implementation completion and results report€¦ · report no: icr00004318 implementation...

Document of

The World Bank FOR OFFICIAL USE ONLY

Report No: ICR00004318

IMPLEMENTATION COMPLETION AND RESULTS REPORT

(IDA-H5470 TF-93083 IDA-H7890)

ON A

GRANT

IN THE AMOUNT OF SDR 17.9 MILLION (US$30 MILLION EQUIVALENT)

AND

ON AN

ADDITIONAL GRANT

IN THE AMOUNT OF SDR 14 MILLION

(US$21 MILLION EQUIVALENT)

TO THE

LAO PEOPLE’S DEMOCRATIC REPUBLIC

FOR A

ROAD SECTOR PROJECT ( P102398 )

March 27, 2018

Transport & Digital Development Global Practice

East Asia And Pacific Region

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CURRENCY EQUIVALENTS

(Exchange Rate Effective {September 30, 2017)

Currency Unit = Lao Kip

Lao Kip 8,293 = US$1

US$1.41 = SDR 1

FISCAL YEAR

July 1 - June 30

Regional Vice President: Victoria Kwakwa

Country Director: Jean-Christophe Carret

Senior Global Practice Director: Jose Luis Irigoyen

Practice Manager: Almud Weitz

Task Team Leader(s): Sombath Southivong

ICR Main Contributor: Chanin Manopiniwes

ABBREVIATIONS AND ACRONYMS

AADT Annual Average Daily Traffic

AF Additional Financing

CAS Country Assistant Strategy

CBA Cost-Benefit Analysis

DPWT Department of Public Work and Transport

EA Environmental Assessment

EGPF Ethnic Groups Policy Framework

EIA Environmental Impact Assessment

EIB European Investment Bank

EIRR Economic Internal Rate of Return

EMP Environmental Management Plan

ESOM Environmental and Social Operation Manual

EU European Union

FS Feasibility Study

GDP Gross Domestic Product

GoL Government of Lao PDR

HDM Highway Development and Management Model

ICT Information and Communication Technology

IDA International Development Association

IFC International Finance Corporation

IFR Interim Financial Report

IRI International Roughness Index

LRSP2 Lao Road Sector Project 2

M&E Monitoring and Evaluation

MPWT Ministry of Public Work and Transport

MTR Mid-term Review

NPV Net Present Value

NSEDP National Socio-Economic Development Plan

NTSP National Transport Strategic Plan

PAD Project Appraisal Document

PDO Project Development Objectives

PPIAF Public Private Infrastructure Advisory Facility

PPP Public-Private Partnership

PROMMS Provincial Road Maintenance Management System

PTI Public Works and Transport Institute

RAMP Road Asset Management Project

RAP Resettlement Action Plan

RMF Road Maintenance Fund

RMS Road Management System

SCF Standard Conversion Factor

SDR Special Drawing Right

TED Technical Environmental Division

VOC Vehicle Operating Cost

VOT Value of Time

TABLE OF CONTENTS

DATA SHEET ....................................................................... ERROR! BOOKMARK NOT DEFINED.

I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5

A. CONTEXT AT APPRAISAL .........................................................................................................5

B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................8

II. OUTCOME .................................................................................................................... 10

A. RELEVANCE OF PDOs ............................................................................................................ 10

B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 11

C. EFFICIENCY ........................................................................................................................... 12

D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 13

E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 13

III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 15

A. KEY FACTORS DURING PREPARATION ................................................................................... 15

B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 15

IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 17

A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 17

B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 18

C. BANK PERFORMANCE ........................................................................................................... 20

D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 21

V. LESSONS AND RECOMMENDATIONS ............................................................................. 22

ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 24

ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 35

ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 37

ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 38

ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 41

ANNEX 6. MPWT’S ICR ......................................................................................................... 42

The World Bank Road Sector Project ( P102398 )

Page 1 of 90

DATA SHEET

BASIC INFORMATION

Product Information

Project ID Project Name

P102398 Road Sector Project

Country Financing Instrument

Lao People's Democratic Republic Specific Investment Loan

Original EA Category Revised EA Category

Partial Assessment (B) Full Assessment (A)

Related Projects

Relationship Project Approval Product Line

Additional Financing P129347-LA - Additional Financing Road Sector Project

26-Jul-2012 IBRD/IDA

Organizations

Borrower Implementing Agency

Ministry of Finance Ministry Of Public Works and Transport

Project Development Objective (PDO) Original PDO

The project development objectives are (a) to improve road services on two main national corridors and the provincial road network, (b) to rehabilitate roads damaged by Typhoon Ketsana, and (c) to establish and operationalize a contingency fund for quick disaster response in the road sector.


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FINANCING

Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$)

World Bank Financing IDA-H5470

27,800,000 27,800,000 27,569,317

TF-93083

1,000,000 918,013 918,013

IDA-H7890

21,000,000 21,000,000 20,684,618

Total 49,800,000 49,718,013 49,171,948

Non-World Bank Financing

Borrower 14,380,000 27,880,000 26,650,000

JAPAN: Ministry of Finance - PHRD Grants

1,000,000 1,000,000 918,013

Total 15,380,000 28,880,000 27,568,013

Total Project Cost 65,180,000 78,598,013 76,739,961

KEY DATES

Approval Effectiveness MTR Review Original Closing Actual Closing

25-Mar-2010 01-Jul-2010 24-Nov-2014 30-Sep-2014 30-Sep-2017

RESTRUCTURING AND/OR ADDITIONAL FINANCING

Date(s) Amount Disbursed (US$M) Key Revisions

06-May-2015 41.00 Change in Safeguard Policies Triggered Change of EA category

14-Mar-2017 48.25 Reallocation between Disbursement Categories

KEY RATINGS

Outcome Bank Performance M&E Quality

Highly Satisfactory Satisfactory High


Page 3 of 90

RATINGS OF PROJECT PERFORMANCE IN ISRs

No. Date ISR Archived DO Rating IP Rating Actual

Disbursements (US$M)

01 03-Jan-2011 Satisfactory Satisfactory 8.54

02 04-Jan-2012 Moderately Satisfactory Moderately Satisfactory 12.15

03 02-Jun-2012 Satisfactory Satisfactory 13.50

04 13-Feb-2013 Satisfactory Moderately Satisfactory 21.45

05 23-Oct-2013 Satisfactory Moderately Satisfactory 33.03

06 24-Jun-2014 Satisfactory Moderately Satisfactory 36.17

07 08-Jan-2015 Satisfactory Moderately Satisfactory 40.51

08 11-Aug-2015 Satisfactory Moderately Satisfactory 43.40

09 29-Feb-2016 Satisfactory Moderately Satisfactory 45.73

10 21-Sep-2016 Satisfactory Satisfactory 48.25

11 12-Apr-2017 Satisfactory Satisfactory 48.25

SECTORS AND THEMES

Sectors

Major Sector/Sector (%)

Transportation 100

Public Administration - Transportation 5

Rural and Inter-Urban Roads 95

Themes

Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 45

Jobs 11

Job Creation 11

Regional Integration 34


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Finance 8

Finance for Development 8

Disaster Risk Finance 8

Urban and Rural Development 46

Urban Development 11

Urban Infrastructure and Service Delivery 11

Rural Development 11

Rural Infrastructure and service delivery 11

Disaster Risk Management 24

Disaster Response and Recovery 8

Disaster Risk Reduction 8

Disaster Preparedness 8

ADM STAFF

Role At Approval At ICR

Regional Vice President: James W. Adams Victoria Kwakwa

Country Director: Annette Dixon Ellen A. Goldstein

Senior Global Practice Director: John A. Roome Jose Luis Irigoyen

Practice Manager: Jeeva A. Perumalpillai-Essex Almud Weitz

Task Team Leader(s): Zhi Liu Sombath Southivong

ICR Contributing Author: Chanin Manopiniwes


Page 5 of 90

I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES

A. CONTEXT AT APPRAISAL

Context

1. At appraisal in February 2010, Lao PDR had achieved steady economic growth, but remained one of the world’s

poorest countries in East Asia and the Pacific. Its per capita gross national income was US$740 in 2008. The economy

of Lao PDR was primarily natural resources-based with more than half of the GDP from agriculture, forestry, livestock

and fisheries. Agriculture was the major sector of the economy (44% of GDP), employing about 80% of the labor

force. Given Lao PDR’s central location within the Greater Mekong Sub-region, the country’s transport network

comprised an integral part of the sub-region’s transport network and associated economic corridors. The Sixth

National Socio-Economic Development Plan (NSEDP, 2006-2010) aimed to ensure that an efficient transport system

creates favorable conditions for sustainable growth and poverty reduction, as well as regional integration.

2. Road is still the predominant mode of transportation in Lao PDR. In 2010, the road network carried 90% of

passenger traffic (passenger-km) and 86% of freight traffic (ton-km). In total, the road system extended over 35,000

km. The national road network comprised approximately 6,900 km of roads, most of which had either a sealed (56%)

or gravel (30%) surface. The national network was mostly in an acceptable condition (80% of paved roads were

classified as good or fair) and generally constructed to an appropriate standard for the volume and nature of the

traffic carried. However, the provincial roads (totaling 5,500 km) and district and rural roads (almost 18,000 km) were

mostly gravel or earth roads and vulnerable to heavy rains and floods.

3. Lao PDR is one of the ASEAN region’s most vulnerable countries to natural hazards with the highest 100-year

Probable Maximum Loss relative to GDP (as high as 11.7 percent). Five major storms or tropical cyclones have

affected the country over the past two decades. In 2009, Typhoon Ketsana resulted in estimated damages and losses

of US$58 million. In 2011, Typhoon Haima and Tropical Storm Nok-Ten caused damages of US$66 million and US$72

million, respectively. In 2013, a series of storms caused extensive flooding affecting 350,000 people in 12 provinces

(out of a total of 18). Global and regional climate change projections suggest that natural disasters in Lao PDR are

likely to intensify and become more frequent. On September 29, 2009, Typhoon Ketsana swept across the southern

part of Lao PDR, causing enormous damages and losses in five provinces (Attapeu, Sekong, Saravanh, Champasak,

and Savannakhet), killing 28 people, affecting more than 180,000 people, or almost 30,000 households. A Post-

Disaster Damage, Loss, and Need Assessment estimated that about 1,842 km of roads and a number of small bridges

were severely or partially damaged, and that the cost of restoring these roads and bridges could amount to about

US$13 million. If not restored soon, the damages would cause economic losses, mainly in terms of higher vehicle

operating costs and longer travel times, further hampering the recovery of the severely affected local economy.

4. Financing remained a major constraint for the Government of Lao PDR (GoL) to achieve its strategic objectives

in the road sector. Road construction and maintenance were, and continue to be, funded mainly from three sources:

external assistance, government budget and a dedicated Road Maintenance Fund (RMF). The RMF was established


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in 2001 with revenue mainly from a fuel levy, starting from US$2 million in 2002 and growing at about 10% per year.

Funding from the Nam Theun 2 Hydropower Project was also expected to help fund poverty reduction-focused basic

rural road improvement and maintenance.

5. Given that the World Bank had been one of the key donors in Lao PDR’s transport sector for two decades and

the support had achieved good results, the rationale for the Bank’s continuing assistance to the road sector was

strong. Bank support for the last two decades has been adjusted to the country’s needs, which had been evolving

over time – i.e. from national roads rehabilitation in the 90s to provincial infrastructure development, road

maintenance, and institutional strengthening. A significant achievement was the establishment of the RMF in 2001.

RMF is still in operation with growing revenue from US$2 million in 2002 to US$80 million in 2017. The GoL has put

in place a road asset management system, financial management system, and strengthened capacity of both public

and private sectors involved in the road sector development. Lao Road Sector Project (LRSP) was built on the previous

achievement and capitalized on institutional outcomes achieved from previous operations, especially the two-phase

Bank-led multi-donor-funded Road Maintenance Program. In particular, the Bank’s involvement in LRSP would

enable further development and implementation of the building blocks of integrated road asset management and

sector governance. The project would build necessary capacity to manage and utilize the road asset database, which

would be the basis for road sector’s planning and prioritization. At the same time, the Bank could enable GoL to

establish an emergency contingency fund for rapid response to disasters, and thereby provide immediate relief for

typhoon recovery. For the latter, support in the form of an IDA Grant would help the country maintain debt

sustainability.

Theory of Change (Results Chain)

6. The theory of change below illustrates the project’s chain of impacts, from activities to output, to outcomes (at

PDO level), which affect long-term outcomes. Key components related to road upgrading, maintenance and disaster

recovery contributed directly to transport service outcomes; while the institutional strengthening component played

a supporting role to project implementation (at output level) as well as contributing to the longer-term sector-level

strategy and capacities.


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Project Development Objectives (PDOs)

7. The objectives of the Project in the Financing Agreement were: (a) to improve road services on two (2) main

national corridors and the provincial road network; (b) to rehabilitate roads damaged by Typhoon Ketsana; and (c)

to establish and operationalize a contingency fund for quick disaster response in the road sector.

Key Expected Outcomes and Outcome Indicators

8. The key outcome indicators were:

• Reduced travel time on national roads

• Increased number of people served by paved national roads

• Increased share of provincial road network in good/fair condition

• Recovered condition of road damaged by Typhoon Ketsana

• Contingency fund established and operationalized to ensure the passability and safety of the affected

national and provincial road links


Page 8 of 90

Components

9. Component A: Road Network Improvement and Preservation (Total US$3 1.93 million; of which RMF US$8.00

million, other GoL contribution US$6.38 million and IDA US$17.55 million). This component financed physical works

for the upgrading of two priority national road links, the periodic maintenance of the provincial road network, and

road safety improvements. The two national roads to be upgraded are: (a) NR 1B from Pak Nam Noy to Ban Yo,

Phongsaly Province, 109 km; and (b) NR 6A from Sop Bao to Ban Dan, Houaphan Province, 62 km. The provincial

roads to be included under the project were identified from MPWT’s three year rolling plan and Annual Works

Programs (AWP).

10. Component B: Institutional Strengthening (Total US$2.45 million; of which from the Policy and Human Resource

Development or PHRD Fund US$1.00 million and IDA US$1.45 million). The component provided technical assistance

to both MPWT and the Provincial DPWTs in the areas of strategic planning and management, country system for

environmental safeguards, fiduciary management, and internal controls.

11. Component C: Disaster Recovery and Contingency (Total US$8.80 million from IDA Crisis Response Window

resources). The component supported quick recovery of about 1,100 km of Typhoon Ketsana damaged roads in the

five southern provinces (Attapeu, Sekong, Saravanh, Champasack and Savannakhet) and establishment of an

emergency contingency fund for quick response to the impacts of natural disasters on the road network.

B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE)

Revised PDOs and Outcome Targets 12. The PDO was not changed during implementation.

Revised PDO Indicators 13. N/A.

Revised Components 14. Components were not changed or cancelled. There were changes from Additional Financing (AF), which are

reflected in the section below on ‘Other Changes’.

Other Changes

15. Additional Financing (AF) was approved in 2012. The project was also restructured four times: first in 2012, then

in 2014, in 2015, and lastly in 20171. The AF provided an additional US$21 million equivalent (SDR 14 million) to finance

1 Reference to restructuring papers approved on January 26, 2012 (Report No. 66575); on August 1, 2014 (Report No. 91240); on April 9, 2015 (Report No. RES16540); and, on March 25, 2017 (Report No. RES26371).


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unanticipated cost overruns, enabling the project to complete its original road improvement targets. The AF was also

used to scale up project impact by: (a) enhancing the disaster resilience of two national roads and priority sections of

the provincial network; (b) further strengthening the institutional capacities of MPWT; and (c) topping up the

emergency contingency fund, depleted following rehabilitation efforts in 2011. The institutional strengthening

aspects were expanded to include development of sector capacities for the management of Public Private

Partnerships (PPP) as well as feasibility studies of PPP pilots. The AF also extended the original closing date from

September 30, 2014 to September 30, 2017.

16. The 2012 restructuring reallocated SDR1.86 million from various components to Component C – Disaster

Recovery and Contingency – as an emergency response to Typhoon Haima and Nokten.

17. The 2014 restructuring reallocated SDR1.17 million (US$1.8 million equivalent) from the disaster contingency

fund to finance cost overruns for National Road 6A and to finance the repair of sections of National Road 1B that was

damaged by flash floods during the previous rainy season.

18. The 2015 restructuring (Level 1) revised the project’s Environmental Assessment (EA) Category from B to A. As

discussed below, this change was required to ensure that the feasibility studies for the road sector PPP would comply

with both World Bank environmental and social policies and IFC Performance Standard requirements.

19. The 2017 restructuring (Level 2) reallocated project proceeds from Category 1 to Category 3 to cover payment of

retention money for emergency repairs on NR13 after typhoon Haima, and from Category 1 to 4 to cover costs

incurred mainly for (a) a supervision consultant for additional works related to upgrading NR 6A, seven bridges on NR

6A and NR 1B, and (b) consultants for the Social and Environment Survey for NR 13.

Rationale for Changes and Their Implication on the Original Theory of Change

20. Rationale for Additional Financing. The AF in 2012 was deemed necessary to address the cost overruns that

resulted from design changes to enhance the disaster resilience of the two national road sections, discrepancies in

the original design of these two roads, the need to accommodate the installation of electricity lines along both roads,

severe deterioration of the provincial road network following typhoons Haima and Nok Ten in 2011, and overall price

escalation for materials and fuel, which was as high as 31.2% (year-on-year) in June 2011.

21. Rationale for the restructuring in 2015. The original project had been accorded EA Category B as the scope of

activities, including road improvement works of two national roads and maintenance works of provincial roads, was

not expected to be have large scale, significant, and/or irreversible environmental or social impacts. When the AF was

approved, the overall potential of PPP road development was uncertain in Lao PDR. To determine PPP viability,

location, and scope, parallel funding was initially mobilized from the Public Private Infrastructure Advisory Facility

(PPIAF) for a preliminary Feasibility Study (pre-FS). The pre-FS was conducted between February and May 2013,

identified sections of National Road 13 (NR13) where PPP could potentially be viable, and recommended that a full FS

be carried out to identify specific sections of NR13.


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22. The full FS concluded that a PPP could potentially be viable for the two road sections from Km12 to Km70 of NR13

North and from Km13 to Km63 of NR13 South. The FS also found that road expansion from two to four lanes would

be viable on NR13N from Km12 to Km44 and NR13S from Km21 to Km28. The proposed scope was determined to

trigger the Bank’s Environmental Assessment Category A under OP4.01, as the PPP pilot roads would pass through

semi-urbanized areas and, if the road were widened for the full length of the pilot sections, would affect some 1,600

landowners, 30% residential and 70% commercial entities. Therefore, safeguards instruments related to the PPP road

sections needed to be prepared as part of the FS on the basis of a Category A project.

II. OUTCOME

A. RELEVANCE OF PDOs

Assessment of Relevance of PDOs and Rating Rating: High 23. The objectives of LRSP are relevant today as at appraisal. The project strengthened road asset management

planning and implementation process and capacity, which follows the goals and guidelines set out in the 6th National

Socio-economic Development Plan (NSEDP) – ensuring road infrastructures are in good condition and able to support

socio-economic activities. The project objectives and achievements are consistent with MPWT’s National Transport

Strategic Plan (NTSP) for 2009-2015, which prioritized a rolling investment and maintenance program for the road

sector based on a Unified Road Management Framework (URMF). In addition, the project has been influential in

setting the direction of the NTSP, which is updated from time to time during implementation.

