 1970s.The decline is fairly consistent in all provinces, with the exception ofVientiane, Savannakhet, Khammouan and Champasak, possibly because theseprovinces had access to improved downy mildew resistant varieties from theHat Dok Keo experiment station in Vientiane. Average yields are only halfthe levels achieved under rainfed conditions in Thailand.

3. Almost 90% of the corn produced is vegetable corn. Some whitedent grain corn is grown in Sayaboury, Luang Namtha, Hbuaphan and Phongsaly.For convenience, the Ministry of Agriculture, Fisheries and Irrigation (IAOAFI)reports production in grain corn equivalent. The bulk of the corn producedis used for human consumption and forms an important component of the dietin some rainfed upland areas. The preference for producing vegetable cornis quite sound. Fresh cobs can be produced in about 60-70 days fromseeding, which reduces the risk factor in areas with variable rainfall.Fresh cobs command a good price in the market, and the green crop residue isa useful feed for livestock. There is currently no well-developed marketingsystem for grain corn, and the profit potential per hectare is lower.

4. Of the many native varieties of vegetable corn, most areglutinous. One local variety of popcorn is produced on the BolovensPlateau. Most of the grain corn varieties are of the white dent corn type,which matures in about 120 days. They are mostly tall varieties, with a

/1 The statistics in this annex are only indicative of the real situationbecause of the constraints referred to in Annex 2 (p. 1, footnote).

- 43 -ANNEX 3Page 2

single large cob, and are prone to lodging. Most native varieties aresusceptible to downy mildew. Much of the corn is grown under the slash andburn cultivation system in upland areas. After slashing and burning, andwhen the prospects of rain are good, 2-3 seeds per hill are dibbled in at0.5-1.0 m spacing. There is virtually no management beyond planting,weeding and harvesting. The main planting is usually in May/June, and insome favorable areas of the northern provinces, a second crop is planted inOctober. Due to cool conditions, a second grain crop may take 130-140 daysto mature, whereas the main summer crop takes 120 days. Corn borer and ratsare the main pests in upland areas.

5. The Hat Dok Keo experiment station has a program to screen cropvarieties and develop suitable technology. The program is seriously limitedby lack of facilities, budget and trained personnel. Much of the materialavailable is based on varieties developed by the Thai National Corn andSorghum Development Program. These include PB5 and PB9, which aresusceptible to downy mildew, and HDK 3, based on Thai Composite No. 1, whichis tall but has good yield potential and resistance to downy mildew. Thestation also has high lysine lines from the University of the Philippines atLos Banos (UPLB), and breeding material from Hungary. A new variety, HDK 4,with good downy mildew resistance and yield potential is now in the finalstages of testing and will be released soon. Yields of 2-5 ton/ha have beenachieved with improved varieties under irrigation on the levee soils of HatDok Keo and Hat Sai Phong. Two crops a year are possible, the first plantedin May and the second in November. The second crop is grown on residualmoisture from the wet season rice and only requires four irrigations. Fieldobservation of irrigated corn at Hat Dok Keo and the Na Phok seed farmclearly show that lack of land leveling equipment to facilitate good watermanagement is the most serious constraint to growing irrigated cornsuccessfully.

6. Department of Agriculture technical personnel have identified thefollowing areas as being well suited for grain corn production:

Upland wet season Sayaboury }rainfed corn: Luang Namtha } potential area unknown

Oudomsay }

Lower section of the Bolovens Plateau - 18,000 ha

Irrigated/rainfed Levee soils along the Mekong } potentialgrain corn: River and tributaries } area unknown

However, many constraints must be overcome before grain corn can become animportant crop. The Hat Dok Keo station must be upgraded and its capacity toscreen varieties and develop appropriate technology on a regional basis

- 44 -ANNEX 3Page 3

considerably strengthened. Strong links must be re-established withregional breeding and research centers to provide ready access to newbreeding material and technology for testing under Lao conditions. Effectiveseed supply, extension, input supply, processing, storage and marketingsystems must be developed and a realistic price set for the produce. Customtractor plowing services are probably also needed in some rainfed areas toachieve satisfactory cultivation and root depth, which will help minimizemoisture stress and realize profitable yields.

7. Sorghum. Sorghum is also being tested at Hat Dok Keo. In theory,sorghum ought to be a more reliable source of feedgrain than corn, by virtueof its superior drought resistance and its adaptability to a wider range ofsoil conditions, but to date results have been rather disappointing. Therange of materials available for screening is limited; practical problemsinclude severe damage by birds and crop losses unless plantings areextensive; difficulties in threshing, unless mechanical threshers areprovided; and difficulties in plowing land after the sorghum is harvested,unless tractors are available. It is significant that the sorghum area inThailand only represents about 20% of the planted corn area, despite avigorous breeding and research program and the availability of markets.This suggests that even under reasonably favorable conditions, sorghum isnot an attractive crop. At this stage, the Lao PDR should maintain a modestapplied research program for sorghum and monitor developments in Thailand.

8. Wheat. The Lao PDR imports appreciable quantities of wheat andwheat products. Consequently, the Department of Agriculture established asmall testing program for wheat in 1973 using imported Mexican and Indianvarieties. To date, wheat has only been tested on small plots on theVientiane Plain and in Xiang Khoang. Yields of 2.8-3.2 ton/ha have beenachieved with "Mexipac" in the Vientiane Plain, and field test at XiangKhoang yielded 1.5 ton/ha. Rust and false smut have been recorded on testplantings but have not seriously reduced yields. In the future, wheat couldbe grown in irrigated areas during November-February in the northern half ofthe country, where temperatures at this time of the year are not optimal forrice. Wheat research should be strengthened, as this crop could become animportant component of a more intensive cropping system for irrigated areas.

Root Crops

9. The area planted to root crops (including cassava, sweet potato,taro and yam) and production have increased significantly from 1977 to 1979(Table 3). The main production centers are Luang Prabang, Savannakhet,Vientiane, Oudomsay, Sayaboury, Houaphan and Saravan. Little information isavailable on these crops, as there is no root crops research program and theDepartment of Agriculture has not promoted these crops. Cassava is the mostwidely grown root crop, as it can tolerate drought and a fairly wide rangeof soil conditions, requires little management, and has no serious pest and

- 45 -ANNEX 3Page 4

disease problems. Varieties with maturities of 6-15 months are available,and the tubers can be harvested, as required, at any time once they havereached usable size. This is a great advantage in terms of spreading laboruse in a mixed farming situation. On the other hand, sweet potato will onlythrive on fairly good soils with adequate moisture and is susceptible toseveral insect pests.

10. Currently, root crop production appears to be a subsistence,backyard operation. The roots and their by-products are used for homeconsumption and animal feed, with surplus production being sold in the localmarkets. In view of the apparent shortage of animal feed, the low inputrequirement and the wide adaptability of cassava, the Government shouldclosely investigate the possibilities of larger scale commercial production.The prospects of achieving average yields of 12 ton/ha from tubers on thebetter underutilized upland soils appear good if the crop is planted inApril-August and harvested in January-April. Planting and harvesting datesare flexible, and field operations for cassava can readily be adjusted tofit in with paddy growing operations. The many surplus upland areas shouldallow the rotation of cassava with leguminous fodder crops (e.g.,Stylosanthes) or leguminous field crops (e.g., Vigna, Phaseolus spp.) andavoid the use of fertilizer, apart from a maintenance dressing of phosphatefor the legumes.

11. There appears to be good potential for increasing production at thefarm and cooperative level, if the Government offers adequate support andincentives. Key requirements would be access to suitable planting materialfor the first planting, a custom disc plowing service to prepare land in thedry season, simple facilities for chipping and drying at the farm andcooperative levels, and access to a reliable market for surplus production.Strategically placed collection centers could provide tractor and truckingservices and collect payment for services in kind (i.e., chipped driedcassava). This may represent the best approach to supplying basic feedstock to the large feed mill in Vientiane. Nevertheless, the first stepshould be an analysis of market potential, costs of production, processingand transport, to ensure that there are adequate incentives for producersand end users of the product.

Sugarcane

12. Sugarcane production declined markedly after the revolution buthas almost doubled since 1977 and now involves about 1,000 ha and 26,000 tonsof cane (Table 3). The crop is grown on small plots by private farmers forsale in local markets as chewing cane or cane juice. When the fresh canemarket is saturated and prices fall, the cane is crushed and the juiceboiled to produce crude red sugar. Production is centered in Vientiane,Champasak, Savannakhet, Sayaboury, Khammouan, Luang Prabang and Attopeu.Yields are low (averaging almost 27 ton/ha) as the crop is rainfed andreceives little management apart from thinning, leaf stripping and harvesting.Chewing cane is not usually ratooned.

- 46 -ANNEX 3Page 5

13. The Department of Agriculture has a limited range of varietiesfrom Hawaii, the Philippines and Australia, and it has carried out someselection work and agronomic trials. Yields of 75 tons of cane per ha havebeen achieved under irrigation, but potential yields under irrigation andwith good management are of the order of 90-120 ton/ha for a 12 month crop.The flood free levee soils of the riverine plains would be best suited toirrigated commercial cane production, but these areas are limited.

14. The Government is currently considering a proposal prepared withJapanese assistance to establish a 400 ha pilot sugar production unit with asmall mill at Mak Nao near Vientiane. For the short term, the Governmentshould seriously consider promoting the production of crude red sugar at thefarm and cooperative levels, using simple low cost technology to meet localrequirements. Larger processing units, which produce a higher qualityproduct but are currently very capital intensive, should not be considereduntil a sound production system is established, and foreign exchange topurchase equipment and management expertise is more freely available.

Leguminous Field Crops

15. Peanut is currently the most important of these crops, with aplanted area of 10,500 ha and production of 7,500 tons of dry nut in shell(Table 4). It is largely grown as a wet season crop on the better uplandsoils and the flood free sections of levee soils of the riverine plains.The crop is sometimes intercropped with corn. A small area is planted inall provinces, but the main production centers are Vientiane, Oudomsay andSavannakhet. Yields, are low at 0.7 tons dry nut in shell per ha, which isonly half the level achieved under similar conditions in northeasternThailand. The main production constraints reported by the Department ofAgriculture are: lack of a suitable variety; crop losses due to Cercospora,and virus diseases and insect attack; and the low standards of managementpracticed by the farmers. As most upland soils are heavily leached, calciumdeficiency is probably a constraint in some areas.

16. The Department of Agriculture has a limited varietal screeningprogram at Hat Dok Keo. Varieties tested include SK 38 (Thailand), TainanNo. 9, Dixie Giant, and Valencia. Dixie Giant was rejected, as it takes 140-160 days to mature depending on the date of planting. Valencia is reportedto be very susceptible to Cercospora and mosaic, and SK 38 produced lowyields. The line of Tainan No. 9 tested was reportedly nonuniform andsusceptible to germination of seed in the pod. However, the Tainan No. 9tested might not have been true to type, as this variety has consistentlyperformed well in trials in Thailand, and it matures in about 120 days.

17. Peanut is one of the most effective legumes in terms of increasingsoil nitrogen for the following crop. The tops can be used as an animalfeed. The seed can be used for human consumption, or the oil can beexpressed using simple low cost presses and the peanut residue used for

- 47 -ANNEX 3Page 6

feeding stock. This crop should receive high priority in the adaptiveresearch program and as a component of cropping systems for the betterupland areas and riverine levee soils, where it has good production potential.The starting point would be the introduction of "true to type" varietiesthat have performed well in Thailand; regional testing, paying particularattention to nutritional aspects; and the development of low cost controltechniques for the main diseases and insect pests.

18. Soybean is grown on a limited scale in all provinces (Table 4),but Savannakhet, Vientiane, Khammouan, Phongsaly and Oudomsay account forabout 80% of production. It is grown as a rainfed crop during the wetseason. Production is largely based on local varieties. A typical localvariety grown in the south is a large bushy plant that matures in 110 days;it has small seed and is prone to lodging. Average yields ranged from 0.4 to1.0 ton of dry seed per ha in 1978, with a national average of 0.7 ton/ha.Seed yields are similar to those achieved under rainfed conditions in north-eastern Thailand. The crop may be harvested green and sold as a vegetable,or sold as seed. MIost of the crop is used for human consumption. The mainconstraints to production are reported to be: lack of well-adapted, high-yielding, nonshattering varieties; attack by pod borers and leaf folders,which are quite expensive to control; and the poor cultural techniques usedby farmers.

19. Soybean has high nutritional value as a food for humans, pigs andpoultry. As a short duration crop, it could be grown extensively incropping systems designed for the riverine levee soils and better uplandsoils. On the lighter textured, better drained paddy soils, it could begrown as a "catch crop" to use residual moisture following the wet seasonrice crop. In parts of northern Thailand, soybean seed is pressed into thesoil at the base of each rice hill at harvest. Rice straw is used as amulch to conserve moisture and reduce weed growth. Although a legume,soybean contributes very little nitrogen to the following crop. Its mainadvantage is the high nutritional value of the seed and its products.Unfortunately, production is not likely to expand appreciably untilprofitable yields can be achieved by introducing and disseminating suitablevarieties, developing appropriate production technology, and establishing amarketing system. The Department of Agriculture has introduced improvedplanting materials, including Clark 63, SJ4 from Thailand and some Taiwanesevarieties, but the program is too limited to achieve a significant technicalbreakthrough in the near future.

20. Mungbean (Vigna radiata) is largely grown as a "catch" croppreceding or following the main season crop in rainfed areas. The plantedarea and production in 1979 amounted to 2,800 ha and 1,500 tons, respectively.The main production areas are Vientiane, Savannakhet, Oudomsay and LuangPrabang. Yields range from 0.5 to 0.7 ton/ha, with a national average yieldof 0.5 ton/ha. Low yields are attributed to crude methods of production and

- 48 -ANNEX 3Page 7

losses due to powdery mildew. Mungbean is rarely considered a main crop, soseed is either dibbled into unprepared land or broadcast on roughly preparedland, with no further input beyond weeding and harvesting. With good seedof a suitable variety, proper planting techniques and good management,yields of 1.0 to 1.2 ton/ha could be obtained in favorable seasons.

21. Mungbean is used for human consumption and is a useful proteinsource. It is the base seed for "bean sprout" production, the flour isused in noodle production, and it is an ingredient in several local dishes.Its virtues as a rotational crop are its rapid establishment and shortduration (70-90 days to mature, depending on the variety). However, podmaturity is staggered, necessitating 2-3 harvests over a 3-week period;also, mungbean does not contribute significant quantities of nitrogen to thefollowing crop. Provided a suitable disease-resistant variety and a low costtechnology package can be developed, there is good potential for expandingproduction throughout the country as part of an improved cropping systemspackage. The Department of Agriculture has already selected a varietywith good yield potential. Powdery mildew control is now the mainconstraint.

Cotton

22. Cotton production recovered quickly after the revolution, and thearea planted now exceeds the 1974 level (Table 2). In 1979, 6,900 haproduced about 4,800 tons of seed cotton, with an average yield of 0.7 tonseed cotton per ha (Table 5). Small amounts of cotton are produced in allprovinces except Phongsaly, Luang Namtha and Xiang Khoang. Savannakhetaccounts for about half of production; other significant producers are LuangPrabang, Oudomsay and Khammouan. Most of the crop is grown on small plotsunder rainfed conditions in the upland areas. The local variety, which is alarge bushy plant with a few large bolls, is planted in June; improvedimported varieties are planted in July/August. The crop is harvested inNovember/December. Farmers follow traditional methods of culture, which areessentially restricted to planting, weeding and harvesting. Fertilizer andagrochemicals are currently not available for use. The major cotton pestsand high losses due to insect attack are the main factors accounting for lowyields. There are currently no ginning facilities; a small gin was installedat Sayaboury in the late 1960s but is not operational. Seed cotton iscurrently ginned by hand using small, locally manufactured wooden rollergins. Much of the fiber is spun into yarn and used in cottage industries atthe village level.

23. The Department of Agriculture previously imported some improvedvarieties, e.g., Stoneville, Reba, but there is currently little work beingcarried out on cotton. There is potential to grow cotton on extensive areasof upland as a wet season crop, or as an early planted (October/November)

ANNEX 3Page 8

dry season crop in irrigated areas. However, cotton is not a crop well-adapted to peasant agriculture. A high investment (in terms of fertilizerand agrochemicals) and high levels of crop sanitation and management arerequired to achieve good yields. In most tropical zones of the region,including Australia, the high cost of insect control is a serious constraintto achieving economic yields, and risk is high in relation to investmentcosts. For these reasons, cotton has never become a major crop. Neverthe-less, it is clearly important as a source of raw material for cottage

industries, which provide employment and income for the dry season. For theimmediate future, it is recommended that the Lao PDR concentrate on develop-ing and disseminating improved varieties and a low cost technology and

management package to improve yields and quality in existing cotton-producingareas.

Tobacco

24. Tobacco is largely grown on the free draining levee soils of the

Mekong River and its tributaries in the dry season, using hand wateringtechniques or small pumps. Both Virginia and local tobacco varieties aregrown. The planted area fell from 6,300 ha to 1,255 ha as a result of war(Table 2). In 1979, planted area and production amounted to 3,400 ha and2,000 ton of dried leaf, respectively (Table 5). Yields (at an average of0.6 ton of dried leaf per ha) and quality are rather low due to lack ofinputs and good management techniques (some Thai growers on the other sideof the lIekong River achieve yields of 1,000 kg per ha good quality dryVirginia leaf). There are small areas of production in all provinces tomeet local market requirements. However, 40% of the production area islocated in the Vientiane Plain close to cigarette manufacturing facilities.

25. Tobacco is progressively planted from September to December, afterthe risk of heavy rain has passed. Seedlings are raised under shade andthen transplanted. The lack of supplies severely limits fertilizer andagrochemical usage. The field crop is largely watered by hand, as tobaccohas a relatively low water requirement. Management is limited to manualweeding and collecting leaf-eating grubs. The field crop matures in about2-1/2 months, and leaves are plucked by hand as they reach maturity. Origi-nally, the better quality Virginia leaf was barn-cured for use in good

quality cigarettes. However, several curing barn facilities observed inVientiane are not operating, so presumably much of the leaf is now dried bynatural means (strung on strips of bamboo) for sale as cigarette tobacco.Lower grade Virginia and local tobacco leaf are chopped and sun-dried forbulk sale in the local market. This is the main source of smoking materialfor the rural population and low income workers.

26. The main virtues of tobacco as a crop are its short duration,relatively low water requirement and high income-earning potential. Undergood management, it is labor intensive and is useful in providing dry seasonemployment. Tobacco grown in Thailand often has a low nicotine and tar

- 50 - ANNEX 3

Page 9

content and can be sold on the world market as a filler for low-nicotinetobacco products. This market is handled by the private sector, with theThai Tobacco Monopoly concentrating its efforts on the production andpurchase of good quality, barn-cured Virginia leaf. The Lao PDR may beable to gain access to this market via the Thai private sector. MOAFIreported that Thai entrepreneurs had approached growers in provincesbordering the Mekong on the possibility of supplying tobacco, but the typeof tobacco requested is not known. The best short-term strategy for tobaccoproduction appears to be:

(a) increasing the quality of Virginia tobacco for local cigarettemanufacture, through extension, input supply and credit programs,and rehabilitation of the curing barns; and

(b) investigating the potential export market for "filler"tobaccos through the Thai private sector, and planningappropriate production programs to exploit available markets.

Coffee

27. Coffee production is centered in Champasak and Saravan on theslopes of the Bolovens Plateau. It is estimated that, prior to the war,about 6,000 ha were planted to coffee, but during the war, much of this areawas neglected or abandoned. Consequently, on appreciable areas, the crophas grown tall and rather unproductive due to lack of pruning. Currentstatistics indicate a planted area of 5,400 ha, an average yield of 0.6 tondry beans per ha, and total production of 3,500 tons of dry beans (Table 5).No reliable data are available regarding the area of new plantings, fullyproductive plantings or senile coffee, so the significance of average yieldand production data is not clear. Both arabica and robusta are grown; thelatter is usually grown at a lower altitude, and is hardier and lesssusceptible to disease. Although the robusta has lower quality, it is usedextensively in the manufacture of instant coffee, and demand has increasedin recent years. There are no firm figures on the areas of arabica androbusta, but the bulk of the crop is believed to be the robusta type ofcoffee. The Government has a station at Km 42 near Paksong, which raisesseedlings of coffee, tea, and cinchona for distribution to some state farmson the Bolovens Plateau. Currently smallholders are the largest producers,either operating as individuals or in association with a cooperative.

28. Progressive growers who have a good understanding of the basicprinciples of quality coffee production are in the minority, and manyproducers lack technical know-how. The lack of credit, inputs and properdrying facilities prevents all growers from fertilizing their crops orpracticing effective pest and disease control. An appreciable percentage ofthe crop is not pruned or is pruned incorrectly. The ripe berries are notprogressively and selectively harvested; instead the crop is "strip picked,"which mixes underripe, ripe and overripe berries, and seriously affects the

- 5l - ANNEX 3Page 10

quality of the end product. The cherries are sun-dried on mats on theground, which leads to uneven drying, fading of the bean and contaminationwith dirt. Most of the dried cherries are dehulled by hand pounding, whichleads to a low recovery of clean coffee and a high percentage of brokenbeans. Beans are bagged and delivered to a district store, then to thecoffee mill at Pakse. Poor storage conditions, and long delays betweendehulling and delivery to the mill, further reduce the quality of the endproduct. The mill at Pakse has a potential capacity of about 3,000 ton perannum, but due to poor maintenance and lack of spare parts, current capacityis only 300 ton per year. After peeling, polishing and grading, adversestorage conditions for the end product at the mill lead to a furtherdeterioration in quality. Poor processing and storage facilities reduce theexport price by an estimated 14-17%.

29. Coffee is an important export crop. In 1977, 1,500 ton wereexported at an estimated value of $3.7 million, or half the country'sagricultural export earnings. Increased production and a better qualityproduct would boost export earnings and could be achieved through improvedharvesting and processing techniques, and provision of good storage facili-ties. A recent IDA Credit (No. 1021-LA, Agricultural Rehabilitation andDevelopment Project III) is providing $1.9 million to improve the qualityof arabica and robusta coffee. Its main components are:

(a) relocation of the Pakse coffee mill to Km 42 on the BolovensPlateau, where climatic conditions are more favorable forprocessing and storage. Provision of a 1 ton/hr processing linefor arabica and a 2 ton/hr processing line for robusta coffee, plusoperation and maintenance expenses for the first three years;

(b) ventilated storage facilities, additional transport, and materialsto improve drying techniques at the farm level; and

(c) a program to train local personnel in coffee production,processing and mill management.

Apparently some East European countries are providing technical assistance tocoffee producing state farms in the Bolovens Plateau.

30. There is adequate suitable land to expand the planted area, butdiscussions with smallholders indicated a shortage of labor for the workinvolved. To increase production in the short term, the most practicalapproach would be to:

(a) provide extension services, credit and inputs to establishedgrowers, so that they can improve cultural techniques and increaseyields on the better plantations; and

(b) provide special credit facilities, so that growers withunproductive stands can progressively rehabilitate or replant theircoffee.

ANNEX 3- 52 - Page 11

Vegetables and Fruit Trees

31. Production statistics for vegetables and fruit trees are presentedin Table 6. A wide range of vegetables are grown on home lots during thewet season - and also in the dry season where water is available - mainlyfor home consumption, but with surplus production sold locally. Commercial-scale production is mostly restricted to the fringes of the larger populationcenters and the levee soils adjacent to water courses. Dry season irrigatedproduction usually gives the best results due to difficulties with watercontrol and the prevalence of insects and disease in the wet season. Quitea large proportion of home lots appear to be underutilized. There is consi-derable scope for increasing vegetable production on the levee soils and intemperate mountain areas, for local consumption and for export to populationcenters in northeastern Thailand.

32. The main production constraints are the lack of a dry season watersupply at the village level in many districts and the lack of adequatesupplies of good seed. The lack of agrochemicals to control major pests anddiseases, as well as to fertilize crops, seriously reduces yields andquality. An effective program to overcome these deficiencies could play animportant role in improving the diet, especially of families in dry areas,and provide a basis for establishing an export market in northeasternThailand.

33. The situation for fruit trees is rather similar. A wide range offruits are grown, but there are very few well-managed orchards, and fruitquality in the market place is not particularly good. Home lots are notused to the full and there is considerable untapped potential in the coolmountain regions for producing temperate fruits for home consumption and forexport to Thailand. The main constraints are lack of good disease-freeplanting material of improved varieties, lack of an effective extensionservice and agrochemicals, and lack of a well-developed marketing system tobring surplus production to areas of deficit.

Conclusions

34. Most provinces in the Lao PDR have a surplus of underdeveloped andunderutilized land suitable for agricultural production. In the long term,there is good technical potential for increasing the production of mostexisting crops, if a good variety and a low cost technology package appro-priate to the various production situations can be developed. There are alsoopportunities to expand the range of crops grown by exploiting the varyingenvironmental conditions, e.g., producing temperate fruits and vegetables inthe higher altitude areas. In rainfed areas, development of improved croppingsystems should receive priority. The limited use of basic inputs (fertilizerand agrochemicals) results largely from their unavailability due to a shortageof foreign exchange, a situation that can be partially alleviated by


developing export crops such as coffee, tobacco, cinchona and cinnamon. Thelimited amounts of these inputs that are available should be largely divertedto essential crops such as rice, but also to high value export crops (such ascoffee and tobacco) that have an assured local and export demand.

35. The availability of government resources, especially in terms ofmanpower and local budget to adequately finance operational costs, willdetermine the rate at which government programs (to develop area-specificresearch, as well as providing agricultural inputs, credit and extensionadvice) can be expanded to cover major production areas. Lowland rice andcoffee are likely to be the most responsive crops in the short term because oftheir reasonably favorable environment, established production processing andmarketing system, reasonable varietal base, and sufficient known technology toachieve substantial increases in yields and/or quality. For most other crops,satisfactory varieties adapted to the various production environments are notavailable; growers lack a satisfactory low input technology package, whichwould enable them to achieve a worthwhile increase in yields; and themarketing system does not extend beyond the local market. It will takeseveral years to overcome these deficiencies. Cassava offers the bestprospects of boosting human and animal feed supply in rice deficit areas inthe short term, because of its drought resistance, low input and managementrequirements, and flexible planting and havest dates.




Summary of Crop Production, 1979

Harvested area Average yield Total productionCrop (ha) (ton/ha) (ton)

Rice 688,970 1.26 866,940Corn 23,000 0.93 21,320Root crops 8,570 8.01 68,640Vegetables 5,296 8.06 42,673

Subtotal 725,836

Soybean 4,425 0.74 3,286Mungbean 2,861 0.54 1,550Peanut 10,552 0.72 7,590

Subtotal 17,838

Coffee 5,443 0.64 3,507Tobacco 3,430 0.61 2,080Cotton 6,930 0.70 4,840Sugarcane 975 26.78 26,108Tea 73 0.42 30.3

Subtotal 16,851

Fruit trees 3,840 3.92 15,036

Total 764,365

Source: Statistics Division, Department of Planning, MOAFI, Vientiane;March 1980.



Crop Production, 1974-79

Root Sugar- Hung- Vege-Year Corn la crops /b cane Peanut Soybean bean Coffee /c Tobacco /d Cotton /e tables Fruits Tea A

----------------------------------------------------- …Area (ha) ------------------------------------------------

1974 15,200 7,000 2,000 2,000 4,000 - 5,300 6,300 5,900 1,300 - -

1977 26,650 5,580 720 4,853 3,136 2,257 4,500 1,255 3,210 3,880 2,870 621978 27,520 5,670 763 9,532 4,324 2,260 4,800 3,038 5 935 4,430 3,789 661979 23,000 8,570 975 10,55Z 4,425 2,861 5,443 3,430 6,930 5,296 3,840 73

…------------------------------…--------------- Yield (ton/ha) ----- …____________________-i

1974 1.76 6.29 - 0.50 1.00 - 0.34 0.63 - 16.15 - -1977 1.18 8.73 24.78 0.73 0.62 0.47 0.62 0.59 0.76 7.94 5.86 0.401978 0.98 8.92 25.67 0.75 0.67 0.55 0.62 0.60 0.63 8.07 4.01 0.411979 0.93 8.01 26.78 0.72 0.74 0.54 0.64 0.61 0.70 8.06 3.92 0.42

--- ----------------------------- - ------ …-------- Production (ton) ---------------------------

1974 26,800 44,000 - 1,000 4,000 - 1,800 4,000 - 21,000 - -

1977 31,440 48,700 17,840 3,544 1,931 1,050 2,790 741 2,427 30,816 16,827 24.741978 26.970 50,590 19,589 7,140 2,910 1,252 2,980 1,819 3,730 35,740 15,187 26.971979 21,320 68,640 26,108 7,590 3,286 1,550 3,507 2,080 4,840 42,673 15,036 30.34

/a Yields expressed as dry grain./b Includes cassava, sweet potato, taro and yam. Yields expressed as fresh tubers./c Yields expressed as dried beans./d Yields expressed as dried leaf./e Yields expressed as seed cotton.

