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Project Administration Memorandum

Project Number: 42134 Grant Number: Grant 0166 December 2009

Lao PDR: Strengthening Higher Education Project

The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes.

CURRENCY EQUIVALENTS (as of 31 August 2009)

Currency Unit – kip (KN)

KN1.00 = $0.00011736 $1.00 = KN8,520.50

ABBREVIATIONS

ADB – Asian Development Bank AusAID – Australian Agency for International Development CU – Champasak University DHE – Department of Higher Education D-PIU – Department of Higher Education project implementation unit ESDF – Education Sector Development Framework HEI – higher education institution ICB – international competitive bidding ICT – information and communications technology IEE – initial environmental examination Lao PDR – Lao People’s Democratic Republic MIS – management information system MDG – Millennium Development Goal MOE – Ministry of Education NCB – national competitive bidding NESRS – National Education System Reform Strategy NUOL – National University of Laos PCU – project coordination unit PDU – professional development unit PES – provincial education service PIU – project implementation unit PPTA – project preparatory technical assistance QAC – Quality Assurance Center SEDP6 – Sixth Socio-Economic Development Plan 2006–2010 SEAMEO – Southeast Asia Ministers of Education Organization SU – Souphanouvong University TA – technical assistance TVET – technical and vocational education and training UNICEF – United Nations Children's Fund

NOTE

In this report, "$" refers to US dollars.

CONTENTS Page

Grant Processing History Design and Monitoring Framework i I. PROJECT DESCRIPTION 1 A. Project Area and Location 1 B. Impact and Outcome 1 C. Outputs 1 D. Special Features 6 II. COST ESTIMATES AND FINANCING PLAN 7

A. Project Investment Plan 7 B. Financing Plan 7 C. Allocation of Grant Proceeds 8

III. IMPLEMENTATION ARRANGEMENTS 8 A. Executing Agency 8 B. Project Management Organization 8

IV. IMPLEMENTATION SCHEDULE 9 V. CONSULTANT RECRUITMENT 9 VI. PROCUREMENT 9 VII. DISBURSEMENT PROCEDURES 10 VIII. ACCOUNTING, AUDITING, AND REPORTING 10 IX. PROJECT MONITORING AND EVALUATION 10 X. SAFEGUARD COMPLIANCE 11 XI. MAJOR GRANT COVENANTS 12 XII. KEY PERSONS INVOLVED IN THE PROJECT 12 XIII. ANTICORRUPTION 13

APPENDIXES 1. Detailed Cost Estimates, Financing Plan, and Allocation 15 2. Project Management Structure 18 3. Implementation Schedule 19 4. Outline Terms of Reference for Consultants 21 5. Modes of Procurement 43 6. Disbursement Procedures 53 7. Sample Audit Letter and Model Opinion 65 8. Sample Progress Report 68 9. Project Performance Monitoring System and Project Performance Report 73 10. Gender and Ethnic Group Analyses and Action Plan 84 11. Grant Covenants 88 12. List of ADB Reference Materials 92

SUPPLEMENTARY APPENDIXES (available on request) A: Staff and faculty development strategies and plan B: Fund flow diagram for a matching scholarship grant scheme C. Scholarship summary and indicative selection criteria D: Summary poverty reduction and social strategy E. Initial Environmental Examination

GRANT PROCESSING HISTORY 1. Approval of PPTA : 10 September 2008

2. Fact-Finding Mission : 11–19 June 2009

3. MRM : 20 July 2009

4. Appraisal Mission : 23–29 July 2009

5. SRC Meeting : 13 August 2009

6. Grant Negotiations : 20–21 August 2009

7. Board Circulation : 14 September 2009

8. Board Approval : 5 October 2009

9. Grant Agreement Signing : 23 October 2009

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets/Indicators

Data Sources/ Reporting Mechanisms

Assumptions and Risks

Impact Improved economic competitiveness and increased employment opportunities for higher education graduates

By 2020 (i) FDI net inflow increased by

5% on average annually from $660 million in 2009 to reach $2 billion

(ii) Formal sector employment increased from 9% in 2009 to 15%

Lao PDR expenditure and consumption surveys Population and housing census MPI (Investment Department) Tracer study reports of MOE and universities MOLSW's labor market information system

Assumptions The economy of the Lao PDR grows on a sustainable basis. The Government sustains its priority for the development of higher education in the context of balanced development in the education sector. Coordination with the private sector is maintained to ensure university training is consistent with labor market demand.

Outcome An expanded, improved, and equitable higher education system

By 2015 (i) The number of students

increased from 45,000 in 2008 to 60,000 (30,000 or 50% are female students) in accordance with the ESDF target

(ii) Number of faculty and staff with postgraduate degrees increased by 25%

(iii) Female staff and faculty comprise at least 50% of postgraduate degree program recipients under the Project

MOE's MIS ESDF annual reports University MISs University annual reports QAC quality assurance reports University council annual reports

Assumption MOE supports the development of coherent policy, strategies, action plan, and regulatory framework for development of higher education. Risk The higher education system expands too rapidly, adversely affecting the quality of teaching and learning at both public and private HEIs.

Outputs 1. Strengthened

management, financing, and governance of higher education system

DHE and three public universities with operating MIS by year 3

Per student cost recovery from tuition and other charges at least doubled by year 6

100 staff and faculty of MOE, NUOL, CU, and SU trained on institutional leadership, strategic management, and planning by year 6 (at least 30% female)

University council members from outside the university

MOE’s MIS University MISs University annual reports Council meeting minutes DHE's assessment reports of private HEIs

Assumptions MOE allows DHE staff on leave to attend staff development program. The Government supports the formation and roles of autonomous university councils at CU and SU. DHE has capacity to ensure strict adherence to the regulatory framework.

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comprise at least 30% of total membership by year 4, including 40% female members by year 5

80 private HEIs assessed and accredited by year 6

Risks MOE’s MIS is fragmented and cannot be integrated with the MIS for higher education. Parents are not willing to pay tuition fees.

2. Enhanced relevance and capacity for quality improvement

300 staff and faculty trained on curriculum development and assessment by year 3 (at least 30% female)

300 staff and faculty, including new academic staff, trained on instructional skills and teaching methods by year 6 (at least 40% female) Approximately 15 subjects of textbooks including new materials for interdisciplinary common courses and bridging programs offered by year 3

70 staff of the MOE QAC and university outreach QAC staff and faculty members at NUOL, CU, and SU trained on outcome-based quality assurance by year 3 20 bachelor degree programs meet the standard credit-based system by year 3 The number of teaching staff with postgraduate degrees at CU and SU increased from 50 in 2009 to 130 (50% or 65 female teaching staff) by year 6

The number of research publications at NUOL, CU, and SU increased from 5 in 2009 to 10 by year 6 Three ICT-based teaching and learning centers developed at NUOL, CU, and SU including 400 network computers with internet access by year 2 Two faculty-department office blocks, two faculty housing blocks, and one laboratory building with 12 laboratory rooms provided and equipped at CU by year 2 Academic exchange agreements of NUOL, CU, and

Tracer study reports of MOE and universities MOLSW's labor market information system Quality assurance and accreditation guidelines Semiannual and annual reports of the PDU Assessment reports of international degree programs Induction training reports Academic exchange agreements

Assumptions Universities remain committed to make university training relevant to labor market demand. The Government remains committed to introducing a new education system of "5+4+3+4" from September 2011. Suitable staff will be appointed at the central QAC and outreach QAC offices in each institution. Trained staff and faculty members at public universities remain in the profession. Foreign partner universities will be identified and are willing to provide the matching scholarship grant. The e-library concept will be accepted rather than the development of traditional libraries. Public universities will activate existing academic agreements and be willing to initiate new academic agreements. Risks Signals for labor market demand will not be captured by tracer studies. The time schedule of introducing the new education system is too tight. Quality assurance and accreditation activities are constrained by lack of capable staff. Public universities are unable to identify and

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SU increased from 180 in 2009 to 240 by year 6

The number of foreign students at NUOL, CU, and SU increased by 200 students per year for year 1 to year 6

At least 50% of participants in the international exchange programs are female

release qualified staff and faculty members to participate in international degree programs. Insufficient time is available to undertake research activities. Opportunities to publish in international journals are limited.

3. Increased equity and access in higher education

Number of quota students reduced from 50% in 2009 to 20%, comprising most disadvantaged female and ethnic origin students by year 6 Five multipurpose buildings, each consisting of 12 classrooms provided at CU by year 2 Student enrollment at CU increased to 8,000 from 4,700 in 2008 (50% or 4,000 female students) by year 6 A male dormitory, A female dormitory, and six separate male and female toilet-washing facility blocks provided at CU by year 2

Government decree on selection criteria and procedures for quota students Progress reports of task force on student admission University annual reports

Assumptions Government issues necessary decree to change quota/nonquota ratios. Construction prices will be stabilized. Government ensures adequate and timely. counterpart funds. Risk Political pressure is too high to reduce number of quota students.

4. Effective project management and implementation

PCU and university PIUs equipped by year 1 Timely procurement of works, goods, consulting services from year 1 to year 6

Project progress reports (performance on contract awards and disbursement)

Assumption Duties and incentives of PCU and university PIUs are attractive to potential staff.

Activities with Milestones Inputs 1. Strengthened management, financing, and management of

higher education system 1.1 DHE administrative structure and operations internally

reorganized by Q4 year 1 1.2 Management system for higher education developed for DHE;

MOE’s MIS linked with MIS at each university year 1 to year 2, and fully operating by year 3

1.3 Rationalization of special courses and regular courses carried out during 2010–2015

1.4 Phased introduction of tuition fees for all nonquota students from September 2011 intake onward, with fee parity for all courses (special and regular) achieved by Q3, year 6

1.5 University councils for CU and SU established and fully operating by Q3, year 1

1.6 NUOL governing council reconstituted and fully operating by Q3, year 1

1.7 Financing plans, including income generation strategies,

ADB grant funding: $24.8 million Government financing: $2.0 million Partner universities: $2.0 million ADB funding: (i) Civil works: $7.69 million (ii) Equipment, furniture, and vehicles: $3.99 million (iii) Textbooks and materials: $2.25 million (iv) Staff development: $4.30 million (v) Consulting services: $3.09 million (vi) Research studies: $0.30 million (vii) Operation and maintenance: $0.27 million (viii) Project management: $0.23 million (ix) Contingencies: $2.68 million

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developed in year 1 and implemented in collaboration with university management units, years 2 to 6 (continuous)

1.8 Development and implementation of regulatory framework for assessing and monitoring private HEIs during years 2–3, reviewed and revised thereafter for ongoing accreditation of private institutions, courses, and programs, years 4–6

1.9 Construction of new administration building at CU during years 1–2

1.10 Implementation of gender and ethnic group action plan (continuous)

2. Increased relevance and capacity for quality improvement 2.1 Initiate tracer studies to track graduate employment

destinations and workplace performance in Q1 year 2 2.2 Interdisciplinary common core courses developed during

years 1–2, and trial packages implemented by Q3 of year 2 academic intake

2.3 Strengthening of the new QAC at MOE, and establishment of outreach quality assurance offices at each university, by Q4 year 1

2.4 A credit point system for all courses and programs designed, trialed, and implemented from Q3 year 1 to Q4 year 2

2.5 Course credit framework for all courses and programs at 3 universities completed by Q4 year 1

2.6 Credit award criteria applied for quality assurance compliance and accreditation for private HEIs from Q1 year 3 onward

2.7 Curriculum frameworks for all faculties developed via four workshops, to be held in Q4 year 1, Q2 year 2, Q4 year 2, and Q2 year 3

2.8 Ongoing development of faculty-specific training material packages, Q1 year 2 to Q4 year 6

2.9 PDU established at NUOL (managed by DHE) with outreach PDUs at CU and SU by Q3 year 1

2.10 Human resource development training work plans developed periodically with universities (Q3 year 1, year 2, and year 3) to establish scholarship award eligibility for academic staff

2.11 Merit-based scholarship selection package produced and implemented for academic intake Q3 year 1

2.12 International scholarship program implemented for 60 academic faculty members, 10 for NUOL, 30 for CU, and 20 for SU (20 persons for each year, years 2 to 4)

2.13 A 3-week new teacher induction training package developed, trialed, and implemented from Q3 year 1, DVD format package completed by Q1 year 2

2.14 Teacher performance advisory assessment package designed, trialed, and implemented by Q2 year 2.

2.15 National research center established at NUOL by Q3 year 1

Government funding: (i) Taxes and duties: $1.60 million (ii) Operation and maintenance: $0.19 million (iii) Contingencies: $0.21 million Partner universities funding: (i) Staff development: $2.0 million

2.16 ICT teaching and learning centers established at NUOL (by Q4 year 1) SU (by Q4 year 1) and CU (by Q4 year 2) fully networked with DHE

2.17 ICT package leasing contract finalized by Q4 year 1, to provide infrastructure, internet access, hardware replacement, staff training, maintenance, and on-call technical support for DHE, NUOL, CU, and SU

2.18 E-libraries developed at each university, ongoing from Q1

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2.19 year 2 (Q1 year 3 for CU) 2.20 Basic campus infrastructure and facilities developed at CU

during years 1 and 2 2.21 Laboratory equipment, and specialized faculty materials

provided for CU from year 3 onward 2.22 International university partnership plan, student exchange,

and academic staff exchange program developed during year 1 and implemented from year 2 onward


3. Increased equity and access in higher education 3.1 Quota for poor, ethnic origin, and female students reduced to

30% by 2013 and 20% by 2015 3.2 Packages of diagnostic pre-entry tests to identify students

who lack skills for tertiary study, developed and trialed over years 1 and 2 (with QAC), and fully implemented in time for year 2 academic intake (end Q2 year 2)

3.3 Development and implementation of remedial skills upgrading packages for identified targeted quota students (with QAC and curriculum specialist input) trialed from Q3, year 2

3.4 Classrooms, dormitories, toilets, and student facilities constructed at CU, years 1–2, as per agreed procurement specifications

3.5 Furniture, equipment, and vehicles provided for CU as per agreed procurement specifications from Q1, year 3


4. Effective project management and implementation 4.1 PSC, PCU, and D-PIU established at MOE, Q1 year 1; PIUs

established at three universities, Q1 year 1 4.2 Office equipment, furniture, vehicles, and support materials

provided to DHE, Q1 year 1 4.3 Implementation of gender and ethnic group action plan

(continuous)

ADB = Asian Development Bank, CU = Champasak University, DHE = Department of Higher Education, D-PIU = Department of Higher Education project implementation unit, DVD = digital video disc, ESDF = Education Sector Development Framework, FDI = foreign direct investment, HEI = higher education institution, ICT = information and communication technology, Lao PDR = Lao People's Democratic Republic, MIS = management information system, MOE = Ministry of Education, MOLSW = Ministry of Labor and Social Welfare, MPI = Ministry of Planning and Investment, NUOL= National University of Laos, PCS = project steering committee, PCU = project coordination unit, PDU = professional development unit, PIU = project implementation unit, Q = quarter, QAC = quality assurance center, SU = Souphanouvong University, TVET = technical and vocational education and training.

I. PROJECT DESCRIPTION A. Project Area and Location 1. The Project aims to expand and improve the higher education system and institutions by upgrading the three public universities: National University of Laos (NUOL) in Dong Dok, Vientiane; Champasak University (CU) in Pakse; and Souphanouvong University (SU) in Luang Prabang. B. Impact and Outcome 2. The expected impact of the Project is improved economic competitiveness and increased employment opportunities for higher education graduates. The Project's expected outcome is an expanded, improved, and equitable higher education system by 2015. C. Outputs 3. The Project will deliver four outputs to achieve the outcome: (i) strengthened management, financing, and governance of the higher education system; (ii) enhanced relevance and capacity for quality improvement; (iii) increased equity and access in higher education; and (iv) effective project management and implementation.

1. Output 1: Strengthened Management, Financing, and Governance of the Higher Education System

4. The Project will build management, financing, and governance of the higher education system through (i) strengthened management capacity of MOE and public HEIs, (ii) improved higher education financing, and (iii) enhanced governance systems for public and private HEIs.

a. Strengthened Management Capacity of MOE and Public HEIs 5. The Project will enhance the management capacity of DHE, to be responsible for overall strategic planning and master plan development, and for operations oversight of the higher education system in the Lao PDR. DHE is expected to be reorganized to better perform its mandate and functions, including jurisdiction over private HEIs offering degrees, which will require upgraded planning and management skills and knowledge. The Project will strengthen management capacity of relevant DHE staff by supporting (i) in-country and international training; (ii) degree programs (indicatively four DHE staff in master’s programs and three in doctoral programs); and (iii) DHE participation in international forums, conferences, and associations (including membership fees). The Project will develop a management information system (MIS) comprising financial management, personnel management including faculty and student database, and student admission data; and provide capacity development support to management staff for implementing the MIS to enhance management efficiency throughout the higher education system at DHE and each public HEI. The Project will help DHE prepare annual and periodic reports and newsletters, and in coordination with MOE’s Department of Planning and Cooperation, better manage projects and programs supported by official development assistance.

b. Improved Higher Education Financing 6. Support will be provided to improve financing of higher education to become more shared, cost-efficient, and sustainable. The Project will help MOE and public universities to (i) review the budgeting process and mechanism to identify weakness, and improve, for example, its efficiency and relevance by adding a specific budget line of block funding to cover operation and maintenance, and depreciation of facilities and equipment; (ii) restructure the quota student

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admission system to improve targeting of poor and disadvantaged students so that overall budget allocation in the form of tuition subsidies and living allowances will be more equitable; (iii) increase tuition fees for regular nonquota students; and (iv) diversify the revenue sources of public universities, in cooperation with the private sector. 7. The prime ministerial decrees issued during March–April 2009 enable public universities to charge tuition fees. The Project will support the preparation and introduction of tuition fees for regular nonquota courses and the regularization of special courses staring from 2011/12 onward. The fees generated will contribute to financing recurrent operating costs of the universities, including staff salaries. In association with the phased reduction of quota students from 50% in 2009 to 30% by 2013 and 20% by 2015 (to better target disadvantaged students), tuition fees will be progressively charged for the remaining 80% of nonquota students, as a significant cost recovery measure for universities. Different tuition fees are expected to be charged among programs depending on their cost-recovery prospects. Tuition fees for regular nonquota courses should be equivalent to those charged for special courses, which should cease to exist as a separate concept or category by 2015. In addition, the Government will promulgate decrees for implementation in 2011 to introduce (i) a revised and increased dormitory fee for regular nonquota students; and (ii) improved benefit structure for staff of public HEIs.

c. Enhanced Governance Systems for Public and Private HEIs 8. To strengthen the governance capacity at public universities, the Project will support the establishment of clearly defined governance and management structures at each university. A university council, similar to the one established at NUOL, will be established at CU and SU. Membership in university councils will include 30% representation from outside the university, including local government, private sector, and cultural and related social sectors by 2013. At least 40% of council members will be women by 2014. The Project will assist in developing and strengthening the role of the university president by proposing that in future the role be filled by a competitive recruitment process, subject to final approval by MOE and the Prime Minister’s office. The Project will provide short- and long-term training, as well as ongoing capacity building for administration staff of NUOL, CU, and SU; and provide related facilities at CU. At least 30% of staff or faculty members trained will be women. 9. The Government will encourage the expansion of private HEIs, to relieve some of the burden of financing higher education from limited government financial resources; this will absorb excess demand for higher education. However, the Government must maintain a rigorous oversight role with regard to accreditation and monitoring of quality and relevance of private HEIs. The Project will lay the foundations for the eventual unified regulation and supervision of public and private HEIs. The Project will assess viable options based on international best practice, and assist MOE in developing (i) policy and regulatory systems (including mechanisms for monitoring) for higher education subsector, (ii) accreditation criteria to be applied to private HEIs, and (iii) a quality auditing system.