24. The project was fully consistent with the World Bank’s Country Assistance Strategy (CAS) for Lao PDR (2005-2011).

It supported the first CAS pillar of sustained growth through enhanced regional integration and private sector

development, and also the CAS objective to improve alignment of donor resources with the Government’s National

Growth and Poverty Eradication Strategy and strengthen aid coordination. During implementation, the project

remained relevant to the Country Partnership Strategy (CPS, 2012-2016) – on the first pillar: Competitiveness &

Connectivity, as well as on cross-cutting areas of planning and budgeting.

25. Towards completion, the project remained even more relevant to the Country Partnership Framework (CPF, 2017-

2021) in several areas. The project directly linked with Objective 1.3 – Investing in infrastructure for growth and

inclusion under Focus Area 1: Supporting inclusive growth. In addition, Under Focus Area 3: Protecting the

environment, the project addressed in the transport sector what Objective 3.2 – Putting in place enhanced disaster

risk management and climate and disaster resilience – was set out to do.


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B. ACHIEVEMENT OF PDOs (EFFICACY)

Assessment of Achievement of Each Objective/Outcome Rating: High

26. As described in the previous section, the key expected outcomes of the project were: (i) improvement of road

services on two main national corridors and the provincial road network; (ii) rehabilitation of roads damaged by

typhoon Ketsana; and, (iii) establishing and operationalizing a contingency fund for quick disaster response in the road

sector.

PDO (i): Improvement of road services on two main national corridors and the provincial road network

Rating: High

27. This part of the PDO refers to the improvement of road services on the two national corridors – NR 6A and NR 1B

– as well as on the provincial road network maintained under the project. Key outcome indicators for road services

improvement that contributed directly to this were: (a) reduced travel time on national roads, (b) increased number

of people served by paved national roads, and (c) increased share of provincial road network in good/fair condition.

28. At appraisal, the travel times on NR 6A (62km) and NR 1B (109km) were 3 hours and 5 hours, respectively. The

target was to reduce travel time by 40%. The civil works on NR 1B were completed ahead of schedule, and by August

2013 travel time had been brought down to 2.5 hours (50% reduction), this level was sustained through to the end of

the project. The construction work on NR 6A was completed by the end of 2016, and the travel time reduced to 50

minutes (72% reduction).

29. It was expected that the project would serve at least 26,500 people (49% female, i.e., at least 12,985 female). The

project’s annual survey in 2016 showed that the paved national roads (NR 6A and NR 1B) were serving 116,581 people

(44% of whom were female, i.e., 51,296 female).

30. The share of the provincial road network in good and fair condition was 46% at appraisal, against a target of 64%.

By project end, implementation of annually planned provincial road maintenances programs had resulted in 65% of

the provincial road network in good and fair condition. It was noteworthy that the km of provincial roads maintained

had exceeded the planned targets in every year of implementation.

31. Overall implementation of project components that contributed to this objective were completed on time, above

target, and within revised budget with additional financing. The results of these activities contributed as expected to

the outcome of the project. The outcomes contribute to the broader objective of economic growth and shared

prosperity – better connectivity for people in the districts and improved quality of national road’s services. It also

served as a case for a sector-wide approach, which set the path toward better alignment of donor resources.


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PDO (ii): Rehabilitation of roads damaged by Typhoon Ketsana

Rating: High

32. The rehabilitation of roads damaged by Typhoon Ketsana was implemented quickly and as soon as the project

started, through advance contracting arrangements. The magnitude of impact from Typhoon Ketsana, as mentioned

earlier, was as large as US$58 million in damages and losses; and it impacted more than 300,000 people in 12

provinces. Against a target of 60%, 55% of roads damaged by Typhoon Ketsana were rehabilitated by the end of 2011,

whereas the remaining 45% (of repair works) were completed by the Recipient using other sources of funds. As this

objective was achieved by the client partly with other sources of funding, this component also demonstrates the

outcome of better alignment of donor resources, where the government is taking the lead toward a common

(country’s own) development objective. Overall, this objective was achieved in a timely manner and within budget.

PDO (iii): Establishing and operationalizing a contingency fund for disaster response in the road sector

Rating: High

33. The contingency fund mechanism for quick disaster response under the project was established in 2011. The fund

was triggered following Typhoon Haima and Nock Ten in July 2011 for urgent road repair works. The objective was

achieved, as US$ 3.63 million was utilized right away for emergency repair of 28.6 km of National Road 13 North after

the actual natural disaster event. The mechanism implemented under LRSP has been institutionalized and is now being

used for GoL budget including RMF. The procedure of requesting for emergency funding from the RMF is incorporated

in MPWT’s financial management guidelines.

Justification of Overall Efficacy Rating

Rating: High 34. The project achieved the PDOs through activities and outcomes as explained above. Although the project was

affected by natural disaster events, the efficacy was further enhanced by introduction of both non-structural

(contingency fund) and structural (strengthen selected vulnerable road sections) climate resilience into the project

design. In addition, the technical assistance component on sector strategy enhanced the Ministry’s ability not only to

roll out the road asset management program to the provinces but also to have a clear direction for strengthening the

sector and tackling the sector’s issues.

C. EFFICIENCY

Assessment of Efficiency and Rating Rating: Substantial

35. This project achieved the expected efficiency from the national road improvement part and exceeded

expectations from the provincial road maintenance part. Construction works on national roads were completed well

before project completion, whereas the estimated benefits from vehicle operating cost (VOC) and value of time saving


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(VOT) are around the expected value. The economic internal rate of return (EIRR) at completion is 28.1% with net

present value (NPV) of approximately US$24.7 million. The EIRR at completion is much higher than at appraisal

because the additional financing added climate resilience design to the project. Extra benefits come from avoided

emergency maintenance as well as the additional benefits from better provincial road connectivity. The provincial

road maintenance program functioned much better than expected, because the project could implement more

provincial road maintenance than appraisal estimates - 2,500 km of provincial roads maintained (compared to the

target of 1,600 km at appraisal). The EIRR at completion for provincial road maintenance is 47.5% with NPV of US$14

million. See Annex 4 for details of the economic analysis.

Table: Results of Economic Analysis at Different Stages

PAD (2010)

Additional Financing (2012)

Completion (2017)

National Road 1B & 6A

EIRR (%) 16.5% / 13.6% 26.0% 28.1%

NPV (US$ million) 1.6 / 1.9 24.3 24.7

Provincial road maintenance

EIRR (%) 23% 27% 47.5%

NPV (US$ million) 1.87 - 14.0

36. Other aspects of efficiency, particularly on implementation in the sector, have also been improved through

institutional strengthening and business process of MPWT and DPWT, including road sector prioritization, planning,

budgeting, procurement, contract management and monitoring.

37. Considering the achievements above, the overall efficiency for this project is rated Substantial.

D. JUSTIFICATION OF OVERALL OUTCOME RATING Rating: Highly satisfactory

38. The project objectives were highly relevant to country priorities as well as within the scope and direction of

the Bank’s CAS at the design stage, and remained relevant at completion. There are no shortcomings in the

project’s achievement of its relevance, objectives, and efficiency.

E. OTHER OUTCOMES AND IMPACTS (IF ANY)

Gender

39. A key project outcome included a target on female beneficiaries along and benefits from national roads 6A and

1B. The target was at least 12,985 females, who live along the national roads, would benefit from improved national

roads. Data collected during implementation showed the total number of beneficiaries to be substantially higher than


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originally estimated, with 51,296 females among the 116,581 people served by the two national roads. This is because:

(a) the methodology at appraisal only accounts for number of people who lives along the national roads, while the

project was able to also collect data on beneficiaries in the districts who benefit from using the national roads as well,

and (b) the improved provincial roads enabled more people in the districts to access and utilize national roads.

Institutional Strengthening

40. The technical assistance component on the transport sector strategy was instrumental in strengthening MPWT’s

role as a national institution with enhanced capability to provide clear direction for improving transport sector

performance. A functioning road asset management system, with associated tools and database at the national level,

is important for cost-effective management of the sector. With MPWT’s appetite continuously to evolve, the ministry

began under LRSP to explore how best to (a) incorporate climate resilience aspects into the road asset management

decision-making process; and (b) roll out a road asset management system for the provinces. Implementation of

these two important aspects is now proceeding under the follow-on project, Lao Road Sector Project 2 (LRSP2, Credit

Number 5920-LA).

Mobilizing Private Sector Financing

41. Although the project did not originally address private sector financing, the AF included a feasibility study for

NR13 to assess the potential for use of a PPP in the Lao road sector. While portions of NR13N and NR13S were

identified as potential PPP project, issues pertaining to country readiness suggested that a full-fledged PPP with toll

collection would face road users’ affordability issue, which introduce political risk to the potential project. However,

based on the findings of the FS, MPWT has endorsed use of an Output and Performance Based Road Contract (OPBRC)

for improvement of the NR13 sections. Private sector elements inherent in OPBRC include: (i) design and construction

risk transferred to the private sector with longer term contract; (ii) contractor accorded more responsibility, not only

for construction of the road but also for road asset management throughout the period of contract; and (iii) payment

from GoL spanning a longer time period, thereby mobilizing more resources from the private sector to address urgent

needs for road improvement and maintenance.

Poverty Reduction and Shared Prosperity

42. The improved road services for national roads impacted low-income households in Phongsaly province

(approximately 14,800 households in Khua, Boonneua, and Boontai Districts) and Huaphan province (approximately

14,100 households in Xienkhor, Sopbao, and Add Districts). Most of them, based on the location, are low-income

households in rural areas.2 The provincial road maintenance was implemented country-wide and has impact on the

rural population, which is more than 2/3 of the total population. Because most of provincial roads are unpaved and

vulnerable to flood and landslides, road maintenance is crucial in ensuring all year round accessibility, which provides

access to employment, market, school, and health services. The project’s benefits have been distributed more to

lower-income population, as well as shared among all provinces in Lao PDR.

2 According to the Census 2015, more than 80% of Phongsaly’s households are in rural areas, and more than 85% of Huaphan’s households are in rural areas.


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Other Unintended Outcomes and Impacts

N/A

III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME

A. KEY FACTORS DURING PREPARATION

43. Realistic objectives and simple design. The project objectives were straightforward and appropriately

conservative in view of the urgent response required to address a natural disaster. The project’s objectives

thus focused more than they might otherwise have done on restoration, strengthening and climate resilience

of physical infrastructure. At the same time, the project design was well balanced as it directly addressed key

institutional and capacity requirements to achieve results. The three project components aligned well with

mandates of departments within MPWT, which made implementation effective and manageable.

44. Well-designed results and monitoring frameworks. The results framework focused on the important

building blocks (both from processing and institutional knowledge perspectives) that feed into delivering

physical outputs (i.e. roads as transport services; including emergency response fund). These physical outputs

in turn had clear linkages to the PDOs and outcome indicators. While there was room for improvement (such

as better coordination among MPWT’s own departments and units on monitoring and data collection), the

clear structure of implementation ensured that appropriate monitoring data was collected and available for

timely review.

45. Adequate risk and mitigation measure identification. The risk assessment was appropriately conservative.

The risks were understood to reflect systemic weaknesses, including the provincial government’s lack capacity

for implementation, in particular a weak control environment and limited financial management capacity. The

project design addressed these risks well, and along with expectations of intensive oversight, placed important

emphasis on capacity building activities.

46. Readiness for implementation. In summary, the project was well prepared with simple and straightforward

objectives and design, as well as clear understanding of the strengths and weaknesses of the participating

agencies. At the national level, the preparation built on capacity that had been developed in the course of

previous projects. However, provincial authorities had not been fully engaged in past road projects, and thus

the institutional strengthening and capacity building aspects of project design were of key importance during

implementation.

B. KEY FACTORS DURING IMPLEMENTATION

(i) Factors subject to government and/or implementing entities control


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47. Coordination, engagement, and approval processes needed a push at the beginning. The slow progress in

the beginning of the project showed that, despite the good coordination and stakeholder engagement during

preparation, not all participants were ready to discharge their respective responsibilities. It took two years for

the project to catch up, as procurement processes were slow and disbursements lagged behind targets.

48. Capacity constraints within MPWT. Although there was technical capacity within the ministry, it tended to

be limited (for example, to a single official who knows or can perform important tasks, such as procurement

and data collection for provincial road management database). Staff turnover and lack of continuity posed a

challenge early on during implementation, especially with respect to timely processing and achieving key

milestones.

49. Strong commitment and leadership by key stakeholders. The government’s strong commitment, as

reflected in the efforts of MPWT and the provincial authorities, was an important factor in breaking through

the first two years of implementation difficulty. Both MPWT and provincial governments realigned staffing to

ensure sufficient capacity for implementing the project. More capable officials were put in place and assigned

to go through required trainings (on safeguards, financial management, and procurement).

50. Procurement compliance, especially with provincial road maintenance, needed close implementation

support. Capacity at the provincial level (and of MPWT to coordinate) on procurement and financial

management was weak early on in project implementation. Although indications of procedural deviation were

found, corrective measures were quickly put in place. After more emphasis on capacity through mobilization

of more qualified staff, and extensive training and support from the procurement consultant, the fiduciary

compliance and performance (for both procurement and financial management) improved to ‘moderately

satisfactory’ in mid-2012. Procurement aspects required close supervision throughout the project, to resolve

minor delays and miscommunication between MPWT and the provincial departments.

51. Strengthened risk management. An investigation by the World Bank’s Integrity Vice Presidency (INT)

substantiated fraud and corruption allegations reported to INT that were related to a few contracts financed

under LRSP. Therefore, the combined fiduciary risk is assessed as Substantial. Risk management includes

continued technical support and capacity building to strengthen the FM system and procurement and contract

management capacity. The Government has enhanced its procurement information disclosure on the MPWT’s

website and all staff involved in procurement decisions are required to sign disclosure of their interest.

52. Safeguard compliance strengthened with country system integration. The implementation of

Environmental and Social Operation Manual (ESOM) was piloted under the project. This proved to be a useful

tool for MPWT to perform environmental and social safeguard due diligence that complied with the

requirements of both the government and international donors (including the World Bank).

53. Monitoring and Evaluation (M&E) was adequate, but could have been better. Data were collected as

needed, but not very systematically. MPWT did make progress in building up a data collection system for both

technical and implementation monitoring, but the process was not fully mainstreamed as a decision-making

tool during project implementation.


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(ii) Factors subject to World Bank control

54. Implementation support was adequate. Taking advantage of an in-country Task Team Leader (TTL), project

implementation support was carried out on a continuous rather than intermittent basis. The close proximity of

the TTL and some of the Bank’s fiduciary staff helped the Bank anticipate problems, e.g., gaps in coordination

and engagement, and be proactive and timely in assisting government to resolve them. Opportunities were

identified and acted upon, as evidenced in the decisions to include climate resilient designs and PPP analytical

work in the Additional Financing. Reporting, as in ISRs and Aide-Memoires, was candid throughout.

(iii) Factors outside the control of government and or implementing entities

55. Natural disaster and related cost escalation. Following Typhoons Haima and Nok Ten in 2011, there was

overall price escalation for materials and fuel. The fuel prices rose by 31.2% (year-on-year) in June 2011, from

29% in May, and 26.5% in April3. This led to the Additional Financing, which was used not only to cover cost

overruns, but also to address climate resilience aspects of road design in the civil works under the project.

IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME

A. QUALITY OF MONITORING AND EVALUATION (M&E) Rating: High

M&E Design

56. The theory of change in the PAD was clear and straightforward. The intermediate outcome indicators

include: (a) those that directly linked with the performance toward PDO (such as km of national roads upgraded

as per specification, km of Typhoon Ketsana affected roads repaired, and km of provincial roads preserved

through periodic maintenance), and (b) those that contributed as project implementation enablers and toward

policy/sector level development. Examples of the latter include: acquiring knowledge and capacity on sector

strategic planning and internal control, MPWT’s staff trained to use country systems for environmental

assessment, fiduciary, and supervisory capacity strengthened at provincial level.

57. At design stage, the result frameworks are close to output level and the higher-level outcome objectives

have been more implicit. This is mainly because the project was designed at post-disaster stage, where the

priority was to quickly respond to the natural disaster’s impact at hand.

3 Government of Lao PDR (2011). Typhoon Haima Joint Damage, Lossess and Needs Assessment (JDLNA) - A Report prepared by the Government of the Lao PDR With support from the ADB, ADPC, FAO, GFDRR , Save the Children, UNDP, UNFPA, UNICEF, UNHABITAT, WFP ,WHO, World Bank, World Vision, AND WSP.


Page 18 of 90

M&E Implementation

58. MPWT managed M&E implementation with its own resources plus the support of consulting services. A

consultant was contracted for the Unified Road Management Framework (URMF) data collection and ICT

development that serves the Ministry’s strategic planning of the sector. MPWT’s related department

performed M&E through its utilization of Road Management System (RMS) and Provincial Road Maintenance

Management System (PROMMS). Data analysis was performed by the Public Works and Transport Institute

(PTI – an extended research institute under MPWT), which helped to inform implementation decisions well

and in a timely manner.

M&E Utilization

59. Given that MPWT carried out most of the M&E implementation in-house, data and results from analyses

were embedded in the decision-making process. The URMF and ICT infrastructure that was developed will be

utilized beyond the project, i.e. for all of MPWT’s projects, in the future.

Justification of Overall Rating of Quality of M&E

60. There were no shortcomings, and the M&E system worked as it was supposed to. The M&E system was

able to quickly identify gaps and needs and inform decision makers through simple but comprehensive

database and data analysis. Disbursement targets and results indicator targets were achieved well before the

project closed.

B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE

Environmental safeguards

61. The project was initially classified as a Category B Project, and thus triggered Environmental Assessment

(OP/BP 4.01, which is piloted under OP 4.00). The Environment and Social Operations Manual (ESOM) was

piloted under OP 4.00, in line with OP 4.01, and has been applied satisfactorily to all civil works financed by the

project – i.e. when there’s a gap between government regulation and World Bank’s safeguard policy, ESOM

enabled implementation to follow both.

62. During early implementation, the government issued a new Environmental Impact Assessment (EIA)

Decree. The Bank and MPWT jointly conducted a consistency analysis for the new EIA Decree and ESOM. Based

on the results of the assessment, the ESOM was updated in line with the new EIA Decree, and also consistent

with the Bank’s safeguards requirements. Both the Initial Environmental Examination (IEE) and Environmental

Management Plan (EMP) for the two national road improvements were developed by the Technical and

Environmental Division (TED) of Roads Department in MPWT, and were implemented on the ground by the

supervision consultant and Provincial Department of Public Works and Transport (DPWT) to ensure effective

supervision of contractor performance and provide the required safeguards monitoring reports. The


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implementation of ESOM worked well throughout implementation, with no major negative impact on the local

environment or people.

63. In 2015, the Environmental Assessment category was changed to Category A through full project

restructuring (see paras 15-16). The resulting FS for the PPP proposed widening of two national road sections

(NR13 North and NR13 South), for which land acquisition would be required. Although LRSP only financed the

FS, the change in EA category ensured that the feasibility study’s scope and outputs would comply with the

World Bank’s safeguards policies. The Terms of Reference (TOR) for the Environmental and Social Impact

Assessment (ESIA) Report, Resettlement Action Plan (RAP), and Ethnic Group Development Plan (EGDP) were

prepared as part of the FS report. However, the Environmental and Social sections of the FS prepared during

March - April 2015 were found to be insufficient for the level of a World Bank Group (WBG) Category A project.