Sources: 1974: Annual Statistical Bulletin, 1975, Committee for Coordination of Investigations of the Lower Mekong Basin. , .1977-79: Statistics Division, Department of Planning, MOAFI, Vientiane. X

ANNEX 3Table 3

- 56 -



Production of Corn, Root Crops and Sugarcane. b, Province. 1977-79

Phong- Luang Oudom- Luang Say- boua- Xiang Vit-- hau- Savan- Sara- Chain-saly laatha "y Prabsog boury phan IChoong tiana uouan nakhat van pasak Attopeu Total

CornArea (ha)

1977 3,030 1.420 4,150 5,450 2,170 6,560 1,800 400 410 560 470 170 60 26.6501978 1,010 3.280 7,430 6,980 1.390 130 620 1,220 470 3,970 140 810 70 27.5201979 1,010 1,220 3,860 5,580 1,390 590 650 1,220 470 5,900 130 800 180 23.000

Yield (ton/ha) /a1977 0.90 1.94 0.83 0.82 1.63 1.51 1.14 1.03 1.10 1.39 1.30 1.24 1.17 1.181978 0.98 0.79 0.90 1.00 0.83 1.00 l.00 1.29 1.21 1.10 1.61 1.29 0.93 0.981979 0.93 1.45 0.38 0.66 1.32 1.42 0.80 1.39 1.41 1.21 1.18 1.42 1.39 0.93

Produccion (ton)1977 2,730 2,760 3.440 4,470 3,540 9,920 2,050 410 450 780 610 210 70 31.4401978 986 2,581 6.657 6,980 1,157 130 620 1,570 570 4,381 225 1,048 65 26,9701979 940 975 1,475 3,706 1,835 835 520 1,692 663 7,139 154 1,136 250 21,320

Root Crops /bArea (ha)

1977 270 50 730 1,400 250 730 120 960 130 360 310 160 110 5.5801978 130 70 240 420 800 850 100 1,070 550 390 780 120 150 5.6701979 270 100 800 1,420 800 900 100 1,160 470 1.290 720 220 320 8.570

Yield (ton/ha) /c1977 8.75 7.08 7.47 8.59 8.80 9.10 9.08 9.35 7.84 8.68 9.72 9.46 8.41 8.731978 10.23 7.00 8.46 9.98 7.96 9.29 6.60 9.76 8.51 7.54 9.33 9.00 8.00 8.921979 7.11 8.40 6.86 7.56 8.91 8.73 7.10 8.39 8.91 7.64 7.60 8.27 9.00 8.01

Production (ton)1977 2.362 354 5,453 12,026 2,200 6,640 1,090 8,980 1.019 3.125 3.013 1.513 925 48.7001978 1,330 490 2,030 4,190 6,370 7,900 660 10,440 4,680 2,940 7.280 1,080 1,200 50.5901979 1,920 840 5,490 10,740 7,130 7,860 710 9,730 4,190 9,860 5.470 1,820 2.880 68,640

SugarcaneArea (ha)

1977 - 3 - 40 30 3 4 300 50 80 10 180 20 7201978 - 3 - 40 30 6 4 300 50 80 10 220 20 7631979 - 3 30 44 88 5 5 326 68 99 30 237 40 975

Yield (too/ha)1977 - 23.00 - 23.00 25.00 23.00 23.00 25.00 25.00 25.00 23.00 25.00 23.00 24.781978 - 23.00 - 25.00 25.00 23.00 23.00 27.00 25.00 25.00 23.00 25.00 23.00 25.671979 - 25.00 23.0 25.00 26.00 23.00 23.00 28.00 26.03 27.04 23.00 27.00 25.00 26.78

Production (ton)1977 - 69 - 920 750 69 92 7,500 1.250 2,000 230 4,500 460 17,8401978 - 69 - 1,000 750 138 92 8,100 1,250 2,000 230 5,500 460 19,5891979 - 75 690 1,100 2,288 115 115 9,128 1,770 2,677 750 6.400 1.000 26.108

/a Yield expressed as dry grain./b Includes cassava, swet potato, taro, snd yi./c Yield expressed as fresh tubers.

Source: Statistics Division. Department of Planning, MOA7., Vientiane.

ANEX 3

3 57 - Table 4

LAO PEOPLf'S DODCIATIC £ZPUSLIC

AGRICOLTVSAL SCTOR RZ7IEW

Production of Lcu rAous field Crops, br Province. 1977-79

Phong- Luang oudom- Luang Saya- Houa- Xiang Vien- K - Save- Sara- Chabn-ealy Natha say Prabang boury pban Iboen tiane non nakhet van pamsk Attopeu Total

PeanutArea (ha)

1977 376 335 422 830 148 120 174 729 310 610 160 6l9 20 4,8531978 305 596 2,572 478 115 370 70 1,400 650 2,048 300 598 30 9,5321979 529 540 2,138 551 816 590 90 2,313 478 1,876 300 311 20 10,552

Yield (ton/ha)1977 0.70 0.80 0.80 0.70 0.60 0.50 0.40 0.75 0.70 0.80 0.70 0.80 0.80 0.731978 0.70 0.70 0.75 0.75 0.65 0.50 0.50 0.80 0.70 0.80 0.70 0.80 0.83 0.751979 0.70 0.44 0.70 0.74 0.70 0.51 0.44 0.80 0.69 0.80 0.70 0.80 1.00. 0.72

Production (ton)1977 263 268 338 581 89 60 70 547 217 488 112 495 16 3,5441978 215 420 1.930 360 75 185 35 1.120 455 1,640 210 480 25 7,1501979 370 240 1,500 410 570 300 40 1,850 330 1,500 210 250 20 7,590

Soyb5anArea (ha)

1977 18 727 511 150 60 300 206 200 98 214 220 362 70 3,1361978 50 460 664 261 100 214 200 1,030 150 963 45 167 20 4,3241979 318 123 277 247 123 192 200 918 581 1.1" 45 182 20 4.425

Yield (ton/ha)1977 0.30 0.51 0.62 0.61 0.62 0.61 0.51 0.71 0.61 0.72 0.72 0.72 0.61 0.621978 0.40 0.50 0.63 0.61 0.60 0.65 0.50 0.75 0.60 0.76 0.89 0.78 1.00 0.671979 0.83 0.79 0.81 0.69 0.72 0.69 0.55 0.80 0.69 0.74 0.64 0.73 0.80 0.74

Production (ton)1977 9 371 317 91 37 183 105 142 60 154 158 261 43 1,9311978 20 230 420 160 60 140 100 770 90 730 40 130 20 2.9101979 264 97 224 170 89 132 110 734 401 887 29 133 16 3,286

HunabeanArea (ha)

1977 4 300 575 698 50 2 2 120 2 100 2 400 2 2,2571978 40 150 500 320 150 80 5 500 5 300 5 200 5 2.2601979 249 17 412 319 363 82 5 615 210 315 27 229 18 2,861

Yield (ton/ha)1977 0.5 0.47 0.45 0.49 0.34 0.50 0.50 0.62 0.50 0.62 0.50 0.37 0.50 0.471978 0.5 0.50 0.48 0.50 0.40 0.45 0.40 0.65 0.40 0.65 0.60 0.66 0.40 0.551979 0.5 0.59 0.47 0.50 0.41 0.49 0.60 0.63 0.48 0.65 0.56 0.66 0.44 0.54

Production (ton)1977 2 141 259 342 17 1 1 74 1 62 1 148 1 1,0501978 20 75 240 160 60 36 2 325 2 195 3 132 2 1,2521979 125 10 194 160 150 40 3 390 100 205 15 150 8 1,550

Sourc*: Statistics Division, Departrnt of Planning, NI, Vientine.

ANNZX 3Table 5

LAO PEOPLE'S DEKOCRATIC REPUBLIC

AGRICULTUAL SECTOR REVIEI

Production of Coffee. Tobacco and Cotton. b, Province. 1977-79

Phocg- Luang Oudom- LaLng Seya- Hou- Kiang Vien- Khs- Seven- Sara- Chai-saly Netha say Prabsn; boury phan Khoeng tiane *ouan nakhet van pasak Attopeu Total

CoffeeArea (ha)

1977 - - - - - - - - - - 1,600 2,900 - 4,5001978 - - - - - - - - - - 1,800 3,000 - 4.8001979 14 - 13 40 - - - - _ _ 2,110 3,260 6 5.443

Yield (tonlha) /a1977 - - - - - - - - - - 0.61 0.62 - 0.621978 - - - - - - - - - - 0.62 0.62 - 0.621979 0.64 - 0.54 0.45 - - - - - - 0.5s 0.69 0.50 0.64

Production (ton)1977 - - 980 1,810 - 2,7901978 - - - - - - - - - - 1.120 1.860 - 2,9801979 9 - 7 18 - - - - - - 1,220 2,250 3 3,507

TobaccoArea (hb)

1977 25 3 35 50 65 20 4 800 140 32 5 69 7 1,2551978 60 250 74 120 180 170 174 900 250 320 210 280 50 .3,0381979 70 250 80 120 IS0 170 ISO 1,330 250 320 ISO 280 SO 3,430

Yield (ton/hb) 1_1977 0.56 0.67 0.60 0.48 0.49 0.50 0.75 0.60 0.62 0.63 0.60 0.59 0.57 0.591978 0.52 0.64 0.61 0.60 0.50 0.56 0.50 0.60 0.62 0.65 0.62 0.62 0.64 0.601979 0.57 0.64 0.63 0.58 0.50 0.59 0.56 0.60 0.64 0.66 0.67 0.61 0.60 0.61

Production (ton)1977 14 2 21 24 32 10 3 480 87 20 3 41 4 7411978 31 160 45 72 90 95 87 540 155 208 130 174 32 1.8191979 40 160 50 70 90 100 100 600 160 210 100 170 30 2,080

CottonArea (bh)

1977 250 - - - 500 - - 150 100 2,000 40 150 20 3,2101978 - - 1,900 1,020 500 130 - 150 100 1,895 40 180 20 5,9351979 - - 1,300 1,130 210 210 - 300 620 2,900 40 200 20 6,930

Yield (ton/he) /c1977 0.73 - - - 0.83 - - 0.83 0.73 0.73 0.83 0.83 0.70 0.761978 - - 0.60 0.30 0.82 0.54 - 0.80 0.70 0.76 0.50 0.72 1.00 0.631979 - - 0.58 0.60 1.00 0.62 - 0.80 0.69 0.76 0.50 0.75 1.00 0.70

Production (ton)1977 182 - - - 415 - - 125 73 1,460 33 125 14 2,4271978 - - 1,140 310 410 70 - 120 70 1,440 20 130 20 3,7301979 - - 760 680 210 130 - 240 430 2,200 20 150 20 4,840

/a Yield axpr-sed as dry beans./b Yield expressed ee dry loef.le Yleld expremed as seed cotton.

Source: Statistics Division, Department of Planning. WWI. Vientiane.

ANNEX 3Table 6

- 59 -

LAO PEOPLE'S DZDOCRATIC REPUBLIC

AGRICULTURAL SECTOII RZ9TEW

Production of Vecetables. PruiUt and TSo. by Province. 1977-79

Phong- Luang Oudo_n- Luang Says- Houu- Xiang Vten- Kbsm- Savsn- Sara- Chast-ealy Nautha say Prabang boury phan Dhoang tiana moucn nakhet van pseak Attop*u Total

VegetablesArea (ha)

1977 150 160 230 325 325 230 160 650 300 500 300 4SO LOO 3,8801978 175 ISO 265 370 360 260 185 720 340 580 345 530 120 4,4301979 150 180 266 350 400 350 310 900 400 710 350 800 130 5,296

Yield (ton/ha)1977 7.10 7.10 8.15 9.10 7.10 8.10 6.00 8.15 8.10 7.10 8.15 9.15 8.15 7.941978 7.20 7.22 8.30 9.19 7.19 8.19 6.11 8.31 8.21 7.21 8.29 9.30 8.25 8.071979 7.10 7.20 8.10 9.10 7.20 8.10 7.00 8.30 8.20 7.20 8.00 9.20 8.20. 8.06

Production (ton)1977 1,065 1,136 1,874 2,957 2,307 1,863 960 5,297 2.430 3,550 2.445 4,117 815 30,8161978 1,260 1,300 2.200 3.400 2.590 2,130 1,130 5,980 2.790 4,180 2,860 4,930 990 35.7401979 1,065 1.296 2,154 3.185 2,880 2,835 2,170 7,470 3,280 5,112 2.800 7,360 1,066 42,673

Fruit Treesarea (ha)

1977 50 80 150 250 400 50 30 700 80 350 150 500 80 2,8701978 80 100 64 280 450 80 625 800 100 380 180 550 100 3,7891979 80 100 70 280 450 80 640 810 100 400 1SO 550 100 3,840

Yield (ton/ha)1977 2.28 3.50 4.10 4.88 5.31 2.40 1.33 9.11 0.33 5.40 3.73 5.98 3.19 5.861978 1.43 2.80 6.09 4.36 4.72 1.50 2.00 4.69 2.42 4.97 3.11 5.44 2.55 4.011979 1.60 2.90 4.20 4.50 3.S0 1.60 1.80 5.00 2.40 4.90 2.80 5.60 2.40 3.92

Production (ton)i977 114 280 615 1,220 2,124 120 40 6.375 242 1,890 560 2,992 255 16,8271978 114 280 390 1,220 2,124 120 1,250 3,750 242 1,890 560 2.992 255 15.1871979 128 290 294 1,260 1.710 128 1,152 4,050 240 1.960 504 3,080 240 15,036

TeaAres (ha)

1977 5 2 2 - - - - - - - 3 50 - 621978 8 3 2 - - - - - - - 3 50 - 661979 2 3 2 - - - - - - - 5 61 - 73

Yield (ton/ha) la1977 0.38 0.34 0.32 - - - - - - - 0.34 0.41 - 0.401978 0.35 0.34 0.33 - - - - _ _ _ 0.33 0.43 - 0.411979 0.35 0.35 0-33 - - - - - - - 0.34 0.43 - 0.42

Production (ton)1977 1.90 0.68 0.64 - - - - - - - 1.02 20.50 - 24.741978 2.80 1.02 0.66 - - - - - - - 0.99 21.50 - 26.971979 0.70 1.05 0.66 - - - - - - - 1.70 26.23 - 30.34

/a Dried leaf.

Source, Statistics Division, Departent of Planning. nWI. Vientiane.

- 60 - ANNEX 4



Livestock Production

Table of Contents

Page No.

Data Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Consumption of Livestock Products .1.. . . . . . . . . . . . . . . IFeed Base for Fish, Poultry and Pigs . . . . . . . . . . . . . . . 2Pig Production .... . . . . . . . . . . . . . . . . . . . . . . 3Poultry Production .... . . . . . . . . . . . . . . . . . . . . 5Cattle and Buffalo .... . . . . . . . . . . . . . . . . . . . . 6Livestock Diseases . . . ......... ... ........ .. 7Technical Training .... . . . . . . . . . . . . . . . . . . . . 8Slaughtering Facilities . . . . . . . . . . . . . . . . . . . . . . 8Government Feed Mill .9... . . . . . . . . . . . . . . . . . . . 9

TABLES

1. Number of Buffaloes, Cattle and Horses by Province2. Number of Goats and Sheep by Province3. Number of Pigs by Province4. Number of Ducks and Poultry by Province5. Estimated Average Liveweight of Different Categories of Livestock

by Year6. Livestock Population and Livestock Slaughtered, 19737. Consumption of Livestock Products8. Estimated Pork, Poultry and Egg Production from Rice Bran, 1979,

1985 and 19909. Prices in Three Markets and Assumed Conversion Efficiency

-61 - ANNEX 4Page 1



Livestock Production

Data Base

1. Although comprehensive livestock statistics were provided by theDepartment of Planning (Tables 1 to 4), comparisons with data from othersources (as illustrated below for pigs) indicate that they probably containlarge discrepancies. The total number of pigs in the Lao PDR in 1979 wasofficially estimated at 842,900, though the Mekong Committee's estimate for1974 was only 363,800 head (Table 6). The official estimate appears out ofline with the number of pigs needed to meet pork consumption, estimated atabout 2.3 kg pork/capita/year (Table 7). Based on a population of 3.56million people, about 121,000 pigs with an average liveweight of 90 kg (or182,000 with an average liveweight of 60 kg) would be required to sustainthis level of consumption. Similarly, based on the best estimate of ricebran available, the official herd's annual requirement, even assuming anextremely low consumption of 1 kg/pig/day, is about 308,000 ton compared tototal rice bran production of 221,000 ton (assuming 30% of paddy yield);furthermore, it is estimated that 30-50% of available rice bran is probablyfed to poultry.

Consumption of Livestock Products

2. There are no accurate statistical data available on the per capitaconsumption of livestock and fish products, and government officials gavefigures based on data for the northeastern region of Thailand as their bestestimates of probable consumption levels (Table 7). The mission feels thatthese figures provide an upper limit for estimates of consumption levels inthe Lao PDR. Working backwards from the available feed supply, lowerestimates appear more likely (Table 8). Poultry, beef and pork are equallyimportant sources of meat, supplying an estimated 2.3 kg/capita/year each.In addition, poultry supply about 31 eggs/capita/year and are therefore themajor source of dietary animal protein. Fish supplies about 8.8 kg/capita/year and is the main dietary source of protein (other than plant protein).

3. Any strategy that increases the supply of fish, poultry products,pork and beef will be of considerable importance for the nutritional levelof the population. There are two major biological constraints on theproduction of poultry and pigs, namely the feed supply and disease.The feed supply, by far the most important, places an upper limit on thequantities that can be produced. Steps are being taken to implement aneffective vaccination service, which is expected to alleviate the problem ofdisease in the next 4 to 5 years. The main constraint on beef (cattle andbuffalo) production is the high mortality rate, which results from thetotally inadequate vaccination coverage against major endemic diseases. The

- 62- ANNEX 4Page 2

establishment of an effective vaccination service is the first priority forexpanding cattle and buffalo numbers. The considerable underutilized orunused grazing areas, as well as crop residues, assure an adequate feedbase, though the structure and organization of the industry may not permitthese grazing areas to be readily utilized.

Feed Base for Fish, Poultry and Pigs

4. Rice bran is by far the most important feed source available forpigs, poultry and pond fish. The percentage of rice bran (including brokenrice) available per ton of paddy depends on the milling technique used(about 13% with modern efficient milling or 30-40% with old, inefficientmilling or hand pounding). An estimated 30% of total paddy production isutilized as rice bran for pigs and poultry, i.e. about 221,000 ton in 1979,projected to rise to about 313,000 and 411,000 ton for 1985 and 1990,respectively. It is difficult to estimate the quantities of other crops(Annex 3 Table 1) utilized as animal feed. Almost 90% of the corn producedis sweet corn, so only a very small proportion is likely to be utilized foranimal feed. Likewise most of the root crops (mainly cassava), soybean,mungbeans and vegetables are probably used for human consumption. Even ifhalf of the root crops are fed to animals, this would amount to about10,000 ton of dry matter, equivalent to only about 5% of the rice branavailable. While rice bran is expected to remain the predominant feed forpigs and poultry) good potential exists for increasing the production ofcorn and cassava (see Annex 3), which are excellent feeds for pigs andpoultry.

5. Rice bran would not exceed about 50% of normal commercial pigrations because of its low energy content. Good commercial rations based onrice bran usually contain about 20% of a high protein feed such as soybeanmeal or fish meal, and the remainder would normally consist of a high energyfeed such as corn, barley or cassava meal. This type of ration would givefeed conversion efficiencies of about 5-6 kg feed/kg pig liveweight andabout 3 kg feed/kg poultry liveweight. It is difficult to ascertain thefeed conversion efficiency when rice bran virtually constitutes the completeration. The optimum amounts of high energy or high protein feeds to beincluded will depend on the improvement in growth rates associated withdifferent increments of these feeds and their price relative to rice bran.This information is not available in the Lao PDR. A good applied researchprogram could generate the required input/output information but isunlikely to be undertaken in the foreseeable future. Feeding practices willinstead be determined by the feeds available, i.e. mainly rice bran withoutany purchased supplements.

6. At prevailing market prices, the production of pigs, poultry andeggs from rice bran appears profitable based on the mission's best estimateof conversion rates (Table 9). Only small amounts of rice bran appear to bemarketed, with the bulk of output utilized for poultry and pig feeding onthe small paddy farms where it is produced. All the 496,000 farmers grow

- 63 - ANNEX 4

Page 3

paddy, and an estimated 0.45 ton rice bran per farm /1 was produced for pigsand poultry in 1979. Using the mission's conversion figures, this wouldprovide feed for 45 kg pig liveweight, 90 kg poultry liveweight, or 450eggs.

7. The best strategy for increasing the feed supply for pigs andpoultry should concentrate on increasing paddy production, since rice branproduction will increase in direct proportion to paddy. This is thus alsothe best strategy for increasing the per capita consumption of pig meat,poultry meat and eggs. The projections in Table 8 show the relationshipbetween bran production figures and consumption. For clarity, the tableassumes that no other feed is used for pork and poultry meat production,while about 50% of the feed required for egg production is supplied by ricebran (and the remainder by scavenging); assumptions on feed conversion arethose given in Table 9. The main conclusions that can be drawn from Table 8are that:

(a) pork production increases by about 42% in 1985, and by about 85%in 1990 over the base production (8,288 ton) in 1979; the corres-ponding increases in per capita production are 26% and 47%,respectively;

(b) poultry meat increases are similar to those for pork; and

(c) egg production increases by about 42% in 1985 and by about 85% in1990 over the base production (111 million eggs) in 1979; thecorresponding increases in per capita production are 21% and 45%,respectively.

Pig Production

8. Presently over 95% of production is by small farmers who raise oneor two pigs under typical backyard farming conditions. Pig raising is animportant complementary enterprise to rice cropping. Weaners are purchasedat 6-8 weeks and fed rice bran, to which are added household scraps andother feeds, including ric.e alcohol by-products, banana bark, sweet potatoleaves, and boiled cassava, depending on their availability. Local breedsare generally used, but exotic breeds such as Large White, Landrace andDuroc are also common. Production coefficients for local and improvedbreeds are poor. The number of pigs produced/sow/year is probably about

/1 Since rice bran is required for pig and/or poultry feeding on each farm,the percentage of rice recovered from paddy probably has littleimportance for farmers once households needs are met. Therefore, theymight consider the strategy of using government rice mills to obtainhigher yields of rice counterproductive.

- 64 - ANNEX 4

Page 4

four, about 10 kg feed is required per kg liveweight and age at slaughter isabout 9-12 months (when the pig weighs 60-90 kg). Mortality in pigs isabout 40-50% because of an inadequate vaccination and veterinary service.

9. In addition, there are a few government pig farms, most acquiredfrom private producers who had developed commercial operations in and aroundthe main cities prior to the present government gaining power. On the fivegovernment pig farms visited during the mission, the technical coefficientsachieved were low. Management was poor; bad hygiene was evident because thewater supply had either broken down or was inadequate. Pens were not washedand severe scouring was observed in young pigs. Output was estimated atabout 4 pigs/sow/year, a low level by any standard. All farms were usingexpensive feeds, usually imported wholly or partly from Thailand, but thecommercial market price for pigs in the Lao PDR does not cover such feedingcosts, let alone other operating costs and capital charges. All farms wereoperating well below capacity, reportedly because of difficulties inprocuring adequate supplies of feed.

10. The pig component of an IDA Credit (Agricultural Rehabilitationand Development Project I, December 1977) aimed to establish a governmentservice that would provide a regular supply of young pigs (about 14,000) forfattening to small livestock farmers and cooperatives. The works for thisare under construction but will only be complete 2-3 years later thanestimated at appraisal, due to difficulties in procuring building materialsand the adoption of a more complicated design than originally planned.While the appraisal report specified 10 separate sow units, each with 120sows, it was eventually decided (with IDA's agreement) to build one unitwith a capacity for 1,200 sows and copy (from Thailand) a sophisticateddesign with slatted floors.

11. Although the mission supports the objective of supplying weanersto small private producers and cooperatives for fattening, it could notjustify or support the Government-s request to include a large governmentpig fattening unit (with a capacity of about 5,000 finished pigs/year). Thegovernment sow unit (para. 10) was to provide young pigs to the fatteningunit. This development is in line with the Government's overall strategyfor pig production, under which the public sector would eventually accountfor about 30% of output. The mission feels, however, that pig (and poultry)production should be encouraged in the small farm and cooperative sectorwhere it is now located, and that the Government's limited capital andtechnical resources could be utilized more effectively elsewhere.

12. The mission believes that Goverment pig farms should not becomeinvolved in pig production (other than selling weaners on a limited scale)for the reasons listed below:


(a) Feed Supply. Since rice bran, the main feed, is produced in smallquantities by about 0.5 million farmers throughout the country, itwould be virtually impossible to ensure a reliable feed supply.Unresolved problems are associated with the purchasing, assemblingand transporting of rice bran, as well as the costs involved.Furthermore, farmers are unlikely to sell significant quantitiesof rice bran, which they use themselves. In fact, existinggovernment pig and poultry farms are substantially underutilizedbecause of considerable difficulty in procuring feed supplies.

(b) Production Costs. Large commercial piggeries in the public sectorwould entail a big investment in housing and other facilities,whereas in the small farm sector the simplest type of shelter isadequate for the 1-2 pigs found in the typical backyard farmingsystem. The tropical climate (see Annex 1) even allows pigs to betethered under the shade of banana trees without any other form ofshelter. Management and labor expenses are high on all the exist-ing government farms, whereas underutilized family labor isavailable on the small farms and cooperatives. Feed costs, themajor operating cost in pig production, are considerably higher ongoverment pig farms than on cooperative or individually operatedpig units. Even if extremely optimistic technical coefficientsare assumed, it is difficult to justify goverment piggeries, andthe evidence to date indicates that production coefficients ongovernment piggeries are low (para. 10). Furthermore, it will beextremely difficult for some time to develop the managerialcompetence needed to operate large piggeries efficiently. The

management problems of any large piggery are exacerbated in thegovernment sector by the rigidities imposed by public serviceprocedures.

(c) Opportunity Cost. Since the feed supply is the limiting factorand its main constituent is rice bran produced on individualfarms, public sector production would not be additive, but ratherwould mainly substitute for private sector production.

The mission-s judgment is that pigs (and poultry) can be produced more eco-nomically on cooperative and individually operated farms and that the econo-mic rate of return on government-operated piggeries would be unsatisfactory.

Poultry Production

13. Over 95% of the poultry and egg production (including ducks) is bysmall farmers raising about 6-15 birds under typical backyard farmingconditions. (In addition, there are a few state poultry farms.) Rice branis the major feed, but poultry get a high proportion of their feed fromscavenging around the household and garden. Native breeds predominate, butthere is considerable evidence of random crossing between local and importedstrains. Production coefficients are low, as they are for traditional


poultry production in most Asian countries. Laying hens produce about 50eggs/year and ducks about 80 eggs/year. Hens and ducks (4.6 million birds)are treated as a single category in MOAFI statistics (Table 4), but ducksseem to account for about a quarter of total poultry production.

14. Although only about 1 in 3 households keeps pigs, virtually everyhousehold keeps poultry (even in the towns), and they are extremelyimportant to the household economy. Poultry, and particularly eggs, make amajor contribution to the average family's diet. Poultry raising istherefore more important than pig raising and appears even better adapted tothe small farm economy. Every household has sufficient feed to keep somepoultry, which probably utilize the rice bran more efficiently than pigsbecause of their ability to get protein from insects, beetles, snails andworms by scavenging. The climate is well suited to poultry production andno capital investment is needed for the traditional backyard system. Highmortality is the major constraint on poultry production, apart from theoverriding feed constraint (para. 3). An efficient countrywide vaccinationservice is badly needed to eliminate losses caused by disease, and steps arepresently being taken to this end.

Cattle and Buffalo

15. The national buffalo herd was estimated at about 756,000 headin 1979 and the national cattle herd at about 399,000 (Table 1). Thebuffalo, which are used as draft animals (Annex 2), feed on rice straw orgraze on headland and upland natural pastures. The buffalo population,primarily governed by the need for draft power, is not anticipated tochange in the medium term, but the herd could increase in line with draftrequirements if endemic diseases are controlled (para. 19), since the feedsupply does not constitute a constraint to the herd's expansion. Each farmhousehold owns one or two buffalo. The old buffalo are slaughtered for beefwhen their useful life as draft animals has ended. The quality of buffalobeef is low and, at the time of the mission, realized about NK 6/kg,compared to NK 10/kg for beef from cattle on the Pakse market.

16. The national cattle herd is small in relation to the availablegrassland area (800,000 ha) and the open scrub/woodland (4 million ha).Apart from the Bolovens Plateau, the mission could not visit any cattleproducing areas or locations with a potential for cattle production, andtherefore it cannot judge the potential of these resources (see Annex 1) forcattle grazing.

17. The natural pastures of the Bolovens Plateau have good potentialfor cattle production. Their carrying capacity is estimated at about oneadult animal/3 ha. At present, about 3,000 head are carried on the plateau,but the existing pastures could sustain an estimated 30,000 head withoutdifficulty. The mission visited a government livestock farm on the plateauwhere Red Sindi and Bramin herds were being developed from breeding stockimported from Thailand to provide pure bred bulls for crossing with native


cattle. A small private livestock farm on the Bolovens Plateau has 5-6 headof cattle, a medium-sized farm 10-18 head, and a large farm about 30 head.The native cattle are small (Table 5) and production coefficients and offtakeare considered low (although reliable data were not available on this). Themain biological constraint on cattle production is high mortality (para. 19).

18. The extent to which the Government is prepared to encourage cattleproduction in the private sector is unclear. Also, usable grazing resourcescould not be determined because of the lack of information on ownership,land use and grazing rights. In the mission's view, the Government should,as far as possible, rely on the private sector to develop and expand cattleproduction. Private sector cattle production on small farms is now beingencouraged in other socialist countries such as Romania and Yugoslavia. Themission does not recommend the development of state ranches, since thisapproach has proven unsatisfactory elsewhere.

Livestock Diseases

19. High mortality and reduced production caused by disease are majorconstraints on livestock production. Without an effective veterinaryvaccination service, losses from infectious diseases in all species aresevere. This problem will be solved when vaccines are manufactured and aneffective vaccination service is organized to cover a large proportion ofthe livestock at risk. The main infectious diseases that cause substantiallosses but that can readily be prevented and controlled by vaccination are:

(a) swine fever (hog cholera) and swine erysipelas in pigs;

(b) blackleg, anthrax, hemorrhagic septicemia and enterotoxemia incattle and buffalo;

(c) fowl pox, fowl cholera and newcastle disease in poultry; and

(d) duck plague (hepatitis).

Few, or even no, animals are presently vaccinated in many regions. Lossesdue to infectious diseases were reported to be extremely high by governmentofficials and by informed foreign observers. The mission was informed thatabout 10,000 buffalo had died in Savannakhet over the past two years as aresult of a severe hemorrhagic septicemia outbreak, because the animals hadnot been vaccinated.

20. Vaccine Production. A modern vaccine production unit is providedat the National Institute of Veterinary Medicine under an ongoing UNDP/FAOproject. This unit, which was officially opened in March 1980, has thecapacity to supply sufficient vaccine to control the main livestock diseases

- 68 - ANE X 4Page 8

(para. 19)./l It is estimated that the unit will produce about 10 millionvaccine doses in 1980 and about 15 million each year thereafter. UNDPtechnical support to the institute includes a virologist and aparasitologist, as well as the project manager, a bacteriologist. UNDP hasalso agreed to provide an epidemiologist, who is expected to take up duty inAugust 1980.

21. The veterinary service will be responsible for mounting vaccina-tion campaigns. At present only a skeletal veterinary service exists, andthe service is virtually nonexistent at the provincial level. It istotally deficient in adequately trained staff and in facilities, such aslaboratories with simple equipment (refrigerators, etc.) to store vaccines.Only Vientiane, Champasak, Savannakhet and Luang Prabang have a smalltrained staff and a rudimentary health center supplied with electricity.