2. Output 2: Enhanced Relevance and Capacity for Quality Improvement 10. The Project will support the following suboutputs (i) enhanced relevance of courses, curriculum, and teaching materials; (ii) strengthened quality assurance, accreditation, and credit system; (iii) enhanced teaching and research capacities of public university faculty; (iv) improved teaching and learning environment; and (v) strengthened regional and international dimensions.

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a. Enhanced Relevance of Courses, Curriculum, and Teaching Materials 11. The Project will support initial tracer studies to collect benchmark information on graduates and monitor their performance in the labor market, particularly for CU and SU, which recently produced graduates with diploma and bachelor degrees for the first time since their establishment. Throughout the Project, periodic tracer studies will be undertaken to inform future development of all public and private HEIs, particularly the mix of faculties and courses to be offered by the respective universities and the number of places offered within each faculty. The Project will explore and develop new courses to reflect labor market survey results and recommendations under the PPTA for the Strengthening Technical Vocational Education and Training Project. 1 Furthermore, to ensure external efficiency, the Project will help public universities establish alumni associations, and introduce career orientation and counseling programs starting early in a student's course of study. It will also support expanded dialogue between universities and local employers to better align curriculum and pedagogical approaches with labor market needs. 12. In connection with NESRS implementation, the Project will support the reform of undergraduate curriculum content by developing interdisciplinary common-core courses and associated textbooks to be offered throughout different faculties of the three public universities, as well as faculty-specific curricula and lecture textbooks and materials. The introduction of common core courses will bring substantial efficiency gains and cost savings for all participating faculties. The Project will include curriculum development workshops and international study visits, where academic staff will be trained to enhance their skills in contemporary curriculum design, development of a curriculum framework for each of their respective faculties, and the use of the revised and/or updated curriculum. At least 30% of staff or faculty members will be women trained in curriculum development and assessment. Faculty-based staff will then continue to develop faculty-specific lecture materials with associated delivery strategies. The Project will support development and/or updating, printing, and distribution of textbooks and learning materials in the Lao language for approximately 15 subjects, prioritizing new materials developed for interdisciplinary common-core courses and bridging programs for disadvantaged students with weaker academic backgrounds.

b. Strengthened Quality Assurance, Accreditation, and Credit System 13. The strengthened QAC at MOE will be mandated as the key accrediting body for education programs in the Lao PDR. With support from the Project, DHE will cooperate with QAC to strengthen quality assurance, accreditation, credit systems for higher education, and recognition of degrees and qualifications in accordance with international standards for higher education. DHE will coordinate with QAC in developing university admission standards and building capacity in the universities to set up entrance examinations. The Project will provide advisory services, training, and necessary equipment to support capacity building of QAC. The Project will also help QAC and universities to develop systematic and fully standardized course credit systems, which will facilitate student transfer between public and private HEIs, TVET graduates' access to higher education opportunities, and employers' assessment of degree holders' qualifications.

c. Enhanced Teaching and Research Capacities 14. The Project will support the establishment of a central professional development unit (PDU) under DHE, which will be located at NUOL and linked to outreach PDUs established at CU and SU. The PDU staff will be seconded from DHE and NUOL during and beyond the project period without involving any additional staff salaries. The Project will provide international master’s and doctoral

1 ADB. 2009. Technical Assistance to the Lao People's Democratic Republic for Preparing the Strengthening Technical

Vocational Education and Training. Manila.

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degree programs comprising approximately 40 and 20 staff and faculty members respectively in three annual batches (approximately 10 for NUOL, 30 for CU, and 20 for SU in total), as well as 80 staff and faculty members for in-country master’s programs. In addition, the Project will provide international study tours and training programs for 40 staff and faculty members, as well as a large number of in-country short-term staff and faculty development programs. A merit-based and transparent selection process will be developed by the PDUs for staff and faculty to undertake international study or attend in-country activities. Females will comprise 50% of all staff and faculty to be trained. To assess the efficacy of staff and faculty development programs, participant feedback methodologies including postactivity assessment will be utilized. The Project will include provisions to invite foreign scholars and/or professionals to give advice on academic program development and review, teaching support, e-learning approaches, university–industry linkage, and research methodology and publication. Foreign scholars will foster the long-term relationships between foreign and Lao universities. The Project, through QAC and the central PDU, will develop and implement an induction program for all new academic staff. The staff and faculty development strategies and plan are in Supplementary Appendix A. 15. As an integral part of international degree programs for staff and faculty members, the Project will pilot a matching scholarship grant scheme with 50:50 matching between the project and partner universities, which include any suitable foreign universities willing to provide postgraduate (master’s and doctoral) degree program scholarships for staff and faculty members of the three public universities. This scheme is expected to significantly expand the number of scholarships to be offered under the Project. Females will comprise at least 50% of the pilot matching scholarship program. The PDU will be responsible for finalizing selection criteria for the matching scholarship scheme, assisting participating Lao universities in identifying international partner universities, monitoring the implementation and results, and preparing an evaluation. 2 Staff benefiting from scholarships or grants will be required to sign a bond. The fund flow diagram for a matching scholarship grant scheme is in Supplementary Appendix B. 16. The Project will support the promotion of research capacity of faculty members of public universities. The NUOL Research Coordination Committee will be upgraded to a national research center to help the university faculties at NUOL, CU, and SU formulate proposals for research grants to the Government and a range of funding agencies, including the private sector. The Project will develop a training scheme to improve the publication writing skills of academic staff and to devise course modules on academic research skills development for inclusion in undergraduate and graduate programs, through consulting services and well-established academic publishing companies.

d. Improved Teaching and Learning Environment 17. To improve the teaching and learning environment and in accordance with the NESRS, which places high priority on the development of e-libraries, the Project will support the establishment and development of ICT-based teaching and learning centers at NUOL, CU, and SU, rather than focusing investment on the development of traditional libraries, or financing procurement of discrete packages of information technology systems. Each learning center will typically have about 100–200 networked computers with internet access. It will enable the creation of an e-resource centre or e-library (including access to computers with high-speed internet, access to e-reference and journals, and an on-line network linking the three public universities and DHE) where students and staff are able to access up-to-date and extensive materials, bypassing the need for development of a traditional library. Effectiveness of student learning activities will be greatly enhanced, as the network can be used for writing assignments, researching information

2 During the PPTA, several universities in Australia, Japan, Republic of Korea, Thailand, and Viet Nam confirmed their

participation in the scheme and pledged initial total contributions of approximately $1 million equivalent.

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from the internet, pursuing distance study programs, accessing course materials, accessing references available on-line, submitting assignments by email, and communicating with lecturers. Upon establishment of the ICT-based teaching and learning centers during the second year of project implementation, a related ICT package will be procured as a 4-year leasing contract that provides for the replacement of computers on a 2-year cycle, including technical and pedagogical support by suppliers. 18. To improve and upgrade the teaching and learning environment at CU, the Project will support development of the campus and facilities. Project support will focus on fully and intensively utilizing the current 66 hectare campus. The Project will develop basic infrastructure such as road, water, and power supply systems. The Project will also develop facilities, (including civil works, equipment, and furniture), one multipurpose central building for the establishment of the ICT-based teaching and learning center, two faculty and department office blocks, two faculty housing blocks, one science laboratory building with equipment (for physics, biology, and chemistry), and one auditorium-conference hall. This concentrated approach for campus and facilities development will minimize implications for operation and maintenance related costs and environmental impacts.

e. Strengthened Regional and International Links 19. The Project will expand and strengthen academic and student exchange programs with neighboring countries, and support MOE to strengthen its cooperation with the Southeast Asia Ministers of Education Organization (SEAMEO), in particular the SEAMEO-Regional Center for Higher Education and Development, and other existing similar networks. The Project will encourage female participation in such international exchange programs, whereby at least 50% of faculty members or students will be women. Once the standardized credit transfer system is instituted, the Project will strengthen the capacity of Lao universities to expand student exchange relationships with universities in neighboring countries. In addition, the Project will help each of the three public universities to identify two to three international twinning programs, and reach agreements with foreign universities. Furthermore, the Project will provide advisory services through visiting scholars and/or professionals to promote existing and new academic exchange agreements. Universities will be encouraged to seek relationships with quality, commercially oriented international professional training organizations by financing membership fees. Academic and student exchange programs and international partnerships must be subject to effectiveness review.

3. Output 3: Increased Equity and Access in Higher Education 20. Output 3 includes (i) improved targeted selection criteria and procedures for quota students, and (ii) increased enrollment capacity at CU.

a. Improved Targeted Selection Criteria and Procedures for Quota Students

21. The Project will support the reform of the admission system. The percentage of quota students (who are exempted from fees and provided with living allowances) will be reduced from roughly 50% to 20% in a phased manner from 2011 to 2015 to enable more effective targeting to ensure that the most disadvantaged candidates are identified to receive increased support. Many of the current quota students are not poor and disadvantaged students from ethnic groups. Instead, the quota system benefits students from affluent families who can pay tuition and other fees. The Project will support the high-level task force on student admission to be located at MOE by providing its operating costs, and establishing standardized criteria for quota students (giving priority to female students from ethnic groups). Task force membership comprises director generals of DHE, MOE's departments of finance and personnel; and university presidents

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concerned. Appropriate advisory support with regard to choice of study programs for quota students will be incorporated in the selection process; currently this is a critical constraint to success of the quota system. In addition, the Project will develop pre-entry skills tests to more accurately assess the competency of quota students. Students not meeting the required minimum entry standards will be required to undertake a purpose-designed academic skills upgrading program, to help them reach the academic standard required to gain entry to a 1st year degree or diploma program.

b. Increased Enrollment Capacity at Champasak University 22. The Project will provide a foundation for incremental expansion of enrollment and programs by enhancing CU's enrollment capacity. To fill the gap between the university’s expected enrollment growth and admission capacity, the Project will provide (i) five multipurpose buildings with furniture, each comprising 12 classrooms (a total of 60 classrooms); (ii) two student dormitories with furniture (female and male), each accommodating 300 students; and (iii) six separate female and male toilet and washroom facility blocks. The additional classroom places created can absorb students graduating from upper secondary education who at present need to seek jobs or enroll in technical and vocational institutions for tertiary education. Special attention (e.g., boarding fee exemption) will be given to poor and female students of ethnic origins in availing of the expanded student dormitories. By 2015, females will comprise 50% of CU students.

4. Output 4: Effective Project Management and Implementation 23. To facilitate project management and implementation, the Project will provide equipment, vehicles, and other necessary materials and furniture for DHE and CU, as well as a core package of equipment for NUOL and SU. The Project will also provide a package of international and national consultants (including administrative assistants and accounts on a need basis), who will help DHE and participating three public universities implement the Project in a timely fashion and with good quality results. D. Special Features 24. ICT Teaching and Learning Centers, and ICT Leasing. The Project will develop multipurpose, ICT-based teacher and learning centers and their network at each of the three public universities, rather than focusing investment on the development of traditional libraries or financing procurement of discrete packages of information technology systems. The ICT teaching and learning center is regarded as an effective and efficient way to raise the standards of teaching and learning in the universities. Maintenance and technical support will be provided on an on-call basis. High-speed and high-quality internet access will be provided on a continuous basis. The selected supplier will customize a platform for use by the universities, and provide technical and pedagogical support by supplying technicians and experts in e-learning over a specified period until university staff develop sufficient skills to operate the system independently. In the NESRS, the Government identifies the development of e-libraries as a priority. In addition, the Project includes measures to increase cost-recovery such as introducing tuition fees for regular nonquota courses, charging dormitory fees, and promoting other income-generation activities. The Project will help MOE and the universities formulate budgetary plans to sustainably finance operation and maintenance, and periodic upgrading of ICT resources after project completion. These plans will include allocating a portion of increased university revenues from enhanced cost-recovery measures introduced under the Project. MOE and participating universities will seek internet providers that can offer low-cost services to education institutions. 25. Quality Assurance, Accreditation, and Recognition. The Project will develop a national system of quality assurance and accreditation (currently lacking due to inadequate funding and human resources), including helping MOE develop a quality audit manual. Development of this

7

system will involve close dialogue and cooperation with the central QAC as well as the Association of Southeast Asian Nations University Network Quality Assurance. It will be supported by consulting services provided under the Project and technical dialogue with the Asia-Pacific Quality Network and SEAMEO-Regional Center for Higher Education and Development. An outreach QAC office will be maintained within each of the three public universities. 26. Matching Scholarship Grant Scheme. The Project will pilot a new scheme of matching scholarship grants (50:50 matching between the Project and partner universities), as an initiative in public–private partnership. For this purpose, the Project's $2 million grant will be matched with a $2 million equivalent scholarship grant from any partner universities. Partner universities will be any public and private foreign universities willing to provide master degree program scholarships to administrative or academic staff of the three public universities. The project fund can be directly matched with contributions from partner universities or channeled through intermediary agencies that help PDUs coordinate with partner universities. This scheme is expected to significantly increase the number and amount of scholarships offered under the Project. The central PDU at NUOL will be responsible for finalizing selection criteria for the matching scholarship grant scheme, and will assist participating universities in identifying partner universities.

II. COST ESTIMATES AND FINANCING PLAN A. Project Investment Plan 27. The project investment cost is estimated at $28.8 million, including physical and price contingencies, taxes, and duties of $1.6 million to be financed by the Government (Table 1, and Appendix 1). The foreign exchange cost is $17.2 million, or 60% of the total cost. The local currency cost, including taxes and duties, is $11.6 million equivalent, or 40% of the total cost.

Table 1: Tentative Project Investment Plan ($ million) Item Amounta

A. Base Costb

1. Output 1: Strengthened management, financing, and governance of higher

education system 2.6

2. Output 2: Enhanced relevance and capacity for quality improvement 20.0 3. Output 3: Increased equity and access in higher education 2.4 4. Output 4: Effective project management and implementation 0.9

Subtotal (A) 25.9 B. Contingenciesc 2.9 Total (A + B) 28.8 a Includes taxes and duties of $1.6 million to be collected by the Government as per national taxation laws. b In mid-2009 prices. c Physical contingencies computed at 10% civil works, equipment, furniture, and vehicles. Price contingencies

computed at average values of 1.0% and 7.0% during the project period for imported and domestically produced goods and services, respectively.

Source: Asian Development Bank estimates. B. Financing Plan 28. ADB will provide a grant of $24,800,000 from its Special Funds resources to cover 86% of the project cost. For the balance of $4.00 million, the Government will finance $2.00 million (7.0% of the project cost), while partner foreign universities will cover $2.00 million, or 7.0% of the project cost (Table 2, and Appendix 1).

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Table 2: Tentative Financing Plan ($ million) Source Total % Asian Development Bank (ADF Grant) 24.80 86.10

Government 2.00 6.95

Partner Foreign Universities 2.00 6.95

Total 28.80 100.00 ADF = Asian Development Fund. Source: Asian Development Bank estimates.

C. Allocation of Grant Proceeds 29. Table 3 provides the allocation of grant proceeds as stipulated in Schedule 2 of the Grant Agreement.

Table 3: Allocation of Grant Proceeds (ADF)

CATEGORY ADB FINANCING Amount Allocated

($ '000) (% and Basis for Withdrawal

from the Grant Account No. Item

Category Subcategory 1 Civil Works 7,690,000 100% of total expenditurea 2 Equipment, Furniture, and Vehicles 3,990,000 100% of total expenditurea 3 Textbooks/Materials 2,250,000 100% of total expenditurea 4 Staff Development 4,300,000 4A Staff/Faculty Development Program 2,300,000 100% of total expenditurea 4B Matching Scholarship Grant Scheme 2,000,000 100% of total expenditurea 5 Consulting Services 3,090,000

5A International (including short-term consultants 700,000 100% of total expenditurea

5B Others (excluding short-term individuals) 2,390,000 100% of total expenditurea 6 Studies 300,000 100% of total expenditurea 7 Recurrent Cost 500,000

7A Operations and Maintenance (Consumable and Miscellaneous) 270,000 90% of total expenditure

7B Project Management 230,000 90% of total expenditure 8 Unallocated 2,680,000

Total 24,800,000 a Exclusive of taxes and duties imposed within the territory of the Recipient.