Thus the ESIA, RAP and EGDP/EGEP were revised to meet category A project requirements as part of NR13

project preparation.

Social safeguards

64. The LRSP triggered (a) Involuntary Resettlement (OP/BP 4.12), and (b) Indigenous People (OP/BP 4.10)

social safeguards policies. The Resettlement Policy Framework (RPF), RAP, and the Ethic Groups Policy

Framework (EGPF) were prepared by TED and monitored by PTI. Project implementation was in line with the

social safeguards frameworks and plans, and there were no reports of major social safeguards issues in the

progress reports (only minor issues about traffic control during construction, which were addressed by the

contractors and project manager).

Procurement

65. Procurement delays contributed to the slow startup of the project during the first two years of

implementation, but the progress accelerated in year three and caught up with planned targets thereafter.

The procurement delays affected the national road improvement sub-component in the early years, as well as

procurement of road safety equipment and recruitment of various consultants (e.g. quality assurance and

supervision advisors for provincial roads). The main causes of delay included (i) limited human resources and

staff turnover, and (ii) a lengthy internal approval process within MPWT. MPWT had put more focus on the

typhoon-affected roads, which with limited human resource, caused delays in other parts. The long internal

approval process associated with how the procurement committee functioned – i.e. availability to meet and

discuss – was another factor.

Financial Management

66. Financial Management performance lagged behind at the beginning of the project, due to poor quality and

delayed submission of the Interim Financial Reports (IFRs) and project audit reports. The quality of the IFRs and

timing of submission of both IFRs and audit reports continued to improve after the second year of

implementation. The audit opinions were unqualified (clean) throughout project implementation. Despite the

complex structure of disbursement arrangements (i.e. with MPWT and DPWT), FM staffing, accounting and


Page 20 of 90

internal control systems, and maintenance of supporting documents were sufficient. As all of the staff working

on the financial management of the project were staff of MPWT and DPWT, the project was instrumental in

improving the overall capacity of ministry staff to manage the finances of ODA projects. Work on strengthening

internal controls, internal audit and accounting within MPWT commenced in this project, and the plan is to

continue the process in future engagements.

C. BANK PERFORMANCE Rating: Satisfactory

Quality at Entry 67. As discussed, the project design was simple and straightforward, with a PDO of strategic relevance to the

country’s NESDP and NTSP. The technical, financial, and economic appraisal was approached with room for flexibility

– which enabled, among other things, the project to scale-up toward climate resiliency in the initial road improvement

designs. Flexibility also was provided via the project’s adoption of MPWT’s Annual Work Programming process as the

basis for identifying the provincial road network periodic maintenance program to be financed each year under the

project. Poverty, gender, and social development aspects were considered and related outcome indicators reflected.

Environmental and social safeguards were prepared properly, with a focus on strengthening country systems through

the ESOM along with other required safeguard instruments (such as EMP, EGPF, RAP). The fiduciary team adequately

assessed the procurement and financial management capacity of the implementation units and incorporated

assistance in the project design as required. A minor shortcoming was that the procurement assessment and actions

did not fully account for procurement staff turnover in MPWT. This turnover caused procurement implementation

delays, which were resolved later on through implementation support. The Bank team put a lot of effort into ensuring

that the policies, institutions and implementation arrangements were set up right and fit for implementation – which

is one of the most crucial aspects of the project. The M&E arrangement not only took advantage of the existing

monitoring system (i.e. RMS & PROMMS), but also enhanced the process through actual utilization of the system.

Quality of Supervision 68. Understanding of implementation agency’s potential and limitations. The Bank’s supervision was effective in

supporting MPWT’s implementation of the project. With good understanding of the weaknesses and strengths of the

implementing agency, the Bank’s team was able to address the issues detected in a collaborative fashion, with the

Bank and the client working together to find solutions. This collaborative approach led to the right capacity building

support and training (e.g. on procurement and FM in the beginning of the project, technical aspects and on safeguards

at preparation and during implementation). The capacity enhancement also went beyond the project. For example,

the Department of Finance established under the project has become a part of the Ministry’s standard practice. The

Bank also facilitated knowledge exchange activities with neighboring countries, such as Vietnam, to share and

exchange experiences with PROMMS, resulting in adapting the PROMMS for the local road maintenance management

system in Vietnam; and later on during implementation, with South Africa on road sector reform, PPP, public works

and transport research, and overloading control.


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69. Mid-term review (MTR). A thorough and well-documented MTR was carried out towards the end of 2014, which

confirmed that (a) the project design was still relevant and practicable, (b) risks identified during appraisal were being

effectively managed, and (c) implementation was on track towards attainment of the PDO. The assessment concluded

that implementation was still appropriately focused not only on civil works, but also on systems development and

strengthening. The MTR team identified areas in need of further support and/or strengthening, particularly at the

DPWT/provincial level, was proactive in identifying resources and approaches to provide such support, and monitored

progress for the duration.

70. Lao-based implementation support. Given that the Bank’s team was largely in the region (with the TTL stationed

in Vientiane), responses to issues did not have to wait for the next mission. Problems could be discussed and handled

expeditiously and - given a high frequency of dialogue – often could be solved before they became problematic.

Technical assistance and training could be made available whenever needed, as opposed to waiting for the next

mission. Local implementation support was especially helpful in facilitating coordination and dialog between MPWT

and the provinces during project implementation.

71. Technical support and flexibility within scope. The Bank’s team was well placed to provide technical support to

help MPWT cope with unexpected changes, i.e. cost overruns and financing gap due to natural disasters, typhoons.

The team supported the client in adjusting the project design within the original scope to consider climate resilience,

a more realistic design that resulted in higher efficiency. Further support also was provided by Additional Financing

approved two years into implementation. Various technical assistances were also mobilized to support the client, such

as Transport sector strategic advisory services, internal control system and tools development, PPP feasibility study,

Integrated Road Asset Management System (IRAM), and Financial Management System.

Justification of Overall Rating of Bank Performance

72. The Bank’s performance was rated Satisfactory for both Quality at Entry and Quality of Supervision, hence Bank

performance overall is rated Satisfactory.

D. RISK TO DEVELOPMENT OUTCOME

73. There were three key risks to development outcome: (a) overloading trucks cause road to deteriorate

faster than expected, causing service level to decline faster; (b) the government does not allocate adequate

budget for road maintenance; and/or (c) the government neglects the climate resilience and emergency

response initiative.

74. It is unlikely that the government will not continue to maintain the roads because the government has set

up (and continues to develop) a viable road asset management system, a Road Fund4 to address road

maintenance matters, and the capacity of agencies concerned was built throughout the project

implementation period. The Road Fund is the key mechanism to ensure predictable and sustained allocations

4 Road Fund Decree No. 130 in June 2016 to change the name from “Road Maintenance Fund” to “Road Fund”


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of funds for road maintenance. Its main source of funds is a fuel levy and the annual revenue generated by the

RMF which has been increasing steadily from US$2 million in 2002 (when the fund became operational) to

US$80 million in 2017. It is expected that the fund will continue to grow more than 10% annually over the next

5 years. As per Prime Minister’s Decree 130/PM of 2016, national roads receive 80% the RMF allocation, and

local roads, the remaining 20%. The subsequent LRSP2, which became effective in February 2017, directly

supports this initiative.

75. It is also unlikely that the government will neglect the climate resilience and emergency response initiative

because MPWT has started to mainstream climate resilience aspects into the planning process under LRSP2 as

well. Steps are being undertaken for the road asset management system to include climate resilience aspects

in its database module, which in turn will incorporate climate resilience into the maintenance prioritization and

the decision-making process, and establishment of climate resilience road maintenance procedures was

included as a policy action for the recently approved Green Growth Development Policy Operation.

V. LESSONS AND RECOMMENDATIONS

76. Key lessons from project preparation and implementation experience are the following:

77. Straightforward project design supported easy adjustments during the life of the project. Clear, not overly

ambitious targets were set and sufficiently straightforward to be easily adjusted when required, e.g., after the

typhoons and to accommodate associated cost overruns through Additional Financing. The project design

provided a clear line-of-sight from outputs to objectives, which made it possible for the project to be easily

adapted to unexpected challenges. The approach will likely continue to be relevant in the Lao context. From

the project’s experience, capacity building takes time and will likely require continuing support due to staff

movments.

78. Institutional leadership by MPWT was key to the success of the project. Many aspects of the project have

an impact at the sector level, which is possible because MPWT has taken the lead in donor coordination,

financial management practice, safeguards implementation, etc., beyond the project. This would not be

possible without the institutional leadership and ownership of MPWT. With MPWT’s leadership, advances in

the road sector planning and management arising from project interventions, have been carried forward into

the sector’s strategic planning and prioritization system for road improvement and maintenance. This includes

how the government handled the fiduciary case investigated by INT. The Government had quickly enhanced

its transparency of procurement information disclosure and of all staff involved in procurement decisions to

contain and lower the risk level.

79. Innovative implementation turned the natural disaster into an opportunity. Because of the need to respond

to the typhoon which caused cost overrun, the project used the opportunity to introduce adaptation to climate

change and streamlining the practice. South-South knowledge exchange with South Africa had been useful for


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MPWT and provincial governments to explore the new policy direction – i.e. utilizing road funds and enhancing

climate resilience.

80. Strong relationship and trust foster sustainability. Institutional capacity building was developed hand-in-

hand with strong relationship and trust between MPWT and the Bank’s team. With flexibility and focus on

sustainability at the institution level, the approach that the World Bank task team used in provide

implementation support has built and strengthened relationship and trust, which has provided opportunities

to introduce innovative approaches including OPBRC and business processes for road asset management.

LRSP2 is a good example of how the institutional strengthening, improved business processes, and the capacity

of MPWT to manage a sector-wide approach have sustainably evolved, and expanded beyond national level to

provincial level. Lao National Road 13 project is another good example of how the government moves toward

a long-term performance-based road maintenance contracting practice like OPBRC.

Coordination challenge

81. Coordination between central and provincial agencies was more of a challenge than anticipated. More

dialogue with stakeholders, more training, and more agreements were required to move the project forward.

It is important not to underestimate the coordination requirements, especially between central and local

governments. Another aspect of the coordination challenge links to the capacity and availability of MPWT

officials at sufficiently high levels for decision-making purposes. Director-General level officials, when

empowered to make decisions, will resolve issues quickly and enable the project to move forward.

82. A partnership style and in-country implementation support were key to the successful implementation of

the project. Problems and issues were quickly addressed, both informally and formally through quick and timely

communication. The close proximity of the TTL and fiduciary team helped to develop a partnership built on

cooperation, trust and candor. It also facilitated provision of useful technical advice, made possible by the

Bank’s in-depth understanding of sectoral issues and relevant government systems and modalities.

.


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ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS

A. RESULTS INDICATORS A.1 PDO Indicators

Objective/Outcome: To improve road services on two main national corridors and the provincial road network

Indicator Name Unit of Measure Baseline Original Target Formally Revised

Target

Actual Achieved at Completion

Vehicle travel time on upgraded roads reduced by 40%

Text NR 1B (109 km): 5 hours; NR 6A (62 km): 3 hours

40% reduction (NR1B=3 hours; 6A=108 minutes)

40% reduction (NR1B=3 hours; 6A=108 minutes)

50% - NR 1B (109 km): 2.5 hours;

72% - NR 6A (62 km): 50 minutes

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): Vehicle travel time on upgraded national roads NR 1B and NB6A reduced by 50% (or 2.5 hours) and 72% (or 50 minutes), exceeding the end target of 40% by the end of project.


Target


At least 26,500 people (49% female), most of whom live

Text 0 At least 26,500 (49% female)

At least 26,500 (49% female)

About 116,581(44% female)


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by the roadside, served with paved roads along NR 1B and 6A

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): About 116,581 people (44% female), most of whom live by the roadside, served with paved roads along NR 1B and 6A, exceeding the end target of at least 26,500 people.


Target


Share of provincial road network in good and fair condition (by Lao standards) increased from 46% to 64%

Text 46% 64% 64% 65%

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): Share of provincial road network in good and fair condition (by Lao standards) increased from 46% to 64% - target achieved by project closing.


Target


Roads rehabilitated, Non-rural

Kilometers 90.00 456.40 456.40 456.40

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): 456km of non-rural roads (which is the total length of the rehabilitated Ketsana damaged national roads and improvement of NR 1B & 6A) rehabilitated – target achieved.


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Target


Roads rehabilitated, Rural Kilometers 0.00 731.00 731.00 813.00

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): 813km of rural roads rehabilitated (which is the length of rural roads damaged by Ketsana) – target achieved.


Target


Roads in good and fair condition as a share of total classified roads

Percentage 42.00 55.00 55.00 65.00

31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Size of the total classified network

Kilometers 30679.00 40000.00 40000.00 40000.00

31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): 65% of Roads in good and fair condition as a share of total classified roads – exceeding the end target of 55%


Target


Share of rural population with access to an all-season road

Percentage 57.20 60.40 60.40 64.00

31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Number of rural people Number 3220000.00 0.00 3400000.00 3400000.00


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with access to an all-season road

31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): 64% of rural population with access to an all-season road - target achieved.

Objective/Outcome: To rehabilitate roads damaged by Typhoon Ketsana


Target


About 60% of Ketsana damaged roads (including small and wooden bridges) repaired and improved

Percentage 5.00 60.00 60.00 60.00

23-Feb-2010 24-Feb-2012 30-Sep-2012 22-Feb-2017

Comments (achievements against targets): About 60% of Ketsana damaged roads (including small and wooden bridges) repaired and improved – target achieved.

Objective/Outcome: To establish an operationalize a contingency fund for quick disaster response in the road sector


Target


A contingency fund established for quick restoration of passability and safety of disaster affected national and provincial roads

Text Contingency fund not established

Functional Functional Functional

23-Feb-2010 24-Feb-2012 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): A contingency fund established for quick restoration of passability and safety of disaster affected national and provincial roads - target achieved.


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A.2 Intermediate Results Indicators

Component: Component A: Road Network Improvement and Presevation


Target


171 km of national roads (NR 1B and NR 6A) upgraded as per specifications

Text 0 171 171 171

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): 171 km of national roads (NR 1B and NR 6A) upgraded as per specifications - target achieved


Target


About 1,600 km of provincial roads preserved through periodic maintenance

Text 0 1600 1600 2500

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): About 2,500 km of provincial roads preserved through periodic maintenance - exceeding the end target of 1,600 km


Target


Road safety facilities Text 0 Fully installed Fully installed Fully installed


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acquired and installed as per specifications

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets): Road safety facilities acquired and fully installed as per specifications - target achieved.

Component: Component B: Institutional Strengthening


Target


Knowledge and practical experiences acquired on transport sector strategic planning and management

Text First sector strategic plan produced

Strategic Plan updated and expanded

Strategic Plan updated and expanded

Strategic plan updated - Basis for preparing the MPWT transport sector vision, strategy and five- year plans

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017

Comments (achievements against targets):


Target


Country system for EA used and staff trained

Text Country system just piloted and only a few staff trained

Safeguard actions under the country system for EA undertaken by MPWT and DPWT

Safeguard actions under the country system for EA undertaken by MPWT and DPWT

Training provided to 260 provincial and district engineers received ESOM training

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017


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Target


Acquired knowledge and practical experiences on internal control

Text Internal control function non existent

Third internal audit report produced

Third internal audit report produced

Internal control sections established in 17 provinces & internal control divisions in 8 departments, 2 institutes and 2 State Own Enterprises. Capacity building in in progress.

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017



Target


Fiduciary and supervisory capacity strengthened at provincial level

Text Capacity development program not yet started

Capacity development program completed

Capacity development program completed

Impletmentation of training program is on-going and more than 1500 people trained.


Page 31 of 90

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017


Component: Component C: Disaster Recovery and Contingency


Target


About 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved as per specifications

Text 90 KM 1,100 KM 1,100 KM All repair works were completed. Target met

23-Feb-2010 24-Feb-2014 30-Sep-2012 22-Feb-2017

Comments (achievements against targets): About 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved as per specifications target achieved.


Target


Length of time to process payment to contractors for emergency works shortened

Text Time of payment delayed for up to 2 years

The fund established and time of payment shortened to less than 1 months

The fund established and time of payment shortened to less than 1 months

Payment made by about 4 months

23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017



Page 32 of 90


Page 33 of 90

B. KEY OUTPUTS BY COMPONENT

Objective/Outcome 1: To improve road services on two main national corridors and the provincial road network

Outcome Indicators 1. Vehicle travel time on upgraded national roads NR 1B and NB6A reduced by 50% (or 2.5 hours) and 72% (or 50 minutes), exceeding the end target of 40% by the end of project.

2. About 116,581 people (44% female), most of whom live by the roadside, served with paved roads along NR 1B and 6A, exceeding the end target of at least 26,500 people.

3. Share of provincial road network in good and fair condition (by Lao standards) increased from 46% to 64% - target achieved by project closing.

4. 456km of non-rural roads (which is the total length of the rehabilitated Ketsana damaged national roads and improvement of NR 1B & 6A) rehabilitated – target achieved.

5. 813km of rural roads rehabilitated (which is the length of rural roads damaged by Ketsana) – target achieved.

6. 65% of Roads in good and fair condition as a share of total classified roads – exceeding the end target of 55%

7. 64% of rural population with access to an all-season road - target achieved.

8. 3.4 million of rural people with access to an all-season road - target achieved.

Intermediate Results Indicators 1. 171 km of national roads (NR 1B and NR 6A) upgraded as per specifications - target achieved

2. About 2,500 km of provincial roads preserved through periodic maintenance - exceeding the end target of 1,600 km


Page 34 of 90

3. Road safety facilities acquired and fully installed as per specifications - target achieved.

Key Outputs by Component

(linked to the achievement of the Objective/Outcome 1)

1. NR 1B (109km) and NR 6A (62km) upgraded including 7 bridges

2. 2,500 km of provincial roads preserved through periodic maintenance

Objective/Outcome 2: To rehabilitate roads damaged by Typhoon Ketsana

Outcome Indicators 1. About 60% of Ketsana damaged roads (including small and wooden bridges) repaired and improved – target achieved.

Intermediate Results Indicators 1. About 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved as per specifications target achieved.



1. 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved.

Objective/Outcome 3: To establish an operationalize a contingency fund for quick disaster response in the road sector

Outcome Indicators 1. A contingency fund established for quick restoration of passability and safety of disaster affected national and provincial roads - target achieved.

Intermediate Results Indicators 1. Length of time to process payment to contractors for emergency works shortened - target achieved.