22. It is strongly recommended that support to establish an effectivevaccination service be included in the proposed agricultural support servicesproject (see main text). In addition, the project should provide trainingfor badly needed livestock and veterinary staff.

Technical Training

23. The lack of trained livestock personnel is a major constraint onlivestock development. A UNDP/FAO project has initiated a limited trainingprogram for livestock staff, which is conducted by Dr. Shukla. Fifty-fivelivestock assistants completed a six-month training course in 1978, and anadditional 98 will complete a one-year course in 1980. Students were drawnfrom all sectors of government; for example, in 1978, 20 students wereLivestock Department staff, 20 were from the army and 15 were staff fromother ministries.

24. The UNDP has agreed in principle to support a veterinary school atTang Wang (about 28 km from Vientiane City) to provide a four-year courseand graduate 50 veterinarians a year, with the first students graduating in1986. Dr. Shukla informed the mission that $2.6 million had been approvedfor this purpose. The project is expected to cost at least $3.6 million,but no indication was given on how this shortfall would be met. A UNDP/FAOmission was scheduled to visit the Lao PDR in April 1980 to prepare thisproject.

Slaughtering Facilities

25. Vientiane is serviced by a modern slaughterhouse. However, theslaughtering facilities visited at Savannakhet and Pakse were primitive,unhygienic and lacked even the most rudimentary facilities such as a goodwater supply. The facilities comprised a dilapidated shelter without a good

/1 The institute will also produce vaccine to prevent rabies in dogs.


concrete floor or concrete holding pens. Investment will be needed at theselocations, and probably elsewhere, to provide simple, hygienic slaughteringfacilities, including concrete areas for holding and slaughtering animals,and a good water supply. The facilities should be as simple as possible,and the investment needed for each slaughtering facility should be about$50,000-100,000.

Government Feed Mill

26. The Government's large, modern feed mill, with the capacity toproduce about 20,000 ton animal feed/year, is located at Tha Ngone nearVientiane City. This mill was financed by German and French aid. Althoughthe mill had been completed for some time, it has still to produce any feed.The mission expects the mill to have great difficulty in procuring rawmaterials (paras. 5, 6 and 12), which could come from:

(a) rice bran and corn purchased from private farmers; rice branacquired through taxation;

(b) protein feeds and mineral/vitamin supplements imported fromThailand; and

(c) feedgrains produced on the Government's Veune Kham feedgrainfarm.

It is unlikely that much rice bran or corn can be purchased from privatefarmers. In 1979, the Government received 36,830 ton paddy through the taxsystem. This would yield about 11,000 ton of rice bran or about 4,800 tondepending on milling efficiencies (assumed at 30% and 13% respectively, seepara. 4). Vientiane accounted for about 14.5% of total paddy produced;if all the bran procured through taxation in the province were allocated tothe feed mill, it would amount to only about 1,600 ton in 1979 or about2,400 ton in 1980./1 Imports are also likely to be small. Thus, the VeuneKham farm is the only viable feed source. At full development (1983),incremental feedgrain production for the farm is projected as follows:

/1 Based on the Government's projection of 55,940 ton of paddy beingprocured through taxation in 1980.

- 70- ANNEX 4Page 10

Wet season IncrementalArea Yield Production production

Crop (ha '000) (ton/ha) (ton '000) (ton '000)

Maize 2,000 2.25 4,500 4,375Soybeans 450 1.30 585 585Groundnuts 450 0.85 (grain) 382 382

Total 2,900 - 5,467 5,342

Source: SAR ARDP II, Table 3.5, p. 18.

27. Even considering all possible feed sources, the conclusion remainsthat the mill will experience great difficulty in procuring raw materials inthe foreseeable future. However, if the Government follows the mission'srecommended strategy, which emphasizes pig and poultry production on indivi-dually operated farms and cooperatives (para. 12), utilization of the feedmill and its role in expanding pig and poultry production will remainrelatively unimportant.




Number of Buffaloes, Cattle and Horses by Province

Buffaloes Cattle HorsesProvince 1977 1978 1979 1977 1978 1979 1977 1978 1979

Phongsaly 23,460 22,545 24,445 11,722 10,243 9,863 n.a. n.a. 3,544

Luang Namtha 15,620 14,460 19,410 6,046 6,154 8,641 n.a. n.a. 2,206

Oudomsay 34,746 39,198 39,230 13,154 13,290 11,978 n.a. n.a. 2,922

Luang Prabang 29,826 27,870 66,900 5,783 6,809 21,740 n^a. n.a. -

Sayaboury 44,527 55,450 55,800 13,371 12,800 13,210 n-a. n.a. 2,752

Houaphan 61,821 49,430 52,430 18,155 18,408 15,111 n-a. n.a. 12,458

Xiang Khoang 10,928 10,030 10,920 10,743 8,689 8,472 n.a. n.a. 3,115

Vientiane 84,642 110,359 94,560 52,297 54,534 60,547 n.a. n.a. 237

Khammouan 82,618 88,600 86,380 27,476 28,820 32,126 n.a. n.a. -

Savannakhet 129,856 143,608 140,756 111,528 151,313 119,231 n.a. n.a. 1,398

Saravan 56,203 56,260 55,185 26,876 28,100 29,805 n.a. n.a. 277

Champasak 79,485 81,175 82,100 51,435 47,530 66,131 n-a. n.a. 908

Attopeu 23,402 23,400 28,410 2,260 2,270 2,092 n.a. n.a. -

Total 677,134 722,385 756,526 350.846 388,960 398,947 n.a. n.a. 29,817

Source: Statistics Diiision, Department of Planning, MOAFI, Vientiane.




Number of Goats and Sheep by Province

Province 1977 1978 1979

Phongsaly 202 530 313

Luang Namtha 2,422 2,320 3,587

Oudomsay 2,961 5,218 5,830

Luang Prabang 4,250 5,839 5,175

Sayaboury 1,700 1,882 2,146

Houaphan 14,376 6,681 6,935

Xiang Khoang 4,466 5,319 6,170

Vientiane 1,919 2,300 2,607

Khammouan 65 80 104

Savannakhet 484 593 687

Saravan 1,610 1,650 1,687

Champasak 20 30 37

Attopeu 15 18 22

Total 34,490 32,460 35,300

Source: Statistics Division, Department of Planning,MOAFI, Vientiane.

- 73 -

ANNEX 4Table 3



Number of Pigs by Province

Province 1977 1978 1979

Phongsaly 35,934 38,912 46,725

Luang Namtha 42,010 36,904 33,850

Oudomsay 89,029 32,990 78,780

Luang Prabang 61,224 62,994 78,750

Sayaboury 49,120 42,247 51,150

Houaphan 198,180 106,530 142,810

Xiang Khoang 31,217 28,477 35,200

Vientiane 46,402 82,033 90,750

Khammouan 62,372 62,500 65,695

Savannakhet 113,595 111,028 113,560

Saravan 42,289 42,800 46,560

Champasak 35,384 37,010 41,980

Attopeu 12,522 12,145 17,150

Total 819,278 696,570 842.900


- 74 -

ANNEX 4Table 4



Number of Ducks and Poultry by Province

1977 1978 1979Province --------------- ('000) --------… -----

Phongsaly 170.9 141.2 152.5

Luang Namtha 300.9 197.0 275.1

Oudomsay 575.3 403.0 413.4

Luang Prabang 251.0 407.6 380.5

Sayaboury 101.9 490.5 518.2

Houaphan 380.9 514.0 307.6

Xiang Khoang 192.7 152.4 142.4

Vientiane 591.7 515.9 667.7

Khammouan 264.1 231.5 322.9

Savannakhet 460.1 497.8 525.4

Saravan 197.7 247.7 249.0

Champasak 500.4 387.6 578.0

Attopeu 271.5 321.5 99.5

Total 4,259.1 4,507.7 4,632.2

Source: Statistics Division, Department of Planning,MIOAFI, Vientiane.

- 75 - ANNEX 4

Table 5



Estimated Average Liveweight of Different Categoriesof Livestock by Year

Category 1977 1978 1979-------------- (kg) --------------

Buffaloes 150 150 160

Cattle 106 108 113

Pig 30 30 30

Goat and sheep 16 16 16

Poultry 0.66 0.66 0.66


- 76 -

AMNEX 4Table 6

LAO PEOPLE'S DEIOCRATIC REPUBLIC


Livestock Population and Livestock Slaughtered, 1973('000 head)

Population Slaughtered

Elephant (domestic) 1.0 n.a.Goat 9.1 n.a.Cattle 230.6 8.6Buffalo 377.4 19.0Pigs 363.8 92.7Poultry (including ducks) 1,696.6 n.a.

Source: 1974 Annual Statistical Bulletin, Mekong Committee, Bangkok.

- 77 -

ANNEX 4Table 7



Consumption of Livestock Products

Kg/year/capita

Pork 2.3Beef (including buffalo) 2.3Poultry (including ducks) 3.5Fish 8.8

16.9

Eggs (No./capita/yr) 110

Note: Figures are based on per capita consumption innortheastern Thailand.


- 78-

ANNEX 4Table 8



Estimated Pork, Poultry and Egg Production from Rice Bran,1979, 1985 and 1990

1979 1985 1990

Paddy production (ton '000) 737 1,045 1,370Rice bran production (ton '000) /a 221 314 411

Pork production (ton meat) /b 8,288 11,775 15,413Poultry production (ton meat) /c 8,288 11,775 15,413Eggs (number) /d 111 mln. 157 mln. 206 mln.

Per Capita Production /ePork (kg) 2.3 2.9 3.4Poultry (kg) 2.3 2.9 3.4Eggs (number) 31 39 45

/a Assuming 30% of the paddy yield available for pig and poultry feeding.

/b Assuming 50% of rice bran utilized for pork production; liveweight x0.75 = pork.

*/c Assuming 25% of rice bran utilized for poultry meat; liveweight x 0.75 =

poultry meat.

/d Assuming 25% of rice bran utilized for egg production and rice bran sup-plies 50% of feed requirements.

/e Assuming populations of 3.56 million, 4.07 million and 4.57 million in1979, 1985 and 1990, respectively.

- 79 -

ANNEX 4Table 9



Prices in Three Markets and Assumed Conversion Efficiency

Pigs /a Poultry /a Eggs Rice branMarket NK/kg liveweight NK/kg liveweight NK/egg NK/kg

Vientiane City 12 12 1.5 0.8

Savannakhet 15 11 1.5 0.8

Pakse 7 7 0.8 0.5

Feed conversionefficiency /b(kg feed/kgproduct) 10 5 (1 pzr ogg)

/a Converted to liveweight price.

/b Mission estimate; subject to large error.

- 80 -ANNEX 5



Forestry

Table of Contents

Page No.

Forest Resources . . . . . . . . . . ........ 1Importance of Forestry in the Economy . . . . . . . . . . . . . ICurrent and Potential Production . . . . . . . . . . . . . . . . . 2Major Production Constraints . . . . . . . . . . . . . . . . . . . 3Ongoing Programs . . . . . . . . . . . . . . . . . . . . . . . . . 3Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . 4

- 8l - ANNEX 5

Page 1



Forestry

Forest Resources

1. There has been no national forest inventory in the Lao PDR. Basedon earlier statistics, it was assumed that about 64% of the land area, or15 million ha, was under forest land, but land use maps, based on satelliteimagery and published by the Mekong Secretariat in 1977, indicate that thearea under effective forest cover is now closer to 40% of the land, or10-11 million ha. In 1968,/i it was estimated that 7 million ha wereeconomically workable and that the balance was inaccessible or of marginalvalue.

2. The forests are composed largely of evergreen and deciduous broad-leafed species. They range from moist or semi-evergreen forests in thesouth to subtropical and warm temperate species in the north; there areapparently no true rain forests. Deciduous dipterocarp forests predominate;conifers only occupy about 2% of the forest area. The moist or semi-evergreen forests in the southern half of the country provide high valuetimber for lumber, veneer, plywood, parquetry and furniture manufacture, aswell as tannins and dyes as by-products. Teak is a valuable component ofthe deciduous forests. Rattan, used for furniture manufacture, is alsoplentiful, and good stands of bamboo in Van Vieng in the north are suitablefor pulp, furniture and a range of other products.

Importance of Forestry in the Economy

3. The table below illustrates the importance of lumber and forestryproducts as a source of foreign exchange. It is believed that actual exportsof timber and wood products in the early 1970s were considerably higher thanshown due to unrecorded, illegal exports. The decline in exports was due tothe disruptions of war, which led to breakdowns and a lack of spare parts forlogging and milling equipment, as well as loss of the industry's experiencedtechnicians and managerial staff. The forestry sector will play a centralrole in stabilizing the Lao PDR's economy, in view of the large forestresources available, the increasing demand and value of timber and woodproducts on the world market, and the potential for creating employment forthe urban population in processing and servicing industries.

/1 Atlas of Physical, Economic and Social Resources of the Lower MekongBasin: United Nations, 1968.

- 82 -

ANNEX 5Page 2

Average % of Average % ofvalue, 1972-74 export value, 1976-79 export($ million) value ($ million) value

Timber and wood products 3.80 67 2.20 25Tin in concentrate 1.60 27 1.10 12Coffee 0.06 1 3.50 38Power and other commodities 0.30 5 2.30 25

Total 5.76 100 9.10 100

Source: World Bank Reports: No. 668a-LA, 1975 and No. 2282-LA, 1979.

Current and Potential Production

4. In 1968,/1 an estimated 4 million ha, or about 60% of theexploitable forest area, were being exploited commercially. Based on 1958data, the volume of standing or growing timber ranged from about 50 cu m/haon the open forest land (60% of the exploitable forest area), up to 300 cu m/ha in the dense forests. Net annual incremental production on forest areasin use was estimated at I cu m/ha. The validity of these data is not known.Available statistics on recorded production are summarized as follows:

1969 1970 1971 1972 1973

Logs (cu m) 116,680 70,930 89,520 97,940 142,200Lumber (cu m) 3,230 1,410 830 960 1,010Charcoal (ton) 12,680 9,440 5,380 7,400 6,110Firewood (cu m) 33,200 45,300 27,090 29,200 23,600

Source: Water and Forest Directorate 1974: World Bank ReportNo. 668a-LA.

Total production for 1974, including all products and unrecorded exploitation,was estimated at 350,000 cu m log equivalents. Bank Report No. 2282-LAquotes official statistics for 1977 that showed log production at 80,000 cu m.In March 1980, unofficial estimates of the Department of Forestry put total

/1 Ibid.

- 83 -

ANNEX 5Page 3

production at 126,000 cu m for 1979, with total exports at 35,000 cu m (logs15,000 cu m, sawn timber 20,000 cu m).

5. Potential production is currently estimated at 2 million cu m/yearfor all types of timber and timber products. A proper inventory ofresources is needed to accurately assess production potential, but even ifthis figure is a gross overestimate, indications are that current productionis well below potential.

Major Production Constraints

6. The Forestry Department has only limited budget and resources.Although the Department has about 4,000 personnel, only 10 are universitygraduates, 6 have completed a forest ranger course in Thailand, and about 100have completed vocational training at the Na Bong Agricultural School. Theremainder have had no formal forestry training, and their skills dependentirely on the limited in-service training provided by the Department.

7. Because only about 10 of the national forest area has been inven-toried, there is no firm basis for formulating policies and exploitation,management and processing programs. There is currently no effectivemanagement and replanting program. The Department has two seedling nurserieswith a potential output of 100,000 seedlings per year, but current resourcesallow only 350 ha to be replanted each year. By contrast, an estimated100,000 ha of forest land per year are seriously damaged by fire resultingfrom slash and burn agriculture. Imperata cylindrica, a grass that colonizesburnt forest areas in some parts of the country, presents a fire hazard tonewly planted seedlings during the dry season.

8. Logging equipment and equipment for constructing and maintainingaccess roads are generally not available. Hlilling equipment and processingplants are also in short supply, as are trained staff to manage and operatethese facilities. Only half of the 80 saw mills are now operational.Operational processing facilities are limited to one plywood mill and asmall furniture factory established by UNIDO to produce wood products. Dueto the lack of milling, processing and manufacturing facilities, wastage ishigh and the potential value of exports considerably reduced.

Ongoing Programs

9. The Ministry of Agriculture, Forestry and Irrigation has selectedeight forest areas with good potential, each of which is expected toestablish a 200,000 ha State Forest Unit responsible for inventory,exploitation, processing, management and replanting programs. These unitsare located in Vientiane, Savannakhet, Khammouan, Sayaboury, Saravan andChampasak. SIDA (Sweden) is the major support agency, whose main projectinvolves the two units in Vientiane Province. Its program includesassistance with inventory, planning, personnel training and the provision ofequipment for forest road construction and logging operations. Viet Nam isproviding technical assistance and some basic equipment to one State Forest

- 84 -

ANNEX 5Page 4

Unit. The USSR and Czechoslovakia are providing some technical assistance,

primarily to speed up the inventory program. The Asian Development Bank hasapproved an $8 million loan to rehabilitate the plywood mill and toestablish a saw mill and facilities for producing veneer.

10. The Forestry Department envisages that current programs will allow300,000-400,000 ha of forest land to be inventoried each year. Assumingpotential economic forest land at 7 million ha with 10% already covered, thiswould allow the inventory to be completed within about 15 years. It is anti-cipated that total production will increase from 126,000 cu m to 200,000 cu min 1980 and rise to 500,000 cu m by 1985. However, to achieve this targetand to speed up the full exploitation of forest resources as a source offoreign exchange, the Forestry Department proposed the following areas forfurther assistance:

(a) training of Forestry Department personnel;

(b) additional assistance to provide equipment and expertise for forestroad construction, logging and milling operations; and

(c) a project to improve utilization of logs, reduce wastage, andincrease the export value of wood products.

Recommendations

li. Prior to the sector mission, the Bank's general impression was thatthe forestry sector was adequately covered, and the Lao PDR was not requestingBank assistance in this field. Therefore the sector mission did not include aforestry expert and little time was devoted to this sector. However, it nowappears that there is considerable scope for assisting the Lao PDR in theforestry and forestry products sector. Because of the importance of theforestry sector (para. 3), it is recommended that a forestry mission (possiblystaffed by the FAO-CP) be sent to the Lao PDR as soon as possible to review,with the Government and other major agencies involved in the forestry sector,the potential role of the Bank in assisting ongoing programs. The sectormission's findings indicate that the Bank may be able to assist the forestryindustry in a specific area by supporting an integrated project, which wouldcover all stages between planting and final processing. In particular,assistance could be provided in training (to quickly expand logging andmilling capabilities) and in the processing and manufacturing fields (e.g.,plywood, veneer, parquetry and furniture manufacture); the mission should thusinclude personnel with expertise in these fields.

- 85 -ANNEX 6



Agricultural Support Services

Table of Contents

Page No.

Administrative Structure ........................ 1Key Ministries Serving Agriculture ... . . . . .. . .. ..... 2Manpower Development . . . . . . . . . . . . . . . . . . . . . . . 3Research . . .... .... . ...... .... . .... ...... ..... . .... . . 6Seed Production . . . . . . . . . . . . . .. .. . . . . . . . . 8Extension . . . . . .. . .. .. . .. .. * . 9Input Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . 11Czredit . .... ...... .................. . ... . .... . . .... . .. . 13Processing and Storage . . . .. .. . . . . . . . . . . . . . . . 14

TABLES

1. Administrative Units, by Province2. Distribution of Agricultural Technicians3. Seed Production Plan for Na Phok Farm, 1980-82

ANNEX 6

- 86 - Page 1



Agricultural Support Services

Administrative Structure

1. Since the Vientiane Peace Accord was signed on September 14, 1973,after nearly three decades of war, Laos has undergone political and socialchanges that have major implications for its future development. In April1974, the Provisional Government of National Union (PGNU) was established,bringing the former adversaries into a short-lived coalition. Soon after thechanges of government in neighboring South Viet Nam and Cambodia in the springof 1975, the year-old coalition in Laos began to weaken. Finally, the PrimeMinister resigned, the King abdicated and, on December 2, 1975, a NationalCongress of People's Representatives /1 proclaimed the formation of the LaoPeople's Democratic Republic, thereby abolishing the PGNU and the monarchy.

2. The country is now governed by a socialist regime, with the Revolu-tionary Council, a party organ, as the supreme ruling body. The GeneralAssembly, comprising nominated representatives from all the provinces, isresponsible for legislative matters. The Prime Minister, aided by hisCabinet, holds executive responsibilities; as the chief executive, he isresponsible for conducting government business (in accordance with policydirectives issued by the Revolutionary Council) through 12 ministries, themost senior of which is the Ministry of Finance. The seat of government isVientiane City, where both the Revolutionary Council and the Prime Minister'sSecretariat are located.

3. A governor heads each provincial administration and is directlyresponsible to the Prime Mfinister. The provincial administration comprises12 services, which correspond to the 12 central ministries. The provincialservices seek policy guidance and receive government directives from theprovincial governors, who in turn communicate with the Prime Minister. Theseservices have direct recourse to the central ministries only for technicalguidance. The provincial services exercise substantial control over their ownaffairs but must conform to government policy and party guidelines. TheRevolutionary Council is represented in the provinces by the RevolutionaryCommittees, which maintain close liaison with the executive branches ofgovernment to ensure that party policies and guidelines are followed.

4. Administratively, the country's 13 provinces are divided into 105districts, and the districts into 825 subdistricts (Table 1). Eachsubdistrict covers about 5-10 villages. Committees at each of these levelsare guided by the Provincial Revolutionary Committee. The basic administra-tive unit is the district. A district committee may have up to 7 sections

/1 A temporary front comprising forces set against the PGNU and the monarchy.

- 87 -ANNEX 6Page 2

providing services that correspond with any of the 12 services at theprovincial level. In some districts, particularly in the north and northeastprovinces, these services are very weak, and few services, if any, exist atthe subdistrict level.

Key Ministries Serving Agriculture /1

5. The Ministry of Finance is the key ministry dealing with economicand financial matters. It is charged with the responsibility of developingthe five-year national plans, including the agricultural development plans,and it also plays a vital role in development financing, administration ofinternal revenues and arrangements for external aid. The National PlanningDivision, which is being established as an independent division, is workingon the National Development Plan, 1981-85, in collaboration with the planningunits of other ministries. Agricultural credit is also controlled by theMinistry of Finance through the National Bank of Laos.

6. The Ministry of Agriculture, Forestry and Irrigation (MOAFI) hasprime responsibility for planning and executing government programs for theagricultural sector./2 It comprises seven departments for: (a) Crop Produc-tion, including extension and plant protection; (b) Research and Training;(c) Soil Services, including soil surveys and soil conservation; (d) Livestockand Veterinary Services, including fisheries; (e) Forestry; (f) Irrigation;and (g) Planning. However, the ministry is presently being reorganized tobetter meet development needs; its planned organizational structure is shownin the chart below. The ministry would comprise three units. The EconomicUnit would be mainly involved with commercial activities carried out throughpublic sector, semiautonomous state enterprises. These enterprises would dealwith production-oriented activities and would have substantial autonomy inmanaging their operations. Line departments, including Planning, would comeunder the Administration Unit. The Research and Extension Unit would comprisespecialized divisions to cover, inter alia, the survey and design of irriga-tion works, agricultural research and training, and seed multiplication.

7. The Ministry of Industry and Commerce also plays an important rolein the growth of the agricultural sector. This ministry is not only respon-sible for foreign trade, but also for domestic purchases and supply of agri-cultural commodities (in contrast to agricultural inputs) on behalf of theGovernment through various state enterprises (semiautonomous commercialorganizations). The ministry is therefore instrumental in recommending orfixing prices of agricultural commodities, which in turn determine theprofitability of various farm enterprises. The ministry has 11 departments,including those concerned with prices, statistics, and commerce (internaland external).

/1 Some activities, such as agricultural cooperatives, come directly underthe Prime Minister's Secretariat.

/2 Construction work on large projects for which MOAFI is responsible ishandled by its construction societies (see Annex 7).

ANNEX 6Page 3

- 88 -

Mlinister (MOAFI)

Vice Minister Vice Minister Vice MinisterEconomic Unit Administration Research & Extension

Departments, such as

1. State Enterprise 1. Cabinet Affairs 1. State Survey andfor Livestock and Design DivisionVeterinary Services

2. State Enterprise 2. Irrigation 2. Forestry and Surveyfor Rural Works and Inventory Divi-

sion

3. State Enterprise 3. Livestock and Veter- 3. Soil and Plant Protec-for Input Supply inary Services tion Division

4. State Enterprise 4. Agriculture 4. Agricultural Researchfor Forest Exploi- Stationstation and Devel-opment

5. Forestry 5. Meteorological andAgrometro Division

6. Meteorology 6. Seed MultiplicationCenters

7. Planning 7. Livestock Stations

8. Finance and Budget 8. Agricultural HighSchools

9. Personnel

10. State Farms andCooperatives

11. Farm Machinery

Manpower Development

8. The lack of trained manpower represents a significant constraint fordevelopment of the agricultural sector in the Lao PDR. Many technicians leftthe country during the war, with the result that too few university graduatesand middle-level professionals are employed by MOAFI and the provincial agri-cultural services (Table 2). Shortages are particularly acute in the


provinces. There is also a wide disparity in the distribution of techniciansbetween and within provinces: of the 222 technicians employed in theprovinces, 150 work in the Vientiane Plain and only 70 in the other provinces.Saravan has no technicians. In general, there are 1-2 technicians in eachdistrict and none below the subdistrict level. The quality of technicalpersonnel is generally low, due primarily to poor training facilities withinthe Lao PDR (the foreign trained personnel at higher levels are betterqualified).

9. Training. The Lao PDR has only limited preservice and in-servicetraining capabilities. It has no university training agricultural graduates,and only two agricultural schools producing middle-level professionals, one atNa Bong near Vientiane City and one in Luang Prabang (though the latter may nolonger be functioning). Some preservice and in-service training is also pro-vided by the country's two agricultural research stations, both located nearVientiane City, at Salakham and Hat Dok Keo. Some provinces have limitedtraining facilities beyond the primary level, but these are usually confinedto centers such as Pakse and Savannakhet. Specialized training facilitieshave also been built at Tha Gone (offering a three-month course in irrigationonce a year), at Nong Teng (offering a three-month course in livestock farmingtwice a year), and at Dong Dok (offering a three-month course in forestrytwice a year). The Government recently opened a vocational training schoolfor mechanics, fitters and operators in Vientiane City. It is also planningto open two agricultural and forestry technical schools with UNDP assistance.This and other UNDP/FAO training programs are detailed below:

Planned investmentProject number and title Agency 1979 80 81 82 Status

…---- ($'000)…

LAO/78/001 Cooperative Training FAO 255 80 0 O ApprovedLAO/78/017 Training of Hydrographers UNDTC 50 300 90 0 ApprovedLAO/78/023 Forestry/Forestry Educ. FAO 10 500 700 525 ApprovedLAO/79/015 Veterinary School /a FAO - - - - PipelineLAO/79/020 Irrigation Vocational

Training FAO 188 21 209 7 Pipeline

/a For details on this project, see Annex 4.

10. The Na Bong Agricultural School offers three years' basic trainingat the postsecondary level; its diploma is equivalent to high schoolgraduation. The curriculum includes two years' general training in agronomy,livestock, irrigation and forestry, but students specialize during their finalyear. Around 50-80 students graduate each year, 15% of them women.

11. The Salakham Research Station has training facilities appropriatefor upgrading the knowledge of technicians and farm leaders. In 1979,training was given to 80 technicians and 491 farmers in wet season rice

ANNEX 6- 90 -

Page 5

growing, to 30 technicians and 500 farmers in dry season rice growing, and to102 administrative staff from cooperatives. Training lasts from one to threemonths for technicians and for one week for farm leaders. These trainingprograms are expected to continue.

12. The Hat Dok Keo Research Station has also been used for trainingsince 1964-66. Current emphasis is on training of personnel of state farmsand agricultural cooperatives. Three 3-month courses are offered to upgradesubprofessional staff with primary or secondary education. Since 1974, acourse for technicians and two courses for farm leaders have also beenoffered, mainly covering the production of upland rice and other crops. Thestation has residential accommodations for 50 trainees, but the buildings aredilapidated. For 1980, a three-to-six month program has been designed totrain extension workers, but it has been delayed by lack of funds from theMekong Secretariat and the Government.

13. The training facilities at Na Bong and at the Salakham and Hat DokKeo Agricultural Research Stations are inadequate to meet current needs. Theydo not serve the needs of different ecosystems in the provinces, and moreovertheir output is very small. Also, there are no technical staff below thedistrict level. The lack of high-quality professional staff, good trainingfacilities and well-designed curricula further aggravates these problems.Currently, UNDP/FAO is considering proposals to improve training facilitiesthrough:

(a) a Regional Agricultural School Project in Champasak (LAO/79/009):this school would be established to offer 3 years' agriculturaltraining and graduate 100 technicians/extension workers each year.Project implementation would probably last from 1982 to 1985.UNDP's contribution is estimated at $1.6 million, with complementarysources of funding still to be determined;

(b) an Irrigation Vocational Training Project (LAO/79/020): thisproject would establish four provincial vocational training centerswith a total capacity of 480, to train skilled technicians who canassist irrigation engineers. The project would cover three years(1980-82), with an estimated UNDP contribution of $217,000 (seeAnnex 7, Appendix D); and

(c) a National Project for Agricultural Training and Extension(LAO/79/027): this project would provide accelerated training forextension workers at a newly constructed and equipped NationalTraining Center (600 graduates) and 13 Provincial Training Centers(9,360 graduates) between 1983 and 1985. The proposed UNDPcontribution is estimated at $899,000, with complementary sourcesof funding still to be determined.

14. It is difficult to predict the total future need for professionalstaff because of uncertainties in several areas: goals for the Government's

-91- ANNEX 6Page 6

next development plan; programs to accelerate manpower resources development;and the number of staff and students being trained abroad and their avail-ability in the Lao PDR. However, with the present low staffing levels and thepoor quality of training received, the lack of well-qualified technical per-sonnel will be increasingly felt as projects come on stream and may prove aconstraint to the pace of development. In particular, the Lao PDR isdesperately short of extension workers, home economists, veterinarians,livestock and fish specialists, foresters and irrigation agronomists, as wellas mechanics, fitters, operators and cooperative managers. There is thus aperceived need to increase the extent and improve the quality of agriculturaland vocational training.

15. A concerted effort is needed to tackle these problems. Initially,an assessment should be made of training needs - especially for vocationaltraining to produce middle-level professionals - to assure an adequate outputof technicians for implementing the agricultural sector's development pro-grams.