III. IMPLEMENTATION ARRANGEMENTS

A. Executing Agency 30. MOE will be the Executing Agency. B. Project Management Organization 31. A project steering committee will provide overall guidance to the Project and support cross-agency policy dialogue. The MOE vice minister in charge of higher education will chair the committee, which will comprise representatives of MOE and the three concerned public universities, as well as representatives from the Ministry of Finance, Ministry of Foreign Affairs, Ministry of Planning and Investment, and Office of the Prime Minister. Within DHE, a (i) project coordination unit headed by the DHE director general, as project director, will be established to facilitate policy dialogue across MOE departments and the participating universities and supervise and oversee project implementation; and (ii) a DHE project implementation unit (D-PIU) headed by the DHE deputy director general, as project manager, will be established to implement and supervise central

9

project activities including consolidation of project reporting and review of withdrawal applications for endorsement by the MOE's Department of Finance. MOE departments and institutions will be responsible for activities that fall within their area of responsibility. PIUs will be established in each participating university (NUOL, CU and SU), headed by the respective universities' vice presidents as project managers to coordinate with the D-PIU and concerned provincial authorities in implementing and supervising the Project, including procurement activities, monitoring, and reporting. The project management structure is in Appendix 2. To implement the staff and faculty development strategies and plan, a PDU will be established under DHE, which will be located at NUOL, and linked to outreach PDUs established at CU and SU and D-PIU. The MOE vice minister and DHE director general, together with the Center for Integrated Education (formerly the Gender and Ethnic Groups Education Unit), will be responsible for overseeing implementation of the gender and ethnic groups action plan.

IV. IMPLEMENTATION SCHEDULE

32. The Project will be implemented over 6 years from January 2010 to December 2015, to be consistent with the final target year of the ESDF, 2009–2015. Both central and provincial government authorities have assured that adequate budgetary provision for the Project will be included in the fiscal years from 2009/10 to 2015/16. The implementation schedule is in Appendix 3.

V. CONSULTANT RECRUITMENT

33. The consulting services for the Project will total 185 person-months (73 person-months international and 112 person-months national) to be engaged through a firm. All consultants financed will be recruited in line with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The selection and engagement of consulting services will be done in a single package using the simplified technical proposal and quality- and cost-based selection method, and follow the standard quality-cost ratio of 80:20. In addition, foreign visiting scholars and/or professionals will be recruited as short-term consultants on an individual basis. Any assets purchased will be procured using ADB's Procurement Guidelines and, upon completion of the Project, will be turned over to MOE. The outline terms of reference for consultants are in Appendix 4.

a. Advance Action 34. One package of consulting services will be selected using advance recruitment action. MOE will carry out advance action for recruiting consulting services up to the stage of evaluating technical and financial proposals. MOE may not sign the contract with the winning firm before the financing agreement becomes effective. ADB's support of advance action does not commit ADB to approve the Project or to finance the recruitment costs.

VI. PROCUREMENT

35. All procurement to be financed under the ADB Grant will be carried out in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). The D-PIU will be responsible for all procurement, except for civil works, equipment, furniture, and vehicles at CU, which will be done by the CU PIU in close consultation with the D-PIU. Procurement of goods such as computers and laboratory equipment will use international competitive bidding procedures if more than $1.0 million, national competitive bidding if $1.0 million or less but more than $100,000 equivalent, or shopping if less than $100,000 equivalent. Civil works will use international competitive bidding if more than $2.0 million and national competitive bidding if less, but more than $100,000. Prior review will be used in the procurement processes. The procurement plan is in Appendix 5.

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VII. DISBURSEMENT PROCEDURES

36. MOE will establish an imprest account for the Project in dollars at the Bank of Lao DPR. The advance to the imprest account will be no more than a 6-month projected disbursement to be financed through the imprest account or 10% of the grant amount, whichever is lower. The imprest account will be established, managed, and liquidated in accordance with ADB's Loan Disbursement Handbook (2007, as amended from time to time). Statement of expenditure procedures may be used to reimburse contracts not exceeding $50,000 per payment and to liquidate advances made into the imprest account in accordance with the grant's financial covenants. MOE and the Ministry of Finance will coordinate the timely release of funds. ADB's disbursement procedures are outlined in Appendix 6.

VIII. ACCOUNTING, AUDITING, AND REPORTING

37. MOE, on behalf of the Government, will maintain separate records and accounts for the Project to identify goods and services financed from the grant proceeds. All project accounts including financial statements will be audited annually as part of the regular audit by the National Audit Authority, using international accounting and auditing standards in accordance with the provisions of the grant agreement. The auditor's report and copies of the certified accounts and related financial statements, including auditor's opinion on the use of grant proceeds, and compliance with grant covenants, will be submitted to ADB no later than 6 months after the close of each fiscal year in English language. A separate audit opinion will be issued on the use of the imprest account and statement of expenditure procedures. Sample audit Letter and Model Opinion are in Appendix 7. 38. DHE will prepare quarterly reports on project implementation and submit them to ADB within 30 days of each quarter. The reports will be submitted in a format acceptable to ADB and include progress made against established targets, problems encountered during the previous quarter, steps taken to resolve disputes and problems, compliance with grant covenants, and proposed project activities for the succeeding quarter. Within 3 months after physical completion of the Project, MOE will submit to ADB a project completion report providing details of project implementation and accomplishments. A sample progress report is in Appendix 8.

IX. PROJECT MONITORING AND EVALUATION 39. Direct Beneficiaries. The direct beneficiaries will be the nearly 400,000 university graduates of the improved and expanded higher education system, including 300,000 at NUOL, 53,000 in CU, and 47,000 at SU. The benefits will primarily accrue from increased quality and expanded classroom and dormitory space. The Project will support a 25% increase in academic staff with postgraduate degrees from 538 to 678. The university system will be linked by intranet providing access for e-learning and internet for all students, with ICT investments including increasing the number of terminals at CU plus NUOL from 170 to 500 and adding an additional 200 terminals at NUOL. CU will receive 60 new classrooms, one laboratory building with 12 rooms, and 30 dormitory rooms for 600 students, increasing dormitory capacity from 200 to 800 students. Other facilities include an auditorium and conference center, e-learning and student center, faculty and administrative offices, water supply, faculty housing, and toilet and washing facilities for females and males on campus. Segregated toilets and washing facilities for males and females will be built in the dorm area at CU. Offices, housing, and dormitories will be furnished. The Project will print and distribute textbooks covering 15 titles for 50,000 students. The textbooks will be loaned to the students and returned each year. The current 50% quota scholarships reach few of the disadvantaged and poor; the amount fails to cover student living expenses. Reducing the quota to

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20% and increasing the living expense allowance with transparent targeting will enable uptake by disadvantaged ethnic groups and women selected. 40. MOE will monitor project achievements to evaluate implementation and development impacts at various stages of the project cycle. The higher education master plan, 2010–2020, under preparation, will develop a higher education development monitoring framework using the result-based monitoring indicators in accordance with the ESDF targets. The project performance monitoring will focus on assessing the degree of fulfillment in the monitoring indicators to be developed under the higher education master plan. The project performance, monitoring, and evaluation system will be based on the gender targets and indicators in the design and monitoring framework, and gender and ethnic groups action plan, as well as other sex-disaggregated data and analysis. Project performance report is in Appendix 9. 41. Staff Development/Training. The Project will provide international master’s and doctoral degree programs and in-country master’s degree programs for DHE staff, and staff and faculty of the three public universities (NUOL, CU, and SU). In addition, the Project will provide international study tours and training programs for staff and faculty members, as well as a large number of in-country short-term staff and faculty development programs. The PDU, in coordination with outreach PDUs at CU and SU and D-PIU, will select the candidates for staff and faculty development programs (including the matching scholarship Grant scheme) based on the merit-based and transparent selection criteria and process to be developed by the PDUs for Lao staff and faculty members to undertake international study or attend in-country activities. Staff benefiting from scholarships or Grants for postgraduate degree programs will be required to sign a bond. The Project will execute agreements with all candidates receiving scholarships or Grants for undertaking foreign postgraduate degrees and local master’s degrees to ensure that scholarship recipients will continue working with the same ministry or institution for at least 5 years after completing a foreign degree or local master’s degree program. The scholarship summary and indicative selection criteria are in Supplementary Appendix C. 42. Project Review. The Government and ADB will conduct semiannual reviews of the Project. The reviews will assess progress in each output area, identify difficulties or constraints, and help determine ways to overcome them. The Government and ADB will jointly undertake a midterm review of the Project in the last quarter of year 3 of project implementation. The midterm review will (i) assess project performance against targets and benchmarks, (ii) identify and recommend necessary changes in the project design and implementation arrangements, and (iii) review compliance with grant covenants. It will inform planning for the second half of the Project. The findings will be discussed at the midterm seminar to be attended by MOE leadership and senior staff, representatives of government ministries and agencies concerned, the consultants, and ADB.

X. SAFEGUARD COMPLIANCE 43. Social and Gender Benefits. A poverty and social assessment was conducted during the PPTA, and a summary poverty reduction and social strategy was prepared (Supplementary Appendix D). The Project is designed to benefit the poor, women, and ethnic groups, especially female students from ethnic groups, through (i) the revised student quota system to increase the ratio of female quota students from ethnic groups, and (ii) the provision of increased living allowances to disadvantaged quota students. In addition, due to expanded female dormitory accommodation and female amenities blocks, the number of female students enrolled at CU will increase from 1,713 (35% of total enrollments) to 4,000 by 2015 (50%). Further, the Project will support at least 30% female participation in all training courses, and at least 50% in international exchange programs. Recruitment and training of faculty members and staff will give preference to women from ethnic groups. A gender and ethnic group analyses and action plan is in Appendix 10.

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44. Institutional Benefits. DHE and participating universities will benefit from the Project through policy and administrative reform for higher education. The Project will initiate major efforts to improve management through institutional capacity building for DHE and participating universities, especially CU and SU. DHE staff will be trained to upgrade their planning and management skills and knowledge for overall strategic and master planning and policy development, as well as for oversight of operations of the higher education system, including private HEIs. The governance system and management capacity at public universities will be strengthened by establishing clearly defined governance and management structures at each university. For private HEIs, the regulatory framework and accreditation criteria will be developed and applied. The Project will enhance capacity for data collection, management, and analysis through the development of an MIS to enhance management efficiency throughout the higher education system, i.e., DHE and each public HEI. The academic profile of the participating universities will be upgraded by international and in-country staff and faculty development programs, which will eventually strengthen the capacity of faculty members to integrate teaching with research activities. 45. Environmental Impacts. The Project will improve water supply, power supply, drainage, and sanitation service as part of the campus and facilities development of CU. The science laboratories will not produce any industrial hazardous waste as they will be used only for teaching, with minimum disposal of solid waste. However, the construction contractor must keep noise and dust within locally acceptable levels, as well as manage fill, excavated material, and solid waste in a way that does not create a permanent impact. During operations, the water supply must meet national drinking water quality standards to ensure water users are not at risk. Mitigation and monitoring measures in the initial environmental examination (IEE) are designed to address these issues. The Project shows no significant adverse environmental impact and is assessed as category B (nonsensitive), as defined in ADB's Environmental Assessment Guidelines (2003). The IEE is in Supplementary Appendix D.

XI. MAJOR GRANT COVENANTS

46. The status of compliance, including actions taken to comply with the covenants, should be indicated in the appropriate column and be appended to the quarterly progress report (see Appendix 11).

XII. KEY PERSONS INVOLVED IN THE PROJECT

A. ADB Staff (i) ADB Headquarters, Manila Director, SESS : Shireen Lateef Education Specialist : Norman LaRocque Financial Control Specialist : Hirao Yasumitsu Assistant Project Analyst : Arlene de Guzman-Bacasmas Address : Asian Development Bank No. 6 ADB Avenue Mandaluyong City Philippines Tel. No. : (632) 632-5781 Fax Nos. : (632) 636-2228 (632) 636-2408 (632) 636-2444 Email : [email protected]

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(ii) Lao Resident Mission (LRM

Country Director : Gil-Hong Kim Address: : Lao Resident Mission Corner Lanexang and Samsenthai Road P.O. Box 9724, Vientiane Lao PDR Tel. No. : (856-21) 250444 Fax No. : (856-21) 250333

B. Executing Agency

Ministry of Education

(i) Director General : Dr. Phonephet Boupha Department of Planning and International Cooperation: Email: [email protected] Ministry of Education P.O. Box 067, Lane Xang Avenue Vientiane, Lao PDR Vientiane, Lao PDR

Tel: (856-21) 212098 Deputy Director General, Project Manager : Assoc. Prof. Bounthene Phasiboriboune Department of Higher Education Email: [email protected] Ministry of Education Head of Undergraduate and Graduate Division

Deputy Project Manager Mr. Khamphao Chanphengxay

Email: [email protected] Address : P.O. Box 067, Lane Xang Avenue Vientiane, Lao PDR

Tel: (856-21) 212098 Tel. Nos. : (856-21) 214722; 212098 Fax Nos. : (856-21) 216006; 212019

(ii) Department of Planning and International Cooperation

Director General Mr. Sengsomphone Viravouth Email: [email protected] Tel: (856-21) 2144722 Fax: (856-21) 216006

XIII. ANTICORRUPTION

47. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the Government and MOE. Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy3 are included in the grant regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the Executing Agency and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

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

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48. In addition to the standard ADB requirements to deter corruption and increase transparency, the Government will be required to disclose information about various project matters, including procurement related to the Project, on MOE's website. With regard to procurement, the website will include a list of participating bidders, names of the winning bidder, basic details on bidding procedures adopted, amount of contracts awarded, and list of goods and services procured. Information regarding the partner universities in the matching scholarship grant scheme will be posted on the website. A grievance redresses body will be established at MOE, NUOL, CU, and SU to (i) review and address grievances of project stakeholders, or any person responsible for carrying out the Project; and (ii) set the threshold criteria and procedures for handling such grievances, for proactively responding to them, and for providing the stakeholders with notice of the chosen mechanism/action. 53. The PAM shall be read in conjunction with the RRP, Grant Agreement, and relevant ADB documents listed in Appendix 12.

Appendix 1 15

DETAILED COST ESTIMATES

Table A2.1 Detailed Cost Estimates by Expenditure Category ($ million)

Item

Foreign Exchange

Local Currency

Total Cost

% of Total Base Cost

A. Investment Costsa 1. Civil Works 4.60 3.09 7.69 29.70 2. Equipment, Furniture, and Vehicles 3.13 0.86 3.99 15.40 3. Textbooks and Materials 1.06 1.19 2.25 8.70 4. Staff Development 4.80 1.50 6.30 24.30 5. Consultants a. International (Short-Term Individuals) 0.70 0.00 0.70 2.70 b. Others (excluding Short-Term Individuals) 1.90 0.49 2.39 9.20 6. Studies 0.20 0.10 0.30 1.20 7. Taxes and Dutiesb 0.00 1.54 1.54 5.90 Subtotal (A) 16.39 8.77 25.16 97.10 B. Recurrent Cost 1. Operation and Maintenance 0.00 0.46 0.49 1.80 2. Project Management 0.00 0.23 0.26 1.00 3. Taxes and Dutiesb 0.00 0.06 0.06 0.20 Subtotal (B) 0.00 0.75 0.75 2.90 Base Cost (A+B) 16.39 9.52 25.91 100.00 C. Contingencies 1. Physicalc 0.77 0.40 1.17 2. Priced 0.08 1.64 1.72 Subtotal (C) 0.85 2.04 2.89

Total Project Cost (A+B+C) 17.24 11.56 28.80 a Base costs are as of May 2009. b Taxes and duties are estimated at 10% of civil works, equipment, furniture, and vehicles, consultants (excluding short-

term international consultants), consumables and miscellaneous, and project management. c Physical contingencies computed at 10% civil works, furniture, equipment, and vehicles. d Local currency price escalation computed at 7.0% per year from 2009 to 2015; foreign exchange escalation computed at

1.0% per year for the same period. Note: Figures may not add up to totals because of rounding. Source: Asian Development Bank estimates.

16

Appendix 1

Table A2.2: Detailed Cost Estimates by Financier ($ million)

ADB Partner Universities Government % of Cost % of Cost % of Cost Item Cost $ Category $ Category $ Category A. Investment Costsa 1. Civil Works 7.69 7.69 100.00 0.00 0.00 0.00 0.00 2. Equipment, Furniture, and Vehicles 3.99 3.99 100.00 0.00 0.00 0.00 0.00 3. Textbooks and Materials 2.25 2.25 100.00 0.00 0.00 0.00 0.00 4. Staff Development 6.30 4.30 68.25 2.00 31.75 0.00 0.00 5. Consultants a. International (Short-Term Individuals) 0.70 0.70 100.00 0.00 0.00 0.00 0.00 b. Others (excluding Short-Term Individuals) 2.39 2.39 100.00 0.00 0.00 0.00 0.00 6. Studies 0.30 0.30 100.00 0.00 0.00 0.00 0.00 7. Taxes and Dutiesb 1.54 0.00 0.00 0.00 0.00 1.54 100.00 Subtotal (A) 25.16 21.62 85.93 2.00 7.95 1.54 6.12 B. Recurrent Costsc 1. Operation and Maintenance a. Utilities 0.19 0.00 0.00 0.00 0.00 0.19 100.00 b. Consumables and Miscellaneousb 0.30 0.27 90.00 0.00 0.00 0.03 10.00 2. Project Managementb 0.26 0.23 90.00 0.00 0.00 0.03 10.00 Subtotal (B) 0.75 0.50 66.66 0.00 0.00 0.25 33.33 Base Cost (A+B)d 25.91 22.12 85.73 2.00 7.72 1.79 6.91 C. Contingenciese 2.89 2.68 0.00 0.21 7.27 Total Project Costs 28.80 24.80 86.11 2.00 6.94 2.00 6.94 % Total Project Cost 100.00 86.11 6.94 6.94

ADB = Asian Development Bank. a Investment costs are stated as net of applicable taxes and duties. b Taxes and duties, to be collected by the Government as per national taxation laws, are estimated at 10% of civil works, equipment, furniture, and vehicles,

consultants (excluding short-term international consultants), consumables and miscellaneous, and project management. c Recurrent costs are stated as gross figures (including applicable taxes and duties). d Base costs are as of May 2009. e Physical contingencies computed at 10% civil works, equipment, furniture, and vehicles. Local currency price escalation computed at 7.0% per year from 2009

to 2015; foreign exchange escalation computed at 1.0% per year for the same period. Note: 1. Figures may not add up to totals because of rounding. 2. Bank charges such as bank transfer fees will be financed by ADB.

Source: Asian Development Bank estimates.