1. A contingency fund established and operationalized.


Page 35 of 90

ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION

A. TASK TEAM MEMBERS

Name Role

Preparation

Supervision/ICR

Sombath Southivong Task Team Leader(s)

Hoai Van Nguyen Procurement Specialist(s)

Siriphone Vanitsaveth Financial Management Specialist

Vachraras Pasuksuwan Operations Assistant

Flavio Chaves Consultant

Vatthana Singharaj Program Assistant

Siriphone Sourivanh Sr. Financial Management Specialist

Sybounheung Phandanouvong Sr. Social Development Specialist

Khamlar Phonsavat Consultant, Environment Specialist

Van Anh Thi Tran Sr. Transport Specialist, Road Safety

Martin Henry Lenihan Social Safeguards Specialist

Chanin Manopiniwes Infrastructure Economist

Vilayvanh Phonepraseuth Operations Analyst

Paul Vallely Sr. Transport Specialist

Reaksmey Keo Sok Consultant

Wasittee Udchachone Environmental Safeguards Specialist


Page 36 of 90

B. STAFF TIME AND COST

Stage of Project Cycle Staff Time and Cost

No. of staff weeks US$ (including travel and consultant costs)

Preparation

FY07 7.825 101,313.95

FY08 13.620 188,543.29

FY09 33.014 175,451.30

FY10 17.666 95,318.87

Total 72.13 560,627.41

Supervision/ICR

FY10 5.225 18,691.75

FY11 22.259 64,812.09

FY12 33.785 84,426.49

FY13 28.174 209,358.77

FY14 31.129 268,234.25

FY15 55.650 322,920.81

FY16 45.823 288,404.71

FY17 37.988 288,746.63

FY18 19.457 67,251.56

Total 279.49 1,612,847.06


Page 37 of 90

ANNEX 3. PROJECT COST BY COMPONENT

Components Amount at Approval

(US$M) Actual at Project

Closing (US$M) Percentage of Approval

(US$M)

Component A: Road Network Improvement and Preservation Component

31.93 47.55 149%

Component B: Institutional strengthening

2.45 6.03 246%

Component C: Disaster Recovery and Contingency

8.80 10.60 120%

Total 43.18 64.18 149%


Page 38 of 90

ANNEX 4. EFFICIENCY ANALYSIS

1. Overview Methodology at appraisal estimate. The economic evaluation for the original project at appraisal was carried out for two parts of the project: (i) evaluation of the periodic maintenance interventions (for provincial roads), and (ii) road improvement sub-projects (NR 1B & NR 6A). A conventional cost-benefit analysis (CBA) was carried out, using the Road Management System (RMS) which is supplemented by the Highway Development and Management Model (HDM-4) – particularly for the provincial road maintenance part. Key benefits in both parts of the project were estimated from reductions of vehicle operating cost (VOC) and time savings, which resulted from improved road condition measured in terms of the International Roughness Index (IRI). The appraisal evaluation was based on the following key assumptions: (i) an analysis period of 24 years from 2009 to 2032; (ii) the discount rate of 12% per year; and, (iii) standard conversion factor (SCF) of 0.9 to determine economic costs, where information on tax is not available. Methodology for post-project economic analysis. The economic evaluation at project completion follows the same methodology as at appraisal – utilizing HDM-4 results to support the conventional cost-benefit analysis. This is also because the project components remain largely unchanged since appraisal, and the implementing agency has been using the same methodology for its own overall planning. The key assumptions are: (i) an analysis period of 24 years from 2011 to 2034; (ii) a discount rate of 12% per year; and, (iii) standard conversion factor (SCF) of 0.92 for construction costs and 0.87 for maintenance costs (which is based on a study conducted during the project implementation) to determine economic costs more accurately. 2. Assumptions and components of the Cost-Benefit Analysis Project costs. The analysis considers actual civil works disbursements as the investment costs. Table A4.1 shows the cumulative disbursement of civil works by sub-component, which is taken from a series of IFRs. The CBA also assumes that routine maintenance is annually conducted to preserve road in good condition – i.e. maintaining the IRI for the analysis period. The maintenance cost of US$387 per km per year is used, based on the updated costs by MPWT (for another project; LRSP2). Table A4.1: Cumulative disbursement of civil works by sub-component

Description 2010 2011 2012 2013 2014 2015 2016 2017

NRN 1B Improvement - 0.46 9.45 16.25 17.51 19.05 19.05 19.05

NRN 6A Improvement - 0.10 2.44 5.72 6.31 6.69 6.69 6.69

Bridge Construction - - - 0.10 2.47 5.00 5.49 5.49

PRN Periodic Maintenance 0.29 4.27 6.77 12.29 17.55 17.96 22.82 22.82


Page 39 of 90

The estimation of benefits is from the project’s impact on VOC and VOT savings. Factors that affect VOC and VOT are: annual average daily traffic (AADT), growth rate, roughness (IRI), and VOC based on HDM-4. Traffic and growth. The following traffic data from MPWT was used as inputs to the cost-benefit analysis model (see Table A4.2). Most of the traffic is motorcycles, with more trucks on NR 1B. For provincial road maintenance, PROMMS data indicates 50-100 vehicles per day for provincial and district roads. The AADT of 50 vehicles per day was used for the CBA.

Table A4.2: Traffic counts for NR 1B and NR 6A

Type of Vehicle NR 1B NR 6A

2011 2017 2011 2017

Mini-tractor 13 25 6 12

Motorcycle 80 153 183 346

Light vehicle (Car) 34 62 14 27

Bus 9 18 3 9

Truck 131 201 7 13

Vehicle operating costs. The analysis uses VOC produced by an updated HDM-4 Model. The results are in Table A4.3. The average VOC saving from improving the road from IRI of 16 to IRI of 4 is approximately US$0.17 per vehicle-km. The analysis uses actual differences for each of the vehicle type to determine the actual savings for national road improvement, while use the average VOC saving for provincial road maintenance.

Table A4.2: Traffic counts for NR 1B and NR 6A

IRI 4.0 8.0 12.0 16.0

Motorcycle 0.09004 0.09246 0.09868 0.10782

Mini-Tractor 0.15469 0.16702 0.19331 0.22787

Car 0.21216 0.23305 0.27229 0.32133

Pickup 0.22804 0.25569 0.30264 0.35785

Small bus 0.23408 0.26747 0.32007 0.38011

Medium bus 0.25487 0.28616 0.33160 0.38494

Heavy bus 0.43675 0.49729 0.58003 0.67528

Light truck 0.73997 0.85440 1.00461 1.17930

Medium truck 1.05249 1.20788 1.43563 1.70166

Heavy truck 0.27646 0.31568 0.38298 0.46437

Truck trailer 0.60472 0.73828 0.93660 1.16210

Cycle 0.82146 1.01166 1.31259 1.65753

Value of time. Time saving is additional benefits. The average hourly wage of US$0.82 was used as a baseline in 2010 and assumed to grow at a real rate of 4%. Value of time saving was estimated based on improvement of


Page 40 of 90

speed, due to better road condition. 3. Evaluation Results The results of the evaluation are summarized in the following table in terms of EIRR and NPV of the original project at appraisal, for additional financing, and at completion.

PAD

(2010) Additional Financing

(2012) Completion

(2017)

National Road 1B & 6A

EIRR (%) 16.5% / 13.6% 26.0% 28.1%

NPV (US$ million) 1.6 / 1.9 24.3 24.7

Provincial road maintenance

EIRR (%) 23% 27% 47.5%

NPV (US$ million) 1.87 - 14.0

Economic evaluations of NR 1B & 6A were conducted separately without a combined analysis, while the evaluation for the Additional Financing (AF) was conducted together. The EIRR of national road improvements is higher than at appraisal, and around the same value as with the AF. This is because the AF enhanced the national road improvement designs to be more climate resilient, which was additional benefits at additional financing stage. Also, the economic assessment at appraisal did not have sufficient information on (or was conservative about how) additional benefits that come from the connectivity of national and provincial roads. Extra costs and benefits come from avoided emergency maintenance.

For the provincial road maintenance, both EIRR and NPV at completion are much higher than the estimates at appraisal. This is because the project could achieve 2,500 km of provincial road maintenance, versus the target of 1,600 km at appraisal. The benefits expand with scale.


Page 41 of 90

ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS

MPWT has provided their comments, which have been incorporated into the ICR. In addition, MPWT has also prepared its own ICR. Please see MPWT’s ICR in the ANNEX 6.


Page 42 of 90

ANNEX 6. MPWT’s ICR

LAO PEOPLE’S DEMOCRATIC REPUBLIC Peace Independence Democracy Unity Prosperity

Ministry of Public Works and Transport

Department of Planning and Cooperation

LAO ROAD SECTOR PROJECT Project No. P102398

(Grant No. H547-LA, No. H7890-LA and No. TF093083)

IMPLEMENTATION COMPLETION REPORT

March 2018

LRSP – Implementation Completion Report

i

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank

AF Additional Financing

AFTA Asean Free Trade Area

ASEAN Association of South East Asian Nations

AusAID Australian Agency for International Development

AWPB Annual Work Plan and Budget

BER Bid Evaluation Report

CO Cabinet Office

CRM Community Road Model

CSC Consultant Selection Committee, of DOR

DBST Double Bitouminous Surface Treatment

DD Disbursement Division, DOR, MPWT

DESIA Department of Environmental and Social Impact Assessment, of MONRE

DG Director General

DIT Division of Infrastructure and Transport, PTI

DOI Department of Inspection, MPWT

DOP Department of Personnel, MPWT

DOR Department of Roads, MPWT

DOT Department of Transport, MPWT

DPC Department of Planning and Cooperation, MPWT

DPWT provincial Department of Public Works and Transport (at provincial level)

E&Y (Laos) Ernst & Young Laos Co. Ltd

EA Environment Assessment

EGDP Ethnic Group Development Plan

EGPF Ethnic Group Policy Framework

EIA Environmental Impact Assessment

EMP Environment Management Plan

EOI Expression of Interest

ESD Environment and Social Division, PTI, MPWT

ESOM Environment and Social Operations Manual

FD Financial Division of DPC

FDI Foreign Direct Investment

FM Financial Management

FMCBP Financial Management Capacity Building Project

FMM Financial Management Manual

FMS Financial Management System

GDP Gross Domestic Product

GFDRR Global Facility for Disaster Reduction and Recovery

GHG Green House Gas

GMS Greater Mekong Subregion

GNI Gross National Income


ii

GOL Government of the Lao People's Democratic Republic

HDM4 Highway Development and Management Model, Version 4

IA Internal Audit

ICB International Competition Bidding

ICCC Internal Control Coordination Committee

ICD Internal Control Division, DOI, MPWT

ICT Information and Communication Technologies

IDA International Development Agency

IEE Initial Environment Examination

IFB Invitation for Bids

IFI International Financial Institution

IFR Interim Financial Report

IOC Incremental Operating Cost

IRI International Roughness Index

IRR Internal Rate of Return

ISWG Infrastructure Sector Working Group

JBIC Japan Bank for International Cooperation

Km Kilometer

LAK Lao Kip

LPB Luang Phabang province

LRD Local Road Administration Division, DOR, MPWT

LRSP Lao Road Sector Project

LSRSP-3 Third Lao-Swedish Road Sector Project

LTEC Lao Transport Engineering Consultant

M&E Monitoring and Evaluation

MMDD Manpower Management and Development Division of Department of Personnel

MOF Ministry of Finance

MONRE Ministry of Natural Resources and Environment

MPWT Ministry of Public Works and Transport

MTEF Medium-term Expenditure Frame Work, GOL

NCB National Competition Bidding

NOL No-Objection Letter

NORAD Norwegian Agency for Development and Cooperation

NR National Road

NR National Road

NR13N National Road 13 North

NR13S National Road 13 South

NRN National Road Network

NRSC National Road Safety Committee

NSEDP National Socio-Economic Development Plan

NT-2 Namtheun 2 Hydropower Project

NTSP National Transport Strategic Plan

NUOL National University of Laos


iii

OC Office Cabinet (of MPWT)

ODA Official Development Assistance

OPWT district Office of Public Works and Transport (at district level)

PAD Project Appraisal Document

PAL Phase Alternate Line

PAU Project Accounting Unit, LRSP

PBC Performance Based Contract

PDF Portable Document Format

PFM Public Finance Management

PFU Provincial Finance Unit

PHRD Japan Population and Human Resource Development Fund

PIP Provincial Infrastructure Project, funded by IDA

PR Provincial Road

PRN Provincial Road Network

PRoMMS Provincial Road Maintenance Management System

PRTP Participatory Rural Transport Planning

PSL Phongsaly province

PTI Public Works and Transport Institute, MPWT

PTTC Public Works and Transport Training Centre, MPWT

RAD National Road Administration Division, DOR, MPWT

RAP Resettlement Action Plan

RMF Road Maintenance Fund

RMFAB Road Maintenance Fund Advisory Board

RMP Road Maintenance Program

RMP1 Road Maintenance Program, Phase 1

RMP2 Road Maintenance Program, Phase 2

RMS Road Management System

ROW Rights of Way

RPF Resettlement Policy Framework

RSF Road Safety Fund

RTIP Rural Transport Infrastructure Policy

SAO State Audit Organization

SBD Standard Bidding Document

SDR Special Drawing Rights

SEA Strategic Environment Assessment

SEZ Special Economic Zone

SGDR Safeguards Diagnostic Review

SIDA Swedish International Development Agency

SOE State Owned Enterprise

STC Science and Technology Council

STMQ Standard, Metrology, Testing and Quality

SWAp Sector-Wide Approach

TA Technical Assistance


iv

TED Technique and Environment Division of DOR

UCS Use of Country System

UNIDO United Nations Industrial Development Organization

URMF Unified Road Maintenance Framework

USD United States of America Dollars

VMC Village Maintenance Committee

VOC Vehicle Operating Cost

VPD Vehicles Per Day

VTC Vientiane capital

VTP Vientiane province

WB World Bank Group

WREA Water Resource and Environment Administration, Lao PDR


TABLE OF CONTENTS Page

ABBREVIATIONS AND ACRONYMS i

1. INTRODUCTION 1

2. PROJECT CONTEXT, DEVELOPMENT OBJECTIVE AND DESIGN 2

3. COST ALLOCATION AND DISBURSEMENTS 5

4. DETAILED OUTCOMES 7

4.1 Road Network improvement and preservation 7

4.1.1 Network Upgrading 7

A.1.a National Road 1B (NR1B) 7

A.1.b National Road 6A (NR6A) including construction of seven bridges 8

A.1.c Resettlement 10

A.1.d Supervision consultants 10

A.1.f Monitoring and evaluation 10

4.1.2 Provincial Network Maintenance 10

A.2.a Periodic maintenance and spot improvements 10

A.2.b Supervision 10

A.2.c Capacity building 10

4.1.3 Road Safety 11

A.3.a Road safety – goods 11

A.3.b Road safety – awareness and capacity building 11

4.2 Institutional Strengthening 11

4.2.1 Strategic management 11

B.1.a Strategic management advisory and capacity development 11

B.1.b Advisory services for provincial and rural management 11

B.1.c ICT development 12

B.1.d URMF data collection 12

B.1.f Fiduciary support 12

4.2.2 ESOM 12

B.2.a ESOM preparation 12

B.2.b Environment, social and safeguard monitoring 13

4.2.3 Internal controls 13

B.3.a Advisory services and training for internal control division 13

B.3.b Technical audit 14

B.3.c Financial audit 14

B.3.d Capacity building 14


4.2.4 Provincial capacity development 14

4.3 Disaster Recovery and Contingency 14

5. ASSESSMENT OF OUTCOMES 15

6. PERFORMANCE 19

7. ECONOMIC ASPECTS 22

8. ENVIRONMENTAL AND SOCIAL ASPECTS 23

9. LESSONS LEARNED 25

APPENDIXs:

Appendix A – Project Result Framework

Appendix B – Progress of seven bridges construction

Appendix C – Supervision consultants’ quarterly progress report as at December 2015

Appendix D – Provincial road maintenance contracts

Appendix E – Traffic Safety

Appendix F – List of counterpart payables as at 30 September 2017


Page 1 of 94

1. INTRODUCTION

The transport sector in Lao PDR is dominated by the road sub-sector, which represents 98% of total passenger–km traveled, and 86%

of freight moved in the country. Road transport remains at the core of the country’s policy “from land-locked to land-linked” and central

to economic development and poverty reduction. Therefore, the road network is the key priority for the transport sector, linking people

to resources, markets, and public services.

The total length of the road network reported is 37,552 km, of which 7,019 km is national roads, and 29,468 km is local roads. Urban

road amounts to 718 km and around 166 km is Special roads.

Table 1: Road Length (Km) by Road Classes and Provinces from RMS Statistics, 2016

Source: RMS Database, 2016


Page 1 of 25

A graphical distribution of the share of each road class is provided in the figure 1 below which shows

that rural road network covers around 46% of the total road length. While national and provincial

road network shares about 19% and 18% of the total length respectively. Urban road and Special

road share small portion of total road length.

Figure 1: Proportion of Lao Road Network by Road Classes from RMS statistics, 2016

Source: RMS Database, 2016

The road sector is under the overall jurisdiction of the Ministry of Public Works and Transport

(MPWT). With the ongoing devolution of responsibilities, MPWT has progressively delegated

maintenance and operational tasks for local roads (Provincial, District, and Rural roads) to the

Department of Public Works and Transport (DPWT) of each province, while retaining a mandate for

policy making, financing, strategic planning, oversight, and management for the road sector.

Maintenance and operational tasks for National roads remain with MPWT.

Lao Road Sector Project (the Project) is capitalized on the institutional outcomes achieved from

previous operations, especially the Bank-led, multi-donor funded Road Maintenance Program Phase

1 and 2, and add value through financing crucial physical investment, and supporting the strategic

planning, design, preparation, implementation, and management of road infrastructure in an

environmentally and socially responsible manner. The Project is also built on the MPW’s continuing

effort in aid harmonization, the Project is a pilot use of country system (or sector wide approach) for

environmental assessment, the establishment of internal audit function, the strengthening of

fiduciary management systems especially at the provincial level, and the establishment of an

emergency contingency fund for repaid response to disasters. All these are designed as relevant

supporting functions to improve the effectiveness of physical investments and delivery of road

services to the people.

The Project is fully consistent with the World Bank’s Country Assistance Strategy (CAS) for Lao

PDR. It supports one of the main CAS pillars of sustained growth through enhanced regional


Page 2 of 25

integration and private sector development, and to a lesser extent, one of the supporting CAS

objectives regarding better alignment of donor resources with the objectives of the Government’s

National Growth and Poverty Eradication Strategy and strengthened aid coordination.

In line with these objectives, the Project supports the country’s economic growth and poverty

reduction through: (i) reducing road transport costs for goods and passengers; (ii) rehabilitating the

road damaged by Typhoon Ketsana; and (iii) developing an emergency contingency fund for rapid

response to natural disasters in the road sector. Support to the second CAS objective is mainly

through the strengthening of the MPWT’s systems for strategic planning, fiduciary management, and

environmental safeguards, which are required for achieving better aid harmonization and

coordination.

2. PROJECT CONTEXT, DEVELOPMENT OBJECTIVE AND DESIGN

Lao PDR has received initial financing from the International Development Association (IDA) and

grant co-financing from the Policy and Human Resources Development Fund (PHRD) of Japan

toward the cost of the Project as follows:

► Grant No. H547-LA as per the Grant Agreement dated 2 April 2010 between the IDA and the

Government of Lao PDR (GoL), as represented by the Ministry of Finance: USD 27.8 million.

GoL contributes to the Project via Road Maintenance Fund (RMF) USD8 million and Government

budget USD6.38 million, the total of Lao PDR contribution to Project is USD14.38 million, the

grant total of Project cost is USD43.18 million.

► Grant No. TF093083 as per the Grant Agreement dated 17 May 2010 between the Government

of Japan under the PHRD, as represented by the IDA, and the GoL, as represented by the

Ministry of Finance: USD 1 million.