Research A

16. The Salakham Agricultural Research Station was established in 1955.It covers a total of 12 ha, of which 2 ha are under buildings and roads, and10 ha are used for experimental work. The station is staffed by 3 graduates(a plant breeder, an agronomist and a training specialist), 6 diploma holders,and 29 subprofessional level technicians (including labor and the ministerialstaff). Two expatriate staff sponsored by UNDP/FAO are experts in rice pro-duction and pest control, and each is working with a Viet Namese associatein his field.

17. The Salakham Station specializes in lowland rice (wet and dryseason) research. Its main priorities are:

(a) testing new rice varieties, conducting agronomic and plantprotection trials;

(b) producing rice seed stock; and

(c) training technicians and farm leaders.

Each year the station receives about 300-400 lines from IRRI for testing underLao conditions. Presently 1,000 lines are being screened and 64 varieties areunder field trials. One variety, IR 848, has given consistently good resultssince 1976 and has a yield potential of around 5-6 ton of paddy/ha; IR 2823has also produced high yields. Both varieties are glutinous and nonphoto-sensitive. Current research efforts are concentrated on developing ricevarieties suitable for dry season planting.

/I Research stations are controlled by MOAFI through the Director ofAgriculture.


18. To strengthen the station's research and foundation seed productioncapabilities, the Bank provided financing under its first AgriculturalRehabilitation and Development Project (ARDP I). This project will alsoimprove the station's irrigation facilities (only 2 ha of the research areaare irrigated), which should allow greater research on dry season ricecultivation and more trials.

19. The Hat Dok Keo Agricultural Research Station was sponsored by theMekong Secretariat and established in 1964. The station is situated on 17 haclose to the Mekong River, and it has the typical alluvial soils of riverlevees in the Vientiane Plain. Its land is vulnerable to flooding, and infact the floods in 1966 badly damaged the station's irrigation network. Thissituation should improve after completion of the Casier Sud Project (seeAnnex 7). Meanwhile, the protection dikes should be strengthened and apermanent pumping station established.

20. The station was staffed by 2 graduates and 16 technicians (trainedat the station in 1964-66), but 3 technicians have now been transferred toSalakham to support the rice intensification program. The one expatriate,provided under bilateral arrangements with Viet Nam, is involved in thestation's vocational training program (para. 12). The station frequentlysuffers from a shortage of farm labor.

21. The Hat Dok Keo Research Station specializes in upland rice andother crops, including cereals, legumes, root crops, maize, sorghum, soybeans,groundnuts and vegetables. (Research work on tobacco and cotton is alsoplanned.) The station's main priorities are:

(a) research on cultivation techniques for irrigated crops other thanrice;

(b) production of foundation seed of suitable varieties of thesecrops; and

(c) training personnel of state farms and agricultural cooperatives.

Although the station focuses on the selection and breeding of crops suitablefor the irrigated lowland plains, work on cultural practices and on multiplecropping also continues. Foundation seeds are produced for multiplication atfarms such as Na Phok (paras. 24-25). The station is now planning a programof multi-location tests in various provinces, which will allow researchers totest technology packages in appropriate environments and give on-the-spottraining. Farmers' land would be used for the program's tests.

22. Major constraints on research activity include the lack of finance,technical staff, and laboratory equipment and other materials. The MekongSecretariat has already formulated a $460,000 project to rehabilitate thisstation. The project involves rehabilitation and construction (including

- 93 -

ANNEX 6Page 8

repair of flood protection dikes and setting up a new irrigation systemusing siphons); supply of farm, office, research and training equipment, aswell as agricultural inputs; and training and study tours for staff upgrading.

Seed Production

23. Since 1975, seed production has been confined to rice, with 8 tonof rice seed produced annually at the Salakham Research Station and distri-buted throughout the country. The IDA-assisted ARDP I Project aimed toincrease this capacity to 75 ton (sufficient for planting 10,000 ha of wetseason rice) as a component of the rice intensification program. Initially,high-yielding seed will be provided for lowland rice production on 2,500 ha,but eventually, through postproject activities, for production on the entirearea irrigated under the project (8,300 ha). In 1979, the ARDP II Projectsought to meet some of the seed requirements of rice and other crops at astate-managed farm, Na Phok.

24. The Na Phok Seed Farm, which will be known as the National SeedProduction Center, is located 30 km northeast of Vientiane City on the rightbank of the Nam Ngum River. A total of 600 ha are available for the farm, ofwhich 500 ha would be irrigated by a pumping station installed on Nam Ngum andthe remainder rainfed. Work on the farm started in March 1979. dna ,o far57 ha have been cleared and leveled for planting in the 1980 vet sea?on. Atpresent, the farm has a staff of 37 technicians, including the maiager and3 expatriates (an agronomist from Bulgaria and one from Malagasy, and amechanical engineer from Ireland).

25. The farm's foundation seed production at full development (1983), aswell as the area that can be planted with the improved seed, would be asfollows:

EquivalentSeed supply plantable % of 1978estimates cropped area area cropped(ton) (ha) (ha)

Paddy (improved local varieties) 316 } 99,000 15Paddy (IRRI glutinous varieties) 838 }Maize (synthetic and composite) 536 43,000 134Sorghum 16 1,600 n.a.Soybeans 150 4,300 63Groundnuts 99 1,600 27

Total 1,955 149,500 21

Source: SAR ARDP II, Table 3.3, p. 14.

- 94L -

-. 94 -ANNEX 6Page 9

Since this seed supply is still only sufficient to plant about 15% of therice area with improved high-yielding varieties, responsive to fertilizers,the potential for increasing rice production through seed technology willnot be realized unless means can be found of increasing the seed supply.Maize seed requirements will be adequately met, but problems are expected inproviding technical backup to produce maize synthetics and composites;continued technical support will be needed to advance this program. Seedproduction for soybeans and groundnuts will also need to be upgraded to meetfuture requirements. The farm's plan for seed production for 1980-82(Table 3) indicates a satisfactory start towards meeting the country'scritical need for improved seed.

26. Other Seed Production Activities. The Government wishes toestablish a seed production system covering production of (a) nucleus seed,(b) foundation seed, and (c) registered/certified seed, as well as suitablearrangements for seed storage and distribution. The new organization of theMOAFI (para. 6) would establish a separate section responsible for the seedmultiplication centers. The mission was told that, with the assistance ofthe EEC, the Mekong Secretariat has prepared a project to establish nineseed multiplication farms, covering a total of 840 ha. These farms wouldprovide seeds of rice, feedgrains and vegetables for use in the mainirrigation areas. They would therefore be established in Vientiane (fiveseed farms at the district level), Champasak, Saravan, Savannakhet andKhammouan.

Extension

27. The Government first introduced an extension program in 1957./1For the first five years, its efforts were mostly directed towards buildinga viable extension organization, sending participants abroad for training,and publishing pamphlets, bulletins, etc. By 1974, an Extension Bureau hadbeen organized and 161 persons had received training lasting two weeks tofive years. Many of these trained personnel were assigned to othergovernment positions,. while the remainder became the core of the extensionservice and were supported by agents with the equivalent of a sixth gradeeducation. In-service training, though limited, offered these lessqualified extension agents an opportunity to upgrade their skills and workwith farmers, mostly through field crop demonstrations, tours and trainingclasses for farmers. However, many of the demonstrations were actuallyfield trials to obtain information, rather than demonstrations todisseminate information.

28. After the revolution of 1975, the extension service suffered whentrained personnel fled the country. Although rehabilitation has started,the mission could locate few agricultural extension service facilities. TheDirector of Agriculture, who heads one of the MOAFI's seven departments, has

/1 Agricultural Extension in Laos (1957-74), USAID, 1974.

95- ANNEX 6Page 10

no extension organization, nor any worthwhile linkages with the provincialagricultural services, which are responsible for extension work. He servesextension activities only in two ways: (a) developing a model for areaextension work mainly through the ARDP I Project in the Vientiane Plain; and(b) training extension workers and farm leaders at the Salakham and Hat DokKeo Agricultural Research Stations.

29. The ARDP I rice intensification program includes the developmentof an agronomic package for some 2,500 ha of land. After two years, theproject is producing satisfactory results and having a good demonstrationeffect. While the project has not created a full extension service for thearea, it has highlighted the need for such a service to expand production ofrice and other crops. The MOAFI is now creating a separate Research andExtension Unit (para. 6) to bring about needed institutional reforms.

30. The extension service in the Lao PDR provides minimal support foragricultural production activities, and the distribution of extensionworkers bears little relationship to the cultivated area or concentration ofthe farming population. Of the 222 agricultural technicians working in theprovinces, the 53 high school graduates and 161 primary or secondary schoolleavers (Table 2) are all likely to be engaged in extension. This wouldgive a ratio of one extension worker to 14,140 farmers (assuming that 85% ofthe population relies on agriculture for its livelihood, see Annex 1),whereas ratios of 1:800 to 1:1,100 are found in several developingcountries. Of the 214 extension personnel, 146 are concentrated inVientiane, and only 68 in the other provinces; Saravan has no extensionstaff, while Sayaboury and Oudomsay have no technicians with a high schooleducation. This skewed distribution and the lack of extension servicesbelow the district level preclude any sustained effort at increasing farmproduction.

31. Provincial extension workers have so far mainly been concernedwith forming farmers' mutual aid groups and cooperatives. In fact, theyprimarily helped form the cooperatives and guide them in improving cropproduction, particularly through better crop management (land leveling,seedbed preparation, planting techniques, weeding, use of organic manures,etc.). Individual farmers received no extension advice, which excluded mostfarmers from the service's production activities. This problem iscompounded by the otherwise weak extension support.

32. Extension remains a major area of concern for the Government. Themission recommends that necessary actions be initiated to develop an effec-tive extension service that benefits all farming groups, irrespective oftheir size or category. The organizational structure of the extensionservice and the methods used should be appropriate to the production systemin the Lao PDR, which involves state farms, agricultural cooperatives andprivate farms (see Annex 8).


Input Supplies

33. The use of physical inputs, such as quality seeds, chemical ferti-lizers, pesticides and improved farm implements, gained momentum in the LaoPDR until 1973, when disruptions caused by the war resulted in a sharpdecline in their use. Based on a survey /1 of 23 villages in 6 provincesand interviews with 388 farm families, 44% of farmers used chemicalfertilizer (an average of 176 kg per farmer) and 23% used animal manure.Similarly, 36% of the group surveyed used insecticides and 21% plantedimproved rice varieties. Fertilizer sales were nonexistent in 1965 butclimbed to 1,600 ton in 1973. Sales of insecticide (systemic and contact)also increased substantially. Since 1965, 1,600 ton of improved rice seedhad been purchased and distributed to farmers by the now defunctAgricultural Development Organization, which was responsible fordistributing inputs. During the war and up to the 1975 revolution, supplylines were disrupted; the system for producing and supplying improved andgood quality seed totally broke down. The use of fertilizers was confinedto composting; insect and disease control lapsed; and improvement in farmimplements was halted. Information on the current use of conventionalinputs is sketchy; organizational arrangements for their distribution arealmost nonexistent.

34. Seeds. Only improved rice seed is currently distributed throughofficial channels (with no private sector participation) and the quantitieshandled are small. According to MOAFI officials, only 5% of the rice areais planted to high-yielding glutinous varieties (e.g., IR 789, IR 253 and IR848); 5-8% to San Pathong, a glutinous variety from Thailand; and 85-90% tolocal varieties, including nonglutinous strains. Improved seed is mainlysupplied by the Salakham Agricultural Research Station; the seed is mostlygrown by cooperatives and to some extent by state farms.

35. Fertilizer. The use of chemical fertilizers is not widespread inthe Lao PDR. The MOAFI reported that 299 ton of nitrogenous fertilizerswere imported in 1978, but only 99 ton were used. The stock of fertilizersin 1979 was 300 ton, comprising:

Nitrogenous fertilizer 200 tonNitro Phos 70 "Phosphatic fertilizer 15 "Potassic fertilizer 15 "

Fertilizer use is mostly confined to ARDP I Project areas (for rice intensi-fication) and to the cooperatives and state farms. As with seed inputs,chemical fertilizers are distributed through official channels to areas ofgreatest need and are not traded privately.

/1 Ibid.

- 97 -

ANNEX 6Page 12

36. Pest Control. There are no suitable arrangements for distributinginsecticides or plant protection equipment, nor any advisory services toguide farmers in the use of these materials. Consequently the use of bothis limited. In 1978, 496 ton of agrochemical pesticides were received, ofwhich 415 ton were used to control rice insect pests, leaving a balance of81 ton for use in 1979. Plans for procurement in 1980, including IDA-assisted purchases, have not been firmed up. Increased emphasis is beingplaced on granular pesticides. Of 316 knapsack sprayers received in 1978(200 under arrangements with UNDP), 272 were issued to cooperatives and 44remain in storage. A further 260 power-operated, shoulder-mounted sprayersare also being provided under the UNDP's technical cooperation program.

37. The Government is also attempting to establish a national plantprotection service, and is being assisted by a UNDP/FAO program. Theprogram's immediate objectives are to provide personnel with domestic andforeign training in plant protection techniques and establish a nucleus ofexperts in entomology, plant pathology and equipment engineering. Sub-sequently four regional plant protection service centers would be estab-lished, as well as an advisory service in plant protection. The programbegan in 1979 and is likely to continue beyond 1982. Current emphasis is ontraining for farmers (2,000 farmers each year) and staff (3-month domesticcourses and a 10-month diploma course taken abroad).

38. Farm Implements. Basic agricultural tools and farm implements arelocally produced both by government enterprises and private workshops.Production levels fall far below the country's requirements, and the workingefficiency of tools and equipment has improved little. The Governmentimports large quantities of farm tools and implements to meet local demand,but arrangements for distributing these implements are lacking.

39. Diesel Oil. Diesel oil, an essential input because of pumpirrigation schemes, is imported, and its availability in adequate amounts isbecoming a constraint. No satisfactory arrangements exist for distributingdiesel oil, presently the responsibility of the Provincial Industry andCommerce Division.

40. Apart from disruptions caused by the war (para. 33), the govern-ment policy of supplying inputs only (or preferably) to state farms andcooperatives, to the neglect of the individual farmers, has also had adeleterious effect on their use. This has resulted in low yields andaffected total production figures: a sizeable deficit of rice persists (seeAnnex 2), although past deficits can be partly attributed to droughtconditions in 1977 and floods in 1978. Furthermore, despite the country'sdivision into progressively smaller administrative units (para. 4), there isno organizational set-up or institutional arrangement to channel any inputsthat are procured (usually imported) to farmers' cooperatives or individualfarmers. The mission was informed that the Government is now contemplatingsetting up a state enterprise to distribute input supplies. Involvingprivate traders in distribution could also improve the efficiency,timeliness and coverage of an input delivery system.


Credit

41. The National Bank of Laos (NBL) is the country's only bankinginstitution supplying credit, including agricultural loans. The NBL has itsheadquarters as well as two branch offices in Vientiane City and one branchin each of the remaining 12 provinces. The head office employs around 300people and the branch offices around 30. Its loans are either short-term,with a maturity of 3 to 12 months and an interest rate of 4.8% p.a., ormedium-term, with a maturity of 1 to 3 years and an interest rate of 3.0%p.a. The former are production loans primarily for the purchase of seeds,fertilizer, pesticides and farm tools; the loans are given and repaid inkind (as paddy or other agricultural products). The latter are investmentloans for the purchase of assets such as draft animals. No collateral isrequired for production loans, while the purchased asset serves ascollateral for investment loans.

42. Agricultural credit accounts for only a small proportion (1.8%) ofthe NBL's total credit portfolio. One reason for the sector's small shareis that credit supply between 1975 and December 26, 1978, when ResolutionNo. 7 /1 was passed, was confined to state farms, cooperatives and possiblymutual aid groups. In December 1979, the Prime Minister announced an impor-tant change in government lending policy under Resolution No. 7 that madeindividual farmers eligible for institutional credit on a par with coopera-tives and state farms. This change was a necessary element in stimulatinggrowth, since the pace of cooperative development was slow and participationof individual farmers in production activities is essential, particularlyfor a breakthrough in rice production. Furthermore, the repayment record ofthe cooperatives and state farms was not satisfactory. The Government isalso considering group lending operations through the village economiccommittees (para. 4), an arm of the village council, which would ensure thatloans are put to productive use. As these village economic committees areorganized, the supervision of agricultural loans could well be entrusted tothem, as well as the supervisory staff of the local NBL branches.

43. In the past, the impact of farm credit has been lessened by thenonavailability of agricultural inputs, since the credit and physical inputdelivery systems were not coordinated. For instance, a loan was sanctionedin 1975 for the purchase of draft animals (buffaloes) for rehabilitation inXiang Khoang, but no buffaloes could be purchased. The establishment ofsale outlets for agricultural inputs must be coordinated with the develop-ment of the credit delivery system, which will require private sectorinvolvement on a continuing basis.

/1 Resolution 7 incorporates major policy changes in the agriculturalsector and recognizes the role of the private sector.

- QQ -

-~ 99 -ANNEX 6Page 14

44. Since 1975, the use of institutional credit has been low becauseof limited monetary activity in the economy and the NBL's organizationallimitations. However, to improve the credit delivery system, the NBL plansto establish a branch in all districts by the early 1980s. The mission wasinformed that a large number of credit personnel were already being trainedat NBL's Central Training School in Vientiane City. Although the NBL'starget appears ambitious, it reflects the Government's intention ofaccelerating the use of credit in the agricultural sector to realize higherlevels of production and productivity in the shortest time.

Processing and Storage /1

45. Rice Milling. The total installed milling capacity in the Lao PDRis around 335,000 ton of paddy per year, but underutilization is reporteddue to old plants, inefficient operation and lack of spare parts (see Annex2, text and Table 7). The IDA-assisted ARDP III Project was approved in1980 to augment the milling capacity and improve the operational efficiencyof existing plants in the three major rice producing provinces (Vientiane,Savannakhet and Champasak). The project complements a 3 ton/hr plant beinginstalled with UNDP assistance in Vientiane and an ADB-financed plant inXiang Khoang. The project involves: (a) rehabilitation of 8 small ricemills (5 with a capacity of 0.5 ton/hr, and 3 with a 0.25 ton/hr capacity);(b) electric power supply to 6 medium (1 ton/hr) and two small rice mills(0.5 ton/hr); (c) construction of a large (2 ton/hr) diesel powered mill inVientiane and a 4 ton/hr electric powered mill in Savannakhet; and (d) pro-vision of spare parts to 63 existing mills. This program should increasethe existing milling capacity by 21%.

46. It is difficult to estimate current gaps in rice milling capacityin the Lao PDR because of scanty information on existing capacity. Also,milling operations in the villages (hand pounding) allow farmers to beself-sufficient for meeting their own consumption needs. A study istherefore needed before firm estimates can be made of total rice millingneeds, current capacity and future requirements.

47. Coffee Processing. The Lao PDR has only one coffee plant, at Km 4on road 13 near Pakse (Champasak). The plant is equipped with hulling/peeling, polishing and grading facilities and reportedly has a capacity of3,000 ton p.a., but until May 1979 was processing only about 300 ton/yr.Thus 90% of the coffee produced in the Bolovens Plateau is hulled by handpounding, a technique that does considerable damage to coffee beans. TheARDP III Project includes construction of a 3 ton/hr (1 ton arabica and 2ton robusta) coffee mill, with appropriate storage and transport facilities.The plant is to be located at Km 42 on road 24 in the Bolovens Plateau on an87 ha state farm that specializes in coffee production (72 ha under coffee,

/1 Few details are known on the processing of lumber, which is not dealtwith here (see Annex 5 on the forestry sector).

- 100 -

ANNEX 6Page 15

9 ha under tea and 6 ha under cinchona). The farm is being developed as ademonstration center for coffee production and to supply coffee seedlings ofstandard varieties.

48. Storage. Few statistics are available on on-farm storage, but theavailable capacity does not appear to be a production constraint at the farmlevel. Off-farm storage, on the other hand, is seriously lacking. Existingcapacity, estimated at less than 25,000 ton, is far below requirements. Forexample, in 1979, the Government handled rice from foreign sources(commercial purchases and aid) amounting to 79,398 ton, as well as domesticprocurement (government purchases, agricultural tax and exchange in themarket) of 98,388 ton, i.e., about 177,786 ton in total, or 296,310 ton ofpaddy. Little storage capacity is available to handle these purchases.Some stores exist near processing plants (rice mills and coffee plants) butthey do not effectively protect crops from damage by rain or pests androdents, which is estimated at 12-14% of production.

49. IDA is already involved in financing storage facilities in thethree major rice producing provinces to provide the following types ofstorage capacity:

Collection Operational Reserve securitystorage capacity storage capacity storage capacity

for paddy Paddy Rice for paddy(ton) (ton) (ton)

Vientiane 7,500 1,080 1,200 7,480Savannakhet 6,000 2,160 1,200 4,320Champasak 5,000 - 1,200 3,240

Total 18,500 3,240 3,600 15,040

Source: SAR, ARDP III, (pp. 14-15).

While these storage facilities will aid the Government in procuring, millingand distributing rice and its products, they are insufficient to meet totalrequirements. The Government's 1980 target for total paddy procurement -comprising procurement in lieu of agricultural taxes, market exchange andpurchase of surplus - has been set at 18% of total paddy production, towhich must be added commercial purchases from abroad and foreign aid (seeAnnex 8). These levels cannot be handled without adequate storagefacilities, and the mission recommends that an assessment be made of totalstorage facilities (including those for agricultural inputs), to determinefuture needs.

- 101 - ANNEX 6

Table 1



Administrative Units, by Province

Province Area Number of:(sq km) Districts Subdistricts Villages

Phongsaly 15,800 5 55 599Luang Namtha 12,900 8 49 730Oudomsay 12,400 8 66 923Luang Prabang 24,800 10 78 1,304Sayaboury 18,400 7 59 908Houaphan 16,300 6 55 783Xiang Khoang 19,500 6 42 467Vientiane 20,600 14 106 665Khammouan 26,400 7 82 804Savannakhet 21,700 9 102 1,211Saravan 18,360 9 44 816Champasak 17,740 10 68 831Attopeu 11,900 6 19 156

Total 236,800 105 825 10,197

Note: Province = Khueng; district = Muong; subdistrict = Tasseng;village = Ban.

Source: Department of Planning and Foreign Relations, March 1979.

- 102 -

ANNEX 6Table 2



Distribution of Agricultural Technicians

Primary/Place of University High school secondary schoolemployment/discipline graduates /a technicians /b technicians /c Total

MOAFI 120 625 657 1,402Of which:Agriculture 53 222 160 435Irrigation 16 57 124 197Livestock & veterinary 21 191 192 404Forestry 15 92 77 184Agricultural machinery 3 10 21 34Meteorology 12 53 83 148

Provincial AgriculturalServices /d 8 53 161 222

Phongsaly - 3 1 4Luang Namtha 3 1 4Oudomsay - - 1 1Sayaboury 2 6 8Luang Prabang - 1 5 6Xiang Khoang - 1 - 1Houaphan 1 8 - 9Vientiane 4 26 120 150Khammouan - 2 - 2Savannakhet 2 3 5Saravan - - - -Champasak 1 5 24 30Attopeu - 2 - 2

Total 128 678 818 1,624

/a With university degrees obtained abroad./b With secondary education plus three years' specialized training./c With primary/secondary education, plus six months' to two years' upgrading

at a training center./d Records are not kept to classify provincial staff by discipline.

Source: MOAFI.



Seed Production Plan for Na Phok Farm, 1980-82

Expected Expected

Area (ha) Seed used (kg) yield (kg/ha) production (ton)

Crop Season 1980 1981 1982 1980 1981 1982 1980 1981 1982 1980 1981 1982

Rice Wet 10 20 80 350 700 2,800 2,500 2,600 2,800 25.00 52.00 224.00

Dry - 5 30 - 175 1,050 - 3,000 3,200 - 15.00 96.00

Maize Wet 20 60 80 900 2,700 3,600 2,000 2,200 2,400 40.00 132.00 192.00

Dry - 10 60 - 450 2,700 - 2,500 2,600 - 25.00 156.00

Sorghum Wet 3 5 10 30 50 100 1,200 1,400 1,400 3.60 7.00 14.00

Dry - 2 2 20 20 - 1,400 1,500 - 2.40 2.80

Soybean Wet 7 10 10 280 400 400 1,500 1,600 1,800 10.50 16.00 18.00

Dry - 3 4 - 120 160 - 2,000 2,200 - 6.00 8.80

Groundnut Wet 3 5 10 210 350 700 800 900 1,000 2.40 4.50 10.00

Dry - 1 4 - 70 280 - 1,000 1,100 - 1.00 4.40

Stylo Wet 1 2 10 5 10 50 50 60 70 0.05 0.12 0.70Dry - - - - - - - - - - - -

Source: Management of the Na Phok Seed Farm.

-10o4 - ANNEX 7



Irrigation

Table of Contents

Page No.

Physical Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Actual and Potential Irrigable Areas . . . . . . . . . . . . . . . . 3Irrigation Projects .... . . . . . . .. 5Large Irrigation and Flood Protection Projects . . . . . . . . . . 5Medium-Scale Irrigation (or Drainage) Projects . . . . . . . . . . 6Small Irrigation Schemes . . . . . . . . . . . . . . . . . . . . . 8

Development Program .... . . . . . . .. 9Organization and Management ... . . . . ..... . . . . . . . . 10Conclusions and Recommendations ... . . . ..... . . . . . . . 13

TABLES

1. Main Hydrological Data, Mekong River and Main Tributaries2. Summary of Irrigation Projects (Implemented or Being Considered), by

Province3. Summary of Irrigation Projects (Implemented or Being Considered), by

Type of Scheme4. Details of Irrigation Projects (Implemented or Being Considered), by

Province and Type of Scheme5. Salient Features of Mainstream and Large Tributary Projects Considered

in the Lao PDR6. Range of Project Costs for Different Types of Irrigation Projects7. Main Data on Medium-Scale Pump Projects Already Studied in the Lao PDR8. Main Data on Medium-Sized Storage Dams Already Studied in the Lao PDR9. Possible Program for the Development of Irrigation in the Lao PDR

APPENDICES

A. Proposed Large- and MediumrScale Irrigation ProjectsB. Information Needed to Prepare Medium-Scale Gravity Irrigation ProjectsC. Inventory of Small-Scale Gravity Irrigation ProjectsD. Summary Data on UNDP Irrigation Sector Projects

- 105 - ANNEX 7

Page 1



Irrigation

Physical Data /1

1. In 1965, the United States Defense Mapping Agency (USDMA) prepared,for the whole country, reconnaissance topographic maps on a scale of 1:250,000and maps at 1:50,000 with a 20 m contour interval. Maps on a scale of1:20,000 with a 5 m contour interval were prepared with Canadian assistanceunder the aegis of the Mekong Secretariat for the whole Mekong River and someof its main tributaries. Maps on a scale of 1:10,000 with a 1 m contourinterval are available for the whole of the Vientiane Plain, and the NationalGeographic Service (with UNDP assistance) is currently carrying out a programof mapping on the same scale for some 1,200 sq km of the Se Bang Fai floodplain (in Khammouan and Savannakhet).

2. Hydrology. Measurements are regularly taken by up to 260 gaugingstations throughout the lower Mekong catchment (Thailand, the Lao PDR,Kampuchea and Viet Nam), 67 of them in the Lao PDR./2 The Mekong Secretariatis currently providing technical assistance and equipment to establish andoperate the main stations, and to collect, examine and process hydrologicaldata. The Secretariat regularly publishes Hydrological Yearbooks, whichproduce data on climate, as well as the daily and monthly discharges for eachyear. However, it was not possible to derive from these data the monthlyflows with given frequencies of occurrence, which are important foridentifying irrigation projects.

3. River flows naturally follow the rainfall pattern, with a floodseason from May/June to October/November (with its peak at end-August/early-September) and low flows from December until April (with minimum flows inIarch/April). The main hydrological data on flows of the Mekong and its maintributaries (Table 1) show that even in the dry season, the very large flow ofthe Mekong (1,060 cu mecs absolute minimum in Pakse) would allow the Lao PDRto exploit the potential for year-round pumping along the bordering levees andflood plains, without risking international problems with Viet Nam. Dryseason flows along the main tributaries are also substantial, particularly forthe southern provinces, and would allow year-round pumping for the borderinglevees without expensive storage dams.

4. Except for the rivers that have their catchment in permeable areas(for instance, the Bolovens Plateau, and limited areas in Khammouan, Luang

/1 For a discussion of the country's location, its general topography andthe main characteristics of its climate, see Annex 1 on agriculturalresources.

/2 Measurements may not have been taken in Kampuchea after 1975.

- 106 -ANNEX 7

Page 2

Prabang and Oudomsay), the flow of small- and medium-sized rivers is generally

negligible in March/April. Hydrological data are lacking for these rivers,and consequently the Mekong Secretariat has prepared computer programs thattry to predict river flows and floods.

5. Extensive areas are flooded each wet season, probably as much as100,000 ha in the Lao PDR alone. Even when the rivers do not overflow theirbanks, back flows from the Mekong and its main tributaries through the naturaldrainage channels cause extensive flooding of low-lying areas of the floodplains. The average fluctuation of the water level along the Mekong and thedownstream stretches of its tributaries is currently about 9-11 m, with amaximum of 13-14 m (Table 1). On these extensive flood plains, where floodingis 1-3 m deep during wet years, the flood level is actually governed by theMekong itself. Except for local flood protection through dikes, the floodhazard will not be substantially lessened until the peak flows-of the Mekongare greatly reduced. This is one of the main reasons for considering the hugePa Mong storage dam, which would be located some 25 km upstream from VientianeCity (Appendix A). Meanwhile, the Mekong Secretariat is operating a floodforecasting system along the mainstream.

6. Pending construction of the Pa Mong dam, Thailand has built a 55 kmflood protection dike on the right bank of the Mekong, opposite Vientiane Cityand extending downstream. The Lao PDR is also beginning to build continuousdikes from Kao Liao to the confluence of the Nam Ngun to protect ongoing andfuture irrigation projects in the Vientiane Plain. This will further increasethe flood water level, which was estimated at more than 2 m by the AsianDevelopment Institute in Bangkok.

7. The water quality of the Mekong and its tributaries in the Lao PDRis good to excellent for irrigation purposes, with an average pH of 6.9.Suspended sediment in the mainstream is relatively low (from 760 ppm upstream,down to 230 ppm at Pnom Penh in Kampuchea). Expressed in tons per year per sqkm, the sediment yield would be 365 ton/sq km at Vientiane City, falling to240 ton/sq km at Pakse and 150 ton/sq km at Pnom Penh.