Appendix 1 17

18 Appendix 2

PROJECT MANAGEMENT STRUCTURE 1. The Ministry of Education (MOE) will be Executing Agency for the Project. A project steering committee, established under the project preparatory technical assistance, will continue to provide overall guidance to the Project and support cross-agency policy dialogue. It is chaired by the MOE vice minister in charge of higher education and comprises representatives of MOE and the three concerned public universities (National University of Laos [NUOL], Champasak University [CU], and Souphanouvong University [SU]), as well as representatives from the Ministry of Finance, Ministry of Foreign Affairs, Ministry of Planning and Investment, and Office of the Prime Minister. Within the Department of Higher Education (DHE), a (i) project coordination unit headed by the DHE director general will be established to facilitate coordination and policy dialogue across MOE departments and the participating universities, and supervise and oversee project implementation; and (ii) a DHE project implementation unit (D-PIU) will be established to provide coordination and supervision for central project activities. MOE departments and institutions will be responsible for activities that fall within their area of responsibility. PIUs will be established in each participating university (NUOL, CU, and SU) to coordinate with the D-PIU and concerned provincial authorities in implementing and supervising the Project, including procurement activities, monitoring, and reporting.

Figure A2: Project Management Organization Chart CU = Champasak University, DDG = deputy director general, DHE = Department of Higher Education, D-PIU = Department of Higher Education project implementation unit, MIS = management information system, NUOL = National University of Laos, PIU = project implementation unit, SU = Souphanouvong University. Source: Asian Development Bank.

Project Steering Committee Chaired by Vice-Minister

Project Coordination Unit Director General, DHE

(project director)

D-PIU DDG, DHE

(Project Manager)

• Training and capacity building

• Procurement of equipment

• MIS • Quality assurance

CU PIU Project Manager

• Procurement of civil works

• Procurement of equipment, furniture

• Training and capacity-building

• MIS • Courses, curriculum,

materials develop • Quality assurance

NUOL PIU Project Manager

• Training and capacity building

• MIS • Procurement for

teaching and learning center

• Courses, curriculum, and materials development

• Quality assurance

SU PIU Project Manager

• Training and capacity-building

• MIS • Procurement for

teaching and learning center

• Courses, curriculum, and materials development

• Quality assurance

IMPLEMENTATION SCHEDULE

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Activity 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1. Strengthened Management, Financing, and Governance of Higher Education System 1.1 Internally reorganize DHE 1.2 Strengthen MIS at DHE 1.3 Strengthen management capacity of DHE 1.4 Construct new administration building at CU 1.5 Improve higher education financing a Assist with introduction of student fee scheme b Support the restructuring of student quota system c Develop financing plans with university management units d Develop and implement income generation strategies e Mentor training in higher education financial management 1.6 Enhance governance system for public and private HEIs a Constitute new governing councils for CU and SU b Strengthen NUOL governing council with new governance charter c Revise the role and responsibilities of university presidents 1.7 Develop and implement regulatory framework for private HEIs 1.8 Monitor for quality assurance standards compliance (M&E framework) 1.9 Provide accreditation of private institutions, courses, and programs 2. Enhanced Relevance and Capacity for Quality Improvement 2.1 Initiate tracer studies to track employment destinations of graduates 2.2 Enhance relevance of courses, curriculum, and teaching materials 2.3 Develop interdisciplinary core courses 2.4 Develop a curriculum framework for all faculties: 2.5 Develop faculty-specific training materials packages 2.6 Strengthen quality assurance, accreditation, and credit system 2.7 Strengthen the QAC at MOE a Formulate charter b Establish outreach quality assurance offices at NUOL, CU, and SU c M&E framework to monitor compliance with quality assurance standards 2.8 Institute a credit point system for all courses and programs a Produce course credit framework b Apply credit award criteria to private HEIs 2.9 Enhance teaching and research capacity of public university faculties 2.10 Establish a PDU at NUOL with outreach PDUs at CU and SU a Develop selection criteria and select scholarship candidates b Develop and implement teacher performance assessment scheme

Appendix 3 19

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Activity 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 c Develop and implement 3-week teacher induction training package 2.11 Implement staff and faculty development programs a Investigate options for staff and faculty development programs b Deliver staff and faculty development programs c Develop and implement 50:50 matching grants with partner universities 2.12 Enhance research capacities a Establish a national research center at NUOL b Develop research skills and identify funding for research 2.13 Improve teaching and learning environment a ICT leasing contract arrangement b ICT centers at each university, fully networked with DHE c Develop e-libraries at NUOL, CU, and SU d Develop campus infrastructure and facilities e Provide laboratory equipment and faculty materials at CU 2.14 Strengthen regional and international links a Extend and strengthen existing student exchange b Implement twinning programs with partner universities 3. Increased Equity and Access in Higher Education 3.1 Sharpen quota targeting and increase support for disadvantaged students 3.2 Reduce quota to 20% and better target the poor and ethnic minorities 3.3 Develop diagnostic pre-entry tests 3.4 Expand classroom and dormitory facilities at CU a Detailed site survey b Procurement of consulting package c Detailed engineering design for site improvements d Detailed architectural design for new buildings e Tendering and procurement of civil works contracts f Upgrading site infrastructure-construction g Building construction h On-site project management/supervision i Provide and install equipment 4. Effective Project Management and Implementation 4.1 Project oversight by PSC 4.2 PCU at DHE 4.3 D-PIU at MOE and PIUs at NUOL, CU, and SU 4.4 Office equipment, furniture, vehicles, and support materials to PCU and PIUs

CU = Champasak University, DHE = Department of Higher Education, D-PIU = Department of Higher Education project implementation unit, HEI = higher education institution, ICT = information and communication technology, M&E = monitoring and evaluation, MIS = management information system, MOE = Ministry of Education, NUOL= National University of Laos, PCS = project steering committee, PCU = project coordination unit, PDU = professional development unit, PIU = project implementation unit, QAC = Quality Assurance Center, SU = Souphanouvong University. Source: Asian Development Bank.

20

Appendix 3

Appendix 4 21

OUTLINE TERMS OF REFERENCE FOR CONSULTANTS 1. A team of 8 international consultants providing of 73 person-months of input, and 12 national consultants with 112 person-months of input will be recruited for the Strengthening of the Higher Education Project (the Project). The consultants will work closely with the counterparts to be designated by the Government of the Lao People’s Democratic Republic (Lao PDR). International consultants will lead and plan in their respective areas of expertise in collaboration with national consultants and government counterpart staff. The national consultants will advise international consultants on the local situation to enable them to adjust their analysis and recommendations to local conditions. Consultants will help the international team leader prepare and conduct workshops and seminars, prepare reports, and carry out other tasks in their areas of expertise, which will be identified during project implementation, in addition to specific tasks assigned to them.

Table A4.1: Requirements for Consulting Services

Consultant International National Higher Education Strategic Planning, Finance and Management Specialist – Team Leader 24 24

Quality Assurance and Assessment Specialist 12 12 Management Information System Specialist 6 6 Curriculum/Textbook Development Specialist 20 20 Human Resource and Professional Development Specialist 12 12 Research Capacity Development Specialist 6 6 ICT-based Teaching and Learning Specialist 12 12 Campus and Facilities Development Specialist 3 9 Gender and Social Development Specialist 0 6 Environment Specialist 0 6 Procurement Specialist 0 6 Project Financial System Specialist 0 6

TOTAL 95 125 Source: Asian Development Bank estimates.

A. Consultants 2. Higher Education Strategic Planning, Finance and Management Specialist and Team Leader (international, 24 person-months; national, 24 person-months) 3. The international specialist in Strategic Planning, Finance and Management and Team Leader will have overall responsibility for the effective implementation of the Project, and will manage a team of multidisciplinary international and national personnel to achieve the project objective and outputs as specified in the Project program framework. In addition, the international specialist and team leader, and national consultant will:

(i) Design a periodic tracer studies and help Department of Higher Education (DHE), National University of Laos (NUOL), Champasak University (CU) and Souphanouvong University (SU) to conduct tracer studies and analyze the data, and in view of the findings, review the current academic programs of the three public universities and propose adjustments in the programs and propose new programs and courses to be development;

(ii) Work with Project Coordination Unit (PCU) to strengthen and internally reorganize/rationalize DHE;

Appendix 4 22

(iii) Work with PCU to produce a 6-year strategic plan for DHE, updated annually via sector-wide strategic planning workshops;

(iv) Work with the working group on strengthening DHE to (a) formulate a blueprint for the future structure of university councils; and (b) formulate individual University Council Charters to codify the composition, powers and areas of responsibility, and establishment schedules for each Council;

(v) Assist the formulation of the High Level Task Force on Student Admission Reform, and provide advices on reforming quota and non-quota systems, and phasing out from special courses;

(vi) Assist MOE in the strengthening of the Department of Private Education Management in order to consolidate regulatory processes over private Higher Education Institutions (HEIs);

(vii) Establish a framework of minimum quality criteria for the purpose of regulating the private HEIs, and design assessment tools for the purpose of accrediting institutions, assessing academic standards for courses and programs and ensuring compliance with management and administrative best practice; and

(viii) Formulate a plan for the ongoing regular auditing of all private HEI for adherence to specified quality assurance criteria as a precondition for initial and ongoing accreditation of private HEIs, and train Ministry of Education (MOE) auditors to implement HEI regulatory policies and processes.

4. The Team Leader’s responsibilities also include (i) serve as adviser to the PCU's project director; (ii) guide and coordinate activities of international and national consultants; (iii) coordinate and integrate poverty, social and gender aspects in project implementation, and provide overall supervision to ensure safeguard compliance; (ix) monitor the overall project and the investment project activities; (x) help prepare annual operational reviews and annual operation plans; (vi) help prepare the Project review documents for Asian Development Bank (ADB) supervision missions; (vii) prepare progress and technical reports as required by the contractor and MOE; (viii) assist the implementation units and project management unit in preparing annual plans, quarterly reports, and project completion report; (ix) take a lead role in all the Project national seminars and workshops; and (x) serve as facilitator in coordinating the activities of all components to ensure smooth and timely implementation. 5. Quality Assurance and Assessment Specialist (international, 12 person-months; national, 12 person-months). The specialists will be required to:

(i) Review the operation and effectiveness of current MOE Quality Assurance Center (QAC). Formulate a development strategy for the QAC in consultation with major stakeholders;

(ii) Guide the newly strengthened QAC to prepare a quality management system framework to regulate and monitor all HEIs, public and private, for compliance with sector quality standards;

(iii) Lead the Task Force on Credit-based and Transfer system in the production of a draft course credit system ready for trialing by June 2011. Advise and monitor the task force in the ongoing development of the national higher education credit system;

(iv) Review current university entrance tests, and devise a strategic work plan to strengthen and increase the effectiveness of university entrance testing procedures. Design and pilot a diagnostic academic skills assessment package to identify low-skilled students including female, ethnic and disadvantaged students;

(v) Develop and trial appropriate skills upgrading modules for low-skilled students to reach academic standards required for university entrance to a Degree/Diploma program;

Appendix 4 23

(vi) In collaboration with the Human Resource and Professional Development Specialists, design, develop and implement a standardized 3-week induction training package for all new academic staff;

(vii) Provide specialist advisory support to the Human Resource and Professional Development Specialists in the production of a teacher performance appraisal package provided under Output 2;

(viii) In collaboration with the information and communications (ICT)-based Teaching/Learning/Administration Specialists, develop a centralized timetabling package, including customized software and staff training components, to ensure more efficient usage of teaching spaces, across faculties, at all public universities; and

(ix) In collaboration with the ICT-based Teaching/Learning/Administration Specialists, develop a set of pilot distance study modules to be used via the ICT network; provide mentor oversight for the development of further Distance Study Modules to be developed by all major faculties that can demonstrate demand for distance study.

6. Management Information System (MIS) Specialist (international 6 person months; national 6 person months). The higher education MIS international and national specialists will have extensive experience in designing education information systems for the management of higher education institutions, and will have thorough knowledge of all activities belonging to education planning and management (particularly related to personnel, finances, course information, and student selection). The specialists will be required to:

(i) Assess the current status of the MIS used at MOE in collaboration with the Quality Assurance, and Assessment Specialists, Gender and Social Development Specialist, and ICT-based Teaching and Learning Specialists;

(ii) Identify information needs across the higher education sector, at DHE, Provincial Education Services, and at the 3 pubic universities;

(iii) Design a sector-wide, multipurpose MIS network which includes DHE and all public HEIs;

(iv) Assist the DHE and the universities to implement and monitor operation of the standardized Management Information System, utilizing ICT network, for administrative, management, data storage and communication systems;

(v) Develop a format for a student information management system within the education management information system (EMIS);

(vi) Build the capacity of all staff involved in data collection, processing, and analysis; (vii) Develop a computer program for and monitoring of the education development funds

and scholarship scheme; and (viii) Install MIS network across the higher education sector and using the ICT platform

provided under Output 2; 6. Curriculum and Textbook Development Specialist (international, 20 person-months; national, 20 person- months). The specialists will be required to:

(i) Undertake a review of higher education curriculum in all public and private universities with respect to learner outcomes, content levels and standards, achievement protocols and relevance to student and employer demand.

(ii) Devise a bi-annual program of curriculum development workshops over 3 years and assist faculty representatives in the production of a curriculum framework for their respective faculties;

(iii) Lead the core group for faculty-based curriculum specialists to design a set of inter-disciplinary ‘common-core’ courses, ready for trialing by 2011.

Appendix 4 24

(iv) Guide the core group of curriculum developers in the compilation and ongoing development of faculty-specific packages of teaching materials and delivery strategies and ensure that curricula are of an appropriate standard.

(v) Help develop specifications and schedules to support the tendering of selected book projects for development by nongovernment suppliers including writing, editing, book design, illustration, and preparation of computerized book layouts

(vi) develop criteria-referenced instruments to support the objective internal peer review of manuscript material by members of curriculum writing teams and the review of material contracted to external service suppliers;

(vii) build capacity of appropriate MOE planning staff for managing the full range of preproduction processes of a textbook publishing program; and

(viii) Coordinate with the Gender and Social Development Specialist to ensure activities related to curriculum reviews, assessments and development are gender and ethnically appropriate.

7. Human Resource and Professional Development Specialist (international, 12 person-months; national, 12 person-months). The specialists will be required to:

(i) Advise MOE in the establishment of a permanent Professional Development Unit (PDU) at NUOL, managed by DHE. Formulate terms of reference for the PDU with guidance from the project steering committee (PSC), and secure the appointment of PDU officers at CU and SU;

(ii) In association with the PDU, (a) produce a training plan based on priority needs of university staff; (b) Identify personnel to undertake training using transparent selection procedures;

(iii) Coordinate the overseas scholarship programs provided by the Project, and supervise selection, pre-departure training, placement in overseas higher education programs, for scholarship candidates;

(iv) Explore opportunities for obtaining matching scholarship grants with other development partners to fund overseas scholarship training;

(v) In collaboration with the Quality Assurance, Curriculum and Assessment Specialists, establish criteria and protocols for academic staff promotion based on performance appraisal system; and

(vi) Work with DHE management and the QAC at MOE to continue tracer studies in place to track the performance of graduates in the labor market; and

(vii) Work with the Gender and Social Development Specialist to ensure training plans, scholarship programs and other human resource and professional issues are gender and ethnic responsive.

8. Research Capacity Development Specialist (international, 6 person-months; national, 6 person-months). The specialists will be required to:

(i) Review the operation of the current Post Graduate and Research Office at NUOL; formulate terms of reference for a new National Research Center (NRC) at NUOL, and deliver on-the-job mentor training in NRC management;

(ii) Design training package for the development of academic research skills, journal publication skills, and training for participation in international conferences;

(iii) Collaborate with the Quality Assurance, Curriculum and Assessment Specialists to train staff in the use of ICT network to enhance research capacity of the universities;

(iv) Prepare submissions for sourcing of funds for research projects from MOE and other government agencies, and prepare guidelines for establishment of a competitive grant system for the funding of research projects;

Appendix 4 25

(v) Establish linkages with local and international private sector organizations; prepare submissions to gain support from the private sector to conduct sponsored research projects;

(vi) Assist the NRC to produce marketing modules to promote research and development services provided by the universities; and

(vii) Coordinate with the Gender and Social Development Specialist to ensure training packages and marketing modules appeal to gender and ethnic candidates.

9. ICT-based Teaching and Learning Specialist (international, 12 person-months; national, 12 person-months). The specialists will be required to:

(i) Work with MOE (co-ordinate with the Education Statistics and Information Technology Center), DHE and university management personnel manage the installation and ongoing operation of a comprehensive ICT-based teaching learning center at each institution;

(ii) Supervise the installation of the national higher education ICT network at MOE and each major campus;

(iii) Assist the DHE and the universities to develop, implement and monitor operation of standardized Management Information System, utilizing ICT network, for administrative, management, data storage and communication systems;

(iv) Develop and implement ICT-based internal timetabling/scheduling systems at all institutions; train staff in the use of ICT network for centralized timetabling across faculties (classrooms and teaching spaces shared across faculties);

(v) Design and implement a package for English language training; assist the Staff Development Center to administer English language training packages;

(vi) In collaboration with the Quality Assurance, Curriculum, Assessment Specialists, develop a centralized timetabling package, including customized software and staff training components, to ensure more efficient usage of teaching spaces, across faculties, at all public universities;

(vii) In collaboration with the Quality Assurance and Assessment Specialists, develop a set of pilot distance study modules to be used via the ICT network; provide mentor oversight for the development of further Distance Study Modules to be developed by all major faculties that can demonstrate demand for distance study; and

(viii) Assist MOE and the universities to formulate budgetary plans to sustainably finance operations and maintenance, and periodic upgrading of ICT resources after project completion.