To address the cost overrun that resulted from design changes to enhance the disaster resilience of

the two national roads sections, discrepancies in the original design of these two roads and also to

scale up project impact by: (a) enhancing the disaster resilience of two national roads and priority

sections of the provincial network; (b) further strengthening the institutional capacities of the MPWT;

and (c) topping up the emergency contingency fund, depleted following rehabilitation efforts in 2011,

World Bank approved additional funding to the Project through Grand No. H7890-LA as per the

Grant Agreement dated 8 August 2012 between the IDA and the GoL, as represented by the Ministry

of Finance: USD 21 million. GoL also contributes to the Project via RMF USD7.2 million and

Government budget USD6.3 million, the total of Lao PDR contribution as additional to Project is

USD13.5 million, the grant total of Project cost for this additional is USD34.50 million.

The Project is implemented by MPWT for the period from 1 July 2010 to 30 September 2017.

The Project development objective (PDO) are: (i) to improve road services on two main national

corridors and the provincial road network; (ii) to recover the conditions of Typhoon Ketsana damaged

roads; and (iii) to establish a contingency fund for quick disaster response in the road sector.


Page 3 of 25

The achievement of the objective will be measured by the following key outcome indicators by the

end of the Project:

► Reduced travel time on upgraded roads (on NR1B reduced by 40% and on NR6A by 50%);

► Increased number of people connected by paved roads (at least 26,500 people, including 49%

of females, mostly living by the roadside will be served by paved road along NR1B and NR6A);

► Increased percentage of provincial road network in good and/or fair condition (by increasing from

46% to 65%);

► Recovered conditions of Typhoon Ketsana damaged roads (about 60% of the damaged roads

repaired and improved); and

► An emergency contingency fund established for quick restoration of passability and safety of

disaster affected national and provincial roads.

The Project comprises three main components:

► Component 1: Road Network Improvement and Preservation (total USD 61.05 million; of

which IDA of USD 33.17 million, GoL’s RMF of USD 15.20 million and GoL contribution of USD

12.68 million), which finances physical works for the upgrading of two national roads, 6A and 1B

in Phongsaly and Houaphan Provinces respectively, the periodic maintenance of the provincial

road network, and road safety improvements.

► Component 2: Institutional Strengthening (total USD 6.03 million; of which IDA of USD 5.03

million and PHRD of USD 1 million), which provides technical assistance to both the MPWT and

the DPWT in the areas of sector strategic management, local road management, country

systems for environmental safeguards, fiduciary management, and internal controls.

► Component 3: Disaster Recovery and Contingency (IDA of USD 10.60 million), which funds

spot rehabilitation and periodic maintenance of roads damaged by Typhoon Ketsana in the five

affected southern provinces, and supports an emergency contingency fund for quick

disbursement of emergency civil works and construction materials ensuring the possibility and

safety of affected national and provincial road links following a natural disaster.


Page 4 of 25

Figure 2: Project Location Map


Page 5 of 25

3. COST ALLOCATION AND DISBURSEMENTS

The Project cost was estimated at USD77.68 million, of which IDA financing constitutes USD48.80

million equivalent and Government contribution through RMF of USD15.20 million, and Ministry of

Finance and Provincial State Budget (GoL) of USD 12.68 million. The Government contribution for

National Roads improvement at 30% and at 75% of total contracts for Provincial Roads

maintenance.

Table 2: Project cost by component and source of fund USD million

Component

Original Project costs Additional Project costs Total

Proje

ct

costs GoL RMF IDA

PHD

R Total GoL RMF IDA

Tota

l

1. Road Network Improvement

and Preservation 6.38 8.00 17.55 - 31.93 6.30 7.20 15.62

29.1

2 61.05

2. Institutional Strengthening - - 1.45 1.00 2.45 - - 3.58 3.58 6.03

3. Disaster Recovery and

Contingency - - - - 8.80 - - 1.80 1.80 10.60

TOTAL 6.38 8.00 27.80 1.00 43.18 6.30 7.20 21.00 34.5

0 77.68

The Project’s first restructuring was approved by the Bank on 9 September 2014 to cover costs

incurred during the upgrading National Road 6A (NR6A), and address the deterioration to sections

of National Road 1B (NR1B) caused primarily by unexpected severe rains and landslides while the

second restructuring was approved by the Bank on 14 March 2017 to cover costs incurred for

Technical Supervision during the upgrading NR6A and address the deterioration to sections of

NR1B. The revised Project costs and total actual accumulated disbursements as at 30 September

2017 are shown as follows:

Table 3: Revised Project costs and actual accumulated disbursements USD million

Component

Revised Project costs Actual accumulated disbursements

GoL RMF IDA PHR

D Total GoL RMF IDA

PHR

D

Tota

l

1. Road Network Improvement

and Preservation 12.68 15.20 33.17 - 61.05 11.43 15.22 32.07 -

58.7

2

2. Institutional Strengthening - - 5.03 1.00 6.03 - - 5.66 0.95 6.60

3. Disaster Recovery and

Contingency - - 1.80 - 10.60 - - 10.62 -

10.6

2

TOTAL 12.68 15.20 48.80 1.00 77.68 11.43 15.22 48.35 0.95 75.9

4

Due to fluctuating XDR rate, actual receipts from the AF were only USD20.7 million out of USD21

million which valued on the Grant signing date. Therefore, some minor works have to be eliminated.


Page 6 of 25

Table 4: Details of actual project disbursements as at 30 September 2017

No Description Cumulative to 30 September 2017

GoL RMF IDA PHRD Total

A Road Network Improvement and Preservation

11,434,655.99 15,220,832.9

8 32,060,184.09 -

58,715,673.06

A.1 Network Upgrading 9,540,948.26 - 24,749,286.35 - 34,290,234.6

0

A.1.a NR1B 5,758,676.93 - 13,289,958.51 - 19,048,635.4

4

A.1. b NR6A including bridge constructions 3,407,529.00 - 8,778,943.35 - 12,186,472.3

5

A.1.c .i

Resettlement for 1B 46,209.09 - - - 46,209.09

A.1.c .ii

Resettlement for 6A 328,533.24 - - - 328,533.24

A.1.d.i Construction Supervision for 1B -

-

2,619,727.97

- 2,619,727.97 A.1.d.ii

Construction Supervision for 6A

A.1.f Monitoring and Evaluation - - 60,656.51 - 60,656.51

A.2 Provincial Network Maintenance 1,893,707.73 15,220,832.9

8 5,816,290.78 -

22,930,831.49

A.2.a PRN Maintenance 1,893,707.73 15,220,832.9

8 5,700,716.38 -

22,815,257.09

A.2.b Construction Supervision - - 33,153.00 - 33,153.00

A.2.c IOC For Provincial and DoR/DoF M&E - - 82,421.40 - 82,421.40

A.3 Road Safety - - 1,494,606.97 - 1,494,606.97

A.3.a Road Safety Goods - - 1,324,556.30 - 1,324,556.30

A.3.b Road Safety Awareness - - 170,050.67 - 170,050.67

B. Institutional Strengthening - - 5,661,030.34 943,346.15 6,604,376.49

B.1 Strategic Management - - 3,222,291.43 6,957.36 3,229,248.79

B.1.a Strategic Management Advisory Services & Capacity Development

- - 1,397,202.91 6,957.36 1,404,160.27

B.1.b Advisory Services for Provincial and Rural Management

- - 100,802.10 - 100,802.10

B.1.c ICT Development - - 618,158.33 - 618,158.33

B.1.d URMF Data Collection - - 324,301.42 - 324,301.42

B.1.e Unit Cost Analysis - - - - -

B.1.f DPC Fiduciary Support - - 781,826.67 - 781,826.67

B.2 Advisory Services and equipment for ESOM Implementation

- - 734,938.38 - 734,938.38

B.3 Internal Controls - - 1,204,687.81 - 1,204,687.81

B.3.a Advisory Services for Internal Controls - - 1,002,545.03 - 1,002,545.03

B.3.b Technical Audit - - - - -

B.3.c Financial Audit - - 84,790.52 - 84,790.52

B.3.d Internal Operating Costs - - 117,352.27 - 117,352.27

B.4 Provincial Capacity Development - - 499,112.73 936,388.79 1,435,501.52

C. Disaster Contingency, Mitigation and Preparedness

- - 10,622,345.93 - 10,622,345.9

3

C.1 Recovery of Ketsana Damaged Roads - - 6,925,658.31 - 6,925,658.31

C.1.a Recovery Civil Works - - 6,925,658.31 - 6,925,658.31

C.1.b Engineering Supervision -

- - - -

C.1.c Incremental Operating Costs -

- - - -

C.2 Disaster Contingency Fund - - 3,696,687.62 - 3,696,687.62

TOTAL PROJECT COST 11,434,655.99 15,220,832.9

8 48,343,560.37 943,346.15

75,942,395.49

Source: Interim Unaudited Financial Report as at 30 September 2017.


Page 7 of 25


Page 8 of 25

4. DETAILED OUTCOMES

Overall the Project is meeting its development objectives satisfactorily as follows, however, a number

of important lessons learned, as described in No. 9, from the implementation should be addressed

in preparation of next projects:

➢ Four of five PDO Level Result Indicators have met and exceeded the target values.

➢ Target Values of Intermediate Result Indicators on road network upgrading and provincial road

maintenance have been substantially met and exceeded.

➢ Most of the Intermediate Result Indicators on Institutional Strengthening meet their target values.

Strategic Planning and Management Final Report has been utilised as one reference to produce

the Sector 8th Five-Year Plan (2016-2020), which has been approved by the Ministry. The Sector

Plan has been incorporated in the 8th National Socio-Economic Development Plan. Internal

Control Function has been expanded, since there are now Internal Control sections and divisions

in 17 provinces, 8 departments, 2 sub-departments and 2 State Owned Enterprise (SOE), Lao

Airlines . The feasibility study of PPP Pilot Project has been completed, and the recruitment of

consulting firm to undertake additional E&S survey on Road No. 13N is under process. The full

report to the government will be made once the survey becomes completed.

➢ The first payment made to contractors for disaster recovery after its declaration doesn’t meet the

target due to the process of seeking contractors & other documentation steps. (Please refer to

Appendix A: Project Result Framework).

Detailed outcomes per components are summarized as follows:

4.1 Road Network improvement and preservation

4.1.1 Network Upgrading

A.1.a National Road 1B (NR1B): Performed by China Yunnan Sunny Road & Bridge Co., Ltd: the

Taking Over Certificates for Lot 1 (Km 0-54) and Lot 2 (Km 54-88) have been issued by the Engineer

on 11 September 2014 after no objection from Inspection Committee, 100% of payment (including

retention money) of Lot 1 and Lot 2 were fully paid. Taking Over Certificate for section Km 88-108

have been issued on 7 August 2015, and which the Defects Liability Period has expired in August

2016. Taking Over Certificate for repairs and mitigation works for sections from Km 38+750 to

40+000, and from Km 54+550 to 54+850 has been issued on 5 January 2017 while the Defects

Liability Period has expired on 24 July 2016. Payment for retention money was made in June 2017.

Figure 3: National Road 1 B


Page 9 of 25

Upon ending of defects liability period which was 2015, RMF allocated its budget for routine

maintenance as follows:

A.1.b National Road 6A (NR6A) including construction of seven bridges:

Upgrading NR6A: Performed by SCC-ADC-DSC Joint Venture: the road works have been completed

with a few defects which have been inspected by MPWT Defects Liability Committee in September

2015. Minor repairs in 6 small locations which have been completed by the contractor in September

2015. Taking Over Certificates have been issued and payment for remaining 50% of retention money

has been made in March 2016.

Figure 4: National Road 6A


Page 10 of 25

Construction of seven bridges on NR6A: Performed by Civil Engineering Construction Joint Stock

Company N0. 525: all seven bridges have been completed with the extension of contract period from

15 August 2015 to 30 December 2015 due to disruption of works caused by heavy rainfalls that

flooded Nam Long from 23-25 June 2015. The Taking-over certificate has been issued on 2 March

2016. Final payment for construction cost including the first 50% of retention money cost was paid

in August 2016 while the remaining 50% will be made in October 2017.

Figure 5: Nam Ma bridge in National Road 6A

Table 5: Name and length of seven bridges

No. Bridge Name Length

(m)

1 Nam Ma 190.6

2 Nam Long 50.0

3 Huay Bor 17.0

4 Huay Huang 17.0

5 Huay Mone 25.0

6 Huay Dik 25.0

7 Huay Yang 25.0

Please refer to Appendix B for details of above seven bridges.

A.1.c Resettlement: All resettlements on NR1B and NR6A were fully paid by GoL in accordance

with Law and Regulations prior to the start of constructions.


Page 11 of 25

A.1.d Supervision consultants: SweRoad in association with WSP and Burapha were assigned as

supervision consultant for road upgrading on National Roads 1B and 6A, The Consultant has also

assisted DoR in reviewing the detailed bridge designs and Drawings, including bidding documents,

for the 6 small bridges and Nam Ma bridge in NR6A which were prepared by LTEC. LTEC, under a

separate contract with MPWT, has carried out the topographic surveys, geotechnical investigations,

detailed design of the 7 bridges in NR6A. Draft bidding documents, including Drawings and BOQ

have been submitted by LTEC to DOR and copied to World Bank. The Team Leader and his team

have reviewed LTEC’s design of the bridge structures including their foundations and

confirmed/modified to comply with the technical standards and AASHTO LRFD bridge design

specifications. He also assisted LTEC in preparing the bidding documents and specifications for the

steel structures. Please refer to Appendix E for the final quarterly report of consultant as at

December 2015.

A.1.e Monitoring and evaluation: Monitoring and evaluation was performed by Project managers

who were assigned by DoR to carry out day-to-day monitoring together with supervision consultants.

4.1.2 Provincial Network Maintenance

A.2.a Periodic maintenance and spot improvements: As at 30 September 2017, more than 2,400

km of provincial road have received spot improvement and periodic maintenance under the Project

(see Appendix D for provincial road maintenance contracts). Furthermore, in order to cope with the

maintenance needs while preventing the road network from further deteriorated and not to lose the

momentum while those needs have already been prioritized systematically for the 3-Year Rolling

Plan, DoR therefore has received approval by minister for continuing to allocate fund from RMF

amount to LAK 41,674.90 million, covering 18 maintenance contracts for provincial roads, with total

length of about 300.93 km, spreading allover 18 provinces countrywide.

A.2.b Supervision: Supervision was performed by MPWT and DPWT staffs who were assigned by

DoR to carry out day-to-day supervision together with provincial and rural management consultants.

A.2.c Capacity building: To further strengthen DPWT in managing provincial roads maintenance,

a training has been provided to six provinces on planning, supervision, and contract management.

DOR conducted the technical trainings using the remaining training budget and IOC for 12 provinces

(Northern and Southern parts) in September 2017.

4.1.3 Road Safety

A.3.a Road safety – goods: Package 1 for mitigation of traffic accidents in Vientiane Capital of

USD0.58 million and Package 2 for road furniture, road marking and signage on NR13N amounting

to USD0.81 million was fully installed. The final 10% payment for Package 2 was made in February

2016.

A.3.b Road safety – awareness and capacity building: The public campaign in Vientiane Capital

and traffic management training have been successfully completed while the speed management

training had been postponed from November 2015 to January 2016 due to the readiness of AIT.

However, the speed management training had been again postponed and conducted on 14-17 June

2016 while the awareness raising was shifted from NR13N to NR1B and NR6A which expects to be


Page 12 of 25

carried out in October-November 2016. Due to the minimal readiness of the communities, the actual

implementation is reset to perform in February 2017. Procurement for the safety capacity

assessment consultant, who will help on updating traffic regulation and fine decree and PRSC

workshops are postponed due to the budget constraints (see Appendix E for details).

4.2 Institutional Strengthening

4.2.1 Strategic management

B.1.a Strategic management advisory and capacity development: Strategic Planning and

Management (SPM) Consultant Services: Strategic Planning and Management Final Report has

been utilized as the basis to produce the Sector 8th Five-Year Plan (2016-2020), Strategy up to 2025

and Vision up to 2030. The Five-Year Plan (FYP) in Lao version has been finalized and received the

minister’s approval. The available edition of the FYP can be shared to all development partners.

Public-Private Partnership (PPP) financing of roads: ToRs for individual consultants and a firm on

ESIA, RAP and EGDP have been completed. Two individual consultants have been on board since

July 2016, however, due to budget constraint resulting delays in procuring a consulting firm to

perform additional surveys. Therefore, all E&S related studies were carried out under Lao Road

Sector Project 2. MPWT reported the progress of PPP to the government on 11 August 2016, and it

has been agreed that a full report, including response to government enquiries on 7 issues, from

MPWT to the government on the way to have PPP moving forward will be prepared. At current stage,

MPWT is in the process of preparing new project, Lao National Road 13 Improvement and

Maintenance Project, using one of PPP concept as Output and Performance-Based Road Contract

(OPBRC).

B.1.b Advisory services for provincial and rural management: Maintenance monitoring consultant

has been recruited for day-to-day monitoring of provincial periodic maintenance and spot

improvements.

B.1.c ICT development: The design and development of ICT tools to support road asset

management, Integrated Road Asset Management System (IRAM or system), is completed and

testing was performed in June – July 2015. ICT Steering Committee has reviewed and approved the

IRAM. Training for users was conducted in February 2016 and the system has been officially

operated in May 2016. Procurements of ICT equipment for two packages have been completed and

payments were fully made to the contractors.

B.1.d URMF data collection: Annual Road Asset Report for FY 14/15 was submitted to DoR, DPC

and WB in November 2015. The condition survey for national roads for FY 15/16 including data

collection, with limited budget of USD20 thousand, was completed in March 2016 and its analysis

has been completed in May 2016. Data input, validation and analysis of road condition for local roads

was completed and Annual Road Asset Report for FY 15/16 was issued in March 2017.

B.1.f Fiduciary support: At the first stage of the Project, this role was under DPC and later under

DoF since it was established in 2013. MPWT together with WB developed the Internal Financial

Manual of MPWT which was approved by Minister in 2010 and revision was made in September

2017 (including Standard Operating Procedures) by assisting of National Coordination and FM


Page 13 of 25

Consultants. New version of APACC (and accounting software) was upgraded and used as the

Project software in recording financial information and generating financial reports such Interim

Financial Reports (IFRs), financial statements and etc. At the first year of Project implementation,

there were poor quality and delays submission of the IFRs and Project audit reports. The quality of

the IFRs and timing of submission of both IFRs and audit reports continued to improve after the

second year of implementation. The audit opinions were unqualified (clean) throughout Project

implementation. From June 2015, the Project recruited a National Coordination Adviser and three

Financial Management Advisers to advise the Project in coordination and financial management

including revision of Internal Financial Manual. As all of the staffs working on the financial

management of the Project were staffs of MPWT and DPWT, the Project was instrumental in

improving the overall capacity of ministry and provincial staffs to manage the finances of ODA

projects.

4.2.2 ESOM

B.2.a ESOM preparation: PTI has finished its translation of ESOM to English version and already

submitted to the Bank for comments in early October 2015. Upon receiving comments from the Bank,

PTI will revise and collaborate with the Council of Science and Technology in preparation to seek

the minister’s approval on the revised ESOM. However, The Bank will review the ESOM in parallel

with safeguard preparation for the new project to ensure consistency. As recommended by the Bank,

ESD/PTI and TED/DOR completed submission work plan on E&S monitoring for provincial road

maintenance to the Bank. However, it was cancel due to the WB keep priority to the preparation

safeguards framework for LRSP 2 (ESMF, RPF, EGPF) which is urgent needed to submit to head

quarter.