8. Geology-Hydrogeology. Except for a few areas where igneous rocksare found (pre cambrian granite in the southeastern part of Attopeu, in thenorthwest and in Xiang Khoang, and tertiary basaltic deposits in the BolovensPlateau), the country is composed of sedimentary formations. These are mostlycretaceous, with extensive jurassic formations in the north and northwest.Limited limestone formations are found in Khammouan (Nam Theun River basin)and in Luang Namtha in the northwest. Quarternary alluvium deposits overlaymost of the Vientiane Plain, and border the Mekong River and its maintributaries.

9. Although very few hydrogeological surveys have been carried out toconfirm this, the groundwater potential does not seem promising for tubewellirrigation, because in general the yields from wells or tubewells are notexpected to exceed 5 liters/sec. In the Vientiane Plain, as well as in large

- 107 - ANNEX 7

Page 3

parts of Luang Namtha and Xiang Khoang, in the southern part of Champasak, andon the flood plains of the Mekong and its tributaries, yields would be smallto moderate (up to 20 liters/sec), reaching 60 liters/sec in specificsand-gravel alluviums and in poorly consolidated rocks.

10. A hydrogeological survey is being carried out with UNDP assistancein the Seno area (Savannakhet) and other surveys are being considered for theVientiane Plain. However, the mission considers that the potential for usinggroundwater in irrigation is limited, because:

(a) the very large dry season flows of the Mekong and its maintributaries make pumping from rivers more attractive;

(b) storage created by small earth dams on small- and medium-sizedrivers is particularly attractive in a mountainous country such asthe Lao PDR, where the gradient of the rivers is relatively shallowand the population sparse; and

(c) groundwater development involves higher investment costsper hectare and much higher operation and maintenance costs.

However, groundwater use should be developed for village supplies, since it ispurer and has a much better bacteriological quality than surface water.

11. Irrigated Land Use./l In the Lao PDR, soil conditions do notrepresent a constraint to irrigation development. Levee soils are suitablefor wet season rice, if they are not too sandy, or for a wide range of fieldcrops such as maize, tobacco, vegetables, etc. The rather impervious soilsof the flood plains are suitable for double cropping of rice. The upland orterrace soils, which have low fertility, a very low pH and often a highaluminum content, are only suitable for wet season rice and some fruit trees.

Actual and Potential Irrigable Areas

12. Areas Commanded and Areas Actually Irrigated. A detailed inventoryis being prepared to show areas commanded with irrigation systems and thoseactually irrigated during the wet and dry seasons. Preliminary figuresproduced by the General Directorate of Irrigation (GDI) of the Ministry ofAgriculture, Forestry and Irrigation (MOAFI) indicate that, since 1964, some88,000 ha have been commanded with irrigation systems, up to 39,000 ha duringthe first two years of the Three-Year Plan, 1978-80. Figures from the samesource indicate some 88,000 ha irrigated during the 1979 wet season and about18,000 ha during the 1979/80 dry season. The mission was unable tosubstantiate these figures.

/1 For full details on soil quality, and present and potential land use,see Annex 1.


13. The mission visited several small pump schemes, in Vientiane,Savannakhet and Champasak; three medium-scale gravity schemes, two inVientiane (Nam Houm and Nam Souang dams) and one in Champasak (Tomo); and onesmall storage gravity scheme in Savannakhet (Nong Tao). At the pumpingstations visited, the irrigation systems were far from complete, except for afew in Vientiane. Construction of the irrigation systems for the medium-scalegravity schemes had not yet started, and the spillway of the small Nong faodam was incomplete, seriously risking the dam being washed away during a largeflood. Land leveling has been minimal and often, for this reason, substantialportions of the commanded areas either cannot be irrigated by the existingirrigation ditches or are overirrigated.

14. A basic requirement before planning for the irrigation sector is aclear picture of the present situation and of the country's potential forirrigation. From the documents available, the mission has prepared a list ofexisting and potential irrigation projects to show, for each project, thepotential for wet and dry season irrigation, the area commanded by completedirrigation systems, the areas actually irrigated during the wet and dryseasons, and a recommended development program for 1980-83 and beyond. (Theseprojects are summarized by province and type in Tables 2 and 3, respectively;details on the projects are given in Table 4.) The area actually irrigatedduring the dry season (10,340 ha) was based on figures provided for eachprovince by the Planning Directorate of MOAFI. The areas irrigated during thewet season are mission estimates based on past ratios between areas irrigatedin the dry and wet seasons. However, yields obtained in the wet season are solow (see Annex 2) that it was difficult to distinguish the statistics forirrigated areas from those for purely rainfed paddies. Although the mission'sfigures are only approximate, Table 4 should provide a framework forpresenting data and a list of projects for GDI to work with. The mission'soverall estimate of the situation in January 1980 was that a maximum of47,000 ha were commanded by pumps or dams and irrigation canals, with30,000 ha actually irrigated during the wet season and around 10,000 ha duringthe dry season (Table 3).

15. Potential Irrigable Areas. In 1970, the Mekong Secretariat, whichhas carried out preliminary surveys and studies of the potential of largeirrigation projects (involving more than 5,000 ha) in the Lao PDR since 1957,issued a plan for water resource development in the Lower Mekong Basin./IThis plan concerns only large and multipurpose projects (power, irrigation,flood control and navigation) on the Mekong mainstream and its maintributaries. A report prepared for the Asian Development Bank (ADB) wasissued in 1977 on the development of the Vientiane Plain./2 These two reports

/1 Report on Indicative Basin Plan. A Proposed Framework for theDevelopment of Water and Related Resources of the Lower Mekong Basin,1970.

/2 Reconstruction and Development Program of the Vientiane Plain, Inter-national Development Center of Japan, July 1977.


provide a good preliminary assessment of the potential for large irrigationprojects in the Lao POR, which should involve around 390,000 ha (Table 3).

16. No such comprehensive surveys were carried out to assess thepotential for medium (500-5,000 ha) and small-scale projects (less than500 ha). Feasibility (or prefeasibility) studies are available for only fourmedium-scale projects, located in the Vientiane Plain and along the Mekong. Alist of possible projects was prepared by the GDI, assisted by UNDP and theMekong Secretariat. The medium-scale irrigation projects (pump and gravityschemes) identified in only a very preliminary way involve around 100,000 ha(Table 3), but the country's total potential should be substantially higher,particularly if the mountainous northern provinces are included. Apreliminary estimate for similar small irrigation schemes involves about110,000 ha (Table 3), but the potential should also be substantially higher.

17. The potential irrigable area should reach at least 600,000 ha, ofwhich two thirds would be covered through large projects. The irrigationpotential is greatest in Vientiane, Savannakhet and Attopeu. Averageirrigation requirements are:

- wet season paddy: 7,000-8,000 cu m/ha- dry season paddy: 14,000-16,000 cu m/ha (peak requirement

1.6-1.7 liter/sec/ha, in March)

- dry season field crops(maize, sorghum,groundnuts): 3,500-5,000 cu m/ha

Irrigation Projects

Large Irrigation and Flood Protection Projects

18. Large irrigation tributary projects (Table 5) involve the construc-tion of multipurpose dams (their other main purpose being power production).In addition to a storage dam, these projects would generally involve adiversion dam and one or two main irrigation canals with the related secondaryand tertiary systems. Some areas, particularly along the lower stretches ofthe rivers, would have to be irrigated by pumping water from the river. Floodprotection through dikes and drainage by pumping would still be necessary forthe lower reaches of the tributaries, at least until the huge Pa Mong dam(which could assure almost complete flood protection for these lower reaches)is implemented.


19. These large projects are very costly, and their construction canonly be justified in the foreseeable future if the large amount of hydropowerproduced can be exported to Thailand (or, later, Viet Nam), as it is from theNam Ngun hydropower plant. Because of long and expensive headworks, the costof these projects, excluding the cost of the dam, could amount to $7,000-10,000 per ha (Table 6). In addition, these projects require a longdevelopment period, which would further decrease their economic return.

20. Flood Protection Projects. The Mekong Secretariat is studying twolarge projects that would provide flood protection for low-lying areas. Thefirst, for which a preliminary study was carried out in 1978, involvesexcavating cutoffs for meandering channels of the Nam Ngun and would provideflood protection for some 15,000-20,000 ha (according to different frequencyof occurrence figures). The second, involving the excavation of a 7 km cutofffloodway from the Se Bang Fai to the Mekong, is presently being studied undera UNDP project, which has the World Bank as executing agency. It wouldprovide flood protection for an estimated 10,000-12,000 ha of lowlands.However, without more accurate data, the mission felt that, because of thevery high levels of the Mekong River during the flood season, any drainageworks or floodways on the tributaries close to their confluence with theMekong will have only a marginal effect on their water levels. Consequently,the risk of flooding with these projects is still too high to allow safe andrapid development of more sophisticated - i.e., more costly - croppingpractices. The most economical and practical alternative for many years tocome will probably be to improve the flood protection for specific areasthrough adequate longitudinal dikes (see para. 21 below).

Medium-Scale Irrigation (or Drainage) Prolects

21. Pump Schemes. Pumping is suitable on perennial rivers, either onthe mainstream or large tributaries. In addition to the (electric) pumpingstations, these schemes involve dikes that assure reasonable flood protection(against a 1-in-20 to a 1-in-50 year frequency of occurrence), irrigation anddrainage systems, and pumped drainage of local runoffs (caused by the monsoonrainfalls) when the level of the Mekong is high. A typical scheme is theCasier Sud Project, located close to Vientiane City and recently financed byADB (see Appendix A).

22. The cost of these schemes should be $2,500-3,500 per ha (Table 6),which was found to be economically feasible. The annual operation andmaintenance cost would be acceptable at around $70 per ha. Consequently, thedevelopment of a few of these medium-scale pump schemes should be encouraged,since they are a necessary first step before large irrigation schemes can beinitiated.

23. The potential for these pump schemes is not known, especially sincethe areas involved would probably later be integrated with the project areasof larger irrigation schemes. For the Vientiane Plain alone, where extensive

ANNEX 7Page 7

studies have been prepared (Table 7) and implementation of one scheme (Casier

Sud) has started, the potential is around 30,000 ha.

24. Gravity Irrigation Schemes. These would involve a diversion dam (inmasonry or reinforced concrete) when the dry season flow of the river issubstantial, or a medium-sized (15-25 m high) earthfill storage dam when it isnot. Because the country is rather mountainous and the gradients of smallrivers are generally shallow (at least along their downstream stretches whereirrigable areas are found), the potential for attractive earth dams ispromising. This is evident from the ratio of the net useful capacity of thereservoir to the volume of earthfill, which exceeds 100 for most of theschemes already studied (Table 8). A comprehensive inventory of the mostattractive storage dams should be carried out as soon as possible,particularly in the northern provinces where substantial permanent flowsduring the dry season are rare.

25. These schemes can also provide some flood protection. Pump drainagewould still be required for a few weeks of the year for the most low-lyingproject areas located close to the Mekong mainstream or its main tributaries.But this type of flood protection should be much less costly than that usingmedium-scale pump schemes. On the other hand, the most elevated areas coveredby these schemes are often terrace soils whose permeability is high andfertility much lower than that of the levee and lowland soils.

26. Investment costs for these projects (engineering works only) couldamount to $2,000-5,000 (Table 6), with annual operation and maintenance costsat $30 per ha. Because they are small, these projects should have a shortdevelopment period and an acceptable economic return can be achieved. Sincethese projects do not involve the usual problems of operating and maintainingirrigation pumps, they seem attractive and should, where possible, bepreferred to pumping projects of a similar size.

27- Sluice Gate Schemes. Limited flood protection can also be providedby sluice gates (with some dikes) at the outlet drainage channel of selectedflood plains. These would substantially reduce the extent of low-lying areasregularly flooded by back flows from the Mekong or its main tributaries, aswell as the depth of flooding. In addition, by closing the sluice gatetowards the end of the flood season, substantial amounts of water could bestored and used for small-scale dry season pump irrigation for the surroundinglowlands.

28. The limited flood protection provided by the sluice gate schemes andthe lack of irrigation systems over the whole flood plain would prevent theuse of high-yielding varieties of rice during the wet season, thus limitingproject benefits. On the other hand, project costs are low at $300-500 per ha(Table 6). This factor, together with the very large areas of lowlands thatcould be covered, makes this type of flood protection project worth widedevelopment. A few of these projects have been started in Savannakhet andChampasak, but as the gates are not yet installed, these projects do notprovide an example of actual benefits derived from this type of structure.


29. The potential for this type of project is not known, but it couldreach several tens of thousands of hectares. This area cannot, however, beadded to the potential irrigable area under other schemes, since the sluicegates actually represent the first stage of project implementation.

Small Irrigation Schemes

30. Pump Schemes are located along perennial rivers, on the levee soilsand the upper lowlands. Because of their elevation, these areas are generallyflooded only once every three to five years, when about half the crop is lost.Standard centrifugal floating pumps on pontoons are generally selected forthese schemes, which, because of their small size, limit the irrigation systemto a main canal generally flowing parallel to the river, with tertiariesbranching off at intervals of about 200 m. The drainage system is minimalbecause the tertiaries lead directly to the lowlands and the main naturaldrainage channels. The permanent flow allows two crops of paddy per year tobe grown.

31. The investment costs for these schemes would amount to $1,000-1,500per ha (Table 6), and annual operation and maintenance costs to $120 per ha(for 2 crops of paddy) for diesel pumps or $70 per ha if a 22 kV power linecan be installed at acceptable costs. These projects are thereforeparticularly attractive and should receive priority because: (a) they do notrequire excessive investment; (b) they could benefit many more farmers for thesame outlay and are, besides, much easier to manage, operate and maintain thanlarger schemes; and (c) they represent the necessary first stage (or pilot)development of larger irrigation schemes being considered for nearby areas.

32. The potential for these projects is not yet known but probablyexceeds 30,000 ha. A program to irrigate half this area could be consideredfor the next four years. Implementation of these schemes should be minimizedin areas likely to be flooded by the huge reservoirs being considered for theMekong's main tributaries in the Indicative Basin Plan (see Maps IBRD 15053and 15054).

33. Gravity Irrigation Schemes (generally less than 200 ha). If theperennial discharge of the river is substantial, a small diversion dam (inmasonry, reinforced concrete, or even gabions) would suffice, but if not, asmall earthfill storage dam would be required to assure wet season cropping ofpaddy over the whole area, as well as dry season cropping on at least half theproject area. These benefits would justify construction of the storage dam.A diversion scheme might also be economically justified on a river without aperennial flow, if it would provide additional water during and at the end ofthe wet season, so that yields can be increased, and perhaps irrigate shortduration crops (such as legumes or vegetables) immediately after the riceharvest before the river dries up.

34. The irrigation system for these schemes should be limited to a mainirrigation canal. Because the projects are small, the tertiaries and field

ditches could be constructed by the farmers cooperatives (if they have some

- 113 - ANTNEX 7Page 9

form of incentive, as under the World Food Program, WFP). The project areas,located at relatively high elevations and along small rivers, would requireminimal flood protection in the form of drainage ditches. The investmentcosts of this type of scheme are low at $1,00-$1,500 per ha (Table 6). Sinceoperation and maintenance of the project works would be assured by thefarmers' cooperatives, the financial cost would be minimal ($10-15 per ha) tocover such items as cement, steel, gates, painting, etc. This type of projectis therefore particularly attractive and should be developed as much aspossible.

35. The potential for these schemes is not known but could exceed80,000 ha. A program for the next 4-5 years could involve 10,000 ha. Aninventory of these small schemes is said to have been started in Savannakhet,where 40 sites have been identified. A comprehensive inventory should becompleted as soon as possible for the whole country (see Appendix C).

Development Program

36. The goal, at completion of the 1978-80 Plan, was for an additional68,000 ha to be irrigated during the wet season and 35,000 ha during the dryseason. These figures were highly optimistic, and the GDI mentioned that, bythe end of 1979, the Plan's objectives were only half met. In view of thestatus of ongoing projects visited, the mission feels that even this estimateof the rate of development should be significantly reduced (see paras. 12-14).

37. The mission has prepared (Table 9) a tentative development programfor irrigation. It estimates that by 1985, about 80,000 ha would be irrigatedin the wet season. This would be a major improvement over the 30,000 ha the

mission estimates were actually irrigated in 1979 (the government estimatefor 1979 is 88,000 ha). However, in 1979 about 47,000 ha were commanded bypumps or dams and irrigation canals; the areas commanded by pumps or dams onlywere much larger. The breakdown between provinces was not made to assure theself-sufficiency of a province, but rather to take into account the areas withthe greatest potential for attractive irrigation projects, as well as the besttransport facilities and access, and the most advanced status of projectpreparation. The programs proposed for the northern provinces (whichgenerally are not self-sufficient) should probably be increased. However,food supplies for these provinces might be more rapidly and more efficientlyassured by improving rainfed upland and lowland rice cultivation using betterfarming practices; substantially developing minor diversions of local run-offs/I to rainfed paddies; and urgently improving the transport system servingthese remote areas. The program implies that priority would be given to the

/1 These generally consist of a weir (in gabions or stones) on a smallirrigation ditch and field-to-field water supply, which should not beconsidered as irrigation schemes.


rehabilitation and completion of existing schemes or those already started,but this should not preclude starting attractive new projects.

38. International and Bilateral Assistance. In addition to thesubstantial technical assistance provided to the different directorates ofMOAFI in the form of advisers, research and training, important assistance forthe irrigation sector comes from international and bilateral agencies (seeTable 4, Remarks), the most important being the ADB and UN agencies (such asthe UNDP,/1 WFP, UNHCR and the World Bank). Other organizations and countries,such as the World Council of Churches (WCC), OPEC, Fund for InternationalDevelopment, SIDA (Sweden), Holland, Switzerland, India, Australia and theUnited Kingdom, have given substantial assistance in the form of pumps andearth-moving equipment. The total amount of assistance from theseorganizations for irrigation development projects already approved, or planned,for 1978-83 would amount to around $100 million, of which up to $41 millionwould come from the ADB.

39. This type of assistance was essential for starting substantialdevelopment of the irrigation sector in the Lao PDR, as well as training GDIpersonnel. However, very few of the projects implemented met their originalexpectations. Installing a pump or building a diversion dam needed to becomplemented by irrigation and drainage systems, as well as by the provisionof necessary supporting services (fertilizers, pesticides, credit, extension,etc.). Only the World Bank and the ADB have the expertise and the financialmeans of assisting efficiently in these other essentials. Consequently, themission recommends that the assistance for development projects from the UN orfrom bilateral sources take the form of joint projects, with the World Bankor the ADB taking the leading role. Some joint projects have already beenarranged, in particular the the World Bank ARDP I and II, and the ADB CasierSud and Agricultural Support Facilities I.

40. Very little information was made available to the mission on theassistance provided by (or soon expected from) the socialist countries. Apartfrom technical assistance (from the USSR, Bulgaria, Hungary and Viet Nam),little assistance appears to have come from these sources for the actualimplementation of irrigation projects. On the other hand, substantialassistance from the USSR is expected soon to implement the large 10,500 ha KaoLiao Pump Scheme, and also probably the large 7,500 ha Mak Nao Pump Scheme,both located in Vientiane along the Mekong River (Table 7).

Organization and Management

41. Irrigation projects in the Lao PDR are divided into two categories:"central projects," which are larger than 500 ha, and smaller "provincialprojects." For the former, site investigations, planning, design and super-vision are the direct responsibility of the GDI, while for the latter, theyare the responsibility of each Provincial Irrigation Service.

/1 For a summary description of UNDP irrigation projects already inoperation, approved or being considered, see Appendix D.


42. Organization. The central services of MOAFI dealing with irrigationare divided into two organizations that work closely with each other: the GDIand the Bureau of Engineering. The GDI is in charge of general planning,supervision and administrative affairs. It comprises a service for thegeneral planning of irrigation throughout the country, as well as the usualadministrative services (administration and accounts, personnel, etc.). TheGeneral Director, assisted by an FAO Irrigation Adviser, assures overallsupervision and management. The Bureau of Engineering is entrusted with fieldinvestigations and surveys, detailed planning, design and supervision of thecentral projects, as well as with providing technical guidance for eachProvincial Irrigation Service. Its organization, which is not yet completelyin place, has been designed accordingly. The Bureau of Engineering hasfinancial autonomy and is supposed to operate like a consulting firm, i.e., byreceiving payment for specific studies/supervision entrusted to it by the GDI.

43. The Provincial Irrigation Service comes under the direct authorityof the Vice Chairman of the Provincial Revolutionary Committee. This shouldassure close relations between technical services, provincial authorities andthe farmers cooperatives, which largely participate in the implementation ofthe provincial projects (with help from WFP, UNHCR, etc.) and will beresponsible for the operation and maintenance (excluding mechanical equipment)of project works. If a province has a substantial works program (as Vientianedoes), the Provincial Irrigation Service should comprise divisions forsurveys, design, O&M, equipment supply and workshops (pumps), andadministration and accounts.

44. Staffing and Training. The irrigation services generally haveinsufficient experienced engineers, agronomists, and technicians. For thewhole country, there are presently only 15 irrigation engineers withuniversity-level training, who graduated in France, Thailand, Viet Nam,Canada, Australia and Japan. There are about 100 technicians, who received3 years training in Thailand, Japan, Viet Nam, and at the Na Bong School nearVientiane City. Fortunately, a substantial number of students have been sentoverseas (mostly to socialist countries) to graduate as engineers/ agronomistsand technicians. Two new engineering graduates are expected in 1980, 5 in1981, and about 10 per year thereafter. The output of technicians from NaBong is expected to increase, and a second agricultural school should beopened at Pakse in the next few years. A UNDP project awaiting approval isexpected to assist in equipping and financing four vocational ProvincialTraining Centers to train technicians assistants in the fields of surveying,construction, and operation and maintenance of irrigation works (see AppendixD). Also, the projects already financed by UNDP, the World Bank and the ADBinclude a substantial training program, in the field and through foreignfellowships.

45. The situation should be much improved within 3-4 years, but mean-while intensive expatriate technical assistance is required from multilateralas well as bilateral sources. The mission recommends that the UNDP concen-trate on providing advisers to the main Lao directors, to research or training

- 116 - ANNEX 7

Page 12

programs, and to financing very small pilot projects or feasibility studiesfor projects in which large financing organizations have already expressed

interest. Technical assistance for substantial development projects shouldbe awarded to competent consulting firms rather than to individuallyappointed experts. Inexperienced foreign experts, from the Peace Corps,Volunteers for Progress, etc., have only limited use for training.

46. Construction Societies. Irrigation works are executed by stateconstruction societies of MOAFI for central projects and by provincialconstruction societies for provincial projects. Although theoreticallyautonomous, these construction societies depend heavily on MOAFI and othergovernment services for their supply of equipment and materials. Eachprovince usually has one construction society, which is responsible for workon irrigation and other projects. However, Vientiane has two stateconstruction societies working, respectively, on the construction of the NamHoum and Nam Souang earthfill dams. MOAFI is considering merging these intoone society, which would then have three different departments: IrrigationWorks, Rural Engineering Works (storage, mills, agro-industries, etc.), andLand Development (clearing and leveling).

47. The provincial construction societies in particular lack exper-ienced engineers, accountants, foremen, mechanics and drivers of heavyearth-moving equipment. However, some training programs are under way and asubstantial program has been put together by UNDP to train the requiredpersonnel. In addition, development projects should include specific tech-nical assistance to train the construction society's personnel (as under theCasier Sud Project).

48. The unit prices for work are fixed after discussions between MOAFIand the managers of the societies, thus eliminating the competition that isnormal in Western countries. It is likely that, as in most socialist coun-tries, the unit prices will progressively become substantially higher thanthose in Western countries. This could be avoided by having several construc-tion societies compete for the work of several ministries and, in addition,making them completely independent of these ministries for their operation,management, procurement of equipment and materials, etc.

49. Operation and Maintenance. A specific project authority may beorganized to operate and maintain the main works of large- and medium-sizedprojects. The cooperatives are, in principle, in charge of the operation andmaintenance of the provincial project works (para. 43), but the pumpingstations and main headworks (dams) are maintained by the Provincial IrrigationService. However, the quality of this work is low because personnel are notsufficiently trained, no operation manuals exist, limited funds are available,and the workshops for repairing the pumps are not yet complete. Thissituation should improve considerably within the next 3-4 years because ofongoing or proposed training programs, as well as the training components ofvarious projects.

- 117 - ANNEX 7

Page 13

Conclusions and Recommendations

50. Because precise inventories had not yet been made or the nextdevelopment plan prepared, the figures indicated in this annex (in particularthose on the status of actually irrigated lands and the development programfor the next 3-4 years) are only tentative and should be corrected andcompleted by CDI as early as possible. The mission's tentative conclusionsare that the potential for irrigation is very large for a country of 3.5million people; it could well amount to more than 600,000 ha, which farexceeds the country's irrigation requirements through the end of this century.Of this area, around 390,000 ha would be irrigated through large(multipurpose) schemes, at least 60,000 ha by pumping schemes, and at least150,000 ha by medium- and small-scale gravity irrigation schemes. The missionrecommends that an annual irrigation development target for the whole countrynot exceed 10,000 ha for the foreseeable future.

51. The first priority is to rehabilitate and finish the numerousprojects already started but remaining incomplete. The next priority is todevelop new small- and medium-scale gravity irrigation projects, which areeasier to maintain than pump schemes and entail much lower operation andmaintenance costs. For this purpose, an inventory of potential projectsthroughout the whole country should be completed, so that appropriate projectscan be selected (see Appendices B and C). Finally, priority should be givento small- and medium-scale projects that can pump water year-round from thevery large dry season flow of the Mekong and the substantial dry season flowof its tributaries. Construction of sluice gates, to improve the drainage oflow-lying areas of the flood plains, should continue; the results should bemonitored to estimate actual benefits from this kind of development. Becausethe country lacks experience in irrigation, large pumping schemes (largerthan, say, 5,000 ha) should not be started until smaller projects have beensuccessfully executed. Furthermore, large gravity irrigation projects (suchas the western and eastern canals of the Nam Ngun, or the Se Bang Fai, seeAppendix A) should not be started within the next 10 years.



Main Hydrological Data, Hekong River and Main Tributaries

Discharges (cu mees) Water levels (m)River Station Catchament Mean Hinimum flow Floods Maximum Average

(sq km) Average Absolute min. Average Absolute max. Maximum Minimum fluctuation fluctuation

11ekong Vientiane 299,000 4,600 1,300 700 17,000 26,000 12.71 -0.28 12.99 9-10(1913-1977) (4-28-56) (9-4-66)

Savannakhet 391,000 8,200 1,800 960 29,000 36,200 13.75 -0.65 14.40 10-11(1924-1977) (4-6-33) (9-15-66)

Pakse 545,000 10,200 2,000 1,060 39,000 46,200 13.40 0.03 13.37 9-10(1924-1977) (3-25-32) (8-31-39)

tlain Tributaries

Naia NJun Ban Tha Lat 14,200 590 23 4,600 13.98 0.08 13.90 10-12 -(1966-1977) (10-11-77) (9-14-69)

Nam Lik Ban Hin Heup 5,120 260 20 3,400 13-99 1.52 12.47 9-11(1967-1974) (Apr. 68) (9-20-71)

he Bang Fai Ban Se Bang 8,600 490 35 8 3,350 18.58 5.84 12.74 9-11Fai (1961-1977) (Apr. 60) (Aug. 70)

Se Bang Hieng Ban Keng 19,400 524 45 3 8,450 18.60 4.40 14.20 10-12Done (1961-1977) (Mar. 72) (9-20-74)

Se Done Ban Nanay 6,170 233 4 3,160 8.60 0.87 7.73 6-7(1960-1967) (Mar. 60) (Sep. 68)

Se Kong Ban Kihmuon 29,600 1,350 192 77 10,800 8.78 0.53 8.25(Kampuchea) (1960-1977) (May 60) (9-13-68)

Note; Some data are not readily available, since the Hydrological yearbooks do not produce, as is usual, statistics of the monthly discharges withdifferent frequencies of occurrence.

Source. Mekong Secretariat's Hydrological Yearbooks.

o.zl

-D.4

ANNEX 7- 119 - Table 2

LAD PEOPLE'S DEW3CRATIC REPUBLIC


Summary of Irrigation Proiects (Implemented or Being Considered), by Province

Potential Status, January 1980irrigated ares Irriaated Programmed

Wet Dry Wet /i Dry development

Projects season season/a Completed /b season a season 1980-83 Onwards/a

1. Vientiane 127 130 85.430 7.680 4.500 2.120 27.290 92.160

A. Pumping schemes 29,530 27,130 3,280 2,500 2,120 13,990 12,260B. Small & medium gravity sch. 31,600 12,300 4,400 2,000 - 13,300 13,900

C. Large schemes 66,000 46,000 - - - - 66,000

2. Khammouan 40,700 28.800 2.700 1.400 240 5,500 32.500

A. Pumping schemes 6,100 6,100 700 400 240 3,900 1,500/c

B. Small & medium gravity sch. 7,600 2,700 2,000 1,000 - 1,600 4,000C. Large schemes 27,000 20,000 - - - - 27,000

3. Savannakhet 154.000 105.300 5.300 3.300 2.440 5,200 143.500A. Pumping schemes 6,500 6,500 1,300 1,300 1,300 3,700 1,500/c

B. Small & medium gravity sch. 16,500 8,800 4,000 2,000 1,140 1,500 11,000C. Large schews 131,000 90,000 - - - - 131,000

4. Champasak 39 800 25.040 3.100 1.900 800 4,600 32,100

A. Pumping schemes 5,900 5,900 1,100 900 800 3,300 1,500jLB. Small & medium gravity sch. 13,900 5,140 2,000 1,000 - 1,300 10,600C. Large schemes 20,000 14,000 - - - - 20,000

5. Saravan 28.200 15.850 2.600 1,320 120 1.400 24.200A. Pumping schemes 3,000 3,000 600 320 120 900 1,500/c

B. Small & medium gravity sch. 9,200 2,850 2,000 1.000 - 500 6,700C. Large schemes 16,000 10,000 - - - - 16,000

6. Attopoe 134 000 92.000 550 43 10 500 132.950A. Pumping schemes 1,000.L,Jc 1,000 50 30 10 - - 950

B. Small & medium gravity sch. 2,000 1,000 500 400 - 500 1,000C. Large schemes 131,000 90,000 - - - - 131,000

7. Luang Prabana 12.200 3.200 2.600 2.600 550 1.250 8.350

A. Pumping schemes 1, 000La,/Lc 1,000 100 100 100 250 650/cB. Small & medium gravity sch. 11,.00 2,200 2,500 2,500 450 1,000 7,700

8. Xiang Ehoana 10a000 4.500 3.850 3.850 590 1.250 5.150A. Pumping schemes 1,000/a,/c 1,000 100 100 100 -Lc 900/cB. Small & medium gravity sch. 9,000 3,500 3,750 3,750 490 1,000 4,250

9. Savaboury 16.000 5.800 5.000 3.000 780 2.500 8,500

A. Pumping schemes 1,o000L,/c 1,000 1100 100 100 -/c 900/cB. Small & medium gravity sch. 15,000 4,800 4,900 2,900 680 2,500 7,600

1U. Oudomaay 4.200 1.700 1.950 1.050 70 500 1.750

A. Pumping schemea 1,0OLOL,/ 1,000 50 50 50 -/c 950/cB. Small & medium gravity sch. 3,200 700 1,900 1,000 20 500 800

11. Houaphan 8 500 3.700 6.100 4.100 1.980 300 2x100A. Pumping schemes 1,O00L,LLc 1,000 100 100 100 -Lc 900LcB. Small & medium gravity sch. 7,500 2,700 6,000 4.000 1,880 300 1,200

12. Phonasaly 4.900 2 500 1.550 1.550 590 B00 2.550A Pumping schemes 1,000|a,/c 1,000 50 50 50 -/ 950/c

B. Small & medium gravity sch. 3,900 1,500 1,500 1,500 540 800 1,600

13. Luang Namtha 12.500 3.900 4.050 1.050 50 800 7.650A. Pumping schemes 1,000a,|Lc 1,000 50 50 50 -/c 950/cB. Small & medium gravity sch. 11,500 2,900 4,000 1,000 - 800 6,700

Total 592 130 377,720 47,030 30.050 10.340 51.640 493.460

/a Tentative estimates.