10. Campus and Facilities Development Specialist (international, 3 person-months; national, 9 person-months). The specialists will be required to oversee the design and documentation for a revised and comprehensive master plan for CU. Activities will include, but not limited to (i) procurement of consulting package; (ii) detailed site survey and environment issues in accordance with approved plans and frameworks; (iii) detailed engineering design for site improvements; (iv) detailed architectural design for new buildings, reflecting separate male and female needs (e.g., separate toilets, dormitories, etc); (v) tendering/procurement of civil works contracts; (f) supervision of upgrading site infrastructure-construction; and (vi) supervision of building construction; and (h) supervision for quality control and payment certification. 11. Gender and Social Development Specialist (national, 6 months). The specialist will be required to:

Appendix 4 26

(i) Assist in collecting most recent gender and ethnicity-disaggregated information and data on gender and ethnicity relevant to aspects of tertiary education, at both central and provincial levels (for baseline and periodically during implementation);

(ii) On the basis of the evidence collected, expand the Gender and Ethnic Groups Action Plan (GEGAP) of the Project to include additional implementation steps (if necessary) for easy project implementation;

(iii) Assist the Vice Minister/MOE and Director General of DHE/MOE, and the Center for Integrated Education to implement the GEGAP;

(iv) Assist in delivering gender awareness/mainstreaming training to project staff and consultants at the national and provincial levels. Develop a training of trainers manual, if necessary, to facilitate delivery of gender training;

(v) Assist in developing a gender checklist for each project output, which can be used by national and provincial project staff during project implementation;

(vi) Assist in developing a monitoring and reporting form, including training to key project personnel, to facilitate overall monitoring of GEGAP implementation and its reporting in quarterly progress reports to ADB and the Government; and

(vii) Coordinate with other international and national consultants in mainstreaming gender and ethnic actions.

12. Environment Specialist (national, 6 months). The specialist, with other consultant team

members, will be required to:

(i) review and update the Initial Environment Examination and Environmental Mitigation and Monitoring Plan (EMMP);

(ii) establish procedures and protocols for implementing the EMMP; (iii) assist MOE acquire all necessary government clearances related to environment

issues; (iv) ensure relevant EMMP measures are included in tender and contract documentation; (v) identify areas that may have Unexploded Ordinance risks and advise the MOE on

necessary preventative and corrective actions; (vi) support environmental officers conducting environmental inspection and reporting

during construction; (vii) provide capacity building as required on the environmental and social aspects of

environmental management and monitoring; (viii) liaise with government agencies, local communities, nongovernment organizations,

and other stakeholders concerned on the environmental aspects of the project; and (ix) prepare semi-annual reports on progress and issues on environmental mitigation and

monitoring.

13. Procurement Specialist (national, 6 person-months). The specialist will be responsible for planning, developing and managing all procurement and contractual aspects of project related civil works, goods, equipment and consultancy services. The specialist shall advise requisitioning units and recipient entities on the full range of procurement issues, providing support and guidance at all stages of the procurement cycle. The Specialist shall assist in the preparation and distribution of invitations to tender and help manage/conduct all aspects of bid proposal evaluations, and supervise equipment installation. 14. Project Financial Management System Specialist (national, 6 person-months). The specialist will assist the PCU and PIUs of DHE and participating universities in designing and developing an appropriate financial management and reporting system consistent with the Government and ADB requirements. The specialist will help develop a project accounting system including the monthly financial reporting system on project activities and imprest fund disbursement

Appendix 4 27

and replenishment procedures. Training of PIU staff on the use of the system, preparation of annual project budgets, and monthly reports will be part of the specialist’s duties. B. Visiting Scholars 15. In addition to the consulting services to be recruited through a firm, visiting international scholars with 70 person-months will be invited as short-term consultants on an individual basis to assist participating universities in the development of academic programs and teaching support, E-learning approaches, international exchange and cooperation, university-industry linkage, and research methodology and publication.

Table A4.2: Indicative Requirements for Foreign Scholars

Foreign Scholars NUOL CU SU Total Program Development and Review 0 6 6 12 Teaching Support 0 12 10 22 E-Learning 2 3 3 8 International Exchange and Cooperation 2 4 4 10 University Marketing and Linkage 3 3 3 9 Research Methodology 3 3 3 9

Total 10 31 29 70 NUOL = National University of Laos, CU = Champasak University, SU = Souphanouvong University. Source: Asian Development Bank. 16. Program Development and Review (12 person-months). The visiting international scholars will assist CU and SU in developing their undergraduate education programs including laboratory development plans. In collaboration with the Team Leader of the consulting services, the visiting international scholars will review the findings of tracer studies, revise the contents of existing academic programs and propose new programs and courses to be developed, and develop program evaluation criteria and monitoring methods. They will also produce laboratory development plans including maintenance of teaching equipment, and develop. 17. Teaching Support (22 person-months). The visiting international scholars will assist faculty members of CU and SU in actual classroom and laboratory teaching activities in respective areas of expertise (for example, banking, finance, and accounting in CU), and give lectures/modules and perform other teaching duties which are normally undertaken by Lao faculty members away on long-term staff development. 18. E-Learning (8 person-months). In collaboration with the ICT-based Teaching and Learning Specialist, the visiting international scholars will introduce e-learning activities and approaches including distance or on-line learning, help NUOL, SU and CU to design e-library system, and train core staff/faculty members in delivering E-library contents. 19. International Exchange and Cooperation (10 person-months). The visiting international scholars will assist NUOL, CU and SU in identifying international twinning or sandwich programs with foreign universities and help them to reach agreements, and help the three public universities activate or revitalize the existing and new student/academic exchange agreements on a priority basis, and guide on-job-training on international affairs for the staff of international cooperation office or unit of the three public universities. 20. University Marketing and Linkage (9 person-months). The visiting international scholars will advise on resource and revenue development of NUOL, CU and SU including cost-recovery measures, and strengthening funding, university marketing, and industrial linkage and network. They will also help the three public universities to establish alumni associations and develop career orientation and guidance programs and job placement system.

Appendix 4 28

21. Research Methodology (9 person-months). In collaboration with the Research Capacity Development Specialists, the visiting international scholars will deliver courses/modules at NUOL, CU and SU on research methodology, methods, proposal writing, and publication techniques (for journal articles and books) in respective areas of expertise. They will also help faculty members to identify and apply for research funding. C. Administrative Assistants and Accountants 22. The Project will also locally recruit administrative assistants and accountants on an individual basis as needed (approximately 144 person-months for initial 3 years of project implementation with possible extension during the project period) to assist the PIUs in financial management and project accounting, and other tasks.

Appendix 4A 29

RECRUITING CONSULTING FIRMS 1. Borrowers must comply with ADB’s requirements and follow ADB’s procedures. The policies and main procedures are set out in the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (Guidelines. When recruiting consultants with ADB funds, borrowers are expected to promptly recruit consultants who will provide high-quality services. The normal means of selection is through competitive bidding among qualified firms. A. Procurement Plan 2. EAs are required, prior to Grant negotiations, to prepare an outline for the project and a detailed plan covering the first 18 months of procurement activity. The procurement plan will be annexed to the minutes of loan negotiations. Within 1 year after the date of Grant effectiveness, the EA should submit a revised procurement plan to ADB for approval that captures all ongoing procurement and that planned for the following 18 months. The procurement plan should be updated annually for the duration of the project. The procurement plan should detail, as a minimum, a brief description of the consulting packages, selection method, types of technical proposal, budget for each package, outline TOR when possible, the positions to be held by national versus international experts, a definition of prior review and/or post review, and recruitment schedules. B. Selection Methods 3. EAs use six methods to select consulting firms:

• quality- and cost-based selection (QCBS), which is ADB’s preferred selection method;

• quality-based selection (QBS); • fixed-budget selection (FBS); • least-cost selection (LCS); • consultants’ qualifications selection; and • single-source selection, which is used in exceptional cases when not using a

competitive selection method is justified. 4. The proposed selection method for this Project as mentioned in the procurement plan are: QCBS, CQS and LCS The procedures to be followed for loan/grant-funded consulting services using these are outlined below. C. Types of Technical Proposals 5. EAs use three types of technical proposals to select consulting firms

• Full technical proposals are one of the default types for contract budgets over $1,000,000. They may also be used for smaller contracts if considered necessary and sound justification is presented in the procurement plan.

• Simplified technical proposals are the default type when the contract budget is more than $600,000 and equal to or less than $1,000,000. With adequate justification in the procurement plan and the RRP they may also be used when the contract budget is more than $1,000,000.

Appendix 4A 30

• Biodata technical proposals are the default type when the contract budget is $600,000 or less but may be used for contracts of higher amounts if adequate justification is provided in the procurement plan and the RRP.

D. Advertising the Consulting Assignments 6. EA publishes Consulting Selection Recruitment Notice (CSRN) for each consulting assignment to facilitate receipt of Expressions of Interest (http://csrn.adb.org/csrn). The minimum posting time for each assignment is 30 days. The website includes a link to a standard expression of interest (EOI) form for loans that firms can download, fill out, and send directly to the EA. 7. The EA may, in addition, advertise in local newspapers and international trade publications. Such advertisement may direct consultants to ADB website for electronic expression of interest. E. Consultants Expressing Interest 8. To ensure that all data required to assess firms for the short list are obtained at the required level of detail, EAs are required to request EOIs in standard EOI form. As a guide, a sample standard EOI form is available on ADB’s website, http://www.adb.org/Consulting/toolkit-template.asp. The standard EOI form may be submitted in hard or soft (electronic) copy. F. Preparing the Long List 9. The EA normally includes all the qualified consultants that expressed interest on a long list. The EA may also ask the user division officer for additional qualified consulting firms from the CMS. The EA decides whether to include any of these consultants on the longlist and may also add other experienced consultants to the list. 10. The EA then evaluates those consultants on the long list. This may be done through a consultant selection committee (CSC) set up by the borrower and including staff of the EA, or by a CSC set up within the EA, depending on the procedure and regulations in the country concerned. G. Evaluating EOIs and Preparing the Short List 11. Four criteria are typically evaluated:

• Eligibility of the consulting entity • Management competence (20%) • Technical competence (60%) • Geographic competence (20%)

12. The above weightings are indicative, actual weightings may be tailored to the scope of the assignment 13. To ensure a wide geographic spread for projects requiring international consulting input, the short list should contain firms from a broad range of ADB member countries. Short lists should not include more than two firms from any one country, and adequate justification should

Appendix 4A 31

be given if two firms are proposed. In addition, there should be at least one firm from a developing member country (DMC), unless no qualified DMC firm has expressed interest or one cannot be identified from the CMS. H. Preparing the RFP 14. The EA next prepares the RFP documents in ADB’s format. Templates for this are available on the ADB website. The information in the RFP includes the

• names of the short-listed consultants; • selection method the EA will use; • detailed TOR; • estimates of the total international and national person-months and the costs;

and the required expertise, data, facilities, services, and reports; • type of technical proposal requested and instructions on how to prepare that type

of proposal; • evaluation criteria for the technical proposals; • EA’s budget for the assignment, including any provisional sums or contingencies; • deadline for the EA to receive the proposals; and • addresses of the EA and ADB to which the consultants must send copies of the

proposals. 15. The RFP also explains the following:

• The successful consultant must disqualify itself, its affiliates, and its associates from participating in the project in any other capacity

• The EA may exclude a consultant if it is found to have a conflict of interest or if the EA determines that a consultant engaged in corrupt, fraudulent, collusive, or coercive practices.

• • Firms that have expressed interest as a part of a joint venture or association will be short-listed as such, and all firms that indicated their participation are expected to be represented in the proposal. Additional firms may be included in the joint venture or association when the proposal is submitted

16. The RFP also includes instructions on submitting financial proposals and other procedures that are specific to the selection method the EA will use. They include a data sheet, which, among other information, states the EA’s budget for the assignment. For QCBS, this is either a maximum budget or an estimated budget . A maximum budget is shown when costs are certain and it is unlikely that financial proposals will exceed this budget. An estimated budget is shown when cost estimates are not certain and it is possible that financial proposals may exceed it. When preparing the RFP, the EA should ascertain that all costs that may be included in the consultants’ contract are included in the estimated contract budget published in the data sheet. These should include (besides consulting fees) per diems, travel costs, the costs of any vehicles or equipment specifically associated with the consultancy, and any special items (for example the cost of recruiting nongovernment organizations or providing training). Any fixed costs such as provisional sums or contingencies should be clearly identified. 17. For QCBS in which the data sheet indicates a maximum budget and for FBS, the RFP will clearly state that financial proposals must be within this budget; otherwise the financial

Appendix 4A 32

proposal will be considered nonresponsive and will not be awarded any points during the financial evaluation. For QCBS in which the data sheet indicates an estimated budget, firms will not be penalized if the financial proposal exceeds the budget. I. Reviewing the EA’s Short-listing Documents and Request for Proposals (Submission 1) 18. If the EA is required to submit its short-listing documents to ADB for approval, the EA submits its documents in ADB’s standard format, updated from the most recent version available on ADB’s website or provided by the ADB user division officer. ADB reviews the EA’s short-listing criteria and short list, to make sure that the criteria are reasonable and rational relative to the scope of work, the TOR, and the budget available and that all the firms are technically qualified and have a reasonable geographic spread. 19. ADB also reviews the RFP, paying particular attention to

• TOR and background information provided to ensure that they are in line with the project scope and consultant duties spelled out in the RRP and loan agreement;

• EA’s budget for the assignment to ensure a realistic level of remuneration, per diem rates, and out-of-pocket expenditures; relevant and adequate provisional sums; and adequate contingencies;

• selection method, the type of technical proposal, and whether these are in line with the recommendations in the procurement plan;

• validity and appropriateness of the criteria for evaluating the technical proposals, • changes made to the draft contract if any (which must be clearly identified by the

EA and user division); and • • proposed timing for consultant recruitment illustrated in the CRAM frame.

J. Requesting Proposals 20. The EA then sends RFPs to the consultants on the short list. The consultants acknowledge receiving the RFPs and any notices from the EA of extensions to the deadline for receiving proposals. The consultants also advise whether they intend to submit proposals. If there are any queries from the consultants, the EA must provide all the short-listed consultants with the same information without disclosing the source of the query. K. Evaluating the Technical Proposals 21. After receiving the consultants’ proposals, the EA rejects any it receives after the stated deadline. The EA then establishes a CSC, which evaluates the technical proposals using the evaluation criteria approved by ADB. The CSC prepares minutes of its evaluation meeting and a report on its evaluation, describing the strengths and weaknesses of each proposal. L. Reviewing the EA’s Technical Evaluation Documents (Submission 2) 22. If the EA’s procurement plan requires it to submit its technical evaluation documents to ADB for approval, the EA submits its documents in ADB’s standard format available on the ADB website or provided by the user division officer. The documents include

• a summary evaluation sheet highlighting any proposal that scored less than 750 points out of 1,000,

Appendix 4A 33

• a personnel evaluation sheet for each proposal, • comments on the strengths and weaknesses of each proposal, and • minutes of the evaluation meeting(s).

M. Reviewing the EA’s Financial Evaluation and Overall Ranking Documents 23. If the EA’s procurement plan requires it to submit its financial evaluation and final ranking documents to ADB for approval, the EA submits its documents in ADB’s standard format downloaded from ADB website N. Negotiating the Contract 24. The EA then writes to the first-ranked consultant and advises that it wishes to negotiate a contract. The EA normally conducts the negotiations face-to-face. The consultant must pay all its representative’s costs to attend the negotiations. The letter

• invites the consultant to send a representative to the EA’s offices, who will be prepared to discuss the consultant’s proposal and has the authority to finalize and sign a contract;

• proposes a schedule and agenda; • asks the consultant to confirm the availability of all the team members nominated

in its technical proposal; and • summarizes any issues identified during the evaluation that require clarification,

any deficiencies to be corrected, any team members to be replaced, or any other corrective action to be taken.

• If there is likely to be a delay in negotiations, the letter may also request the consultant to extend the validity of its bid for a reasonable time until negotiations can be held.

25. The negotiations cover the TOR, the consultant’s methodology and work plan, the team members and personnel schedule, the counterpart facilities the EA will provide, the financial terms, and the other terms and conditions in the contract. The procedure for negotiating the financial terms depends on the selection method (see PAI 2.02, Part A). The EA prepares minutes of the important points of agreement. 26. If the EA and the consultant cannot reach agreement, the EA may ask ADB’s agreement to terminate the negotiations and start negotiations with the next-ranked consultant, in turn, until it reaches an agreement. O. Reviewing the EA’s Draft Contract 27. If the EA’s procurement plan requires it to submit its draft negotiated contract and the minutes of the contract negotiations to ADB for approval, the EA submits them in ADB’s standard format, P. Finalizing the Contract 28. After receiving ADB’s approval, the EA signs the contract, obtains the consultant’s signature, and submits a copy to ADB for its records. The EA also submits some information for ADB to publish on its website. This consists of

• names of the short-listed consultants who submitted proposals;

Appendix 4A 34

• scores of their technical proposals; • prices in their financial proposals (for QCBS); • overall ranking (for QCBS); • name of the consultant selected; and • cost, duration, and summary scope of the contract.

Q. Terminating a Contract 29. When an EA proposes to terminate a contract with a consultant, it sends a recommendation to ADB. The user division consults COSO and OGC, decides whether termination is warranted, and advises the EA of the decision. When the division approves termination, the EA sends a written notice to the consultant, in accordance with the provisions in the contract. R. Monitoring the Consultant Recruitment Process 30. The EA and the user division use CRAM frames for loans/grants to monitor the activities in recruiting the consultant and to avoid delays. Indicative CRAM frames based on forecast scheduling of recruitment for consulting packages are included as an annex to the procurement plan. Appendix 3 is an example of a CRAM frame and a flow chart of the CRAM process. S. Monitoring the Recruitment Activities and Updating the CRAM Frame 31. ADB sends a copy of the CRAM frame for the assignment to the EA. The EA’s CSC short-listing meeting then discusses and confirms the CRAM schedule. If the EA is required to submit its CSC meeting documents to ADB for approval, the EA includes the CRAM frame. 32. Following are links to ADB website containing standard documents:

Harmonized RFP of consulting firms for all selection method at http://www.adb.org/Consulting/all-methods-loan.asp

Individual consultant contract template at http://www.adb.org/Consulting/ICS-Contract-Loan.pdf

Templates of submissions to ADB at http://www.adb.org/Consulting/loan-rfp.asp

Appendix 4B 35

Appendix 4C 36

Appendix 4D 37

Appendix 4E 38

MODEL OF NARRATIVE EVALUATION CRITERIA FOR FULL TECHNICAL PROPOSAL

(ALL SELECTION METHODS) I. QUALIFICATIONS OF PROPOSER (100 - 200 points) A. Experience in Similar Projects Criteria: The extent and depth of experience of the firm and its associates in the

same or similar type of projects. The criteria should spell out clearly the project characteristics applicable.