B.2.b Environment, social and safeguard monitoring: The E&S monitoring (completion report) of

NR1B and NR6A, and of provincial road maintenance have been completed. Random visit to verify

the safeguard compliance for the provincial road maintenance projects of five Northern provinces

(Xayabuly, Bokeo, Luangnamtha, Oudomxay and Phongsaly) during 21-30 December 2015 with no

major issues were noticed. PTI also completed safeguard training in Laung Prabang for 8 DPWTs

in January 2016. ESD/PTI conducted several consultation for preparing safeguards framework for

LRSP 2 such as: i) the first consultation was made in Vientiane on 25 February 2016 to inform the

public and key agencies about the objective and scope of the Project as well as the draft TORs for

the ESMF, RPF, and EGPF while the second consultant was made in Vientiane on 29 April 2016 on

the draft ESMF, RPF, and EGPF; ii) two consultations were also made in the Bolikhamxay and

Xayabuly. The first consultation in BKX and XBL were made in 04 to 11 of March 2016 to describe

scope of the subprojects to be carried out in the provinces, consult the draft TORs for ESMF, and

RPF as well as collect baseline data to identify if ethnic groups are present in the subproject areas

and/or possible effected people and/or property that may be affected by the subprojects; iii) the

second consultation which was conducted in XBL during 20-23 April 2016 and in BKX in 25-27 April

2016. Results for the second consultation confirmed strong support for the project as well as the

ESMF, RPF, and EGPF to be applied to the Project; and iv) additional consultation has conducted

for concerned provincial departments in Houaphan and Oudomxay during 28 June and 9 July 2016.

4.2.3 Internal controls


Page 14 of 25

B.3.a Advisory services and training for internal control division: Financial audit manual, financial

audit working papers, technical audit manual, technical audit working papers, quality assurance

guidance, strategy for internal auditing plan, and strategy for financial management system in

English, which produced by Nanjing Audit University, have been completely translated into Lao

language while the first workshop has been conducted on 15-19 August 2016 for gathering

comments from nationwide inspectors of MPWT (by using GoL’s budget) and second was made in

December 2016 for 9 northern provinces while for 9 southern provinces was made in January 2017.

DoI completed its procurement for equipment and vehicles to six provinces in August 2015 and

distribution to those provinces were also completed. A national coordination advisor and three

financial management advisors have been on board since June 2015 while another two internal

control consultants are now postponed and recruited under new project (Lao Road Sector Project

2). All internal control weaknesses identified by Ernst & Young in Internal Control Assessment Report

dated 21 December 2012 and certain internal control weaknesses that highlighted in the

Management Letter for the year ended 30 September 2014 by EY have been fully implemented.

B.3.b Technical audit: The consultant for technical audit of NR6A, NR1B and provincial roads has

been on board since May 2015. The consultant has been completed his technical audit report in

September 2015. During the nationwide workshop for inspection sectors, which held in September

2015 at Vangvieng of Vientiane Province, the Consultant completed his introduction to Quality

Assurance and Control.

B.3.c Financial audit: Ernst & Young Lao Co., Ltd is the external auditor for the whole period of the

Project. Although certain delays in submission of audited reports, however, the audit opinions were

unqualified (clean) throughout Project implementation. The final audit was carried out in January

2018 and now is process of signing and the audited reports will be submitted to World Bank in March

2018.

B.3.d Capacity building: Nationwide workshop for inspection sectors was held in September 2015

at Vangvieng of Vientiane Province with approximated 100 participants to introduce new Prime

Minister Decree PM01/PM dated 6 January 2015 mandates the internal control division of the

relevant department at central and provincial level to review all new contracts before these are

signed. First workshop, (on Financial audit manual, financial audit working papers, technical audit

manual, technical audit working papers, quality assurance guidance, strategy for internal auditing

plan, and strategy for financial management system), has been conducted on 15-19 August 2016

for gathering comments from nationwide inspectors of MPWT (by using GoL’s budget) and second

was made in December 2016 for 9 northern provinces while for 9 southern provinces was made in

January 2017.

4.2.4 Provincial capacity development: The capacity development plans were focused on

enhancing ministerial, provincial and district capacities for equality control, financial and contract

management. Total 2,042 participants (286 females and 1,756 males) including 727 participants

from Ministry, 1,089 from provinces and 226 from districts were trained during the Project period.


Page 15 of 25

4.3 Disaster Recovery and Contingency: It has been agreed in a follow-up meeting on Agreed

Actions that DOR with a support from DOF and DPC will draft the Standard Operating Procedures

(SOP) for the management of the emergency contingency fund. The third drafted SOP for the

Emergency Response and Disaster Recovery Fund has been reviewed and commented by DoR

and DoR who agreed in principles on the fund allocation, scope of the use and activation procedures.

Final draft has been completed and attached to the Internal Financial Manual which approved by

Minister on 8 September 2017.

5. ASSESSMENT OF OUTCOMES

Project Development

Objective

Project Outcome Indicators Use of Project Outcome

Information

The Project development

objective (PDO) are: (i) to

improve road services on two

main national corridors and the

provincial road network; (ii) to

recover the conditions of

Typhoon Ketsana damaged

roads; and (iii) to establish a

contingency fund for quick

disaster response in the road

sector.

1) Vehicle travel time on

upgraded NR1B reduced

by 40%;

2) Vehicle travel time on

upgraded NR6A reduced

by 50%;

3) At least 26,500 people

(49% females) mostly

living by the roadside will

be served by paved road

along NR1B and 6A;

4) Share of provincial road

network in good and fair

condition (by Lao

standards) increased from

46% to 65%

5) About 60% of the Typhoon

Ketsana damaged roads

repaired and improved;

6) Standard operational

procedures for the

management of the

emergency contingency

fund functional

Project beneficiaries (309,400

people including 157,794

female)

For decision makers to gauge

effectiveness of the

Government’s program for

road sector management, and

to make decisions for actions

required to improve the

effectiveness.

Assess impact of improved

national and provincial road

networks and effective

transfer of benefits to road

users.

ICR outcome note:

1) Travel time on NR1B is 2.5

hours or reduced by 50%

as per observation during

mission on 24-26 January

2017;

2) Travel time on NR6A is 50

minutes or reduced by

72% as per observation

during mission on 14-16

February 2017;

3) 116,581 people (44%

female). 23,371 people

(11,438/49% female) of 52

villages living along NR1B

and 93,210 people


Page 16 of 25

(40,022/43% female) of 3

districts living along NR6A;

4) Provincial road network in

good and fair condition

increased to 73% based

on received ProMMs data.

The figure might not reflect

real condition of the road

network due to the

ineffectiveness of data

collection;

5) Achieved 55% and the

remaining 45% was taken

up by GoL and other

sources of funding;

6) The Standard Operating

Procedures (“SOP”) for the

Emergency Response and

Disaster Recovery Fund

has been prepared and

attached to the Internal

Financial Manual which

approved by Minister on 8

September 2017.

Total 467,863 beneficiaries

(230,858 female)

Intermediate Outcomes Intermediate Outcome

Indicators

Use of Intermediate

Outcome Monitoring

Intermediate Result 1: Network Improvement and Preservation

1. Road conditions on

national roads 1B and

6A substantially

improved: upgrading

of 109 km NR1B and

62 km NR6A.

1. 171 km of national roads

(NR1B and NR6A)

upgraded with disaster

resilience standard.

Monitor implementation

progress and formulate action

plan to address possible

delays on NR1B and NR6A.

ICR outcome note: Objective

is met; all 171 km including

seven bridges was fully

completed.

2. Road conditions

improved on selected

provincial roads:

periodic maintenance

on priority sections of

2. About 2,100 km of

provincial roads preserved

through periodic

maintenance

Monitoring implementation



delays for maintenance on


Page 17 of 25

the provincial road

network.

priority sections of provincial

road network.

ICR outcome note: Objective

is met; 2,500 km of provincial

road network received

maintenance. In addition, GoL

allocates its budget from RMF

to continue provincial

maintenance approximately

300 km in year 2016/17

3. Safety pedestrian and

road users improved

on targeted roads:

support to National

Road Safety Strategy.

3. Road safety facilities

acquired and installed as

per specifications.

4. 300 police officers, local

authorities, community

members and teachers

and students exposed to

road safety training and

awareness raising

activities in 3 pilot

provinces.


progress for road safety

facilities acquisition and

installation.

ICR outcome note:

3. Objective id met; fully

installed facilities.

4. 102 participants and 10

observers.

Intermediate Result 2: Institutional Strengthening

4. MPWT capacity for

sector strategic

planning and

management

strengthened and

streamlined: strategic

management of

transport sector.

5. Knowledge and practical

experience acquired on

transport sector strategic

planning and

management. National

plan updated and

expanded.

Assess the completion status

and impact of technical

assistance. Use continued

knowledge acquisition for

sector strategic planning and

management.

ICR outcome note: The final

edition of Sector Five-Year

Plan produced and approved.

5. Country system for

environmental

assessment adopted

and enhanced:

strengthening of

safeguard capacity.

6. Enhanced knowledge and

practical experiences

gained on safeguard

management. Country

systems used for EA and

staff trained.





safeguard capacity

development.

ICR outcome note: 256

provincial and district

engineers received ESOM


Page 18 of 25

training. ESOM in English

version shared to the Bank for

comments. Trainings on

ESOM will be postponed to

the LRSP 2.

6. Internal control system

established and

functional:

strengthening internal

controls.

7. Acquire knowledge and

experience on internal

control, Internal audit

function established and

functional.





internal controls.

ICR outcome note: Internal

control sections established in

17 provinces and internal

control divisions in 8

departments, 2 sub-

departments and 2 SOEs.

7. Provincial Department

capacity further

strengthened:

Provincial Department

capacity development.

8. Knowledge enhanced and

practical experiences

gained on fiduciary

management and contract

management at the

provincial level





provincial capacity

development.

ICR outcome note: 2,042

people (286 females) received

trainings and workshops.

8. PPP Unit established. 9. PPP Unit established.

10. Feasibility study for two

PPP pilot road sections





PPP.

ICR outcome note:

9. Steering Committee

established. PPP

implementation responsibility

is with DoR, and coordinating

responsibility will remain with

DPC.

10. Feasibility study is

completed. MPWT to compile

a full report to the government


Page 19 of 25

after the completion of

additional E&S study which

will be carried out under LRSP

2.

Intermediate Results 3: Disaster Recovery and Contingency

9. The conditions of

Typhoon Ketsana

damaged roads

restored and improved:

Spot rehabilitation and


of Ketsana Damaged

Roads.

11. About 1,100 km of

Ketsana damaged roads

(including small and

wooden bridges) repaired

and improved as per

specifications.




delays on NR1B and NR6A.

ICR outcome note: Target

achieved.

10. Disaster response

capacity enhanced:

Emergency

contingency fund.

12. Length of time between

declaration of disaster and

the first payment to

contractors for emergency

works shortened (time of

payment shortened to less

than 6 month).

Assess the time required for

payments made to contractors

who carried out the

emergency works.

ICR outcome note: Time of

payment for Typhoons

Ketsana and Nok Ten on

average about 10 months.

Due to the lack of fund in each

financial year, first payment

for disaster recovery works in

2010-2013 just been made in

Aug 2014.

Documentation process to

obtain the payment not

complicated.

For the WB disaster &

emergency fund took about 10

months on average for the

first payment to be made.

6. PERFORMANCE

Overall performance on a Project may be weighed against the following criteria:

▪ Relevance

▪ Effectiveness

▪ Efficiency


Page 20 of 25

▪ Sustainability

Where the weighings are 20%, 30%, 30% and 20% respectively.

Scorings: Highly satisfactory > 2.7; satisfactory 2.7>S>1.6; partly satisfactory 1.6>PS>0.8;

unsatisfactory<0.8.

The performance of the Bank and Borrower were based upon the above criteria.

6.1 Bank’s Performance

Relevance – in continuation of the institutional outcomes achieved from previous operations,

especially the Bank-led, multi-donor funded Road Maintenance Program Phase 1 and 2, and add

value through financing crucial physical investment, and supporting the strategic planning, design,

preparation, implementation, and management of road infrastructure in an environmentally and

socially responsible manner. The Project is also built on the MPW’s continuing effort in aid

harmonization, the Project is a pilot use of country system (or sector wide approach) for

environmental assessment, the establishment of internal audit function, the strengthening of

fiduciary management systems especially at the provincial level, and the establishment of an

emergency contingency fund for repaid response to disasters. All these are designed as “very

relevant” supporting functions to improve the effectiveness of physical investments and delivery of

road services to the people. The Project is fully consistent with the World Bank’s Country Assistance

Strategy (CAS) for Lao PDR. It supports one of the main CAS pillars of sustained growth through

enhanced regional integration and private sector development, and to a lesser extent, one of the

supporting CAS objectives regarding better alignment of donor resources with the objectives of the

Government’s National Growth and Poverty Eradication Strategy and strengthened aid coordination.

Effectiveness – the Bank is rated “highly effective” in achieving its targeted outcomes. The inter-

relationship of the Bank’s staff and consultants with those of the MPWT proved most positive in the

development and implementation of the Project. The Bank’s dealings with MPWT and outcomes of

its missions through the Aide Memoire were effective in progressing the satisfactory outcome of the

Project as well as leading cross donor co-operation through bi-annual meetings and promoting the

Infrastructure Technical Working Group which involves MPWT and most of the Development

Partners.

Efficiency – the efficiency of the Bank is demonstrated in its interactions with the MPWT regarding

processing of procurement approvals for both consultants and civil works, revisions to the Project

affecting the scheduling of consultants for the capacity building component, time in replying to

queries, etc – the Bank’s rating in this respect is considered as “efficient”.

Sustainability – the Bank continues support with further funding to Lao Road Sector Project 2

(“LRSP2”) with co-financing from Nordic Development Fund and Government of Lao PDR through

Road Maintenance Fund’s budget and Provincial State budget. LRSP2 is supporting sector

institutional development through the preparation of financing and policy frameworks, the sector


Page 21 of 25

strategic plan, improved governance systems, and development of technical capacity to maximize

the effectiveness of public expenditure in the sector. In addition, the Bank’s commitment to

sustainability is demonstrated by its continuing association with MPWT through the preparation of

the Lao National Road 13 Improvement and Maintenance Project (“NR13 project”) with the purpose

of climate resilient upgrade and improvement of 58km on NR13 North from Vientiane to Phonhong,

a critical stretch serving high traffic volumes. The works and maintenance will be carried out through

the implementation of an Output and Performance-Based Road Contract (OPBRC) – the Bank

commitment to sustainability of the Lao road networks is rated “sustainable”.

Score:

Relevance (20%) = 2.8

Effectiveness (30%) = 2.8

Efficiency (30%) = 2.4

Sustainability (20%) = 2.4

Overall rating = 2.6

The Bank’s performance is rated as satisfactory.

6.2 Borrower’s Performance Relevance - The Project supports the country’s economic growth and poverty reduction through: (i)

reducing road transport costs for goods and passengers; (ii) rehabilitating the road damaged by

Typhoon Ketsana; and (iii) developing an emergency contingency fund for rapid response to natural

disasters in the road sector. Support to the second CAS objective is mainly through the strengthening

of the MPWT’s systems for strategic planning, fiduciary management, and environmental

safeguards, which are required for achieving better aid harmonization and coordination. The Borrow

is rated as “most relevant”.

Effectiveness – the Borrower is rated as “effective” based on the targets for the Project:

▪ improve road services on two main national corridors and the provincial road network;

▪ recover the conditions of Typhoon Ketsana damaged roads; and

▪ establish a contingency fund for quick disaster response in the road sector.

The civil works have been completed, however, counterpart funding remains payable of LAK 22

billion (USD 2.67 million) (see Appendix F for details) and the implementation of all components is

considered satisfactory. In the view of the Bank, the financial management performance of the

Project remains moderate satisfactory due to: (i) late advance clearance; (ii) large expenses on

administrative expenses; (iii) un-updated fixed assets register; and (iv) inactive DA. However, at the

date of this report, all issues related to financial management have been addressed and therefore,

we consider rate is satisfactory for financial management.


Page 22 of 25

Efficiency – the Borrower is rated “efficient” - all key outcome indicators and intermediate

performance indicator targets have been met as planned.

Sustainability – the Government has continued towards the goal of achieving sustainable

maintenance of the road system, all institutional outcomes achieved from this Project, as sector wide

approach project, is moved forward to LRSP2 and NR13 project. The road sector is financed through

Government budget, ODA, and the Road Maintenance Fund (RMF). The RMF, capitalized mainly

through a fuel levy, is the key mechanism to ensure predictable and sustained allocations of funds

for road maintenance. The RMF has been growing at more than 10 percent per annum in recent

years and stood at over US$80 million in 2016, from US$2 million in 2002 (when it became

operational). MPWT’s conservative projection is for future growth rates maintained at around 10

percent in the medium term. The Borrower is rated as “sustainable”.

Score:

Relevance (20%) = 2.8

Effectiveness (30%) = 2.0

Efficiency (30%) = 2.5

Sustainability (20%) = 2.5

Overall rating = 2.5

The Borrower’s and Implementing Agency’s performance is rated as satisfactory. Key outcome

indicators and intermediate performance indicator targets have been met. The results framework

and achievements are shown in Appendix B. The civil works on National Roads (NRs) 1B and 6A,

including the repairs on NR 1B and the construction of the bridges on NR 6A financed under

LRSP, have been completed. The provincial road maintenance including FY2015-2016 has also

been fully completed. By cooperation between, the DoF and DoR of MPWT, the SOP for the

Emergency Response and Disaster Recovery Fund has been prepared and attached to the

Internal Financial Manual which approved by Minister on 8 September 2017. The Sector Strategy

technical assistance has been completed and MPWT has utilized the outputs as the basis for

internal discussions and drafting of the Transport Sector Vision up to 2030, Ten-Year Strategic

Plan, and Five-Year Action Plan 2016-2020. ICT tools to support business processes for road

asset management have been developed, tested and operationalized. Provincial capacity

development activities are underway with 90% of the training plan for 2014-2016 completed.

Internal controls are being strengthened and guidelines for technical audit and internal control have

been developed as planned. Training activities are on track. The coordination among departments

has improved, and the bi-annual monitoring report for 2016 was shared with the World Bank in a

timely manner and with good quality.

7. ECONOMIC ASPECTS

The Project is fully consistent with the World Bank’s Country Assistance Strategy (CAS) for Lao

PDR. It supports one of the main CAS pillars of sustained growth through enhanced regional

integration and private sector development, and to a lesser extent, one of the supporting CAS


Page 23 of 25

objectives regarding better alignment of donor resources with the objectives of the Government’s

National Growth and Poverty Eradication Strategy and strengthened aid coordination.