/b Estimates of the areas commanded by pumps (or dams) and irrigation canals; the areas commanded by pumps (or storage

and diversion dams) only are much larger.

/c Not yet determined, or not yet finalized.

Sources: UNDP Report LAO/78/024, Annex 3; report of the International Development Center, 1977, on the development pro-

gram for the Vientiane Plain; and the Mekong Secretariat, Indicative Basin Plan, 1970, on the potential forlarge irrigation schemes in the Lao PDR.



Summary of Irrigation Projects (Implemented or Being Considered).by Type of Scheme

Potential Status, January 1980irrigated area Irrigated Programmed

Wet Dry Wet /a Dry developmentProjects season season/a Completed /b season season 1980-83 Onwards_/a

A. Pump Schemes 60,000 50,000 7,600 6,000 5.000 25,000 30,000Large and Medium 30,000 20,000 2,300 2,000 1,400 12,000 15,000Small 30,000 30,000 5,300 4,000 3,600 13,000 15,000

B. Gravity Schemes 150,000 50,000 39.400 24,000 5,000 25.000 80,000Medium 70,000 30,000 3,200 3,000 - 16,000 30,000Small 80,000 20,000 36,200 21,000 5,000 9,000 50,000

C. Large Multipurpose Schemes 390,000 300,000 - - - - 390,000

Total 600,000 400,000 47.000 30,000 10.000 50,000 500,000

/a Tentative estimates.

/b Estimates of the areas actually commanded by pumps (or dams) and irrigation canals; the areas commanded bypumps (or storage and diversion dams) only are much larger.

Note: All figures are rounded from totals given in Table 4.

Sources: UNDP Report LAO/78/024, Annex 3; report of the International Development Center, 1977, on the devel-opment program for the Vientiane Plain; and the Mekong Secretariat, Indicative Basin Plan, 1970, onthe potential for large irrigation schemes in the Lao PDR.

03

?.E. I of 3

LAO8 ptOn,LS 0 EICLATIC REPULIC

ArRICSLTh4S SECTO ROtES'W

Sal f Inierioei. Poet le.etdoStn na.rIO Pvin- . ad T,. of S.hams

Oat Dcy Oa-~ Dry .... aasl,aIa0.....ptoltct. Aive sea"o Gns ..pwl.t.d /l .... e teo 1980-83 NaMrd. i- Rae-rk. (.o-acs of fiteating, ace.)

A. PL CEE (L-go., 14.di- and S-11,)

1. Viettian.

L-tt Pwoin Schema .K.. Li.. Sekoto 10.480 9,0L 500 4.50011 5.480 pjiot ptej.cts OlD?. 8CC end Holland; I-SOO p-oottt 0801.C.. Ir Sot A. 4ong 3,200 2.800 300 2.900 - UIlS? (80.9.). ADA (075) and IUSD 118..). Pilc~t p-j..t.c Holland (FAD.The De.- Hlaong 1.140 1.05011 600 540 - PIlot p.oJect 8CC; 1.rge p,.J..t UlDP.

aK. Sn. Itkkon 7.480 6.700,LA 700 - 6.780 PIlot praJect.. Hollaud; larm. p-0)0001 USSI?a Phok Oat . N&n 300 500 - S00 - t0A (AIM? 1I)

Sean. Kh- N:. Ng.. 3.50011 3,000 - 3.000 M IA (Adi? It)N. SBat Na. Ng.. 600 600 200/a. 400 -Th.ND. SA.. Ng.e 220 230 230 - -

Subt-tl 26 530 24jj30 -U 1,jj40i f2l2i0

Otter Seall P-. Sghte. Na. NS.. 2.900 2,900 750 2.150 -

Subtot.al Vi.ntisne ~~~29.530 2?il I'm1~ J ~ .J.M 13.990 12a.260(31.58)11

2. fhasncua / Oenkono 700 400 260 3.900L_a 1.30011 India, OlDF. DUG, MCC, ADD (0.600 ha)S. San& fti 6.100 6.100 (10.30)/.

2. S-..khauii.LL fgMk, ssF 6.300 6.500 1.300 1.300 1.300 3.700L. 1.300L1 U1MP 6 OOIU (1.300 Ito * 8CC. 4AU (1.450 h.),* 1.300 h. En. posstbleSARA (9.93511 ISA faOag(1783).

4 . aCe n-ok ;f Mkg, SD 3.900 5,900 1.100 880 Boo 3.300L_1 1.500.Lz Onoe-e.nid. indi. OWD?. ADS (1.000 h.). 1.200 h. far pnsibl.04, (M.851A foeacinS (1783).

3. Saraaua ~* SD 3.000 3.000 600 320 120 90011 1.50011 1.500 h. f-r pacsibia ISA fnaning (1783).(5.37511

0. Atione-LIf ORg 1.0001111 1.000 5011 30 i0 LI 95011(5)

7. L.Aeo P-oh... 1.000111 1A.000 1001k 100 100 25011 65011(105

8. Xu... Kh-ee 1.000L&.LA 1.000 2001 20 100 11 -4 90011

7101

90. NS-b-a 1.2001111 1.000 1D0L 30o 50 -LA 95011

11. Adcuantan D.5001 11 1.000 1001 100 100 -LI 90011(10)

.2. Ph..Reai.y 1.00011 L.A 1.000 581 50 50 -11& 93011(5)

13. Wuans NatOb& 1.00011 11 1.000 5811 50 30 -11 95011(31

T.teaIA (Pe.W Saho.. 59.030 5663 i ~ JA L4a Z604 .U410(66.316)11

8. SMALL1 ADO K05DIU8 GRAVITY S00100 15

1. VientietaN.. 8a- (S) Sate 6.00011. 2.000 - 4 .00011 - D.. ond.. -t,en (OPEC 35.); 15A0 epproeahd tn fitaac

1iroigtion Yt,o t.N.. So...an (S) 6.000 3.000 - - - 3,OO00_1 3.000 D.. ted? cent?. (SISA $53.; (tlAD aPPreehtd to fitent

Nan 680. (S) 3.000 1.000 - - - 1.00011L 2.000N-. Cheng (S) 3.000 2.300 -- - 2.000L1 2.2000dote) Say HS.- (S) ' 1.10 500 - - - 110U.Satlnn(S) 800 400 - - - S0011 -. 1.1 dat (D) 7,700 1.1000 .40- - 3,300 N.I.l fin.entu MSA, 2DPS I.20 ovo 4.0001 2,00011 I - 6.000

Schat-ei Vi-.aale 31.600 12.30 4 400 13.300 1390

2. lihanwteNWpOa (5 Na- 500 200 -- - 500 -

Hod flat (0) 200~ ~~~~ ~ ~ ~~0 0 0 -- 3000 -Nasp-t (DI 80 0 00 tan One (S) ca a 20 0V5 4.00011 2,000 . u000SuitEing s.a1 5060-.. 2.00011 - 2.000 1.000 - - -

S.abnt-1 Kha.tan7.600 1.700 5,90 1,0 - _54"Q 4.000

3. S-vannaibhtHost NalEty (S) Sate 3.000 2.500 - - - - 3.000 Conaid-rsd for 1ISA fi-a.ei (17831.7 Sr 1.300 L1100 -- - 1.300 -.Ietiatg -11 ..thma.a 4,00011j 1.200 4.000L1 2.000 1.140 - - 2.000 ha cnnciderd tar ISA finnaita (r7831.

40 000 0,000Lj 4.I00011t - - - - 800

Soatotal Sa-anekhat 16.500 9.000 4,0 Lm, J,,j40 JJ50 11.000

- -2 Tabn, 'NeSA 2f 3

let Dry list 1* ~Dry .MnloL,.tZrOJOCCS 0 1-a necol...on.AA Cosple-d /b .ec meson 1980-a3 Oe.t.d. A* RmArk. (osof floonnte., se.)

4. Chsosackot LTome (DMt Se 1.00 300 -- - 1.200 - Octet coscoote: Lcotg 0101. 2100., Wi.

Suei Naqohk (DKO) 120 100 - - 1.200 Dee cesttuced 07.KAoLi atontbo (DM) ' .000 400 -- - - 1.000 Wi T te _en attncttt_Bus TOMn... a (SOD) "100 40 -- - 100 - 10 f tbese unben .ouldHost KApheu (1141 1,300 600 -- - - 1.300 I be consitetd.for 10AR.s L4&oaco (Dtt) ' 600 300 boo-- 60 fleenift (7083)...uL Yang II. (S 2.500 300 - - - 2.30020 000 4.00011 2.0001 -- 4.000(aitoImg all cones 2.000L1 - 2.000 1.000 - - -

Subtotal Ct.*eeok .13.900 5140 2.222 JL. 1300 2.2

3. SoraoDen ..eS (DK41 Sct. 2,0 1.30 -. - - .

No. 7 (DMt) 0 1.600 30 - - - 1.600Host ICu ID", 1. 500 3000 -- 1.30 r he mat ntnot- s of thee -.sooe -.tId boHoot Peo..y (.0 300 200 50 - - 000 1cocl-derd for IDA fteccieg (70831.OS.., "aey (DMt) to10 30 - - 10 -3 0SID 1.000oL 30011 - 0-to 600

Icietint dti:reio. coneshAA 2.0001* - 2.000 00 00 - - -

HootS teo;S(ODM) Sees 200 200 - - 200 -Hsi S.!:y(15) . 00 200 -- - 200 -

Ho S rny(VitD 100WI 10 - - - 10 3 555i I.-0(10..jAA 300Lj - ,0

blunt. 0 dlvonoion sohes 3001OO - 500 400 - - -

Sun-to1Ateleopoc 3.02 1.222 122 _a2 - 001. 100/

7. L,aon ProocosMec Pe ltoy 2,000 9000 S - - be of Oths P-oj-tns bsing onotdered for- 2 0FI fi--oie.toe So., oo70 0..A-

Ohs ten; 1.300 n.e. - - - - -5,0lee Sy 2,000 . -- - - -eslI ivoso tae 2.300 500 2.300 2.300 430 - -10 5V0 1.30011 00011 - - - -

Subtota.l toeing PrabenS flJ201k J.M~2 1.2221* 12,500± .1 1.0001. 7.700/c

ion Hon -o suto (OK) 6.800o 1.700 1.700 1.700 - - - Pineet by Capitol Dvelopment Etad (0800) bet.s;.. otsdcr...4Phaabia h Pelto culceecs (DM) 1.200 000 030 330 -F----LAeci by Capitol Ocvnlop-t Pond (03CF) bate Oaneds...d.teell diIsr-to sobs .301 500 1.300 1.300 4900

10100 1.3091*~ ~~~~~~ 5:z9OO* - - - - -

Sobtoto1 Ita..& th... 0S 92221k LAM .12720/ 3.710/4 Aft 1n222Lt 4.230/c

9. SoYab-otHotP"e (0I300 300 -I - - 1.500

Sc. Tion (0) 1.600 30011 - - - .400 Ficnteg bstc; c-nider-d by 1720 . togther 1tch kw. ThoseDes Tho"c (DI 3.000 1.000 1. 000 1.000 100 2.000 - C. teioeted by 08±ID Ic 1970. sbsblitoeti.t rquIred.Den;5 So (D) 2.000 60* -- - - 2.000Hoe Phts,tg 1 1.200 601* - - 1.0

c-bes 3 900 600 3.9001* 1.90011 5380 -10 090 2.000 1. 000 - - - 5001*. L.500

Subtotal SuYcbaooy 13 S00IIt 4.800 4.900 .2.00 22 .2.500 1122

10. OudooeDtucost. cobeth (D) 2,400 300 1.000 1.000 20 500 -3 00 8001* 40091 - 00

Subtotl. Oudomacy 3.200/k 722 1.902 2.022 20 300 .122

II. HononbecHoell .. h-.a 6.00011 2.000 6.000 4,000 13060 - -

10 100 ~~~~~~~~ ~~1.3001* 7001* - 300 1.200

Subtotol Boophac 1.1201k 24.722 1.2 .2 .21 .22 1.

Divesnoo .o.h-. (D) 2.4001* So0 1.300 1.300 560 300 600

LO 090 1.3001* TOO0& - - - 500 1.000

13. LAAnf tlhSeethe 3 3,300 2.000 - - - - 3.500fllvtso I. ob.. o (D) 6,3001* 2001* 4,000 1.000 - 300 2.20010 50D 1.3001* 700/a - - - 00 1.000

Subtotal Loeog tsetb. ii1.5001k 2Q90 4.000 .j22000 6.700

a09j,ja (Small end mGrevity NoS.h sA) 162 100 jjJ090 3S.450 11.122 51200 25.620 7705

- 123 - r . 4P.ga 3 of 3

Potential stat,. Jan L.0 r0 1960

Wat., r *t aa DOY .. 4sAaae7_l.tP-ooj.o S-at s-n a..eso La CP platad /b a1t.m *taon 39 -SI OarOn a anrik. (oarc. of ftatn. ate.)

C. LARGE IUIrATION00 IOJECS WISTH NJLTXPLPOE 70ST5 0WI DAIIS

W.a ggan-ttlik 28.000La 26.00fLSNta tKai 2 14,000 - - 1,000la Sb. 2 24,000 - - - - - 24.000

Subtotal i.ttina 60D0 46 000 - _ _ _ 6t00

>. tooaaoNa Tha- I Sa_ 210,00 _ _ _ _ - 20.0001n Hit boo 3B. 7000 - 7.000

S.a.ota. ahab oo.n 27.000 70 0 - - - - 27000

3. Saaonakht-0. 3ans Fat I 0. 7C,000 - - _ _ _ _S. Bang 4 ' 6.000 - - - - - -So Bang diana S 20.000 - _ - _ - -S. Ban Otang 6 2"300 - - - - - -

Saltotal Savtnno khat Ja A - - _ - 13

So D_na 2 (part) b.- 10.000L - - - - - -Sn Nan Moy (part) ' 10,_0OLa - - _ -

Suxott a ... U 20 330 1,000 - - - - ,20 00

S. S.....^St Do.t 0 (port) &

S. Doe 3 le000/L 10 333 - - -000

6. M Woo-So itog 40 000 _- - -

St Nas oy port) 10.000L, - _ _ _ _ -S. 11a 36,000 - - - _ _ _

Sa Son 35.000 - - - - - -aa Iloug 10,330 - _ - - - _

SbtoOtn1 A.O.pP. L31.000 9 - - - - 131k033

kiak& C L (Larga -rr1. ProJ.) 391A2Q .300 1DO - - - - 311 300

Elb Sia na of tb t.... c. aAd by ptP. (or da.) a i-irrigtto -taLa; tht. *ran.a ndad by p . to (o r. tad d A-a)an 4... only to rth 1-arg-r

/I -tid.a - so_ nailt p-Pt0i so tanna. atbt ranitoLg or to ba ipl-t.d it tO. fe fatars

/L 0nly bobo 1,500 ht anlotd a brritontd by qw.ing fra th. - tg". Tha bWlana. batd bno- Lnel 169, onald be irritod by gr-tty ohan-a fLoo h B Bta a (a.. .1 balot

7a rigpr- -Oo,. rP tib-ly, tO. tnvbr of laS. (33 hp to 100-125 hp) ,a S-ll (9-12 hp) pe pa t.1alad. Addintonal pmpt (53 lrga and 8 _alt) ton ntill atrad in Viennia

1 Althoh L.o.a proJ- - d .odtadra4 fo t. dianan fatara on tOn 0.0 tovtan - S. Bang Fat (S), Sn Bang Bing (SOls). Sa bOn. (SO) ad Sa rong (gig) - rill probably Losonva1argo pmnpiog .. h-, okay h( va oat b- rp lud d00 hrtro A (1w Q. hIt-) b r tappooprta *rudioa n. not avalb. t ano4 dh- r .a . I.cludd4 1. S.Cton C. L-sga fretaoPro' tota.

u Bat t datn nadt or tot yn ft l d

A m.u gnn it n-gligobLa. .tn only a11 pl p; E"grv"' In parenthnia . d oot ton -br f p_pa nt allad (a. alp fooa.nn. a).

/1 3: t..h *00 a to ga.. . sBrvot t (t , d-a); D: dOarl.a. 1 tnha; 00, adoarni.. do n in SnGn alnita Rgoo tar f7iod tantrol. -ione aith a *.h0 tO p_pn-tr fro- t ornaatd atoras. dintin tht drr *_-e; Sv-t -L viflaga d_ (-Wont.

l iolad.a atott 1.200 ha of chtah o V- ba- atata f.-, locaed bOnon L.l 169.

Tho pootnotl too -all and -din Sgvtry -hb-. On thit pronto. La -h tarSr bOt h- nat Ya Oa_ dnaninad.

/I -onWC for tbi iroisgbl. o..t fto Vaotian Plain (t- Lr bol) * projnt- nb * n Station C ano dttunrn. d by thn thOng S-narat (ndAiottv *a-i Pl-a, 1970).

J4 Ti. figa. -an d-oi-d fran oh. total *-r1ogtion potaotal *t tba Vnti.aa Plato (74 ,300 hO), tt on in tO. tDCJ rpart(loy 1977). a.- ra art. alr_ddy i*oludad In Stoti. A(Pimp Sboh ; 26.630 h.) and In S.tcian a (Gratty Seh_a 19,900 Oat. (oNt tht tO. ta O f "Otis- Snai P.mp Sob-a 2.900 h.,. in I of 11.00 ha tar *-11 d_ nd20 SYD am not tetoond].

/o TOhnt on tartnbo. igtton prJ..tn iL tOn othor an- provata...

Soto-- ma Dr nap-rt LA0178/024, oa 3; apor of b Ith rtam tio al . Dalopaant Cearar. 1977. -n th. danlopaaar progr- far 00 OhOV-ti.a PUtt:; ad 'hb tko SBrtatlart.ladi-tiv- a..= Plan, 1970, or ob potantal for larj irrigation .h- it tO L.aa PDt.

- 124 -Table 5

LAO PEOPLE' S DEHOCRJATIC REPUBLIC


Sajliemt Features of Kainstream and Larye Tributary ProjeccsConsidered in the Lao PDR

Areas Pover Navigation Tenta-Reservoir To be Average Increase tive

Catch- capacity Average protected annual in minimum 1970ment Effec- annual To be against Installed Firm gener- monthly projectsite Gross tive runoff irrigated flooding capacity pover ation flow costs

liver site , (eq km) --- (million cu a) - ('000 h.) - (MW) --- (CWh) tcu meca) ( *)

hainstream Projects la(In Thailand & theLao PDR)

1iSh Pak beng 221,000 32,400 25,900 - - - 3,250 1,260 15,000 1,400 700Low Pak Bang 221,000 4,000 200 - _ - 350 210 2.800 - 110Hign Luang Prabang 261,000 17,800 9,900 132,000 - - 2,750 1,330 15.000 660 540Low Luang Praoang 261,000 2,600 140 - - - 350 200 2,400 - 120Sayaboury 270,000 700 30 - - - 900 500 5,300 - 170Pa Mon6 lb 305,400 107,400 76,900 144,000 1,600/b 148 4,800 1,800 20,000 2,100 1,150Bung Kh3n 328,000 4,300 2,000 - - - 550 120 3,200 - 300Upper Takhek 357,000 7,100 3,400 241,000 - - 1,100 500 5.900 400 430Lower Takhek 373,000 5,100 1,800 - - - 700 - 4,100 250 470Knemmrarat 417,000 1,300 150 - - - 1,000 200 7,500 - 240Ban Koum 419,000 5,300 1,400 - - - 3,300 1,900 19,800 260 780Pakse 538,000 1,200 200 302,000 - - 1,400 600 8,400 - 530Khone Falls 553,000 4,300 560 - 200 - 1,750 1,000 12.600 220 410

Subtocal (Lao PDR& Thailand) - - - - 1.800 148 22.200 9.620 122.000 - 5.950

Stung Tren6 (Kampuchea) 635,000 110,500 46.500 450,000 1,300/L 4,950/c 7,200 3,200 35,000 3,680 1,670Sambor /d (Xampuchea) 646,000 10,000 2,000 - 30 - 3,200 2,300 22.00 530 740

Total MainstreamProleccs - - - - 3100 5.098 32.600 15,100 179.000 - 8,360

Tributary Proiects(in the Lao PDR only)

Nam UNgun I (V) /e - - - - 52/f - 135/e - -Nam NhLep 1I(V) 3,670 7,130 1,860 4,300 n.aSiam Ou 1 (LP) 20,220 4,300 2,500 9,600 n.a.Nam Sane I (V) 1,970 1,200 260 2,750 24

Nam Souang I (LP) 1,870 135 117 890 - -

Nam Theun 11(Kh) 13,800 63,500 12,000 27,800 20 - 1,500 - 7,800Nam Theun 2 A 5,100 10,500 6,200 10,300 - - 2,500 - 8,400Se Bang Fai 1 (Kh, S) 8,400 2.800 600 7,100 70 - 84 - -Se Bang Hieng I (5) 12,900 430 90 9,000 - -

Se Bang Hieng 2 (S) 6.700 5,040 3,230 5,800 - -

Se Bang 'aieng 3 (S) 1,800 2,400 680 1,220 - -

Se Bang hieng 4 (S) 1,700 2,230 650 1.180 61jh - - - - - -

Se Done 2&3 (Ch, At) 700 330 230 450 26 -

Se Done 5(Ch) 720 260 250 500 - - - - - - -Se uong 3 (At) 9,700 2,800 800 11,400 40 -Se Kong 4 (S) 3,800 3,650 1,900 4,500 (+100)/i -

Se Kon6 5 (5) 1,500 5,450 800 1,680 -

Dtiter Trioutary Projects (3) - - - - 17

Total Tributarsy Projects(in the Lao PDR) _ _ _ - 410 _ 5,460 2.620 - - 1.700

/a Pa Mlon4 and further downstream, all mainstream projects would be integrated with Pa Xong./b At ultimate stage (integrated with all other projects); the 1.6 million ha indicated lie mostly in Kampuchea and in the Mekong Delta in

Viet Nam. The Pa nong dam alone would allow only 43.000 ha to be irrigated (10.500 ha in the Kao Liao project in the Lao PDR, whichwould tnen be irrigated by gravity schemes instead of pumping).

/c In Kampuchea and in the Mekong Delta, Viet Nam./d Also integrated with Stung Treng./e Soie tributary project already inplemented in the Lao PDR. Only 110 51 had been installed in January 1980./f Total irri6able area of Vientiane Plain (74,300 ha) minus puzlp projects along the Mekong (Xao Liao, Casier Sud, Tha Deua and Mak Nao:

22,600 ha).L Stored wacer would be diverted to the Se Bang Fai, through a power plant utilizing a head of 350 m./h Includes Se Bang Hieng 5 and 6./i Plus 101,000 ha (from Se Kong tributaries: Se Nam Noy, Se Kaman, Se So., and Nam Kong).

Note: V - Vientiane, LP - Luang Prabang, Kh - Khammouan, S - Swvannakhet, Ch - Chempasak, and At - Attopeo.

source: Indicative Basin Plan (1970), the Kekong Secretariat: Tables III-2, V-3. III-5 and pages V-45 to V-47.

- 125 AMEX 7Table 6

LAO PEOPLE' S DENOCRATIC ilCPU8LIC

AGRICULTURAL SECTOR 112VIEW

Range of Proiect Costs fot Different Types of Irrigation Proiects

Types of Range of Aproxi-Water supoly Flood Protection irrigation Drame proj]et Rate

wet Dry Assured Assured A drainage Assured costs petentialTypes of projects Location season season by Assurance by canals Assurance by ($/ha) ('000 ha)

1. Large Irrigation Flood plains Full Full Storae. dam Pull Storage Complete Full Gravity 7.000- 39Projects of major (1:60- dam 4 * pump 10.000(multipurpose) tributaries 1l100 y) sometimes schemes

dikes duringpeakfloods

2. teadium-ScaleIrrigationProjects(500-5,000 ha)

a. Pmp schemes Flood plains Full Full Pumptng on Full Longitu- Complete Full Gravity 2.500- 30/Lof Mekong & a perenial (1:60. dinal F 3.500major tribu- river 1:20 y) dikes pumpingtaries (typeCasier Sud)

b. Gravity Flood plains Full Partial Storage or Full Storage Complete Full Gravity 2.000- 70/birrigatton at foothills (some- diversion (1:60. dm 4 & 5.000scham" of small timas dam on 1:20 y) short pumping

river full) perennial dikescateckents river

c. Slu&ce gate Flood plains Rainfed Some Partial Sluice None. Some Partial Gravity 300- -Lcschemes from gate for the dry only 500

storage seaon cropcreatedbysluicegate

3. Small IrrigationProiects(smaller then500 ha)

a. Pump schenms Lavee soils Full Full Pumping on None - Almost Good Natural 1,000- 30Lb& higher perennial (over- complete drainego 1.500parts of river flowinglowlands of banks

1:3 y.1:5 y)

b. Small gravity Uplands F ull Partial Seall stor- Almost Netural Only main Good Natural 1.000-. 801birrigation upper low- (30-50Z) age or div- full prorec- irrigation draiange 1,500/d

schemes lands et ersion don tion canalfoothills on perenial

river

Total Potential 600b

/s Only for the Vientiane Plain. The potential for other medium-scale pump schemes (not already included in Section I projects above) is not yet known.

/b Only for the projects mentioned in Table 4. Actual potential should be substantially larger. especielly for the northern provinces.

le Not yet determined, but the area covered should already be included in the potenttial covreage of projects 1. 2s and 2b above.

/d Tentative estimates.

ANNEX 7- 126 - Table 7



Main Data on Medium-Scale Pump Projects Already Studied in the Lao PDR /a

Name of proiectCasier Kao Tha MakSud /b Liao /c Deua /d Nao /e

Irrigable AreaWet season (ha) 3,500 10,480 1,140 7,480Dry season (ha) 2,800 9,400/f 1,000/f 6,700/f

Irrigation Pumping StationHP installed (hp) 2,860 8,500 5,400Power per ha (hp/ha) 0.8 0.8 0.7Discharge per ha (1/sec/ha) 2.3/g 1.5 1.3

DikesFrequency flood protection (y) 1:25y 1:30y 1:30yLength per ha Cm/ha) 7.4 1.5 4.2Volume per ha (cu m/ha) 214 246

Irrigation SystemMain and secondaries (m/ha) 15 14 9.4Tertiaries (m/ha) n.a. 12 9.6

DrainageMain and secondaries (m/ha) 9 14/h 15.6/hTertiaries (m/ha) n.a.Pump drainage (1/sec/ha) 1.1/1

Farm Roads (m/ha) 6

Amount of WorkEarthworks (cu m/ha) 465Structures on canalsNumber (ha/unit) 15Volume (cu m/ha) n.a.

Project CostsCosts ($/ha) 3,100 3,800 2,500 1,900Base (year) 1979 1977 1977 1977

/a Only a few data were available to the mission and all were on projects inVientiane. The missing figures should be completed by GDI.

/b Feasibility report completed. Project financed by ADB just started./c Feasibility study prepared by USAID in 1970. This project is presently

being studied by the USSR Technical Cooperation./d Prefeasibility study prepared by the French Ministry of Agriculture in 1973./e Prefeasibility study prepared by the Water and Power Development Consultancy

Services of India in 1973./f Tentative estimates.a& Over total net area (wet season)./h Including tertiaries.



Main Data on Medium-Sized Storage Dams Already Studied in the Lao PDR

Assurance of water supply Main characteristics of the storage damRatio of Volume Ratio of

Irrigated catchment/ earth- Useful Ratio of capacity/Catch- areas /a equiv. wet Mtaxim. Crest fill capacity capacity/ equiv. wet

Prov- ment Wet Dry season height length ('000 (cu m earthfill season haProject ince /b (sq km) season season ha /c (m) (m) cu m) million) (cu m/ha)/d

Nam Cheng V 240 5,000 2,000 2.7 21 430 250 60 240 6,700

Nam Souang /e V 270 8,000 4,000 1.7/f 20 450 1,000 200 200 12,500 1

Narm Houm /e V 108 4,000 2,000 1.4/f 24 900 720 80 110 10,000 -

Nam Moun V 71 3,000 1,000 1.4Lf 17 1,800 820 40 49 8,000

Huei Vang He /g Ch 60 2,500 - 300 1.9 17 n.a. n.a. 7 - 2,300

Huei Sompoy IL S 210 3,000 2,000 3.0 24 1,400 700 120 170 17,000

/a Not yet finalized./b V - Vientiane, S = Savannakhet, Ch = Chaapasak./c Ratio of catchment (expressed in ha) over the total equi-valent in ha of wet season paddy. (It was assumed that the

irrigation requirement of one ha dry season paddy is double the requirement of one ha of wet season paddy.)/d A minimum ratio of 7,500-8,000 cu m useful capacity per ha of wet season crop would assure an adequate water

supply./e Under construction: Nam bium, OPEC financing; Nam Souang, SIDA financing./f These ratios seem too low, and it is likely that the dry season irrigated area will have to be substantially

reduced./g Very preliminary surveys already made.