Factors to consider: Each reference project included in the technical proposal (as

described in the format shown in Form TECH-1 of the Request for Proposal [RFP]) is to be judged against the criteria established. The scoring method recommended is to be based on number of relevant reference projects, length and depth of the involvement of consulting entity in the relevant projects. 1

B. Experience in Similar Geographical Areas Criteria: Extent of experience in the project country or the geographical region

taking in consideration elements such as population size, economic development stage and possibly other social factors.

Factors to consider: On the basis of specific criteria established, assess the

experience of each firm. The scoring method recommended is to be based on number of relevant reference projects length and depth of the involvement of consulting entity in the relevant projects.

C. Other Factors (Optional) Criteria: Management experience: consistency of senior management in past and

proposed projects. Factors to consider: Check if senior management proposed for the present

project is the same as in reference projects. II. APPROACH AND METHODOLOGY (200 - 400 points) A. Understanding of Objectives Criteria: General understanding of the project requirements; coverage of principal

components as requested in TOR; and site visit assessment. Factors to consider: The three following aspects are to be considered:

1 If all criteria are met, the rating may be carried out against the basic number of reference projects considered

necessary for the project under consideration, e.g., three relevant projects required: one project - 50% two projects - 80% three or more projects - 100%

Appendix 4E 39

General understanding Components coverage Site visit (Note: Arrange criteria in the order of importance to the specific project .) B. Quality of Methodology Criteria: The degree of which the presented written methodology/approach

addresses the requirements of the TOR. Factors to consider: Assessment of the inter-relationship of work program and

methodology write-up. Ability to demonstrate up-to-date knowledge and understanding of requirements of TOR. A consistent relationship is to be given maximum points.

C. Innovativeness/Comments on Terms of Reference Criteria: Suggestions, which could improve the quality of the project. Factors to consider: Points will be given for workable suggestions proposed. D. Work Program Criteria: A work program showing graphical presentation of activities (bar chart).

An organization chart showing the relationship of ADB, the Executing Agency (EA) and the Consultant should also be provided.

Factors to consider: Work program to be assessed on logical sequence of events.

The organization chart is to be assessed on the consultant’s understanding of the relationship between ADB, the consultant and the EA.

E. Personnel Schedule Criteria: Relationship between required person-months and proposed work

program. Factors to consider: The Personnel Schedule in the format of Form TECH-7 of

the RFP is to be assessed on phasing of activities of the work program and allocation and timing of expert's individual inputs. Total requirements closest to estimated work requirements are assessed as well as the appropriateness of time allocated to the task to be performed is to be assessed in terms of individual expertise. Check also the balance between field time and home office time and the proposed number of trips.

F. Counterpart Personnel and Facilities Criteria: Requirement for counterpart personnel, office space, transportation,

equipment and services. Factors to consider: Assessment of reasonableness and completeness of

requirements and understanding of local conditions.

Appendix 4E 40

G. Proposal Presentation Criteria: Clarity and ease of assessment of the entire proposal (including material

presentation) and the need to check adherence to page limits as specified in the RFP.

Factors to consider: If all items requested in the LOI are covered in a clear and

easily understandable form and the proposal is assembled in a professional manner, maximum points are to be given. Proposals which exceed the page limits specified in the RFP will be marked down.

III. PERSONNEL (500 - 700 points) International Consultants Criteria: Separate assessment of each expert listed on page 2 of 2 of the

Summary Evaluation Sheet. Each expert is to be evaluated against the tasks assigned in accordance with three main criteria:

(i) general experience such as academic qualifications and the number of

years of working related experience; (10%-20%) (ii) project related experience based on the number of relevant projects

implemented; (60%-70%)

(iii) overseas experience and/or country experience; (10%-20%) and

National Consultants

(i) general experience such as academic qualifications and the number of years of working related experience; (10%-20%)

(ii) project related experience based on the number of relevant projects

implemented; (60%-70%) (iii) experience in working with international consulting firm or international organization/international agency; (10%-20%) Factors to consider: For QBS: If more than one expert is nominated for a position the overall rating

is calculated as the summation of the individual rating of each person prorated on the basis of person-month input. If there is no indication of person-month input, experts are considered as alternative experts rather than joint experts. When alternative experts are nominated for the same position, the score of the least qualified expert shall be used. CVs to be within specified page limits.

For QCBS: Only one CV may be submitted for each position within specified

page limits.

Appendix 4F 41

RECRUITING INDIVIDUAL CONSULTANTS FOR LOAN/GRANT PROJECT ASSIGNMENTS

1. Borrowers normally recruit and supervise the consultants for ADB-financed loan/grant projects. Borrowers have some flexibility to use government procedures to select individual consultants, but their procedures must be approved by ADB and must meet ADB's requirements. 2. Individual consultants are more appropriate than firms when the assignment is straightforward and does not require a team of experts and extra support from the consultant's home office. the EA's main requirements are the consultants' qualifications and experience. 3. Borrowers may engage individual consultants directly or through an organization such as a consulting firm, an academic institution, a government agency, or an international agency. 4. ADB encourages assignments for national consultants from the project country when qualified national consultants are available. 5. For international consulting assignments, borrowers should shortlist consultants from different geographic regions in order to ensure access to the best expertise available and to spread the opportunities to work on consulting assignments among ADB's member countries. 6. ADB's anticorruption policy requires borrowers and consultants under ADB-financed contracts to observe the highest ethical standards. If ADB determines that representatives of a borrower, a beneficiary, or a consultant engaged in corrupt, fraudulent, collusive, or coercive practices during consultant selection or the execution of a contract, ADB may take any of the steps set out in the Guidelines. A. Procedures 7. The procedures EAs should use to recruit individual consultants under ADB-financed loan/grant projects are show below: B. Selecting and Approving the Shortlist 8. Several weeks before an individual consulting assignment is scheduled to start, the EA prepares a shortlist of at least three qualified candidates. The EA normally includes no more than one candidate from any ADB member country. At the EA's request, the user division will provide the names and qualifications of suitable candidates from the Consultant Management System (CMS). The EA publishes Consulting Selection Recruitment Notice (CSRN) for each consulting assignment to facilitate receipts of Expressions of Interest (http://csrn.adb.org/csrn). 9. The EA ranks the candidates, and then normally submits their names and qualifications and the draft contract it will use for the engagement to ADB for approval. C. Negotiating and Approving the Contract 10. After ADB approves the ranked shortlist and draft contract, the EA negotiates with the first-ranked candidate. If the negotiations fail, the EA obtains ADB's approval to negotiate in turn with the next-ranked candidate until agreement is reached. The EA then normally sends a copy of the draft negotiated contract to ADB for approval.

Appendix 4F 42

D. Finalizing the Contract 11. After ADB approves the draft negotiated contract, the EA concludes the negotiations, signs the contract, and submits a copy to ADB for its records. After receiving the signed contract, the user division checks that it is substantially the same as the draft already approved and gives copies to COSO, CTL, and OGC. The division must send copies of all communications regarding consultants to COSO. E. Terminating Contracts 12. When an EA proposes to terminate a contract with an individual consultant, it sends a recommendation to ADB. The user division consults COSO and OGC, decides whether termination is warranted, and advises the EA of the decision. When the division approves termination, the EA sends a written notice to the consultants, in accordance with the provisions in the contract.

Appendix 5 43

PROCUREMENT PLAN

Project Name: Strengthening Higher Education Project Grant Number: 0166 Grant Amount (total from all financiers): $24.8 million Executing Agency: Ministry of Education Date of First Procurement Plan: not applicable Date of this Procurement Plan: 21 August 2009

A. Process Thresholds, Review, and 18-Month Procurement Plan

1. Project Procurement Thresholds

1. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold

International Competitive Bidding (ICB) for Works Above $2,000,000 International Competitive Bidding (ICB) for Goods Above $1,000,000 National Competitive Bidding (NCB) for Works Below $2,000,000 and above $100,000 National Competitive Bidding (NCB) for Goods Below $1,000,000 and above $100,000 Shopping for Works Below $100,000 Shopping for Goods Direct Purchase

Below $100,000 Below $10,000

2. ADB Prior or Post Review

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

Procurement Method Prior or Post Comments Procurement of Goods and Works

ICB Works Prior ICB Goods Prior NCB Works Prior NCB Goods Prior Shopping for Works Prior Shopping for Goods Prior

The first 2 (two) contracts for each NCB goods and works will be reviewed using prior review procedures. Following that, post review will be used.

Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) Prior QCBS selection based on

80:20 quality/cost weighting Recruitment of Individual Consultants

Individual Consultants Prior

3. Goods and Works Contracts Estimated to Cost More Than $1 Million

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

General Description Contract Value ($)

Procurement Method

Prequalification of Bidders (y/n)

Advertisement Date

(quarter/year) Comments

Civil works, water, power Goods (Information technology, vehicles, furniture)

8,584,200

7,562,890

ICB, NCB

ICB, NCB

No

ICB, Yes NCB. No

Q1, 2010

Q1, 2010

ICB = international competitive bidding, NCB = national competitive bidding, Q = quarter.

Appendix 5 44

4. Consulting Services Contracts Estimated to Cost More Than $100,000

4. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months. General Description

Contract Value

Recruitment Method

Advertisement Date

(quarter/year)

International or National

Assignment Comments

Project Implementation Individual Consultants

$2,275,000

$872,800

QCBS (80:20)

ICS

Q4, 2009

Q1 & Q3, 2010

International

National and international

220 person-months (95 international and

125 national)


144 national) ICS = individual consultant system, Q = quarter, QCBS = quality- and cost-based selection. B. Project Procurement Plan-Indicative List of Packages Required Under the Project 5. The following table provides an indicative list of all procurement (goods, works, and consulting services) over the life of the Project.

Item

Total Cost ($ estimated)

No. of Packages (estimated)

Amount per

Package Procurement

Method Responsibility

for Procurement

Civil works A. Road Construction Main road. 2.5 km (DBST, 9 m) Road 6.77 km (DBST, 6 m) 1,923,000

Drainage (4 km), site grading (30 ha), bridge, culvert 595,000

1 2,518,000 ICB CU PIU

Subtotal (A) 2,518,000 1 B. Water Supply Groundwater investigation Overhead storage tanks Transmission from utility or source to site (10 km) Distribution line (8 km)

470,000 1 470,000 NCB CU PIU

Subtotal (B) 470,000 1 C. Energy Supply Upgrade transmission lines from utility (10 km) Transformer (set) Distribution to campus (8 km)

227,000 1 227,000 NCB CU PIU

Subtotal (C) 227,000 1 D. Buildings and Related Expenses University buildings Administrative office building (2 story), main gate 1,000,000 Faculty-department office block 420,000 Auditorium (1,000 person capacity) 420,000 New classrooms (56 classrooms) 1,176,000 Library, e-learning center, student center 630,000 Laboratory blocks (physics, chemistry, biology) 235,200

1 3,881,200 ICB CU PIU

Appendix 5 45

Item

Total Cost ($ estimated)

No. of Packages (estimated)

Amount per

Package Procurement

Method Responsibility

for Procurement

Dormitories Dormitory for students 560,000 Dormitory for single faculty, staff housing 512,000 Dormitory for family faculty 192,000 Toilet and washroom facility blocks 180,000

1 1,444,000 NCB CU PIU

Subtotal (D) 5,325,200 2 Total Civil Works Cost (A+B+C+D) 8,540,200 5

Equipment: CU IT infrastructure, networks, internet connectivity 100,000 1 100,000 NCB CU PIU PCs and software 375,000 Projectors, LCD screens, other peripherals 60,000

1 435,000 NCB CU PIU

Laboratory equipment (physics, chemistry, biology) 2,200,000 1 2,200,000 ICB CU PIU

Equipment: SU 132,500 1 132,500 NCB SU PIU Equipment: NUOL 132,500 1 132,500 NCB NOUL PIU Equipment: DHE, MOE (QAC) 300,000 1 300,000 NCB D-PIU Total Equipment Cost 3,300,000 6 Furniture Furniture for classrooms 235,200 Furniture for dormitories, faculty housing 111,000


Furniture for faculty block 145,200 Furniture for administrative block 143,650 Furniture for e-learning center, student center 92,340 Furniture for auditorium 6,500


Total Furniture Cost 733,890 2 Learning Materials Textbooks for CU, SU, and NOUL 2,250,000 1 2,250,000 ICB D-PIU

Total Learning Material Cost 2,250,000 1 Vehicles and /Motorcycles CU Minibuses (2), buses (2) 130,000

4-wheel-drive cars (2), and motorcycles (20) 130,000 1 260,000 UNOPS or

NCB

CU PIU

MOE

Minibus (1), Pickup truck (1) 140,000 1 140,000 UNOPS or NCB D-PIU

4 wheel drive car (2 units), motorcycles (4 units) Total Vehicle and Motorcycle Estimated Cost 400,000 2 CU = Champasak University, DBST = double bituminous surface treatment, DHE = Department of Higher Education, D-PIU = Department of Higher Education project implementation unit, ICB = international competitive bidding, ICS = Individual Consultant System, IS = International shopping, km = kilometer, LCD = liquid crystal display, m = meter, MOE = Ministry of Education, NCB = national competitive bidding, NUOL = National University, PIU = project implementation unit, Q = quarter, QAC = quality assurance center, QCBS = quality- and cost-based selection; SU = Souphanovong University, UNOPS = United Nations Office for Project Services.

Appendix 5 46

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Recruitment Method

Type of Proposal Comments

Consulting Services Project Implementation Consultant Visiting Scholars Administrative Assistants and Accountants

$2,275,000

$700,000

$172,800

1

50 4

QCBS (80:20)

ICS

ICS

Full technical

proposal


112 national) (advance action)

70 person-months

(international visiting scholars

144 person-months

ICS = Individual Consultant System, QCBS = quality- and cost-based selection.

C. National Competitive Bidding 6. General. The procedures to be followed for NCB shall be those set forth for “Public Bidding” in Prime Minister’s Decree No. 03/PM of the Lao People’s Democratic Republic, effective 09 January 2004, and Implementing Rules and Regulations effective 12 March 2004, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of ADB's Procurement Guidelines (2007, as amended from time to time)

7. Application. Contract packages subject to NCB procedures will be those identified as such in the project procurement plan. Any changes to the mode of procurement from those provided in the procurement plan shall be made through updating of the procurement plan, and only with prior approval of ADB. 8. Eligibility. Bidders shall not be declared ineligible or prohibited from bidding on the basis of barring procedures or sanction lists, except individuals and firms sanctioned by ADB, without prior approval of ADB. 9. Advertising. Bidding for NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the procurement plan. 10. Procurement Documents. The standard procurement documents provided by Ministry of Finance, Procurement Monitoring Office shall be used to the extent possible. The first draft English language version of the procurement documents shall be submitted for ADB review and approval, regardless of the estimated contract amount, in accordance with agreed review procedures (post and prior review). The ADB-approved procurement documents will then be used as a model for all procurement financed by ADB for the Project, and need not be subjected to further review unless specified in the procurement plan.

11. Preferences. These include the following:

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

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

Appendix 5 47

12. Rejection of All Bids and Rebidding. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence. 13. National Sanctions List. National sanctions lists may be applied only with prior approval of ADB. 14. Anticorruption Policy. A bidder declared ineligible by ADB, based on a determination by ADB that the bidder has engaged in corrupt, fraudulent, collusive, or coercive practices in competing for or in executing an ADB-financed contract shall be ineligible to be awarded an ADB-financed contract during the period of time determined by ADB. 15. Disclosure of Decisions on Contract Awards. At the same time that notification on award of contract is given to the successful bidder, the results of the bid evaluation shall be published in a local newspaper or well-known freely accessible website identifying the bid and lot numbers, and providing information on (i) name of each bidder who submitted a bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, (iv) name of the winning bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. The Executing Agency and/or Implementing Agency shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected. 16. Member Country Restrictions. Bidders must be nationals of member countries of ADB; and offered goods, works, and services must be produced in and supplied from member countries of ADB.

Appendix 5 48

Modes of Procurement A. National Competitive Bidding 1. NCB may be considered only if ADB is satisfied that

(i) (i) foreign contractors and suppliers are not likely to be interested in bidding; (ii) local production or construction facilities are available, offer prices below the

international market, and are adequate for prompt delivery; (iii) i) domestic procurement procedures are satisfactory to ADB; and (iv) where the borrower requested the use of NCB.

• Moreover, NCB may be considered for contracts that

(i) are of small value; (ii) i) consist of a series of small-value works; (iii) ii) are located in several areas that may be far apart in the borrowing DMC; and (iv) iv) will be executed at different times.

• the threshold for NCB for this Project is between $50,001 to $1.500,000 for works

contracts, or between $50,001 and $1.0 million for supply of goods. B. Shopping 2. Shopping is a simplified procedure, used for procuring low-value, readily available off-the-shelf goods, or simple civil works of low value. The threshold for Shopping is set between $10,001 and $50,000 for both works or supply of goods. C. Direct Contracting 3. For the procurement of items below $10,000, the EA may purchase the items directly from the supplier. In such cases, ADB should be satisfied that the price paid is reasonable.

1. Evaluating Procedures 4. Evaluation of bids and contract awards must be fair, and evaluation criteria must be made known to all bidders. Factors to be considered when evaluating NCB procedures of an EA are briefly described below:

2. Treatment of Foreign Bidders 5. Suppliers and contractors from all member countries are entitled to participate in local procurement and may not be denied participation due to nationality. Contractors and suppliers may apply for prequalification (where used) and to bid for contracts under NCB bidding procedures. ADB requires the borrowing DMC to permit such participation, but foreign bidders must adhere to local procedures acceptable to ADB, including using the local language and paying in local currency, if required by the bidding documents. Under local procurement procedures, the delivered cost of materials including import duties and other taxes may be used when comparing bids. ADB's domestic preference policy shall not be applied Appendix 7 97

Appendix 5 49

3. International Advertising 6. Procurement of NCB contracts is advertised in adb.org via posting of the Procurement Plan.

4. Using Standard Bidding Documents for NCB 7. Borrowers are to be encouraged to use ADB-approved standard bidding documents for NCB, ideally based on the standard bidding documents for ICB. This will help ensure high quality and consistency in the documents and will hasten ADB's review. The documents should reflect local procurement requirements but must not contravene the basic principles underlying the Procurement Guidelines. Standard bidding documents are available at http://www.adb.org/Procurement/prequalification-bid-documents.asp.