The improved road services for national roads impacted low-income households in Phongsaly

province (Khua, Boonneua, and Boontai Districts) and Huaphan province (Xienkhor, Sopbao, and

Add Districts). Most of them, based on the location, are low-income households in rural areas. The

provincial road maintenance was implemented country-wide and has impact on the rural population,

which is more than 2/3 of the total population. Because most of provincial roads are unpaved and

vulnerable to flood and landslides, road maintenance is crucial in ensuring all year round

accessibility, which provides access to employment, market, school, and health services. The

Project’s benefits have been distributed more to lower-income population, as well as shared among

all provinces in Lao PDR. The Project directly supports the economic growth as following:

➢ In line with these objectives, the Project supports the country’s economic growth and poverty

reduction through: (i) reducing road transport costs for goods and passengers; (ii)

rehabilitating the road damaged by Typhoon Ketsana; and (iii) developing an emergency

contingency fund for rapid response to natural disasters in the road sector. Support to the

second CAS objective is mainly through the strengthening of the MPWT’s systems for

strategic planning, fiduciary management, and environmental safeguards, which are required

for achieving better aid harmonization and coordination;

➢ At appraisal, the travel times on NR 6A (62km) and NR 1B (109km) were 3 hours and 5

hours, respectively. The target was to reduce travel time by 40%. The civil works on NR 1B

were completed ahead of schedule, and by August 2013 travel time had been brought down

to 2.5 hours (50% reduction),;this level was sustained through to the end of the project. The

construction work on NR 6A was completed by the end of 2016, and the travel time reduced

to 50 minutes (72% reduction);

➢ It was expected that the project would serve at least 26,500 people (49% female, i.e., at least

12,985 female). The project’s annual survey in 2016 showed that the paved national roads

(NR 6A and NR 1B) were serving 116,581 people (44% of whom were female, i.e., 51,296

female)

➢ The share of the provincial road network in good and fair condition was 46% at appraisal,

against a target of 64%. By project end, implementation of annually planned provincial road

maintenances programs had resulted in 65% of the provincial road network in good and fair

condition. It was noteworthy that the km of provincial roads maintained had exceeded the

planned targets in every year of implementation

8. ENVIRONMENTAL AND SOCIAL ASPECTS

Environmental Safeguards:

Safeguard compliance is considered Satisfactory based on the documents provided, discussions

with the Project stakeholders, and field visits to NR1B and NR6A and some provincial roads in

Phongsaly, Oudomxay, Houaphan and Xiengkhouang. No major safeguards related issues were


Page 24 of 25

identified and reported during Project implementation. All required written evidence was made

available for the mission’s review when required. The quality of safeguard documentation could be

further improved with advanced training, and support will be provided to MPWT and the DPWTs

under LRSP2.

Safeguard monitoring of NR 6A and 1B and Provincial Road Maintenance: Civil works for NR 1B

and NR 6A and provincial road maintenance were completed with no major safeguards concerns.

The mission noted that the Project contributed significantly to dust reduction in communities where

roads were upgraded from unpaved to paved standard. The PTRI had conducted periodic

Environment and Social (E&S) monitoring, including final E&S monitoring during December 22–30,

2015 on road NR1B in Phongsaly and six sub-projects of provincial road maintenance in five northern

provinces (Xayabouly, Borkeo, Luangnamtha, Oudomxay and Phongsaly). Common issues found

by the mission include: improper use and poor management of borrow pits, improper camp site

management (waste management, use of materials from natural resources, etc.), inadequate

warning sign installation, soil erosion, poor construction waste disposal, etc. These issues had been

considered and included in the design of LRSP2, particularly with respect to implementation and

enforcement of safeguards obligations in contractor contracts and contractor management and

capacity building. All safeguards trainings planned for LRSP have been completed. The mission also

discussed with the DPWTs the way forward for LRSP2.

Environment and Social Operations Manual (ESOM) updates and implementation. In 2015 PTRI had

finished the ESOM updates to include new regulations and had finished an English translation. The

English version was submitted to the Bank for review in October 2015, but was found by the Bank

to require further improvement. However, since the Department of Environmental and Social Impact

Assessment (DESIA) of the Ministry of Natural Resources and Environment (MONRE) plans to

upgrade the Environment and Social Impact Assessment (ESIA) and Initial Environmental

Examination (IEE) regulations into ESIA law or decree in 2017–2018, and LRSP2 will include TA

support to prepare several guidelines on safeguards in road sector investment projects, the mission

suggested that the ESOM updates be continued and included under LRSP2 implementation.

Preparation of PPP NR13 Road Project: The Feasibility Study (FS) for the PPP for NR 13N and 13S

has been completed, but the Environmental and Social (E&S) Assessment was found insufficient for

a World Bank Group (WBG) financed Category A project. Procurement of an additional E&S study

is in process. At the same time, MPWT informed the mission that due to the current economic and

financial situation, the government is not in favor of the implementing a PPP project as proposed for

NR 13 N and 13 S road sections and had decided to terminate the Financial Advisory Services

Agreement with the IFC for the PPP road project. However, MPWT still seeks IDA support for NR

13N improvement. Investment on NR 13S is still in GoL’s plan, but would be carried out in a later

phase. With this decision and partly because of cost and financing implications, the E&S study of

NR 13N and NR 13S will now be conducted separately. The proposed first step will be to carry out

additional planning activities and update the ESIA, Resettlement Action Plan (RAP) and Ethnic

Group Development Plan (EGDP) for the 13N road section only. The MPWT has revised the E&S

TORs to reflect this split and clearly describe coverage of each contract and its interface. The

International Environmental Specialist contract for the E&S study of NR 13N and 13S, which ended


Page 25 of 25

in November 2016, will be revised and renewed for only the NR 13N road section. As discussed in

para 26 under Procurement for the E&S Study, MPWT has received the revised technical and

financial proposals from the firm whose scope of work would now include all safeguards surveys and

preparation of social safeguards instruments including the RAP and EGDP. The mission discussed

that these factors - the need for more time for study completion than remains under LRSP, a higher

cost estimate than the available budget, and the requirement to incorporate preparation of a full RAP

– all suggest that the study would best be carried out under LRSP2.

Social Safeguard:

Safeguard monitoring of NR 6A and NR 1B and Provincial Road Maintenance. On the basis of the

safeguard monitoring, RAP completion reports reviewed, and field visit to NR 6A and some provincial

roads in Xiengkhouang conducted during the mission, no major issue was identified. The RAP

implementation has been completed with compensation and required support provided to all Project

Affected Households (PAH). All written evidence, including minutes of consultation meetings,

receipts and agreements, were made available for review. The PAHs met confirmed the receipt of

cash compensation from the Project and expressed their appreciation for the improved roads and

positive impacts on their livelihood. There were some grievances expressed mainly related to the

need for further improvement of road safety measures such as traffic control sign posts at some

points of the NR6A. The quality of safeguard documentation could be further improved with

advanced training, updated templates and samples of comprehensive RAPs and reports to be

provided for the MPWT and the DPWTs for their references under the LRSP2.

9. LESSONS LEARNED

Straightforward project design supported easy adjustments during the life of the project. Clear, not

overly ambitious targets were set and sufficiently straightforward to be easily adjusted when

required. The Project design provided a clear line-of-sight from outputs to objectives, which made it

possible for the project to be easily adapted to unexpected challenges.

The use of long-term improvement and maintenance contracts can help improve road asset

management and enhance sector efficiencies.

Climate resilient road designs are critical and need to be promoted to reduce infrastructure

vulnerability to current and future climate risk.

Coordination between central and provincial level: since this is the first pilot Project using sector wide

approach, coordination was more of a challenge than anticipated.

Participation/ownership from provincial level: in adequate capacity of provincial level in fully

understanding key documentations as they are in English (i.e. PAD, POM, Aide Memoire and etc).

In addition, no participations from provincial level on key missions.


Page 26 of 25

Lengthy in procurement process which mainly from (i) limited human resources and staff turnover,

and (ii) a lengthy internal approval process within the Project.

Monitoring and evaluation: regular involvements in monitoring procurement and execution of the

works, and sufficient budget for carrying out systematic data collection.

Contract management: strengthen contract management capacity and registration system for

contractors.


Page 1 of 5 (Appendix A)

Appendix A - Project Results Framework

Project Development Objective (PDO): (a) To improve road services on two main national corridors and the provincial road network, (b) to rehabilitate the roads damaged by

Typhoon Ketsana, and (c) to establish and operationalize a contingency fund for quick disaster response in the road sector.

PDO Level Results Indicators

Co

re

Unit of

Measur

ement

Baseline

Original

Project

Start

(2010)

Progress

To Date

(Sep

2017)

Cumulative Target Values

Frequenc

y

Data Source/

Methodology

Responsibili

ty for Data

Collection

Comments 2014 2015 2016 2017

1. Vehicle travel time on upgraded NR1B reduced by

40%

(109km):

5 hours; 50% 20% 30% 40%

40%

Annual

Project

progress

report and

National Road

Survey

DoR

Travel time=2.5

hrs

Based on

observation

during mission 24-

26 January 2017.

2. Vehicle travel time on upgraded NR6A reduced by

50%

(62 km):

3 hours 72% 20% 30% 40% 50% Annual

Project

progress

report and

National Road

Survey

DoR Travel time= 50

mins.

3. At least 26,500 people (49% female) mostly living by the roadside will be served by

paved road along NR1B and 6A

Number 0

116,581

(44%

female)

13,000

At least

26,500

(51%

female)

At least

26,500

(51%

female)

At least

26,500

(51%

female)

Annual

Project

progress

report and

sampling

survey

DoR

6A total ppl incl. 3

districts= 93,210

(F=40,022/ 43%)

1B total ppl incl.

52 villages along

the road= 23,371

(F=11,438/49%)

4. Share of provincial road network in good and fair

condition (by Lao standards) increased from 46% to 65%

46% 73% 64% 64% 64% 65% Annual

Progress

report and

Annual Asset

Report

DoR

Based on

received ProMMs

data. The figure

might not reflect

real condition of

the road network

due to

the

ineffectiveness of

data collection



PDO Level Results Indicators

Co

re

Unit of

Measur

ement

Baseline

Original

Project

Start

(2010)

Progress

To Date

(Sep

2017)


Frequenc

y

Data Source/

Methodology

Responsibili

ty for Data

Collection

Comments 2014 2015 2016 2017

5. Standard operational procedures for the

management of the emergency contingency fund functional

Text

Fund

establish

ed

Draft

prepared

Functio

nal

Functio

nal

Functio-

nal

Function

al Annual

Project

progress

report

DoR & DoF

The development of

draft SOP prepared

earlier will require

some more time.

Beneficiaries

Project beneficiaries,

Number 467,863 147,60

0 309,400

Figures of 5

districts in

Houaphan

Province and 7

districts in

Phongsaly

Province.

Of which female (beneficiaries) Number 230,858 75,276 157,794

Intermediate Results Indicators

Co

re

Unit of

Measur

ement

Baseline

Original

Project

Start

(2010)

Progress

To Date

(Sep

2017)


Frequenc

y

Data Source/

Methodology

Responsibili

ty for Data

Collection

Comments 2014 2015 2016 2017

Intermediate Result 1: Network Improvement and Preservation

1. 171 km of national roads (NR1B&6A) upgraded with disaster resilience standard

km 0 171 80 171 171 171 Bi-annual

Project

progress

report

DoR

2. About 2,100 km of provincial roads preserved through


km 0 2,500 1,415 1,600 1,900 2,100 Bi-annual

Project

progress

report

DoR

3. Road safety facilities acquired and installed as per

specifications

Text 0 Fully

installed

Goods

procure

d

Installe

d

Fully

installed

Fully

installed Annual

Project

progress

report

DoT

4. New. Police officers, local authorities, community

members and teachers and students exposed to road

safety training and awareness raising activities in 3 pilot

provinces

Number 0

102

participa-

nts and

10

observ-

ers

100 200 300 300 Annual

Project

progress

report

DoT

Traffic

Management

Training

completed

Speed

Management was




Co

re

Unit of

Measur

ement

Baseline

Original

Project

Start

(2010)

Progress

To Date

(Sep

2017)


Frequenc

y

Data Source/

Methodology

Responsibili

ty for Data

Collection

Comments 2014 2015 2016 2017

conducted in June

2016

Intermediate Result 2: Institutional Strengthening

5. Knowledge and practical experience acquired on

transport sector strategic planning and management

Text

First

sector

planning

produced

The final

edition of

Sector

Five-

Year

Plan

Produced

&

Approved

Strategi

c plan

updated

and

expand

ed

Strateg

ic Plan

update

d and

expand

ed

Strategi

c Plan

updated

and

expand

ed

Strategi

c Plan

updated

and

expande

d

Annual

Project

progress

report

DPC

6. Country systems used for EA and staff trained

Text

Country

system

just

piloted

and only

a few

staff

trained

256

provincia

-l and

district

engineer

s

received

ESOM

training

169

provinci

al and

district

enginee

rs

receive

d

ESOM

training

200

provinci

al and

district

engineer

s

received

ESOM

training

230

provinci

al and

district

enginee

rs

receive

d

ESOM

training

260

provinci

al and

district

engineer

s

received

ESOM

training

Annual

Project

progress

report

PTRI

No. Of trainees

from October

2010-Mar 2012

Only.

ESOM in English

version shared to

the Bank for

comments.

Trainings on

ESOM may be

postponed to the

next project.

7. Acquire knowledge and experience on internal control

Text

Internal

control

function

non

existent

Internal

control

sections

est. in 17

provinces

& internal

control

divisions

in 8

dept., 2

sub-dept

and 2

SOE

internal

audit

report

produ-

ced

internal

audit

report

produ-

ced

Annual

internal

audit

report

produce

d

Annual

internal

audit

report

produce

d

Annual

Project

progress

report

DoI




Co

re

Unit of

Measur

ement

Baseline

Original

Project

Start

(2010)

Progress

To Date

(Sep

2017)


Frequenc

y

Data Source/

Methodology

Responsibili

ty for Data

Collection

Comments 2014 2015 2016 2017

8. Knowledge enhanced and practical experiences gained on

fiduciary management and contract management at the

provincial level

Text

Capa-city

develop

ment

program

not

started

2,042 ppl

(286

females)

participati

ng in

trainings

&

workshop

s

At least

450

people

trained

At least

600

people

trained

At least

750

people

trained

Capaci-

ty

develop

ment

pro-

gram

com-

pleted

Annual

Project

progress

report

DOP

9. New. PPP Unit established Text

Different

functions

of PPP

assigned

to DoRs

& DPC

Operati

onal

Opera-

tional

Opera-

tional

Opera-

tional Annual

Project

progress

report

DPC

Steering

Committee

established. PPP

implementation

responsibility will

be with DOR, and

coordinating

responsibility will

remain with DPC

10. New. Feasibility study for two PPP pilot road sections

Under

process

of

additional

E&S

Study 13

N

FS

comple-

ted

Compl

eted

Under

process

of

addition

al E&S

Study

DPC

MPWT to compile

a full report to the

government after

the completion of

additional E&S

study.

Intermediate Result 3: Disaster Recovery and Contingency

11. Length of time between declaration of disaster and the first payment to contractors for emergency works shortened

Text

Time of

pay-ment

delayed

for up to

2 years

Time of

payment

for

Typhoon

s

Ketsana

and Nok

Ten on

average

about 10

months

Time of

pay-

ment

shor-

tened

by less

than 6

months

Time of

pay-

ment

shor-

tened

by less

than 6

months

Time of

paymen

t shor-

tened to

less

than 6

months

Time of

pay-

ment

shor-

tened to

less

than 6

month

Annual

Project

progress

report

DOR & DOF

Due to the lack of

fund in each

financial year, first

payment for

disaster recovery

works in 2010-

2013 just been

made in Aug

2014.

Documentation

process to obtain




Co

re

Unit of

Measur

ement

Baseline

Original

Project

Start

(2010)

Progress

To Date

(Sep

2017)


Frequenc

y

Data Source/

Methodology

Responsibili

ty for Data

Collection

Comments 2014 2015 2016 2017

the payment not

complicated.

For the WB

disaster &

emergency fund

took about 10

months on

average for the

first payment to

be made


Page 1 of 2 (Appendix B)

Appendix B – Progress of seven bridges construction


Page 2 of 2 (Appendix B)


Page 1 of 1 (Appendix C)

Appendix C – Supervision consultants’ quarterly progress report as at December 2015


Page 1 of 3 (Appendix D)

Appendix D – Provincial road maintenance contracts

Contract No. Road No.

Length Contract value In which:

LAK IDA 25% RMF 66.7% GoL 8.3%

VteCap01-0910-PM1-PR01 0126 20 1,266,498,500 316,624,625.00 844,754,499.50 105,119,375.50

PSL01-0910-PM1-PR02 1202 19 1,470,282,500 367,570,625.00 980,678,427.50 122,033,447.50

BOK01-0910-PM1-PR03 2205 22 1,078,495,020 269,623,755.00 719,356,178.34 89,515,086.66

LNT01-0910-PM1-PR04 1503 20 1,097,838,000 274,459,500.00 732,257,946.00 91,120,554.00

ODS01-0910-PM3-PR05 1803 17 824,498,605 206,124,651.25 549,940,569.54 68,433,384.22

LPB01-0910-PM1-PR06 2504 20 1,104,033,000 276,008,250.00 736,390,011.00 91,634,739.00

SYB01-0910-PM1-PR07 3602 24 1,353,387,600 338,346,900.00 902,709,529.20 112,331,170.80

SYB02-0910-PM1-PR08 3610 30 1,696,596,780 424,149,195.00 1,131,630,052.26 140,817,532.74

HOU01-0910-PM-PR09 3204 30 1,965,000,000 491,250,000.00 1,310,655,000.00 163,095,000.00

XIE02-0910-PM1-PR10 3908 29 2,242,970,000 560,742,500.00 1,496,060,990.00 186,166,510.00

XIE01-0910-PM1-PR11 3909 22 1,299,358,000 324,839,500.00 866,671,786.00 107,846,714.00

VTE01-0910-PM1-PR12 0125 20 1,442,780,500 360,695,125.00 962,334,593.50 119,750,781.50

VTE02-0910-PM1-PR13 4504 30 2,273,807,000 568,451,750.00 1,516,629,269.00 188,725,981.00

BLK01-0910-PM1-PR14 5504 20 806,555,000 201,638,750.00 537,972,185.00 66,944,065.00

KM01-0910-PM1-PR15 5507 30 1,215,500,000 303,875,000.00 810,738,500.00 100,886,500.00

SVK01-0910-PM1-PR16 5501 30 2,485,132,000 621,283,000.00 1,657,583,044.00 206,265,956.00

CHA01-0910-PM1-PR18 14B 23 1,352,076,720 338,019,180.00 901,835,172.24 112,222,367.76

SEK01-0910-PM1-PR19 7501 12 894,808,000 223,702,000.00 596,836,936.00 74,269,064.00

ATT01-0910-PM1-PR20 9001 14 835,510,000 208,877,500.00 557,285,170.00 69,347,330.00

Total PM1 432 26,705,127,225 6,676,281,806 17,812,319,859 2,216,525,560

VteCap01-1011-PM2-PR01 0106 12 802,077,528 200,519,382.00 534,985,711.18 66,572,434.82

VteCap01-1011-PM2-PR02 0122 8 559,187,500 139,796,875.00 372,978,062.50 46,412,562.50