Possible Program for the Development of Irrigation in the Lao PDR

1979 /a 1984 1985 1990 Potential /bWet Dry Wet Dry Wet Dry Wet Dry Wet Dry

Provinces season season season season season season season season season season----------------------------------------- (ha) ----------------------------------------

1. Vientiane 4,500 2,120 24,000 18,000 30,000 23,000 49,000 32,000 130,000 90,0002. Khammouan 1,400 240 6,000 5,000 7,500 6,000 11,000 8,000 40,000 30,0003. Savannakhet 3,300 2,440 7,000 6,000 8,500 7,000 15,000 11,000 150,000 110,0004. Champasak 1,900 800 5,000 4,500 6,500 5,500 10,000 7,000 40,000 25,000 15. Saravan 1,320 120 3,300 2,200 3,800 2,500 4,000 3,000 30,000 16,000 ~6. Attopeu 430 10 900 500 3,000 2,000 13,000 9,000 130,000 90,000 m

7. Luang Prabang 2,600 550 2,500 1,100 3,500 1,400 6,000 2,000 15,000 5,0008. Xiang Khoang 3,850 590 2,200 900 2,400 1,000 4,000 1,000 10,000 5,0009. Sayaboury 3,000 780 4,500 2,200 5,000 2,500 5,000 2,000 16,000 6,00010. Oudomsay 1,050 70 1,400 600 1,500 700 2,000 1,000 5,000 2,00011. Houaphan 4,100 1,980 4,400 2,100 4,500 2,200 5,000 2,000 10,000 4,00012. Phongsaly 1,550 590 2,200 900 2,400 1,000 3,000 1,000 6,000 3,00013. Luang Namtha 1,050 50 1,600 800 1,900 900 3,000 1,000 15,000 4,000

Total 30,050 10,340 65,000 44,800 80,500 55,700 130,000 80,000 597,000 390,000

Rounded to 30,000 10,000 65,000 45,000 80,000 55,000 130,000 80,000 600,000 400,000

/a Mission estimates of the areas actually irrigated in 1979 (Table 2). Note that Table 2 indicates thatmuch larger areas are commanded by irrigation facilities.

/b Figures have been rounded. The potential for provinces 7 to 13 should probably be much higher.

1O H1

- 129 - ANNEX 7Appendix APage 1



Proposed Large- and Medium-Scale Irrigation Projects

A. Vientiane Plain (See Map IBRD 15052)

Pa Mong Multipurpose Dam

1. This would be the first major multipurpose dam on the Mekong River,located some 25 km upstream of Vientiane City. Feasibility studies for thedam were carried out in 1970/71 by the United States Bureau of Reclamation(USBR) with USAID financing. The dam was designed as a concrete gravitystructure rising some 115 m above its foundations and with a crest length ofsome 1,360 m; it was to have a central spillway and a hydroplant on each bank.

2. The main benefits of the dam would be:

(a) the two hydroplants (2,400 MW installed capacity each), which wouldassure a total firm power supply of 1,800 MW and annual powerproduction of some 20,000 GWh at very attractive prices;/l

(b) reduction of the flood with a 1-in-1 0 0 year frequency of occurrencefrom 26,000 cu mecs to 15,000 cu mecs, thus preventing the Mekongand its main tributaries overflowing their banks. Some 148,000 haof low-lying land would be protected, at least 100,000 ha of it inthe Lao PDR;

(c) when ultimately integrated with all other mainstream projects, thePa Mong dam would allow the irrigated areas (mostly in Kampuchea andin the Mekong Delta in Viet Nam) to be increased by about 1.6 mil-lion ha. By itself, the dam would allow additional irrigation onsome 43,000 ha located immediately downstream; 10,500 ha would com-prise the Lao PDR's Kao Liao project area, which could then beirrigated by gravity schemes instead of by pumps. The missionunderstands that Thailand might also consider diverting (by pumpingfrom the Pa Mong Lake) substantial discharges to supplementirrigation in the Central Plain (Chao Phya); and

(d) the minimum dry season flow would be increased by some 2,100 cumecs, which is 1.6 times the average minimum flow and 3 times theabsolute minimum. This would not only benefit navigation, but alsopartly check salt intrusion in the Mekong Delta.

/1 In 1971, before the oil crisis, the total cost of the dam could bejustified solely by its power production benefits.

- 130 - ANNEX 7

Appendix APage 2

3. While the expected benefits from the Pa Mong dam are great, its costis also very high, estimated at about $1.2 billion in 1970, which could wellamount to $3 billion now. Also, large areas of cultivated land would beflooded, leaving an estimated 400,000 persons to be relocated, some 100,000 ofthem in the Lao PDR. Recent preliminary studies considered whether a lowerdam might be worthwhile as a first stage, but the mission has no informationon this. A dam at Pa Mong is only justified in the foreseeable future byassured power purchases by Thailand.

Flood Control and Drainage Projects

4. The European Economic Community (EEC) is considering financing a$2.5 million (base 1978) project to provide equipment and materials for thefollowing works:

(a) rehabilitating and raising some 45 km of the existing floodprotection dike on the left bank of the Mekong, downstream of ThaDeua;

(b) improving drainage of the Salakham marsh, as well as of the HoueiMak Hiao, the drainage channel for the southern part of theVientiane Plain; and

(c) land consolidation and reclamation of some 2,000 ha of marshy landin the Salakham area.

5. In 1977, the Mekong Secretariat made preliminary studies of cutoffsfor meandering channels of the Nam Ngun, which would provide some floodprotection for the most low-lying cultivated areas (see Map IBRD 15052). Onecutoff was considered at P.km 84 (Tha Ngon), which would involve excavatingaround 7 million cu m, and the second at P.km 135, near the confluence withthe Mekong, which would involve excavating some 3 million cu m. Thepreliminary studies showed that with a 3,000 cu mecs flood, the water levelwould be reduced by only 0.50-0.74 m with one cutoff and 1.0-1.2 m with twocutoffs. These benefits do not seem to justify the costs involved, as theflood risk for these areas would still be too high to justify the use ofexpensive inputs.

6. In 1977, a report from the International Development Center of Japan(IDCJ) proposed an important sluice gate at Ban Hai on the Nam Ngun, close toits confluence with the Mekong, to provide protection against the Mekongfloods. Technical feasibility studies for this structure should take intoaccount, inter alia: the different timing of the Mekong and Nam Ngun floods;the fact that the flood waters of the Nam Lik, an important tributary of theNam Ngun, are not controlled by a storage dam; the improvement that could beachieved by adequate operation of the Nam Ngun dam; and the amount of waterthat could be stored in the riverbed between the levees of the river. Infact, it seems that general flood control works on Mekong tributaries are

- 131 - ANNEX 7

Appendix APage 3

not feasible if flood levels of the Mekong are not substantially controlled bya major storage dam such as Pa Mong. Adequate operation of the Nam Ngun dambefore and during the flood season could, at an acceptable cost, slightlyreduce the Nam Ngun's water levels.

Nam Ngun Western and Eastern Canals

7. The 1977 IDCJ report estimated the total irrigable area of theVientiane Plain at around 74,300 ha (Plan B); some 26,400 ha could be irri-gated using pump schemes along the Mekong and the Nam Ngun, and 19,900 hausing medium gravity irrigation schemes. The balance of around 28,000 hawould be irrigated from 2 main canals, the eastern and western canals, thatwould derive their water, respectively, from the existing Nam Ngun dam andfrom a 35 m high concrete diversion dam that would be built on the Nam Likupstream of its confluence with the Nam Ngun. The western and eastern canalswould be connected with existing medium-scale gravity irrigation schemes toincrease their water supply during the dry season. Because of the largeheadworks involved, the investment costs for the schemes to be controlled bythese two canals would be high (an estimated $7,200 per ha in 1977), and theyshould therefore only be implemented when all other schemes have exhaustedpresent water resources.

Four Reservoirs along the Western Foothills

8. The Nam Houm, Nam Souang, Nam Moun and Nam Cheng would be earthfillstorage dams located along the foothills of the western edge of the VientianePlain (Table 8). The Nam Houm and Nam Souang dams are the main works of theNa Sai Thong Irrigation Project (6,000-8,000 ha), identified in November 1979by a mission from the Investment Center, FAO, Rome, for possible IFADfinancing in 1981. Equipment and materials for the Nam Houm dam were financedby a $5 million grant from OPEC, and those for the Nam Souang dam by a $5 mil-lion SIDA (Sweden) grant. Completion of both dams is expected before theAugust 1980 floods.

9. A preparation mission from the Investment Center was scheduled forMay 1980, but the Bank sector mission was unable to get any information on thestatus of preparation of the preliminary designs for irrigation, drainage andflood protection works on the Nam Ngun River. It seems unlikely that thisproject can be appraised before March/April 1981.

Pump Projects

10. The main data on these pump schemes are given in the main text ofAnnex 7 and summarized in Table 7. The flood protection dikes are evidentlybased on the assumption that the Pa Mong project will not be implemented.However, since this dam probably will be implemented, the flood protection tobe provided by the proposed dikes has been limited to the 1-in-30 year floodlevel, which is slightly less conservative than the usual figure adopted.


11. Several medium-sized pumping stations are generally preferred overone large station to reduce the size of the pumps and the cost of the mainirrigation canals. Centrifugal floating pumps on pontoons are usually pre-ferred. Inclined axial pumps with their motors above the maximum flood levelare sometimes selected as they are easier to operate, but they are moreexpensive and need to have the river bank firmly protected against erosion.The mission recommends centrifugal pumps mounted on pontoons, with outletpipes with swivel elbows; these are used in Hungary on the Tisza River, whereriver levels also fluctuate significantly. The large discharge per ha for theCasier Sud pumping stations is achieved by pumping up to 14-16 hours per day.

B. Khammouan and Savannakhet Plains (See Map IBRD 15053)

Se Bang Fai Project

12. The Se Bang Fai Project would ultimately allow irrigation for doublecropping on some 70,000 ha, 50,000 ha in Khammouan (right bank) and 20,000 hain Savannakhet (left bank). A 35 m high earthfill dam needs to be constructedslightly upstream of the RN13 bridge. A hydroplant of 84 MW capacity would beinstalled, and the Se Bang Fai water supply would be supplemented by a 200 cumecs diversion from the nearby Nam Theun 2 Project into the reservoir ofthe dam.

13. A first stage development of the Se Bang Fai would consist ofconstructing a 7 km floodway to the Mekong, which would eliminate some 48 kmof meanders furthest downstream and reduce the flood hazard on some 20,000 haof its most low-lying flood plains. A UNDP project (LAO/77/021) is financingthe feasibility study for this floodway, which has been subcontracted to theMekong Secretariat with the World Bank as executing agency. The study startedin 1979 but has been held up by delays in the supply of topographic anddrilling equipment, and in the mapping of the floodway area./l The surveysshould be completed at end-1980 and the feasibility report prepared by mid- toend-1981.

14. Preliminary studies showed that for floods with a 1-in-10 yearfrequency of occurrence on the Se Bang Fai (3,400 cu mecs) and 1-in-10 or1-in-3 year floods on the Mekong, a 1,400 cu mecs floodway would reduce theflood water level by a maximum of 1.45 m and 1.60 m, respectively. Excavationof 6-10 million cu m would cost around $8-10 million. Such a floodway thusseems unattractive, since heavy flooding would still occur on large areas dueto the high levels of the Mekong, and the risk of flood would still be toohigh for safe use of more sophisticated (and more costly) cropping practices.

/1 Under another UNDP project (LAO/78/011), the National Geographic Serviceis mapping the whole Se Bang Fai flood plain, some 1,200 sq km, on a

scale of 1:10,000, using aerial photogrammetric methods.


15. The UNDP project also involves:

(a) surveys and design work for 15 flood control structures (sluicegate schemes) on the small tributaries of the lower Se Bang Fai;

(b) rehabilitation or completion of 4 sluice gates and the installationof a new one; and

(c) the development of two small pump projects.

Nam Theun 2

16. Construction of an 85 m high concrete gravity dam on the Nam TheunRiver (site no. 2) would create a reservoir of 6,200 million cu m capacity,which could be used to divert some 200 cu mecs to the nearby Se Bang Faivalley. This diversion would also assure the full future water requirement ofthe 70,000 ha Se Bang Fai irrigation project. A 350 m high head would permitthe installation of a power plant with 2,500 MW installed capacity and some8,400 GWh annual output. Perhaps a first stage development of Nam Theun 2,involving just water diversion to the Se Bang Fai, would still produceacceptable amounts of electricity without extensive outlays.

Huei Sompoy Project

17. This medium-scale gravity irrigation project is being considered foran IDA credit (small-scale irrigation project). Construction of a 24 m highearth dam would permit double cropping of rice on about 3,000 ha of cultivatedland. Protection against the Mekong flood waters should not be too difficultto achieve.

Se Champhon Plain

18. Some 20,000-30,000 ha out of the 60,000 ha of good land cultivatedeach year in the plain of the Se Champhon River (a right bank tributary of theSe Bang Hieng River) are regularly flooded. Construction of a storage dam (SeBang Hieng 6) and of flood protection, irrigation and drainage systems wouldpermit the full development of this area. Less ambitious first stage projectsshould be identified for the Se Champhon Plain in the near future.

C. Champasak, Saravan and Attopeu Plains (See Map IBRD 15054)

19. The main data on the large tributary projects identified by theMekong Secretariat are produced in Table 5. Medium-scale gravity irrigationschemes using only diversion dams in masonry or concrete offer considerablepotential for the plains surrounding the Bolovens Plateau, where rainfall ishigh (3,500 mm) and the soils are permeable, resulting in substantial dryseason flows. The proposed World Bank small-scale irrigation project shouldinclude one such scheme for Champasak and one for Saravan.

- 134 - ANNEX 7

Appendix APage 6

20. The 1,200 ha Tomo diversion scheme in Champasak was started lastyear with WFP assistance. It would irrigate 500 ha during the dry season dueto the substantial dry season flow of the river. The diversion dam (inmasonry) is almost complete, but the 1,100 m long main canal still requires asubstantial amount of work. Only about 10 ha of rice are presently irrigated.To complete the Tomo irrigation scheme, a UNDP project (Lao/79/019), involvingUNDP technical assistance ($120,000) and a $815,000 grant from the UNHCR toprocure equipment and materials, has just been approved and should begin atthe end of 1980.

- 135 - ANNEX 7

Appendix BPage 1



Information Needed to Prepare Medium-Scale Gravity Irrigation Projects

1. Location

On map (1:50,000 scale) with preliminary irrigation layout

2. Hydrology/Climate

Catchment - at dam site; at point furthest downstream in the projectarea

Rainfall - mean monthly- monthly with 75% or 80% probability- series of annual rainfalls

Hydrology - actual measurements taken- estimated mean annual runoff (106 m3)- estimated mean monthly runoff- estimated monthly runoff of 75% or 80% probability- estimated annual runoff of 75% or 80% probability- dry season flows: average; absolute minimum; whenpossible, monthly discharges for different probabilities:50%, 75% or 80%

3. Topography

Existing aerial photographs, maps (scale, contour spacing), andtopographical profiles

4. Soils and Land Use

Nature of the soils in the project area; any land classification mapsavailable

Land use: areas cultivated; crops; yields in good, average and badyears

Flooded areas: every year, once every 3 years, once every 10 years(areas, depth of flooding, duration)

5. Population

Number of villages, families, population

- 136 - ANNEX 7Appendix BPage 2

6. Preliminary Designs Prepared or Started

Dams - type, crest length, maximum height, extent of main works- results of drillings, foundations and geotechnical surveys- maps available of the reservoir and dam site- surveys for borrow areas for earth (or rockfill) dams;location of borrow areas, quantities of material available

- curve storage capacities at different heights; maximum surfaceof the lake

- project flood (peak discharge, volume) capacity of the spillway- implementation so far; with what financing

Irrigation & Drainage Systems

- available maps (scale, contour spacing) and topographical longi-tudinal profiles

- preliminary designs already prepared- amount of work- areas to be irrigated: in wet season

in dry season- projected irrigation requirements: in wet season

in dry season

- 137 - ANNEX 7Appendix CPage 1



Inventory of Small-Scale Gravity Irrigation Projects

1. A general inventory is urgently needed of possible small-scalegravity irrigation projects throughout the country. A preliminary inventorycould be rapidly carried out by each Provincial Irrigation Service in closecooperation with the provincial and district authorities. This appendixprovides some guidelines for identifying the most attractive projects.

2. Priority should be given to schemes that divert perennial riverflows. An inventory should be made of all perennial streams, with indicationsof average flows during the dry season and, if possible, minimum flows assuredfor 3 or 4 years out of 5. Gauging river levels using floating devices shouldsuffice.

3. An inventory should be made of potential sites for small storage

dams on nonpermanent streams that flow close to good cultivated land. Theinventory could be made on the 1:50,000 scale maps (Appendix B). Only catch-ments of between 6 and 15-20 sq km should be selected, as smaller catchmentswould not assure a sufficient water supply for projects of at least 200 ha,and larger catchments would involve spillways that are too expensive for thedam. A minimum ratio of 3:5 for the catchment to the area to be irrigatedwould assure an adequate water supply.

4. The most attractive sites (relatively narrow valleys and wide flood

plains upstream) should be subject to the following preliminary investi-gations.

(a) Topography. A profile should be made along the river upstream of

the dam site, as well as 2 to 3 cross profiles, one along theapproximate alignment of the dam. From these profiles and the1:50,000 map, a rough estimate could be made of the reservoircapacity with different dam heights (maximum 20-25 m).

(b) Foundation Surveys. If the bed rock is not visible, a few wellsshould be dug by hand down to the bed rock to determine the natureof the foundations, their hardness and compaction.

(c) Dam Volume. A preliminary cross section for the dam, with a6 m crest width and a 3:1 gradient, could be adopted to determinethe volumes of the (earth) dam for different heights.

- 138 - ANNEX 7

Appendix CPage 2

5. Two other essential ratios could then be calculated and the minimumfigures obtained, in order to make a preliminary assessment of the feasibilityof the scheme:

- volume of storage/volume of earthfill - minimum 50

- volume of storage/area to be irrigated - minimum 16,000-20,000 cu m/ha /1

/1 Storage this effective should assure supplies to irrigate the wholeproject area during the wet season and about half of it during the dryseason.

- 139 -ANNEX 7Appendix DPage 1



Summary Data on UNDP Irrigatioti Sector Projects

Project number, title and main objectives/ Inputs Implemen-executing agency/status ($'000) tation

A. Ongoing ProJects

LAO/76/009 Irrigation Assistance (FAO) 854 1978-82

Supply of 4 experts to assist in the overall plan foroptimum utilization of hydraulic resources and inpreparing programs for the construction and maintenanceof small irrigation and drainage works; to traintechnical cadres; to provide fellowships.

LAO/77/021 Agricultural Development of the Se Bang 489 1979-82Fai Plain (World Bank)

Preparation of the feasibility study of a floodway toreduce flooding on some 20,000 ha and preparation of thedetailed designs of 15 small flood control structures.Rehabilitation of 4 existing flood structures andconstruction of a new one. Development of 2 small pumpschemes. The studies were subcontracted to the MekongSecretariat and the feasibility report is expected to becompleted by end-1981.

LAO/78/003 Workshop for Maintenance and Repair of 250 1979-81Pumps (FAO)

Construction of and equipment for a workshop inVientiane, and supply of a mechanical engineer. Theworkshop should be operational in September 1980. Infollowing phases, similar workshops would be installedin Savannakhet and in Pakse ($800,000 UNDP financingconsidered).

LAO/78/011 Cartography of the Se Bang Fai (UNDTCD) 400 1979-82

Supply of additional equipment to the National GeographicService, of a geodetic engineer and of a cartographicexpert, to prepare aerial photographs and maps on a scaleof 1:10,000 with 1 m contour spacing for some 1,200 sq kmof the Se Bang Fai Plain, plus aerial photographs on a1:20,000 scale of the upper Se Bang Fai (storage for thedam being considered).

-140 - ANNEX 7Appendix DPage 2


LAO/79/010 Casier Sud Irrigation (ADB) 860 1980-83

Supply of technical assistance through a firm of consul-tants (Crippen, Vancouver, Canada) to develop the 3,200ha Casier Sud Project, near Vientiane, with joint financ-ing from ADB ($7 million) and IFAD ($6.1 million).

B. New Projects

LAO/79/005 Integrated Irrigation Pilot Projlect in the 700 1980-82Tha Pha Area (FAO) (Not yet approved)

Supply of additional funding for technical assistance tobe provided under bilateral TCDC programs, and supply ofequipment and materials ($620,000) for the design andimplementation of the 535 ha Tha Pha pump project,located along the Mekong in the Tha Deua area (Vientiane).Rehabilitation and raising the road dike would be financedby an EEC grant.

LAO/79/006 Integrated Irrigation and Water Management 430 1980-82in the Tha Sano Area (FAO)(Just approved by Government only)

Supply of additional funding for bilateral technicalassistance (TCDC) and supply of equipment and materialssupplemented by a UNHCR grant of $660,00, for the designand implementation of the 650 ha Tha Sano pump project,located along the Mekong north of Savannakhet; 500 haare existing paddy land and 150 ha would have to be re-claimed. The project also involves preparation of afeasibility study for a second phase (900 additional halocated upstream on the Huei Nambo involving the con-struction of 2 small dams with gravity and pump schemes).

LAO/79/007 Groundwater Reconnaissance Surveys and 400 1980-82Development (FAO) (Not yet approved)

Supply of equipment (2 drilling rigs) and technicalassistance for hydrogeological surveys and the develop-ment of a 150 ha pilot farm using groundwater in theSeno area (Savannakhet). Reconnaissance surveys inselected areas of the Vientiane Plain would provide thebasic data for possible further investigations of ground-water potential in this region.

- 141 -ANNEX 7Appendix DPage 3


LAO/79/008 Improvement of Irrigation Design and 950 1980-83Construction (FAO) (Not yet approved)

Strengthening the capacity of the Bureau of Engineeringof the GDI in planning, surveys and design. Establishinga central laboratory for surveys and tests (soils, con-crete, materials) and hydraulic tests of pumps, as wellas 13 small mobile laboratory testing units, one in eachprovince.

LAO/79/016 Soil Inventory and Fertilization (FAO) 526 1980-82(Approved)

Assistance in establishing, within the MOAFI, a nationalservice for pedological surveys: training, methodology,equipment.

LAO/79/019 Tomo Irrigation Project (MOAFI, Lao PDR) 120 1980-82(Approved)

Supply of additional funding for bilateral technicalassistance (TCDC programs) to complete the 1,200 ha TomoProject in Champasak, started in 1978 with WFP assis-tance. UNHCR is expected to provide a grant of $815,000to purchase equipment and materials.

LAO/79/020 Irrigation Vocational Training (FAO) 217 1980-82(Not yet approved)

Equipment and daily allowances for 4 Provincial TrainingCenters with a capacity of 480 trainees (intake of 40trainees per year for each center) who would be assistantsto engineers and technicians, and leaders of unskilledlabor for labor-intensive methods of constructing irriga-tion works. The FAO experts from the LAO/76/009 and LAO/79/021 projects would provide technical backstopping to thecenters. The training centers would be located in Vientiane,Oudomsay, Savannakhet and Champasak.

LAO/79/021 Senior Irrigation Adviser (FAO) 400 1980 or(Not yet approved) 1981

Assistance to the GDI of a senior irrigation adviser for u9n82imonitoring development of projects, assisting in projectpreparation, preparation of bidding documents and evalua-tion of bids, and preparation of progress reports. Pro-vision of experienced technicians for field work, as andwhen required, as well as some equipment.

- 142 -

ANNEX 7Appendix DPage 4


LAO/79/031 Pump Irrigation Schemes (GDI and Provincial 453 1981-83Irrigation Service) (Not yet finalized)

Supply of a team of consultants (66 man-months) to assistin overall planning, design and construction of 20 smallpump schemes (to serve a total of 4,000 ha), whose con-struction costs and equipment would be financed by an ADBcredit of $5.85 million (Agricultural Support Facilities I).The pump schemes would be located in Khammouan, Savannakhetand Champasak.

Total 7,049

- 143 -ANNEX 8



Selected Agricultural Policy Issues

Table of Contents

Page No.

Farm Level Organizations ... . .... . . . . .... . . . . . 1The Agricultural Budget . . . .. . . . . . . . . ... . . .. . . 3Agricultural Taxation .. . . . . . . . . . . . . . . . .... 4Prices and Marketing . .. ... . . . . . . . . 6

TABLES

1. Distribution of Cooperatives in the Lao PDR, by Province2. 1979 Agricultural Sector Budget: Planned Allocations and Actual

Disbursements3. Planned Budget for the Agricultural Sector, 19804. Comparison of Official Indicative and Free Market Prices5. Official Prices of Agricultural Commodities




Selected Agricultural Policy Issues

Farm Level Organizations

1. State Farms. Relatively little information is available on thestatus of the state farms. Their number and size (an average of 5,000 ha)appear to be a function of the production needs of particular crops andlivestock, as well as of the organizational capacities that' can be created tooperate the farms. The state farms also serve as centers for re-educatingthe population. State farm families receive wages of NK 170-300 per monthdepending on the quality of work performed. Generally only families whopreviously cultivated land that is now part of the state farms are allowed ahome lot to grow vegetables for home consumption.

2. Private Farms and Cooperatives. In 1979, there were an estimated496,000 farms in the Lao PDR, with an average holding size of 1.54 ha (seeAnnex 1). These units are either farmed by individual families or by groupsof farmers who have pooled their resources to form cooperatives..1 So far,an estimated 2,500 cooperatives have been formed, involving over 86,000 farmfamilies (almost 20% of the total). The total area farmed by the cooperativesis over 128,000 ha (or 20% of the total farm area), most of which (91%) isunder lowland paddy and the remainder mostly under upland paddy (Table 1).

3. Legislation governing management of the agricultural cooperativeswas promulgated in May 1978, with a provision that it should be modified inthe light of actual experience. Three stages in the development ofcooperatives were initially envisaged:

(a) exchange of labor and sharing tools and draft power;

(b) cultivating the land collectively and sharing benefits inproportion to work contribution; and

(c) cultivating the land as collective farms.

Cooperative activities were made the responsibility of a separate departmentin the Prime Minister's Secretariat directly under the control of theGeneral Assembly.

/1 Since no land can be privately owned in the Lao PDR, these farmoperators (and also state farm workers) are only granted the rightto cultivate land.


4. The General Assembly appoints: (a) a Management Committee,

responsible for preparing and executing the production and financial plans,as well as for organizing production groups; and (b) an Audit Committee,responsible for verifying that the Management Committee's work conforms tothe approved plans and, in particular, that income is distributed equitablywithin the cooperatives. The General Assembly reviews progress reports ofthese committees at its biannual meetings, with a view to resolving problemsand developing production and financial plans for the next period.Provincial and district cooperative boards have been constituted to see thatboth the resolutions of the General Assembly and the cooperative's approvedplans are implemented. These boards work with the two committees and helporganize the cooperative production groups. Each production group electsits own head, who is then responsible for implementing the production plan,maintaining the accounts and distributing the cooperative income.

5. A cooperative farmer must be over 16 years of age and live withinthe area covered by the cooperative. He must be willing to work in aunit or a brigade (each comprising 20 to 30 members), to exchange labor andshare tools and draft power, and to contribute his land and relatedproduction assets. He can, however, retain a small plot to grow crops forfamily consumption./I A prospective cooperative member without land mayinstead contribute cash or labor to the cooperative, as agreed by theGeneral Assembly. The cooperative's income - determined by deducting fromtotal revenue all operating expenses, taxes, rents and a contribution to thecooperative's development fund - is distributed to members based on thenumber of days worked and work points awarded according to the type/qualityof work performed (12 points for good, 10 for average and 8 for poorperformance). Around 5-7% of total revenues is contributed to thedevelopment fund, of which 70% may be used to purchase assets, and theremainder to meet social, cultural and cooperative aims.

6. The Government has been pursuing a policy of promoting farmers'cooperatives as a means of improving cultural practices and furthering theadoption of input-based technology. However, despite the preference givenby all government policies and programs to cooperatives (institutional supplyof agricultural inputs, credit and extension advice, see Annex 6; preferen-tial treatment under the tax code, see para. 12; and easier access to consu-mer goods, see para. 22), cooperative organizations have failed to establishthemselves as the country's principal farm production system. The Govern-ment, by allowing individual farmers access to production resources sinceJanuary 1980 (through Resolution No. 7), has recognized that the developmentof cooperative production is a long-range objective, which can be realizedonly after intensive training in cooperative management, accounting

/1 In practice, cooperative members grow vegetables and raise pigs andpoultry to sell on the market, independent of the cooperatives.

- 146 - ANNEX 8

Page 3

procedures and commercial activities. The present need is for consolidationrather than further expansion of cooperatives. New cooperatives will beformed by a gradual process, following the stages detailed in para. 3.

The Agricultural Budget

7. In the Lao PDR, central government revenues comprise domesticreceipts, made up of contributions from state enterprises and tax revenues(mainly from the agricultural production tax), and external assistance(mainly project credits, commodity aid and cash grants, but also includingoutlays for technical assistance). The Government's expenditures comprise:(a) recurrent expenditures, which include defense and security, and thecivil service (covering salaries, supplies, maintenance expenditures forcentral and provincial agencies, as well as transfers to state enterprisesand subsidies); and (b) development expenditures, involving capitalexpenditure (which may include some recurrent costs) for sector development,e.g., agriculture, transport, industry and construction, and social sectors.

8. The major development expenditures (project investments) arecovered mainly through external financing. Changes in the state budget'sdevelopment expenditures, together with their sources of financing, are asfollows:

1977 1978 1980(actual) (prelim.) (planned)

State budget --------- NK million ---------

Development expenditures 619.00 810.00 900.00Externally financed 590.00 760.00 720.00Locally financed 29.00 50.00 180.00

Note: No figu-res were available for expenditures in 1979.

9. Development expenditures for the agricultural sector amount toapproximately one third of the state budget. These expenditures for 1979and 1980 are shown in Tables 2 and 3 and summarized below.