5. ADB Review of Procurement Documents 8. For each project, the first draft English language version of the procurement documents should be submitted for ADB review and approval regardless of the estimated contract amount. ADB-approved procurement documents should be used as a model for all procurement financed by ADB for the project, and need not be subjected to further review unless specified in the procurement plan, or required under special arrangements. The first two contracts for works in each province will be subject to ADB approval. Subsequently, the PCUs and PIUs will maintain specified documents for review by ADB.

6. Approval of Contract Award 9. For NCB, ADB will review the bid evaluation report (BER) and award of contract on a post-review basis. The review arrangements are specified in the procurement plan. Similarly, for Shopping, ADB will normally review the award of contract on a post-review basis. 10. The EA must submit copies of the BER and signed contract in English to the concerned sector division or resident mission for post review as soon as possible following contract award (unless prior review is specified in the procurement plan). The EA should be advised that ADB reserves the right to refuse financing for the contract if it is found during post review that the procurement has not been conducted in accordance with the Procurement Guidelines, or other provisions specified in the financing agreement.

Appendix 5 50

Appendix 5 51

Evaluating NCB Procedures in the Developing Member Countries

11. While NCB procedures do not need to be identical with the ADB's ICB procedures, the basic objectives of the latter such as economy, efficiency, transparency, and equal and fair opportunity for all eligible bidders must be met. The following checklist helps evaluate the procedures.

A. Eligibility 12. All qualified local bidders are eligible. For foreign bidders see above main text.

B. Advertising 13. NCB contracts estimated to cost $500,000 or more for goods and related services and $1,000,000 or more for civil works will be advertised in the Business Opportunities section of adb.org concurrently with the general procurement notice. Advertising in the local language in local web site or newspapers is acceptable.

C. Bidding Period 14. This could be shorter than for ICB; 4 weeks is acceptable.

D. Prequalification 15. Prequalification is discouraged for contracts bid following NCB. Where used, an individual prequalification exercise is acceptable for each contract as is the use of a registration system (or approved standing list) of contractors based on criteria such as experience, financial as experience, financial capacity, and technical capacity. However, foreign bidders from eligible member countries must be allowed to obtain such registration and to bid without unreasonable cost or additional requirements.

E. Bidding 16. Bids can be made in the local language, restricted to local banks for bid and performance security (where used), and limited to local currency for bidding and payment. Specifications are to be unambiguous; international standards are not required. A copy of the bidding documents must be made available in English to ADB for review. 17. The use of standard bidding documents is encouraged. Once ADB accepts the documents they must be used for all subsequent ADB-funded NCB procurement for the applicable project. 18. Public bid opening and recording of bids is mandatory. 19. Two-stage bidding procedures are acceptable for eliminating nonresponsive bidders before opening price proposals. 20. Bracketing and lottery systems are not acceptable to ADB. 21. The use of multiple-delivery places for bids and bid opening is unacceptable.

Appendix 5 52

22. Bids should not be invited on the basis of a percentage premium or discount over the estimated cost. 23. Bids should not be rejected only on the basis of a comparison with the EA’s estimate. 24. Extension of bid validity may be sought only under exceptional circumstances. 25. Factors, evaluation methodology, and evaluation criteria must be explicitly stated in bidding documents and applied consistently; and the contract award must be to the bidder who submitted the lowest evaluated substantially responsive bid. 26. Price negotiations with bidders before signing contracts is not acceptable, except when all bids received are substantially higher than the estimate and ADB gives prior approval to negotiate with the bidder who submitted the lowest evaluated substantially responsive bid for a price reduction, before resorting to rebidding. F. Domestic Preference 27. ADB's domestic preference policy or any other domestic preference policies are not applicable under NCB. When foreign bidders participate, comparison will be on the delivered price including import duties and taxes. G. Restrictions 28. Restrictions on the sources of transportation and insurance are acceptable. H. Contract 29. Price adjustments for inflation, and settlement of disputes by local courts or local arbitration, are acceptable. I. General 30. Staff should consult COSO on any unusual features and OGC on any specific legal issues.

Appendix 6 53

DISBURSEMENT MODALITIES

A. Four Major Types 1. Procedures for withdrawal of loan proceeds are standardized to facilitate disbursements under most loans. Disbursement procedures consist of four major types, described briefly as the

• • direct payment procedure where ADB, at the borrower’s request, pays a • designated beneficiary directly (see chapter 7 for details); • • commitment procedure where ADB, at the borrower’s request, provides • an irrevocable undertaking to reimburse a commercial bank for payments • made or to be made to a supplier against an LC financed from the loan • account (see chapter 8 for details); • • reimbursement procedure where ADB pays from the loan account to the • borrower’s account or, in some cases, to the project account for eligible • expenditures which have been incurred and paid for by the project out of • its budget allocation or its own resources (see chapter 9 for details); and • • imprest fund procedure where ADB makes an advance disbursement • from the loan account for deposit to an imprest account to be used • exclusively for ADB’s share of eligible expenditures (see chapter 10 for • details).

B. Simplified Documentation under the Reimbursement Procedure 2. While normally ADB requires submission of full supporting documentation, there are special cases where it accepts simplified documentation when

• • the statement of expenditures (SOE) procedure involves the • borrower submitting an SOE to support an application (see paragraphs 9.8 to

9.22 for details); • • the force account works procedure involves the borrower submitting periodic

certification of the progress or completion of civil works in support of its application for reimbursement (see paragraphs 9.23 to 9.26 for details); and

• • the simultaneous application for subloan approval and withdrawal (SAW) procedure involves qualified DFIs submitting simplified supporting documents when they request reimbursement of expenditures and ADB’s confirmation of subloans below the set “free limit” (see paragraphs 9.27 to 9.30 for details).

C. Suggested Disbursement Procedures 3. The four procedures are normally used for the following kinds of payment:

Appendix 6 54

Nature of Payment/s Precondition for Payment Suggested Disbursement Procedure

Mainly large civil works, progress payments, consultants' fees, procurement of goods

Payments are due Direct payment

Importation costs The borrower has opened an LC with a provision that the negotiating bank will be reimbursed by ADB for payments made to the supplier.

Commitment

Local currency costs, petty purchases, and small civil works

Expenditures have been incurred and paid for by the borrower from its own funds

Reimbursement

Contractors' bills and suppliers' invoices, numerous items of operating expenses, other eligible expenditures

The borrower experiences cash flow difficulty

Imprest fund

Appendix 6 55

Appendix 6 56

57 Appendix 6

58 Appendix 6

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60 Appendix 6

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62 Appendix 6

Appendix 6 63

64 Appendix 7

Appendix 7 65

ASIAN DEVELOPMENT BANK

Regional Department Sector Division / Regional or Resident Mission

[Date]1 [The Borrower] Dear Sir or Madam: Subject: [Grant No. and Project Title]

FINANCIAL REPORTING AND AUDITING REQUIREMENTS This letter is to ensure your timely compliance with the grant covenants and the quality of financial information as required by ADB. ADB's Handbook for Borrowers on the Financial Governance and Management of Investment Projects Financed by the ADB (the Booklet) is enclosed to guide you. ADB, by its Charter, is required to ensure that the proceeds of any grant made, guaranteed, or participated in by ADB are used for the purposes for which the grant was approved. ADB requires accurate and timely financial information from its borrowers to be assured that expenditure was for the purposes stated in the grant agreement. For this particular grant, the requirements are stipulated in sections _____2 and _____3 of the Grant Agreement of ______________ between ADB and [the Borrower] and sections ______4 and _____5 of the Project Agreement6 of _____________ between ADB and [name of the EA]7. Copies of the Grant/Project Agreements are enclosed for onward transmission by your office to your EA and the auditor(s), together with a copy of this letter. The following are the main requirements:

• ADB requires the EA to maintain separate project accounts and records exclusively for the Project to ensure that the grant funds were used only for the objectives set out in the Grant or Project Agreements. The project accounts comprise the following: Listed are standard accounts required from nonrevenue-earning entities.

The first set of project accounts to be submitted to ADB covers the fiscal year ending ________________. As stipulated in the Grant or Project Agreements, they are to be submitted up to _________________ months after the end of the fiscal year. For this grant, the deadline is by _________________. A sample report format with explanatory notes, is attached as Annex A.

• The accounts and records for the project are to be consistently maintained by using sound accounting principles. Please stipulate that your external auditor is to express an opinion on whether the financial report has been prepared using international or local generally accepted accounting standards and whether they have been applied consistently.

66 Appendix 7

ADB prefers project accounts to use international accounting standards prescribed by the International Accounting Standards Committee. Please advise your external auditor to comment on the impact of any deviations, by [name of the Executing Agency] from international accounting standards.

• Please ensure that your external auditor specifies in the Auditor's Report the appropriate auditing standards they used, and direct them to expand the scope of the paragraph in the Auditor's Report by disclosing the key audit procedures followed. Your external auditor is also to state whether the same audit procedures were followed for all supplementary financial statements submitted.

ADB wishes that auditors conform to the international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, request that your external auditor to indicate in the Auditor's Report the extent of any differences and their impact on the audit.

• The external auditor's opinion is also required on whether

the proceeds of the ADB's grant have been utilized only for the project as stated in the Grant Agreement;

the financial information contains data specifically agreed upon between [name of the Borrower or EA] and ADB to be included in the financial statements;

the financial information complies with relevant regulations and statutory requirements;

compliance has been met with all the financial covenants contained in the Grant or Project Agreements; and

documents and controls on the use of the Statement of Expenditures (SOE) procedure are adequate.

• The Auditor's Report is to clearly state the reasons for any opinions that are qualified, adverse, or disclaimers.

• Actions on deficiencies disclosed by the external auditor in its report are to be resolved by [name of Borrower or Executing Agency] within a reasonable time. The external auditor is to comment in the subsequent Auditor’s Report on the adequacy of the corrective measures taken by [name of Borrower or EA].

Compliance with these ADB requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor. Yours sincerely, Director/Country Director (Sector Division/Regional or Resident Mission) cc: (EA)

(External auditor of the Borrower or EA)

1. The audit letter, with the loan and project agreements, is sent to the borrower when the auditor has been appointed or when the agreements are sent by the program department to the Ministry of Finance or other authority of the borrower. 2. Specify section no. in the loan agreement on maintaining project accounts and records. 3. Specify section no. in the loan agreement on the audit requirements. 4. Specify section no. in the project agreement on maintaining project accounts and records. 5. Specify section no. in the project agreement on the audit requirements. 6. If there is a project agreement. 7. When more than one project agreement, provide similar information.

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68 Appendix 8

REPORTING REQUIREMENTS

SAMPLE PROGRESS REPORT Pro Forma of the Executing Agency’s Project Progress Report

A. Introduction and Basic Data Provide the following:

ADB loan number, project title, borrower, executing agency(ies), implementing agency(ies);

total estimated project cost and financing plan; status of project financing including availability of counterpart funds and

cofinancing; dates of approval, signing, and effectiveness of ADB loan; original and revised (if applicable) ADB loan closing date and elapsed loan period

based on original and revised (if applicable) loan closing dates; and date of last ADB review mission.

B. Utilization of Funds (ADB Loan, Cofinancing, and Counterpart Funds) Provide the following:

cumulative contract awards financed by the ADB loan, cofinancing, and counterpart funds (commitment of funds to date), and comparison with time-bound projections (targets);

cumulative disbursements from the ADB loan, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets); and

reestimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely.

C. Project Purpose Provide the following:

status of project scope/implementation arrangements compared with those in the report and recommendation of the President (RRP), and whether major changes have occurred or will need to be made;

an assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements;

an assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and

other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives.

D. Implementation Progress Provide the following:

assessment of project implementation arrangements such as establishment, staffing, and funding of the PMO or PIU;

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information relating to other aspects of the EA’s internal operations that may impact on the implementation arrangements or project progress;

progress or achievements in implementation since the last progress report assessment of the progress of each project component, such as,

recruitment of consultants and their performance; procurement of goods and works (from preparation of detailed designs

and bidding documents to contract awards); and the performance of suppliers, manufacturers, and contractors for goods

and works contracts; assessment of progress in implementing the overall project to date in comparison

with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets, the reference framework or guidelines in calculating the project progress including examples are shown in Appendix 2); and

an assessment of the validity of key assumptions and risks in achieving the quantifiable implementation targets.

E. Compliance with Covenants Provide the following:

the borrower's compliance with policy loan covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance;

the borrower’s and EA’s compliance with financial loan covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and

the borrower’s and EA’s compliance with project-specific loan covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems

Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

70 Appendix 8

Framework and Guidelines in Calculating Project Progress A. Introduction 1. To ensure that all implementation activities are reflected in measuring implementation progress against the project implementation schedule, the term "physical completion” in the PPR has been changed to "project progress.” 2. Physical and precommencement activities are considered in calculating project implementation progress. These activities, which may include recruitment of consultants, capacity building, detailed design, preparation of bid and prequalification documents, etc., could constitute a significant proportion of overall implementation and therefore should be counted. 3. Each activity in the implementation schedule will be weighted according to its overall contribution (using time as a reference) to progress of project implementation. These weights will then be used to calculate the percentage of project progress along the entire time span of the project. This is to provide a holistic view of the pace of implementation. B. Framework for Compiling Activity List and Assigning Weights 4. As implementation activities and their corresponding weights will vary according to the type of project, sector, and country, sector divisions or RMs will be responsible for determining and including them in the project administration memorandum. The actual project implementation progress of these activities should be reported regularly through the EA’s quarterly project progress report. To ensure ADB-wide consistency, the following framework has been established; its application will be monitored through the PPR.

1. Compilation of Activity List 5. Sector divisions or RMs concerned should identify major implementation activities and include them in the implementation schedule, which is attached as an appendix in the report and recommendation of the President (RRP). The implementation schedule should follow the critical path of the project’s major activities in project implementation taking account of various country, sector, and project constraints.

2. Assignment of Weights 6. Corresponding weights for each activity should be assigned to ensure that “project progress" measures the percentage of achievement (nonfinancial except when the project has credit components) for all events during the entire duration of the implementation schedule. To avoid disproportionate assignment of weights, to the extent possible these should be evenly distributed along the implementation schedule. When activities are concurrent, avoid “double counting.” 3. Computation of Project Progress 7. Once all activities are identified and corresponding weights assigned, project progress should be calculated using the following steps:

(i) Determine the actual percentage progress (nonfinancial) of each activity. (ii) Multiply these percentages by the assigned weight of each activity to

arrive at the weighted progress.

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(iii) Add up the resulting weighted progress of all activities to determine the project progress.

Below is an illustration of this calculation using a generic sample implementation schedule and this Appendix, page 4 a specific example in the education sector.

Implementation Schedule with Activities and Weights

72 Appendix 8

Sample Implementation Schedule

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Appendix 9 75

76 Appendix 9

Appendix 9 77

78 Appendix 9

Appendix 9 79

80 Appendix 9

Appendix 9 81

82 Appendix 9

Appendix 9 83

84 Appendix 10

GENDER AND ETHNIC GROUPS ANALYSES AND ACTION PLAN 1. The Strengthening Higher Education Project (the Project) incorporates actions to address key development issues affecting higher education. These include achieving equity, reducing gender and sociocultural disparities, overcoming barriers and obstacles for women and ethnic groups, and ensuring equal access to high-quality and relevant higher education training. The gender and ethnic groups action plan (GEGAP) is based on a gender analysis; an analysis of relevant ethnic group composition in the south of the Lao People's Democratic Republic (Lao PDR); a survey of female participation at Champasak University (CU), including student ethnic and student enrollment and graduation data; and gender composition of administrative and academic staff at CU. It builds upon ongoing initiatives carried out in previous Asian Development Bank (ADB)-supported projects, following the basic principles of prioritizing resource allocation to geographically targeted remote ethnic group areas, especially where gender disparities tend to be larger; promoting participation of ethnic groups and females in project activities; promoting gender- and ethnic-sensitive curriculum, materials, and policy and strategy development; and strengthening capacity of CU to address ethnic and gender concerns and equality in provision of higher education. The GEGAP follows regulations of the Lao PDR, and ADB’s Policy on Gender and Development (2003) and Policy on Indigenous Peoples (1998). 2. Overview of Gender and Ethnic Groups. Key gender issues for the Project include (i) an imbalance in educational attainment at upper secondary and tertiary, where fewer girls than boys are enrolled; and (ii) an imbalance in tertiary teaching staff as male teachers significantly outnumber female teachers. The region surrounding CU contains a diverse range of ethnic groups particularly in the upland regions more distant from Pakse. Sekong’s population is made up of more than 90% non-Lao ethnic groups. For the southern region, the predominant non-Lao ethnic groups belong to the Austro-Asiatic linguistic groups, formerly classified as “Lao Teung”’ (Table A10.1).

Table A10.1: Percentage of Ethnic Groups by Province in Champasak University Catchment Area

Province Tai- Kadai (Lao) Austroasiatic Hmong-Yao Sino-Tibetan Others Champasak 86.1 12.4 0 0 1.5 Saravane 61.7 37.8 0 0 0.5 Sekong 8.9 90.8 0 0 0.3 Savannakhet 76.4 22.6 0 0 1.0 Attapeu 37.2 62.3 0 0 0.5 Sources: National Statistic Center Population Census 1995, and Lao Front for National Construction, Department of Ethnic Affairs, 1999.

3. Table A10.2 shows the number of students graduating from upper secondary education in Champasak Province, disaggregated by income, gender, and ethnic group. Table A10.3 provides data on enrollment at CU, disaggregated by income, gender, and ethnicity. 4. The data shows that the gender disparity is greater for ethnic students than for nonethnic students. Students from the poorest category are severely underrepresented in both upper secondary school education and at CU.

Appendix 10 85

Table A10.2: Student Enrollment in Upper Secondary Education (Grade 11) in Champasak Province, Academic Year 2008/09

Grade 11 Student Enrollment Ethnic Groups

Student Profile

Total

Girls

Boys Total Girls Boys

Students from poor families 2,138 900 1,238 277 116 161 Students from middle-income families 1,224 600 624 184 72 112 Students from families with satisfactory income 712 300 412 92 38 54 Total 4,074 1,800 2,274 553 226 327 Source: Provincial statistics 2008.