PSL01-1011-PM2-PR03 1202 15 1,360,995,000 340,248,750.00 907,783,665.00 112,962,585.00

LNT01-1011-PM2-PR04 1502 25 1,204,460,050 301,115,012.50 803,374,853.35 99,970,184.15

LNT02-1011-PM2-PR05 2203 11 775,499,950 193,874,987.50 517,258,466.65 64,366,495.85

ODS01-1011-PM2-PR06 1863 20 1,499,955,000 374,988,750.00 1,000,469,985.00 124,496,265.00

BOK01-1011-PM2-PR07 2201 22 1,408,030,000 352,007,500.00 939,156,010.00 116,866,490.00

LPB01-1011-PM2-PR08 2504 46 1,401,562,500 350,390,625.00 934,842,187.50 116,329,687.50

LPB02-1011-PM2-PR09 2508 20 970,956,923 242,739,230.75 647,628,267.64 80,589,424.61

SYB01-1011-PM2-PR10 3613 37 1,390,735,740 347,683,935.00 927,620,738.58 115,431,066.42

SYB02-1011-PM2-PR11 3612 30 1,268,640,000 317,160,000.00 846,182,880.00 105,297,120.00

HOU02-1011-PM2-PR13 3206 69 1,228,078,480 307,019,620.00 819,128,346.16 101,930,513.84

XIE01-1011-PM2-PR14 3901 17 2,028,810,000 507,202,500.00 1,353,216,270.00 168,391,230.00

XIE02-1011-PM2-PR15 3903 25 1,112,115,000 278,028,750.00 741,780,705.00 92,305,545.00

VTE01-1011-PM2-PR16 4505 27 2,035,972,500

508,993,125.00

1,357,993,657.50

168,985,717.50

VTE02-1011-PM2-PR17 4507 23 2,388,382,000

597,095,500.00

1,593,050,794.00

198,235,706.00

SVK01-1011-PM2-PR20 6307 33 1,344,468,000

336,117,000.00

896,760,156.00

111,590,844.00

SVK02-1011-PM2-PR21 6303 26 2,023,454,855

505,863,713.75

1,349,644,388.29

167,946,752.97

SLV01-1011-PM2-PR22 6902 46 1,367,001,000

341,750,250.00

911,789,667.00

113,461,083.00

SEK01-1011-PM2-PR24 7501 5 1,493,917,840

373,479,460.00

996,443,199.28

123,995,180.72

Total PM2 517 27,664,299,866

6,916,074,967

18,452,088,011

2,296,136,889

PSL01-1213-PM3-PR03 1201 34 1,723,020,000

430,755,000.00

1,149,254,340.00

143,010,660.00

LNT02-1213-PM3-PR04 1501 23 3,604,318,000

901,079,500.00

2,404,080,106.00

299,158,394.00

ODS01-1213-PM3-PR05 1801 24 1,887,643,470

471,910,867.50

1,259,058,194.49

156,674,408.01






BOK01-1213-PM3-PR06 2201 18 2,951,368,000

737,842,000.00

1,968,562,456.00

244,963,544.00

LPB01-1213-PM3-PR07 2501 25 2,488,636,000

622,159,000.00

1,659,920,212.00

206,556,788.00

SYB01-1213-PM3-PR08 3611 35 3,359,537,582

839,884,395.50

2,240,811,567.19

278,841,619.31

HOU01-1213-PM3-PR09 3202 40 2,953,063,720

738,265,930.00

1,969,693,501.24

245,104,288.76

XIE01-1213-PM3-PR10 3901 22 2,179,980,000

544,995,000.00

1,454,046,660.00

180,938,340.00

VTE01-1213-PM3-PR11 4503 9 2,946,022,000

736,505,500.00

1,964,996,674.00

244,519,826.00

BLK01-1213-PM3-PR12 5101 30 1,692,688,000

423,172,000.00

1,129,022,896.00

140,493,104.00

KM01-1213-PM3-PR13 5507 60 3,905,204,250

976,301,062.50

2,604,771,234.75

324,131,952.75

SVK01-1213-PM3-PR14 6309 3 2,008,480,000

502,120,000.00

1,339,656,160.00

166,703,840.00

SLV01-1213-PM3-PR15 6901 2 3,281,916,000

820,479,000.00

2,189,037,972.00

272,399,028.00

CHA01-1213-PM3-PR16 7812 23 2,158,093,000

539,523,250.00

1,439,448,031.00

179,121,719.00

SEK01-1213-PM3-PR17 7501 31 4,751,040,000

1,187,760,000.00

3,168,943,680.00

394,336,320.00

ATT01-1213-PM3-PR18 9001 60 2,001,210,000

500,302,500.00

1,334,807,070.00

166,100,430.00

Total PM3 439 43,892,220,022

10,973,055,006

29,276,110,755

3,643,054,262

PSL01-1314-PM4-PR02 1203 45 3,274,920,000

818,730,000.00

2,184,371,640.00

271,818,360.00

LNT02-1314-PM4-PR03 1504 30 2,069,492,000

517,373,000.00

1,380,351,164.00

171,767,836.00

ODS01-1314-PM4-PR04 1805 51 3,689,255,526

922,313,881.50

2,460,733,435.84

306,208,208.66

BOK01-1314-PM4-PR05 2203 17 1,606,240,000

401,560,000.00

1,071,362,080.00

133,317,920.00

LPB01-1314-PM4-PR06 2501 26 1,635,959,400

408,989,850.00

1,091,184,919.80

135,784,630.20

SYB01-1314-PM4-PR07 3611 24 2,351,916,000

587,979,000.00

1,568,727,972.00

195,209,028.00

HOU01-1314-PM4-PR08 3206 67 4,286,870,000

1,071,717,500.00

2,859,342,290.00

355,810,210.00

XIE01-1314-PM4-PR09 3903 23 2,983,185,000

745,796,250.00

1,989,784,395.00

247,604,355.00

VTE01-1314-PM4-PR10 4526 44 3,207,873,000

801,968,250.00

2,139,651,291.00

266,253,459.00

BLK01-1314-PM4-PR11 5101 22 2,022,035,800

505,508,950.00

1,348,697,878.60

167,828,971.40

KM01-1314-PM4-PR12 5528 23 2,358,005,040

589,501,260.00

1,572,789,361.68

195,714,418.32

SVK01-1314-PM4-PR13 6310 16 2,069,071,460

517,267,865.00

1,380,070,663.82

171,732,931.18

SLV01-1314-PM4-PR14 6910 44 4,406,535,000

1,101,633,750.00

2,939,158,845.00

365,742,405.00

CHA01-1314-PM4-PR15 7812 31 1,953,022,000

488,255,500.00

1,302,665,674.00

162,100,826.00

SEK01-1314-PM4-PR16 7501 31 1,822,424,823

455,606,205.75

1,215,557,356.94

151,261,260.31

ATT01-1314-PM4-PR17 9047 25 1,432,397,000

358,099,250.00

955,408,799.00

118,888,951.00

Total PM4 519 41,169,202,049

10,292,300,512

27,459,857,767

3,417,043,770

VteCap01-1415-PM5-PR01 0121 7 1,378,264,810

344,566,202.50

919,302,628.27

114,395,979.23






Psl01-1415-PM5-PR02 1204 51 1,571,893,000

392,973,250.00

1,048,452,631.00

130,467,119.00

Lnth01-1415-PM5-PR03 1503 35 3,543,867,000

885,966,750.00

2,363,759,289.00

294,140,961.00

Oud01-1415-PM5-PR04 1803 38 1,698,325,000

424,581,250.00

1,132,782,775.00

140,960,975.00

Bok01-1415-PM5-PR05 2203 6.3 2,638,788,000

659,697,000.00

1,760,071,596.00

219,019,404.00

Lpb01-1415-PM5-PR06 2501 23 2,000,000,000

500,000,000.00

1,334,000,000.00

166,000,000.00

Lpb02-1415-PM5-PR07 2508 68 2,500,000,000

625,000,000.00

1,667,500,000.00

207,500,000.00

Xyb01-1415-PM5-PR08 3604 24 2,165,087,318

541,271,829.59

1,444,113,241.34

179,702,247.42

Xyb02-1415-PM5-PR09 3609 30 2,329,922,215

582,480,553.78

1,554,058,117.49

193,383,543.85

Hou01-1415-PM5-PR10 3206 70 3,601,021,115

900,255,278.75

2,401,881,083.71

298,884,752.55

Xkg01-1415-PM5-PR11 3903 13.5 1,651,743,140

412,935,785.00

1,101,712,674.38

137,094,680.62

Xkg02-1415-PM5-PR12 3905 14.4 1,767,747,323

441,936,830.75

1,179,087,464.44

146,723,027.81

Vte01-1415-PM5-PR13 4502 13 2,407,365,000

601,841,250.00

1,605,712,455.00

199,811,295.00

BLK01-1415-PM5-PR14 5117 35 1,041,115,000

260,278,750.00

694,423,705.00

86,412,545.00

Kha01-1415-PM5-PR15 5528 22 1,896,472,082

474,118,020.50

1,264,946,878.69

157,407,182.81

Svk01-1415-PM5-PR16 6303 20 2,591,485,600

647,871,400.00

1,728,520,895.20

215,093,304.80

Slv01-1415-PM5-PR17 6910 10 1,293,560,000

323,390,000.00

862,804,520.00

107,365,480.00

Cha01-1415-PM5-PR18 7805 18

2,307,766,630

576,941,657.50

1,539,280,342.21

191,544,630.29 Cha02-1415-PM5-PR18 7808 9.7

Cha03-1415-PM5-PR18 7818 4.5

Sek01-1415-PM5-PR19 7501 20 1,391,162,888

347,790,722.00

927,905,646.30

115,466,519.70

Att01-1415-PM5-PR20 9001 12 1,976,087,000

494,021,750.00

1,318,050,029.00

164,015,221.00

Total PM5 544.4 41,751,673,121

10,437,918,280

27,848,365,972

3,465,388,869

Grand total 2,500 181,182,522,283

45,295,630,571

120,848,742,363

15,038,149,350


Page 1 of 2 (Appendix E)

Appendix E – Traffic Safety

Package no. Description Cost (USD) Remarks

Road Safety – Hard component

LRSP-RSC-G-

Package 1-Vcap

Mitigate traffic accident in

Vientiane Capital: Installation of

traffic signs, traffic signals, line

marking.

Status: COMPLETED.

Planned:

500,000

Signed: 15/7/2013

Completion: 15/4/2014

Signed:

578,586

Amendment#1: 1/8/14

Completion date: 14/12/2014.

Note: Cancelation of one-way streets

(Kaison-23 Singha-Nongborn Roads)

LRSP-RSC-G-

Package 2-13N

Mitigate traffic accident along

13N: Installation of traffic signs,

guardrails, line marking.

Status: COMPLETED.

Planned:

540,000

Signed: 11/4/2014

Completion: 11/1/2015

Signed#1:

710,606

Amendment#1: 1/12/14

New Price: USD 805,320

New completion date: 14/12/2015

Reason: More signs damaged.

Cancelation of humps, curved

warning signs. Increase Chevron.

Amendment#2: 15/12/15

Contract Price: USD 805,320

New completion date: 31/1/2016

Reason: Modification of Overhang

Footing.

Contract Implementation Completed

on 31 Dec 2015.

Final Payment has been done on

26/1/2016.Performance Security

released on 22/2/2016.

Signed#2:

805,320

LRSP-RSC-G-

Package 3-13S

Mitigate traffic accident along

National Road 13S: Installation

of traffic signs, line marking.

Status: CANCELLED.

Planned:

500,000 The activity has been canceled due

to the budget constrained.

Actual:

NONE

Total 1,383,906

Road Safety –Soft component

LRSP-RSC-

Package 04a-

Campaign-Vcap

Public Campaign on the

application of Package 1 at V-

cap

Status: COMPLETED.

Planned:

10,000

Conducted on 28-29 March 2015.

2-day Rd Safety Booths.

Attendance: Chair by Vice Minister,

Privates, NGOs, Lao Red Cross,

VTE-Rescue, WB, WHO

representative, 1,000 school students

and 500 Vientiane Residents.

Addressed: (1) Good practice on WB

Project Package1-Vcap. (2) Lao RS

Actual:

10,000



Package no. Description Cost (USD) Remarks

Week, (3) 3rd UN Global RS Week,

(4) Drink Don’t Drive, Helmet

Wearing, Seatbelt Wearing, Low

Speed during Lao New Year.

LRSP-RSC-

Package 04b-

Campaign-1A/6B

Public campaign upon

completion of the road

construction 1B and 6A.

Status: PROPOSED.

Planned:

10,000

Replacement of Public Campaign on

Northern Province along 13N.

Methodology: Approach targeted

schools and/or communities with high

rate of accident and fatalities along

1B and 6A.

Imp. Plan: Oct-Nov 2016. Reset to

February 2017.

Actual 9,229

LRSP-RSC-

Package 04c-

Campaign-13S

Public Campaign on the

application of Package 3 at

Southern Province along 13S

Status: CANCELLED.

Planned:

10,000 The activity has been canceled due to

the budget constrained.

Actual:

NONE

LRSP-RSC-

Package 04d-

Workshop

Workshop with PRSCs from 6

provinces

Status: CANCELLED.

Planned:


the budget constrained.

Actual:

NONE

LRSP-RSC-

Package 04e-

Training-TM

Training on Traffic

Management.

Status: COMPLETED.

Planned:

40,000 Venue: Savannaket, Khon Kean

65 participants attended.

Imp.: 15-24/6/2015. Actual:

60,618

LRSP-RSC-

Package 04f-

Training-SM

Training on Speed

Management.

Status: COMPLETED.

Planned:

40,000

Venue: Vientiane and Khon Kean

42 participants (Traffic Police 2 per

province), 3 DTP, 3 DoT; Of which

2/3 male and 1/3 female.

Imp.: 14-17/6/2016.

Actual:

32,545

LRSP-RSC-

Package 04g-

Training-ToT

Training of Trainers for Women

Union, Lao Youth Union and

Mass Media.

Planned:


the

budget constrained.

Actual:

NONE

LRSP-RSC-

Package 04h-CS

Assess the Capacity Gaps and

Making of Recommendation.

Planned:

50,000

The activity has been canceled due to

the

budget constrained.

Actual:

NONE

Total 112,392

Appendix F - List of counterpart payables as at 30 September 2017



No. Contract no. Contractors

Counterpart payables as at 30 September 2017

Ministry of

Finance

Road

Maintenance

Fund

Provincial

State budget

LAK LAK LAK

I Construction

1 CW-NR1B-01 Yunnan Sunny Road and Bridge Co., Ltd 2,012,496,273 - -

2 CW-NR1B-02 Yunnan Sunny Road and Bridge Co., Ltd 1,025,993,368 - -

3 CW-NR6A-01-1 Civil Engineering Construction Joint-Stock

Company No. 525 3,197,485,174 - -

II Maintenances

1 VteCap01-1415-PM5-PR01 Sengphet Road&Bridge Construction Co.,

Ltd - 413,686,183 114,395,979

2 PSL01-1314-PM4-PR02 MCL Road&Bridge Construction Co., Ltd - - 271,818,360

3 PSL 01-1415- PM 5- PR02 MCL Road&Bridge Construction Co., Ltd - 471,803,684 130,467,119

4 LNT01-1415-PM5-PR03 Xayphachanh Road&Bridge Construction

Co., Ltd - 1,063,691,680 100,140,961

5 ODS01-1415-PM5-PR04 Phuthachack Road&Bridge Construction

Co., Ltd - 509,752,249 -

6 ODS01-1213-PM3-PR05 Sompasong Road&Bridge Construction

Co., Ltd - - 15,674,408

7 BOK01-1415-PM5-PR05 Muangpailin Road&Bridge Construction

Co., Ltd - 792,032,218 219,019,404

8 LPB01-1415-PM5-PR06 Sinthana Road&Bridge Construction Co.,

Ltd - 600,300,000 86,858,000

9 LPB02-1415-PM5-PR07 Phusy Luanprabang Road&Bridge

Construction Co., Ltd - 750,375,000 108,573,000

10 LPB01-1314-PM4-PR06 Phanthamit Road&Bridge Construction

Co., Ltd - - 63,855,630

11 SYB01-0910-PM1-PR07 Sinthana Road&Bridge Construction Co.,

Ltd - - 62,331,171

12 SYB02-1415-PM5-PR09 Phanthamit Road&Bridge Construction

Co., Ltd - 699,326,153 168,383,544

13 SYB 01-1213- PM 3- PR08 Phanthamit Road&Bridge Construction

Co., Ltd - - 198,841,619

14 SYB01-1415-PM5-PR08 Outhoomphone Road&Bridge


15 SYB 01-1314- PM 4- PR07 Outhoomphone Road&Bridge

Construction Co., Ltd - - 16,366,000

16 SYB 01-1314- PM 4- PR –

addiional works

Outhoomphone Road&Bridge






19 SYB02-1011-PM2-PR11 Xayabuly Road&Bridge State Enterprise - - 44,399,729

20 HOU01-1415-PM5-PR10 Chanchaleun Building, Road&Bridge

Construction Co., Ltd - 1,080,846,488 -

21 HOU01-1314-PM4-PR08 Xokchaleun Road&Bridge Construction

Co., Ltd - - 5,810,210



No. Contract no. Contractors

Counterpart payables as at 30 September 2017

Ministry of

Finance

Road

Maintenance

Fund

Provincial

State budget

LAK LAK LAK

22 HOU02-1011-PM2-PR13 Pattanakasikam no. 1 Road&Bridge

Construction Co., Ltd - 81,912,834 -

23 XIE01-1415-PM5-PR11 Pengxay Road&Bridge Construction Co.,

Ltd - 495,770,703 107,094,681

24 XIE02-1415-PM5-PR12 Banna Road&Bridge Construction Co.,

Ltd - 530,589,359 116,723,028

25 VTE01-1415-PM5-PR13 Panyathorath Building, Road&Bridge and

Iregition Construction Co., Ltd - - 139,811,295

26 VTE01-1314-PM4-PR10 Nuanta Road&Bridge Construction Co.,

Ltd - - 37,253,459

27 BLK01-1415-PM5-PR14 Phisitxaysombat Road&Bridge


28 BLK01-0910-PM1-PR14 Sivieng Road&Bridge Construction Co.,

Ltd - - 6,680,544

29 KM01-1415-PM5-PR15 Viengsavanh Road&Bridge Construction

Co., Ltd - 569,226,094 157,407,183

30 KM01-1314-PM4-PR12 Khammuan Road&Bridge State

Enterprise - - 195,714,418

31 KM 01-1213- PM 3- PR13 Khammuan Road&Bridge State

Enterprise - - 324,097,964

32 SVK01-1415-PM5-PR16 Thongokhounhoungheung Road&Bridge

Construction Co., Ltd - 777,834,403 -

33 SLV01-1415-PM5-PR17 Phouminh Road&Bridge Construction

Co., Ltd - 388,262,034 -

34 CHA01-1415-PM5-PR18 Xaypackdy Road&Bridge Construction

Co., Ltd - 692,675,376 191,544,630

35 CHA01-1314-PM4-PR15 Pisa Road&Bridge Construction Co., Ltd - - 161,685,826

36 SEK01-1415-PM5-PR19 Phonesavanh Road&Bridge Construction

Co., Ltd - 417,547,077 115,465,218

37 SEK 01-1314- PM 4- PR16 Phonesavanh Road&Bridge Construction

Co., Ltd - 71,261,260

38 SEK01-0910-PM1-PR19 Somsay Road&Bridge Construction Co.,

Ltd - 3,335,000

39 ATT01-1314-PM4-PR17 Saysetta Road&Bridge Construction Co.,

Ltd - 118,851,020

40 ATT01-1415-PM5-PR20 Phonesavanh Road&Bridge Construction

Co., Ltd - 592,972,438 163,996,546

Total (LAK 22,142,343,710) 6,235,974,815 11,894,280,270 4,012,088,625

Equivalent to USD (USD 2,675,812) 753,592 1,437,375 484,845

implementation completion and results report€¦ · report no: icr00004318 implementation...

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