1979 1979 1980(planned) (actual) (planned)---------- NK million --------

Development expenditures 252.26 152.78 306.87Externally financed 243.33 143.91 284.70Locally financed 8.93 8.87 22.17

- 147 -

ANNEX 8Page 4

These figures suggest that the development of the agricultural sectorlargely depends on the supply of investment funds from abroard (the localcontribution being 3.5% in 1979 and 7.2% in 1980). Although the injectionof foreign capital was proposed at 96% in 1979, actual disbursement wereonly 59% of planned. Thus, external finar.ing is apparently not takingplace as fast as anticipated by the Government, or alternatively the countrylacks the absorptive capacity for this amount of funds, or perhaps both.The mission was made aware of the many difficulties in importing materialsand equipment, as well as the time-consuming procedures of negotiations andcontract award. Inland transportation also presents a serious problem (seeAnnex 1).

10. Provincial budgets are the responsibility of the provincial admin-istrations (see Annex 6). The provincial agricultural budgets are perhaps aquarter of the central government budget, but no details were available onthis. Provincial budgets comprise investment (project) and services (tech-nical) expenditures. The Government provides funding for project invest-ments (provinces only execute small projects, so their investment needs arelimited). Provinces meet expenditures for technical services out of theirown resources. They generally face recurrent shortages of investible fundsbecause of the limited flow of funds from the central government and a weaklocal tax base, resulting from the low level of economic activity.

Agricultural Taxation

11. Administration of the Government's tax policy is governed by aState Decree on Agricultural Tax Regulation, passed in September 1976 andamended in early 1979. Key issues of the current tax policy are that:

(a) the application of the agricultural production tax is the samethroughout the country;

(b) agricultural products taxed are rice,, other food crops, edibleleaf plants and agricultural raw materials for industrial use;

(c) thestax is calculated in terms of paddy, with other productsconverted to a paddy amount in accordance with a stipulatedratio;

(d) the tax regulation does not specify the mode of payment (kindor cash), but the Government insists on payment in kind;

(e) the tax regulation does not specify the kind of commodityaccepted in lieu of tax, but the Government collects taxesin the form of paddy or rice only; and

- 148 -

ANNEX 8Page 5

(f) the tax is levied on all farmers (private farmers, and membersof cooperatives and state farms), but the tax burden for privatefarmers is heavier than for members of the cooperatives andstate farms.

12. The agricultural tax is progressive. The original tax regulationdefined six levels of taxes, applicable to all crops of individual farmers;taxes were valued in terms of paddy equivalent at 8-30% of estimated annualoutput. In 1979, taxation on individual farmers was revised to ten levels,as shown below:

Level Taxable paddy Average tax rate

I 1 - 100 kg 8%II 101 - 200 kg 10%

III 201 - 300 kg 12%IV 301 - 400 kg 14%V 401 - 500 kg 16%

VI 501 - 600 kg 18%VII 601 - 700 kg 20%

VIII 701 - 800 kg 23%IX 801 - 900 kg 26%X 901 and above 30%

The tax policy for cooperatives was also revised. Previously, lower levelcooperatives (labor exchange only) were paying 8-20% of their taxable paddyas tax, and higher level cooperatives (land resources also pooled) 14%, butnow the reduced tax for lower level cooperatives has been eliminated andthe tax on taxable paddy reduced to 10% for higher level cooperatives.This change was intended to discourage farmers from forming loose coopera-tives to benefit from lower tax rates. Other changes introduced tax rebatesfor old and sick farmers, as well as for children, and families who lost amember essential to their survival became tax exempt.

13. To determine the amount of the agricultural tax, production isestimated and modified to take the producer's allowances into account. Forupland rice, the quantity of rice seed used serves as a basis for estimatingpaddy production, whereas for lowland rice, the planted hectares are multi-plied by expected yields to give production estimates. Information on theseitems is collected by government agents at the district/subdistrict leveland passed on to the Ministry of Finance through the provincial administra-tions; these figures are corrected for the effects of weather. The amountof taxable paddy is calculated by deducting seed and exemptions from expec-ted production. Exemptions are standard or special, the former includingconsumption of 100 kg of paddy for each household member, while the lattergive an allowance for regular soldiers, local troops, militia forces, cadres,


or public servants working for the party and the state. To promotecooperative production, the standard deduction of a cooperative member isincreased by an additional 20 kg of paddy.

Prices and Marketing

14. Since 1975, the Government has fixed official prices of agriculturalinputs and farm commodities; these goods are channelled through an officialdistribution network in an effort to regulate their supply and production,and to meet consumption needs. In December 1979, the Government introduceda new pricing policy (through Resolution No. 7), which involves:

(a) a four- to fivefold increase in the official procurement pricesof agricultural commodities;

(b) allowing official prices to lag free domestic market prices by nomore than 15%; and

(c) a devaluation of the currency by 60%.

Some restrictions on private trading have been removed: farmers may now selltheir produce on the open market, and private traders and middlemen can tradein domestically produced items under license from the Government. The ban onprivate traders engaging in the interprovincial movement of commodities hasalso been relaxed.

15. These policy changes were adopted to: (a) provide incentives tofarmers to increase production of rice and other crops; (b) establishcross-border parity prices, which should minimize unofficial exports ofagricultural commodities, particularly rice, to Thailand; and (c) roll backsubsidies on farm inputs (and on consumption) to reduce total budgetsubsidies. Their success in meeting these objectives is difficult toestablish after so short a time and also because of an unstable exchangerate,/1 but over the longer term, they are likely to have a positive effecton production and farmers' income.

16. Free market prices vary according to the region (see below) andseason. Sharp price differences can be explained by: (a) production beinggreater than demand in some provinces; (b) poor road transport facilitiesfrom surplus to deficit areas; (c) no organized transport system and very

/1 A currency reform on December 10, 1979, replaced the Kip of Liberation(KL) with the New Kip (NK) at the rate of KL 100 to NK 1. A temporaryexchange rate of NK 16 to $1.00 was established, but subsequentlythe currency was hardened on January 17, 1980, to its present officialrate of NK 10 to $1.00.

- 150 - ANNEX 8

Page 7

high transportation costs; and (d) little dissemination of market information.Retail and farm prices now appear to be free to find their own level andtheir tendency is to move together. At harvest time (November-December), thefree market price of rice is NK 2.00 per kg in Vientiane, but by July theprice moves up to NK 4.00-5.00 per kg. The overall lack of storage facilities(see Annex 6) somewhat undermines the Government's effort to eliminate theseseasonal price variations.

Official Free market price in March 1980 inprice Vientiane City Savannakhet Pakse (Champasak)

-------------------------- (Nk/kg) -------------------------

Rice 4 4-5 3 2.5Pork 10 10-15 20-25 10Fish - 15-20 30-40 15

Note: The prices of poultry, cattle and buffalo meat are approxi-mately the same throughout the country.

17. The official prices of goods are fixed rather than being free tomove with market prices. The official price of paddy (i.e., the maximumgovernment authorities may pay to purchase paddy from farmers) introduced inJanuary 1980 (NK 0.80-1.20 kg) offers farmers little incentive to sell theirsurplus paddy to the Government in view of the current market price ofNK 1.00-1.90 per kg (Table 4). Thus farmers are unlikely to sell paddy tothe Government unless the free market price is lower than the official price,i.e., immediately after the harvest and in some paddy surplus areas (such asChampasak); similarly, they will only buy rice from official retail outletswhen free market prices are high. Since official commodity prices (Table 5)are tied to the official price of paddy, the farmers would benefit if theycould trade their paddy above the official price on the open market and werethen able to make commodity purchases from official retail outlets (para. 22).However, exchange at retail outlets is invariably on a barter basis. Thereis also an incentive for farmers to sell their paddy in the Thai borderprovinces of Nonokham and Nakon Phawom where the farm-gate price of paddyis B 2.50-2.90 per kg, which converted at the official rate amounts toNK 1.25-1.45 per kg.


18. One of the Government's major concerns in the pricing and marketingof agricultural goods has been to assure an adequate supply of rice (andmeat) to nonproducers (government employees and the urban population) ataffordable prices. In 1979, the Government procured 23,000 ton of locallyproduced paddy, and in aidition had at its disposal 132,330 ton of commercialpurchases and foreign aid, and 36,830 ton from the agricultural tax, i.e.,it handled a total of 192,160 ton. The projected amount to be handled in1980 is 195,580 ton, 27,970 ton through local purchases, 111,670 ton fromcommercial purchases and foreign aid, and 55,940 ton from the agriculturaltax. The Government's balancing of paddy production and distribution isillustrated below:

1979 (actual) 1980 (planned)-------- (ton of paddy) ---------

Paddy ProductionProduction 866,940 932,420Purchases and aid 132,330 111,670

Total 999 270 1,044,090

DistributionConsumption (urban populationand government employees) 163,980 168,900

Net farmers consumption 748,810 789,080Seed 30,130 30,540Postharvest losses, animal feed andother uses (equal to 6.5% of production) 56,350 60,600

Total 999,270 1,044,090

Source: MOAFI.

19. Rice is the basic wage good in the Lao PDR and its price is areference base for the pricing system. Any dramatic change in the price ofrice must be accompanied by a complete restructuring of all prices (andsalaries), if the purchasing power of nonproducers (bureaucrats and theurban population) and cooperative and state farm workers is to be maintainedthrough the official pricing system. However, between 1976 and 1979, theretail price of rice increased from NK 1.44 per kg to NK 4.00 per kg. Thisincrease in the rice price, without a proportionate increase in salaries,caused people to consume less (figures quoted set this reduction at over a

- 152 - ANNEX 8

Page 9

third). Although the effect of this price increase could save sizeablequantities of rice, the reduced intake would have serious implications forthe population-s health and nutritional status.

20. The supply of goods other than rice appears to have little prioritybecause these are imported and use up scarce foreign exchange earnings; also,the demand created for these goods could have a destabilizing effect on theeconomy. However, this policy limits the supply of consumer goods on whichproducers can spend additional income and offers them little incentive toproduce more.

21. The Government has a complete monopoly over the marketing of exportgoods such as coffee and forest products. It also intervenes in the marketingof livestock products (beef, cattle, pigs, sheep and goats, and poultry) andfish. It purchases corn (feedgrain) for the feed mills (see Annex 4), aswell as cotton and tobacco for the ginning units and cigarette factories. TheGovernment has only limited involvement in the markets for soybeans, mung-beans, peanuts, some root crops (cassava, sweet potato, taro, yam) andvegetables.

22. The official marketing of agricultural products is the primaryresponsibility of the Ministry of Industry and Commerce, which operatesthrough the Lao Society for Import and Export (SLIE) for external trade and,depending on the nature of the merchandise, through the Society for theDistribution of Food Products (SDPA) and the Society for the Distribution ofIndustrial Products (SDPI) for internal trade./I The SDPA and SDPI obtainimported goods from SLIE and locally produced goods from the primary pro-ducers, cooperatives and state enterprises. They then sell these goods (ascentral wholesalers) to the state or ministry shops in Vientiane City and tothe provincial shops, which distribute merchandise within the provincethrough retail shops for provincial employees and also act as secondarywholesalers for the district shops and subdistrict cooperative shops. Thedistrict and subdistrict shops may also obtain goods directly from the pro-ducers in their areas. Goods commonly sold in these official shops includerice, salt, meat, sugar, cooking oil, cloth, utensils, school materials andother basic goods. Because the official prices of these goods do not includedistribution costs or a markup, the goods are in fact subsidized, but arepurchased mainly by nonfarm producers and cooperative and state farm workers(private farmers may only purchase goods that are in surplus). In VientianeCity, most ministries, government agencies and state enterprises run shopsfor their staff, procuring goods directly from SDPA and SDPI and from their

/1 For a detailed description of the modus operandi of these organizations,see "An Economic Report, 1979", Vol. II, Annex XIII, pp. 57-60.


cooperative farms. The district shops are run by the District AdministrationCommittee, whereas the subdistrict cooperative shops, the official outlet ofthe state distribution system, are run voluntarily by subdistrict residents.

23. The involvement of the private sector in marketing operations islikely to provide better indicators of the supply situation and allow pricesto find their level through the market mechanism. At three markets visitedby the mission, trade in edible consumer items and a few incentive goodsseemed to be growing, but private sector operations are still somewhat limiteddue to their recent official sanction and the immense problem of movinggoods with the existing transportation network. Transportation costs arehigh. Furthermore, there is some doubt about the wholehearted endorsementby some central government ministries and provincial governments of thespirit of Resolution No. 7, for instance no decision has yet been made onmaking credit available to private traders.

24. Agricultural Inputs. The distribution of agricultural inputsremains a government monopoly. Current prices of inputs quoted to themission are shown below. Because inputs are sold at their productioncost or import price level, with no markup added, their price contains aninherent subsidy (as estimated below) roughly equal to the cost of handling,transporting, wholesaling and retailing them. The present limited usagelevels (see Annex 6) preclude establishing any meaningful relationshipbetween the prices of inputs and their use. The small quantities of con-ventional inputs handled presently favor public sector operations, but ifthe Government's objective of rice self-sufficiency is to be realized, theuse of inputs must increase and the volume handled will surpass the distri-bution capacity of public sector organizations. However, if the privatesector is to become involved in input distribution, input prices would haveto be revised to include distribution costs, as well as a markup.

Official price Subsidy component /a(NK per kg) (

Rice seed 2.5 32Fertilizer: Urea 3.5 20

16-20-0 3.5 14Pesticides: Furudan (granules) 3.0 40

Sevin (85% WP) 10.0 40Azodrin (EC) 35.0 40

Diesel 4.00 (per liter) n.a.

/a As determined by MOAFI officials.


25. Recommendation. In a centrally planned, developing economy,pricing and marketing policy can play an important role in meeting produc-tion goals and satisfying consumption needs. To achieve these objectives,the pricing system should be adjusted to reflect relative scarcities andcosts of production. In the Lao PDR, the current low levels of per capitaincome provide a strong incentive for such a policy variable to ensureefficient use of scarce resources.




Distribution of Cooperatives in the Lao PDR, by Province

No. of Membership of cooperatives Area farmed by cooperatives (ha)cooper- Total no. No. of No. of Paddy Other

Province atives of members workers families Lowland Upland crops Total

Phongsaly 73 6,208 3,290 1,035 3,411 763 - 4,174

Luang Namtha 59 16,934 7,282 2,589 6,831 91 - 6,922

Oudomsay 72 29,551 8,119 5,684 5,591 1,068 - 7,199

Sayaboury 120 25,043 13,451 4,147 1,945 - - 1,945

Luang Prabang 41 5,746 3,045 2,189 1,958 751 - 2,709

Xiang Khoang 200 33,418 7,615 558 2,100 3,200 - 5,.

Houaphan 155 19,293 8,971 7,421 3,500 4,627 - 8,127

Vientiane 486 143,890 58,760 20,982 24,976 66 338 25,380

Khammouan 433 90,293 50,843 12,725 20,336 - - 20,336

Savannakhet 250 54,854 28,748 9,470 11,719 - - 11,719

Saravan 235 16,600 11,048 2,170 2,906 311 - 3,217

Champasak 304 90,280 55,048 16,671 30,172 - - 30,172

Attopeu 24 4,926 3,133 884 736 202 - 938

Total 2,452 537,036 259,353 86.525 116,181 11,619 338 128,138

Source: Department of Planning and Foreign Relations, September 1979.

LAO PEOPLE'S DEHOCRATIC REPUBLIC


1979 Agricultural Sector Budget: Planned Allocations andAc tual Di sbursesents

Difference between Disbursements as a percentagePlanned allocations Actual disbursements allocations & disbursenents of pleaned allocations

Local Foreign Local Foreign Local Foreign Local ForeignSector cost (NK) cost cost (N) cot$) cost (NK) cost (S ----------- ------ …

Agriculture,incl. veterinaryservices, animalhusbandry, statefarms and fishery 6,459,484.00 6,963,843.00 6,459,426.71 2,161,564.00 57.29 4,802,279.00 99.99 31.04

Forestry 1,000,000.00 7,449,400.00 998,677.51 3,114,120.00 1,322.49 4,335,280.00 99.87 41.80

Irrigation, incl.Meterology 894,820.00 9,428,198.00 894,757.47 9,071,641.00 62.53 335,557.00 99-99 96.22 A

AgriculturalEducation 536,510.00 491,991.00 475,676.73 44,525.00 60,833.27 557,466.00 88.66 9.05

Infrastructure(Construction ofoffices 6 ware-houses) 40,000.00 - 40,000.00 - - 100.00 -

Total 8.930.814.00 24.333.432.00 8.868.538.42 14,391,850.00 62,275-58 9.941.583.00) 99.30 59.14

Total in 893081.40 24.333.432.00 886.853.84 14.391.850.00 6.227-56 9,941.583-00 )

Note: The Government's local cost figures were converted from Kips of Liberation (KL) to New Kips (NR) at a rate of KL 100 - NK 1.00.Local expenditures were converted to dollars at a rate of NE 10 - $1.00.

Source: MtOAFI.

- 157 - ANNEX 8

Table 3



Planned Budget for the Agricultural Sector, 1980

Name of the Locally Externallysubsector/ No. of Total cost financed financed /adepartment projects --------------- (NK '000)-----------------

Agriculture 62 98,021.63 7,860.63 90,161.00- (9,016.10)

Forestry 30 57,340.31 4,848.06 52,492.25- (5,249.22)

Irrigation 43 147,283.25 9,058.75 138,224.50- (13,822.45)

Ag. Education 5 4,166.50 343.75 3,822.75- - (382.28)

Infrastructure 1 62.50 62.50

Total 140 306,874.19 22,173.69 284,700.50(28.470-05)

/a Dollar amounts are shown in brackets.

Note: $1.00 = NK 10.

Source: MOAFI.



Comparison of Official Indicative and Free Market Prices

Official indicative prices (NK/kg) Free market prices (NK/kg)Commodity 12/76 12/77 12/78 10/79 01/80 12/76 12/77 12/78 10/79 01/80

Paddy 0.22-0.27 0.22-0.30 0.22-0.30 0.22-0.30 0.80-1.20 - - - - 1.00-1.90Rice:

Ordinary - - - - - 1.44 4.99 3.78 4.00 4.00Glutinous - - - - - 0.61 2.14 3.45 3.50 3.50

Pork 2.50 2.50 2.50 2.50 10.00 12.53 11.58 14.00 18.00 20.00 1Coffee: I-aArabica 2.00 2.00 2.40 3.00 10.00 8.00 12.00 27.00 28.00 10.00 @Robusta 7.50 8.00Ex celsia 6.00 n.a.

Maize - - - - - 1.00 1.08 1.29 1.10 1.10 1.50

Haricot:Soja 0.70 0.60 0.60 1.00 - 2.40 2.88 4.00 8.00 -Arachide 0.45 0.80 0.80 1.00 - 4.35 5.22 7.50 12.00 -

Tobacco 0.30 0.35 0.35 0.35 1.40 1.20 1.44 2.00 1.50 1.50

Note: All prices are expressed as NK, using an exchange rate of NK 1 = KL 100.

Source: MOAFI and the Ministry of Finance.

(DX




Official Prices of Agricultural Commodities

Old price /a New price /bCommodity NK kg NK kg

Paddy 0.22-0.30 0.80-1.20*

Coffee:Ex celsia 2.0 6.00*Robusta 2.5 7.50*Arabica 3.0 10.00*

Cotton 1.0 4.00Tobacco 0.35 1.40*Soybeans 0.60 2.40Root crops (sweet potatoes,

cassava, taro, yam) 0.25 1.00

Mungbeans 0.80 3.20Peanuts 0.80 3.20Vegetables 0.25 1.00Maize /c 0.30 1.00*

Buffalo meat 2.50 10.00Cattle meat 2.30 9.20Pork 2.50 10.00*Mutton - -Poultry 2.,00 8.00

Eggs (NK/egg) 0.15 0.60

* Official indicative prices.

/a As of September 3, 1976./b Effective from January 1, 1980./c Feedgrain; especially important in Vientiane.

Note: All prices are expressed as NK, using an exchange rate ofNK 1 = KL 100.

Source: MOAFI.

-160- ANNEX 9

Page 1



Bibliography

1. Socialist Transformation in the Lao People's Democratic Republic -

An Economic Report (in 2 volumes), World Bank Report No. 2282-LA.

2. Some Findings Relative to the Reconstruction and Economic Developmentof Laos (in 4 volumes), World Bank Report No. 668A-LA, April 1975.

3. A Review of the Lower Mekong Basin Development Problems and Policies,

World Bank Report No. PS-8a, February 1972.

4. Appraisal of the Agricultural Rehabilitation and Development Project,

Report No. 1593a-LA, December 1977.

5. Agricultural Rehabilitation and Development Project II, StaffAppraisal Report, No. 2354-LA, May 1979.

6. Agricultural Rehabilitation and Development Project III, StaffAppraisal Report, No. 2842-LA, March 1980.

7. Atlas of Physical, Economic and Social Resources of the Lower Mekong

Basin: United Nations, September 1968.

8. Atlas of Thematic Maps of the Lower Mekong Basin, prepared on the basis

of satellite images, April 1977, Committee for the Coordination ofInvestigations of the Lower Mekong Basin.

9. Explanatory Notes to the Atlas of Thematic Maps of the Lower MekongBasin, April 1977.

10. Reconstruction and Development Program (Technical Assistance Project)in the Vientiane Plain, Final Report (in 2 volumes), InternationalDevelopment Center of Japan, July 1977.

11. Annual Statistical Bulletin, 1975, Committee for Coordination ofInvestigations of the Lower Mekong Basin.

12. UNDP Third Country Program for Laos - January 1980-December 1985, UNDP,January 1980.

13. Seed Multiplication for Irrigated Agricultural Projects for the LaoPDR: Interim Mekong Committee, May 23, 1979.


14. Agricultural Support Facilities Project, Phase I, December 1979,

ADB Report No. Lao-AP7.

15. ADB's Appraisal Report of Casier Sud (October 1979).

16. DHV's Consultant Report on the Houei Van He Irrigation Project (1979).

17. DHV's Consultant Report on the Xiang Khoang Irrigation Project (1979).

18. Hydrological Yearbooks, Mekong Secretariat.

19. Pa Mong Phase II Studies, Appendix I, Land Resources Mekong Committee,

1972.

20. Evaluation of the Agricultural Extension Program in Laos, FY1957-74,USAID/LAOS, Agricultural Division, Crop Production Branch, 1974.

21. A Policy and Action Plan for Strengthening National Food Security

in the Lao PDR, FAO, January 1979.

22. Domestic Rice Consumption in Thailand 1973. Suthiporn Chirapanda

and Chongchet Chanprasert.

23. Thai Rice Production and Consumption. Yuvares Gaesuwan, AmarSiamwalla, Delane E. Welsch. Department of Agricultural Economics,

Kasetsaart University, Bangkok, June 1974.

24. Strategy for Fertilizer Development in Thailand, International

Fertilizer Development Center, October 1979.

25. Report on Indicative Basin Plan. A Proposed Framework for theDevelopment of Water and Related Resources of the Lower Mekong Basin,

Mekong Committee, 1970.

26. Comprehensive Reconnaissance of the Mekong Tributaries, Japan, 1961.

27. Four Irrigation Reservoirs in the Lao PDR. Project Data Sheet inSupport of Balance of Payment Loan from the OPEC Special Fund, MekongSecretariat MKG/63, May 1978.

28. Flood Protection and Reclamation of Swamp and Marshland in theVientiane Plain. Project Data Sheet in support of a grant from theEEC, Mekong Secretariat MKG/68, October 1978.

29. Annual Report 1979, from the Interim Mekong Committee MKG/82.

-162 -

ANNEX 9Page 3

30. Note from the Mekong Secretariat of October 1978 on the Se Bang FaiProject.

31: Preliminary Study on Cutoffs of Meandering Channels of the Nam Ngun,from Mekong Secretariat, June 1977.

32. Plan de l'Irrigation Triennal (1978-1980), from the General Directorateof Irrigation of Laos.

33. Irrigation Development for Food Production, Annex 3 to the UNDPLAO/78/024 project document.

34. "Rapport sur le Developpement d'lrrigation en RDP Lao" by I. Trifonov,FAO Irrigation Engineer (UNDP Project LAO/76/009), November 9, 1979.

35. LAOS - Project Proposals for IFAD Financing Review Mission,Back-to-Office and Full Report, by H. Casati, Senior Adviser, DDC, FAORome, December 17, 1979.

\ X 102° ' N Q4° WmlThis -tep hae pepaed by tfie I . ,

\ The deorn -n sd and the RehAsh. 75EGPLES

dono opp on 'ha parr of therN tDEMO

-22'\ CHINA Wsrd Bank ad its *h .-iats.

BURMA &e SeihCnir

HANCOI

Gulf at

-l~~~~~~~~~~~~~~~~~~VET t tAM

LAO PEOPLE'S DEMOCRATIC REPUBLIC (Th.k'k)

AGRICULTURAL SECTOR REVIEWADMINISTRATIVE DIVISION ANDMAIN HYDROGRAPHIC SYSTEM THAILAND

ELEVATION(MCt-C)

thOR0 end OVER S-ha

160 16~~0 19 L

----- PROPOSED ROADSEXISTING PAVED ROADSEXISTING GRAVEL OR LATERITE ROADS

------ ROADS UNDER CONSTRUCTION OR BEING UPGRADEDRI VERS

4 AIRPORTSPROVINCIAL BOUNDARIES

- - - INTERNATIONAL BOUNDARIES

0 50 100 150 't 5iKILOMETERS 1 - -/r

-14° 0, 5,0 p z g190-14' ISDMCAI DEMOCRATIC KAMPUCHEA >

102U 1040

IBRD 15052

102020 102030 1020'40 102050 103000 JULY 1980


AGRICULTURAL SECTOR REVIEWIRRIGATION DEVELOPMENT PROGRAM

18-40' #4 ' , t AJ +iVIENTIANE PLAIN 1S°40

A' .NAM LIht \ g < IRRIGATION PROJECT

PROJECTED

STORAGE DAMS

<c::o2- COMPLETED14s g r UNDER CONSTRUCTION

sB. SenW. fl8At1I007 A t f 0,~ CONSIDERED

DIVERSION DAMS

/ 5p tX B. Thi. K.o NAM k ,$fq/-< COMPLETED

-18P30' Phon H;Jngg A {4\> DA ' - CONSIDERED a835

\ PUMPING STATIONS

CONSIDERED EAST AND WEST NAM NGUM CANALS

- PROJECT BOUNDARY

INTERNATIONAL BOUNDARIES

KILOMETERS 10 15

,18'20 ; MILES 5 10 01

wU - .g W~~~~~~ Th. h . -- E.- *. , ..- OE WRRih5/ sm Ao * 5ExE

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A0Q1E ARSAiR tEAS "W RAs 55 >Snp; so.. i, *s$ ts#t Ws B.akhoay50 P/gE/

1810 Mene C C, 11 - :'U-3T

Sottf CR LIAO 1,n SR-nER P 5SEEEs Es*E$YES?E/0 0RR$5M8R

A $es .5tEAlEa888I8P*0JE - , . .E,C.

, W. b4n 'l-.' '''''.L'i.LS., 'S=

< \4A - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. ,, *. -..- . ... ...................;

\~~~~~~~~ ~ ~~~~~~~~ egoS/ }'l ow o_w", , , . *

IBRD 15053104° / 'o5° / 106' 167- JUNE 1980

"LAO' PEOPLE'S DEMOCRATIC REPUBLIC

AGRICULTURAL SECTOR REVIEWLARGE AND)MEDIUM SIZE IRRIGATION PROJECTS

KHAMMOCANE AND SAVANNAKHET PROVINCES

| .-& CONSIDERED STORAGE DAM AND RESERVOIR

CONStDERED IRRIGATION PROJETS 1A'S/ENG 41- . . . - . . i. . . F ======-CONSIDERED DIVERSION CHANNEL

_1 0 KHO(ANG -\< < . -- PRIMARY ROADS 9°

------ ~ R:fIVERS

2+,a>- - PROVINCtAL DOUNDARiES

/ :. ..-- INTERNATIONAL BOUNDARIES

9 >4ee /I//FNTAN X: i j-/Storage dams examined in the 1970. tndicative Basin Plan (withTHE i n i /;RA t5/& X ; $ tentative project areas) from the Mekong Secretariat

O 20 40) 60 80 1)0 1KI ERS 1 __________

o 10 20 30 40 50

SOUTH CHINA

: <xAK/JA/lHA OtA/ Cm,jc ,on e e2 ; 5 ifA :N~~~~/I n44/IN

T-f A L A .2SE BANG FAI~~SE

t7,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7

. - -. ; . X S~~~~A NVANNt/E I(HFT

lQ4- ~~~~~~~~~~~~~~~~HIL NC, RASIN

H I K A( af r A'

ANVAMAN ~ ~ ~ ~ ~ APhAngoeaoAnA

W w ~~~~~~~~~h-bo -. a -r #-- ma KhongxeV\ ---

A VDAMA V NAM t ) t ho, ofthe In (SiEA 2t> 0tM-i

/v/NA SEA w0 f S $,\

10 60 107'

IBRD 15054X 8 w 2 _ < 6si~~~~~~~~~N 166 167F 1 >^4 i02'>

pakho,,wg * < / < >II -D H

IBnn B Mosang g & \i+ oisk, 7t 4 (AKH OOAN a nj4

S-eHa< X - H S * / c f4 A.oaoaeej

I6~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~E

D / / A htu~~~~~~~~~~~anp ofi- 5f

lAO PEOPlE'S DEMOCRATIC REPUBLIC 9

AGRICUlTURAL SECTOR REVIEW bgscnt;,kg

Considered in the Charnpossqk, % )

E X S TI|NG S TO RA GE D A M -'15

CONSIDERED STORAGE DAM AND RESERVOIR o Vange 8Pho g wAr greol

G-RAV;E. OR [ATER IE ROADS t S 4 *

AREAS OF 1000 m ELEVATION AND OVER j / En dn X E .Suc

--- PRO VINCIALBOUNDARIES / C H A PA,,tS A )5 6 n ,_-- BINTERNATIONAL BOUNDARIES

Storage dams eoammned IAnde 1970. Indicatio; Basin Plan , DEMOCRATIC -4- mWire ensation orojeot armrs) Prom the Mekong Secrserdridt ._a rh s./ // 4

This map NaT been prepa,redby the World BanE7 s nttff enolonv'ly fnr tIre cnivenre __________ECMETE_RS

bnoondrene ohon's on rh,nmpd o inpp no Jh 10s 2f 30q Wr40 BaE0ad

.anoepranoe n i snob boundarie. Corin 1de7°

Documents

Lao People's Democrabc Republic FILE CRPY Agrcultural ...documents.worldbank.org/curated/en/225921468263658310/pdf/mul… · Report No. 3215-IA Lao People's Democrabc Republic FILE