Table A10.3: Enrollment in Champasak University, Academic Year 2008/09

Ethnic

Student Profile

Total

Girls

Boys Total Girls Boys Students from poor families 206 34 172 65 13 52 Students from middle-income families 3,526 1,664 1,862 167 62 105 Students from families with satisfactory income 1,018 220 798 42 20 22 Total 4,750 1,918 2,832 274 95 179

Source: Provincial statistics 2008. 5. Poverty and Educational and Economic Opportunities. The national incidence of poverty based on the poverty line is estimated at 46%; about 53% in rural areas. Regionally, the incidence of poverty is 53% in the rural north, 47% in the center, and 66% in the south. Extreme poverty is especially prevalent in the south.5 The poverty gap index confirms the general trends in the head-count ratio and illustrates that the south is the poorest region, with greater poverty in the rural areas. Table A9.4 shows the distribution of poverty by geographic region, disaggregated into urban and rural sectors. Further, poverty is highest in areas that also have a large proportion of people from small ethnic groups. The development of CU civil works and campus facilities, combined with the targeting of ethnic, female, and poverty-affected students, should have a significant impact on poverty reduction for the southern region of the Lao PDR. 6. Legal Framework and Regulations. The Constitution of the Lao PDR, ratified in 1991, uses the term “citizens of all ethnicity” throughout the document. It specifically recognizes the need to incorporate the concerns of ethnic groups in developing policy in all sectors, and has reaffirmed its commitment to strengthen the rights of all ethnic groups in various congresses, conferences, decrees, and laws since the 1980s (Articles 8 and 22). Promoting gender equality is an important national goal as reflected in the National Strategy for the Development of Women (1998–2005), the 1991 Constitution (articles 22 and 24), and a number of international commitments. The National Commission for the Advancement of Women in Lao PDR was established in 1991 to help ensure women’s equal access to basic services and productive resources for achieving equity, efficiency, and effectiveness of policies and projects. The commission develops the national strategy for the development of women and reports directly to the Government. The Lao Women’s Union helps implement the strategy. 7. The Government’s National Growth and Poverty Eradication Strategy (2004), the Government’s Sixth Socio-Economic Development Plan (2006–2010), Education Strategic Vision 2000–2020, Education Sector Development Plan (2006–2010), and National Plan of Action for Education for All (EFA Plan) (2003–2015) provide guidelines for ensuring equity and gender 5 Two poverty lines are defined: (i) the basic poverty line measures the household’s ability to purchase a variety of

goods beyond food and dwelling needs; and (ii) the extreme poverty line measures the household’s ability to purchase only the most absolute necessities: food, shelter, and clothing.

86 Appendix 10

equality including access to education and skills development, especially for ethnic girls in poor and disadvantaged areas. The EFA Plan and the Education Sector Development Plan both stress critical targets regarding gender mainstreaming: (i) gender equality in education up to secondary schools, and (ii) curriculum and teacher training oriented to eliminating biases against girls.

Table A10.4: Incidence and Depth of Poverty, by Region and Sector, Lao PDR, 2002/03

Poverty Head-Count Ratioa Poverty Gap Indexb

Region Rural Urban Total Rural Urban Total North 0.527 0.160 0.464 0.129 0.025 0.111Center 0.469 0.257 0.404 0.118 0.060 0.100 South 0.662 0.288 0.598 0.224 0.017 0.188 All 0.530 0.239 0.461 0.144 0.045 0.121 Extreme Poverty Head-Count Ratio Poverty Gap Index Rural Urban Total Rural Urban Total North 0.246 0.021 0.207 0.045 0.003 0.038 Center 0.216 0.112 0.184 0.042 0.015 0.034 South 0.373 0.006 0.310 0.098 0.001 0.081 All 0.260 0.076 0.216 0.055 0.010 0.044 a Head-count ratio shows the percentage of the population falling into the categories of poverty and extreme poverty. b Poverty gap index measures the average transfer of resources that the poor need to escape poverty. It measures

the depth of poverty but does not put any special weight on the poorest of the poor. Note: Although the precise definition of poverty differs from society to society, poverty reflects the lack of access to critical goods and services such as food, shelter, and health care. Poverty is, in many ways, a reflection of lack of access to education and health care services; the poor suffer from lack of access, and lack of access contributes to their poverty. Source: World Bank. 2005. Lao PDR Social Development Assessment and Strategy. Vientiane. 8. Gender and Ethnic Groups Action Plan. Specific actions will be implemented under the Project to actively promote the inclusion of ethnic, female, and poor students in study programs in higher education. These actions will contribute to the overall project outcome aimed to increase the number of students to 60,000 by 2015, of which 50% (or 30,000) will be female. Table A11.5 highlights specific actions by project output. 9. Implementation Arrangements. A vice minister, Ministry of Education (MOE), and director general, Department of Higher Education, will oversee GEGAP implementation. The Center for Integrated Education (formerly the Gender and Ethnic Groups Education Unit) has an important role in overseeing gender mainstreaming efforts in education. Representatives from the Lao Women’s Union and Lao Front for National Construction will facilitate participation by girls, women, and ethnic groups in local project activities. International and national consulting services will help integrate ethnic and gender concerns into project activities, including a national gender and social development specialist for 6 person-months. They will work with the Center for Integrated Education to establish sex- and ethnic-disaggregated indicators for project performance monitoring and evaluation. Quarterly project progress reports will provide updates on GEGAP implementation and its impact on the Project. The GEGAP will be reviewed during the ADB review missions and the Project's midterm review mission.

Appendix 10 87

Table A10.5: Gender and Ethnic Groups Action Plan

Project Output Actions Proposed Output 1: Strengthened management, financing, and governance of higher education system

• Ensure that DHE undertakes policies and plans to maximize opportunities for females and ethnic origin university applicants and students.

• Disaggregate data in the education management information system by gender and ethnicity. • Utilize review questionnaires and other data collection instruments to ensure gender- and

ethnic-specific information is collected. • Include women and ethnic participants in all project workshops, seminars, and other forums. • Ensure that male and female staff of different ethnic backgrounds are invited to workshops on

implementing improved budgeting and funding mechanisms, financial management procedures, and data collection instruments.

• Utilize new quota student targets to maximize inclusion of poor female and ethnic students. • Ensure that university councils and other management committees have maximum

representation of ethnic and female members (at least 40% female). • Ensure at least 30% of staff and facility members from MOE, NUOL, CU, and SU are trained in

institutional leadership, strategic management, and planning, are female. Output 2: Enhanced relevance and capacity for quality improvement

• Ensure new curriculum frameworks and planning documents are fully sensitive to gender and ethnic group issues.

• Ensure at least 30% of staff and facility members trained in curriculum development and assessment are female.

• At least 40% female staff and facility members, including new academic staff, are trained in instructional skills and teaching methods.

• Ensure at least 50% of participants in curriculum development workshops are female. • Develop curriculum materials that are sensitive to gender and ethnic group issues. • Ensure maximum possible female and ethnic participation in the Quality Assurance

Center strengthened at MOE as well as all other quality assurance strengthening strategies.

• Ensure PDUs at NUOL, CU, and SU have optimal participation by ethnic and female members.

• Ensure at least 50% of recipients of postgraduate degree program are female.. • Include pro-poor female and ethnic group policies in selection criteria for scholarships. • Provide support for female awardees to study abroad, including child support

provisions. • Ensure research projects include topics to address ethnic and female disadvantage. • Ensure ICT network development maximizes opportunities for women and ethnic

students to study independently, and off campus. • Provide new buildings and campus facilities at CU to reverse the reported high dropout

rates for disadvantaged groups. • Construct facilities conducive to increasing female enrollment, such as female

dormitories and toilets and washroom facilities for women. • Ensure at least 50% of participants in international exchange programs under the

Project are female, with preference given to qualified ethnic students. Output 3: Increased equity and access in higher education

• Reduce quota students from 50% (2009) to 20% (2015), comprising mostly poor, female, and ethnic students.

• Ensure 50% of students enrolled at CU by 2015 are female (approximately 4,000 students). • Ensure ethnic and female students benefit from increased material, academic support, and

living allowances provided for disadvantaged students at HEIs. • Expand dormitory facilities at CU to enhance opportunities for ethnic students to undertake

tertiary study (one male dormitory and one female dormitory). • Provide six separate male and female toilet and washing facility blocks at CU.

Output 4: Effective project management and implementation

• The Center for Integrated Education oversees the Project's gender mainstreaming efforts. • Representatives from the Lao Women’s Union and Lao Front for National Construction help to

facilitate girls, women, and ethnic group national and subnational participation. • Incorporate gender expertise in the terms of reference of key consulting team members. • Recruit a national gender and social development specialist (6 person-months) to help the PCU

and other consultants mainstream and monitor gender activities in project implementation. • Include a section on the implementation progress of the gender and ethnic groups action plan in

the quarterly progress reports. CU = Champasak University, DHE = Department of Higher Education, ESDF = Education Sector Development Framework, HEI = higher education institution, ICT = Information and communication technology, MOE = Ministry of Education, NUOL = National University of Laos, PDU = professional development unit, SU = Souphanouvong University.

88 Appendix 11

GRANT COVENANTS

Reference in the Grant Agreement Major Covenants Deadline for

Compliance (GA, Schedule 4, para. 13)

Counterpart Funding. The Recipient shall ensure that the counterpart funds for the Project implementation are provided on time. The Recipient shall further ensure that submission of annual budgetary appropriation requests for the higher education subsector is made on time to ensure prompt disbursement of appropriate funds for the Project throughout the implementation period.

GA, Schedule 4, para. 5 Professional Development Unit. One (i) PDU shall be established under DHE, which will be located at NUOL, and linked with the PDUs established at CU and SU and D-PIU. The PDU at NUOL, with the assistance from PDUs at Cu and SU, shall be responsible for (i) developing and implementing an induction program for all new academic staff; (ii) finalizing selection criteria for the matching scholarship scheme; (iii) assisting NUOL, SU, and CU in identifying international partner universities for staff and/or faculty of NUOL, CU, and SU to undertake foreign degree or training programs financed by the Project including the 50:50 matching scholarship grant scheme; and (iv) developing result-based monitoring and evaluation program based on post-activity assessment system to evaluate the effectiveness of the degree and training programs. The PDUs at SU and CU shall coordinate with the respective PIUs at SU and CU.

GA, Schedule 4, para. 6 Project Operation and Maintenance. MOE shall ensure that university councils at CU and SU are established by 2010. MOE shall further ensure that representatives from local government, private sector, cultural and related social sector shall comprise at least 30% membership of University Councils of NUOL, CU, and SU by 2013.

GA, Schedule 4, para. 7 MOE shall ensure that a tuition fee for regular non-quota courses is introduced amounting to (i) 50% of the average tuition fee charged for the special courses starting from 2011; (ii) 75% of the average tuition fee charged for the special courses by 2013; and (iii) 100% of the average tuition fee charged for the special courses by 2015.

GA, Schedule 4, para. 8 MOE shall ensure that the share of quota students is reduced from (i) 50% to 30% by 2013; and (ii) 30% to 20% by 2015 for increased enrollment of females, ethnic groups and poor students.

GA, Schedule 4, para. 9 MOE shall ensure that a ministerial decision is promulgated and implemented in 2011 introducing the revised increased dormitory fee for the regular non-quota students. MOE shall further ensure that university regulations, for NUOL, SU, and CU, are promulgated to implement and introduce in 2011 the improved benefit structure for their respective staff members.

GA, Schedule 4, para. 10

MOE shall ensure that the Research Coordination Committee at NUOL is upgraded into NRC within 6 months from the Effective Date. MOE shall further ensure that the NRC assists the faculty members at NUOL, SU

Appendix 11 89


Compliance and CU in formulating proposals for research grants.


MOE shall ensure that agreements are executed with all selected candidates for receiving scholarships or grants for undertaking foreign degree or local masters degree program ensuring that the scholarship recipients shall continue working with the same ministry or institution from which they were originally selected for at least 5 years after completing a foreign degree or local masters degree program.


MOE shall ensure that the construction of project facilities is only carried out on the land that is owned by the Recipient, with valid legal title free from all encumbrances and controversies.


MOE shall ensure that ICT resources, developed under the Project, are operated and maintained and periodically upgraded after the Project completion in accordance with the budgetary plan developed under the Project.


MOE shall ensure that PDUs develop a (i) merit-based and transparent selection criteria for staff and/or faculty of NUOL, CU, and SU to undertake foreign degree or training programs financed by the Project including the 50:50 matching scholarship grant scheme; and (ii) result-based monitoring and evaluation program based on post-activity assessment system to evaluate the effectiveness of the degree and training programs.


MOE shall ensure that by 2013, (i) the policy and regulatory system, developed under the Project, is implemented for effective regulation of both public and private HEIs; (ii) the accreditation criteria, developed under the Project, is made applicable to private and public HEIs; and (iii) the quality assurance system is implemented in accordance with the standards, and quality auditing manual, developed under the Project.


Social and Environmental Safeguards. MOE shall ensure that (i) the GEGAP prepared for the Project is fully implemented and monitored in a timely manner in accordance with its terms, related regulations of the Recipient, ADB's Policy on Gender and Development (1998) and Policy on Indigenous Peoples (1998) and adequate resources are allocated for this purpose; (ii) the student quota system is revised to increase the ration of female quota students from ethnic groups; (iii) the living allowances for disadvantaged quota students are increased; and (iv) special preference is given to women from ethnic groups while recruiting faculty members and staff for NUOL, CU, and SU, including 40% women members in the University Councils, and 50% female teaching staff for postgraduate degrees.


MOE shall ensure that the site selection, design, construction, replacement work, and operation of project facilities are implemented in accordance with the relevant environmental regulations and standards of the Recipient as well as ADB's Environment Policy (2002).

90 Appendix 11


Compliance GA, Schedule 4, para. 19

Governance and Anticorruption Measures. MOE shall ensure that (i) periodic inspections of the Project contractor's activities related to fund withdrawals and settlements are carried out; (ii) relevant provisions of ADB's Anticorruption Policy (1998), as amended to date, are included in all bidding documents for the Project; (iii) contracts, financed under the Project, include provisions specifying the right of ADB to audit and examine the records and accounts of MOE, contractors, suppliers, consultants, and other service providers as they relate to the Project; (iv) information regarding procurement, including a list of participating bidders, name of the winning bidder, and procedures adopted in awarding contracts, is posted on the MOE website; and (v) a grievance redress task force is established at the MOE, NUOL, CU and SU to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities. The task force shall (a) review and address grievances of stakeholders of the Project in relation to either the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (b) proactively and constructively respond to them.


Without limitation to the overall application of the preceding paragraph, MOE shall ensure that (i) separate records and accounts are maintained for the Project to identify goods and services financed under the Project; (ii) project accounts, including financial statements, are audited annually as part of the regular audit by the National Audit Authority of the Recipient, using international accounting and auditing standards; (iii) the auditor's repot and copies of the certified accounts and related financial statements, including auditor's opinion on the use of Grant proceeds, and compliance with covenants of the Grant Agreement is submitted to ADB no later than 6 months after the close of each fiscal year of the Recipient in English language; and (iv) a separate audit opinion is issued on the use of the imprest account and statement of expenditure procedures.


MOE shall ensure that (i) DHE prepares quarterly reports on project implementation and submit them to ADB within 30 days of each quarter; (ii) the reports are submitted in a format acceptable to ADB and include progress made against established targets, problems encountered during the previous quarter, steps taken to resolve disputes and problems, compliance with grant covenants, and proposed Project activities for the succeeding quarter; and (iii) a project completion report is submitted to ADB, within 3 months after physical completion of the Project, providing details of the project implementation and accomplishments.


MOE shall ensure that (i) project achievements are monitored toe valuate implementation and development impacts at various stages of project cycle; (ii) a higher education sector development monitoring framework, using the result-based monitoring indicators, is developed under

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Compliance the Higher Education Sector Master Plan 2010–2020; and (iii) the Project performance monitoring and evaluation system is based on the monitoring indicators developed under the Higher Education Sector Master Plan 2010–2020, the gender targets specified in the GEGAP, as well as other sex-disaggregated data and analysis.


The Recipient and ADB shall conduct semiannual review of the Project. The reviews shall assess progress in each output areas, identify difficulties or constraints and help determine ways to overcome them. The Recipient and ADB shall jointly undertake a midterm review of the Project in the last quarter of year 3 of the Project implementation. The midterm review shall (i) assess the Project performance against targets and benchmarks; (ii) identify and recommend necessary changes in the Project design and implementation arrangements; (iii) review compliance with grant covenants; and (iv) indicate planning for the second half of the Project. The findings of the midterm review shall be discussed at the midterm seminar to be attended by MOE leadership and senior staff, representatives of Recipient's concerned ministries and agencies, the consultants, and ADB.

92 Appendix 12

LIST OF ADB REFERENCE MATERIALS ISSUED TO PMU A. Project Related 1. Report and Recommendation of the President to the Board of Directors 2. Loan Agreement B. Consultants. May be downloaded from the following website: http://www.adb.org/Opportunities/Consulting/Documents.asp 3. Guidelines on the Use of Consultants by ADB and Its Borrowers 4. Handbook for Users of Consulting Services C. Procurement. May be downloaded from the following website: http://www.adb.org/Opportunities/Procurement/prequalification-bid-documents.asp 5. Guidelines on Procurement under ADB Loans 6. Guide on Bid Evaluation 7. Handbook on Policies, Practices and Procedures Relating to Procurement Under ADB Loans 8. Handbook on Problems in Procurement for Projects Financed by ADB 9. Standard Bidding Documents: Procurement of Goods (including related services)

Single-stage: One-Envelope Single-stage: Two-Envelope Two-stage: Two-Envelope Two-stage User’s Guide

10. Guide on Prequalification of Civil Works Contractors 11. Sample Bidding Documents – Procurement of Civil Works 12. Sample Bidding Documents – Procurement of Civil Works (Small Contracts) 13. Guide on Community Participation in Procurement 14. Contract Awards and Disbursement Projections D. Disbursement 14. Disbursement Letter issued by Controller’s Department 15. Loan Disbursement Handbook E. General – may be downloaded from the following website: http://www.adb.org/Opportunities/Procurement/prequalification-bid-documents.asp 5. Guidelines on Procurement under ADB Loans 6. Guide on Bid Evaluation 7. Handbook on Policies, Practices and Procedures Relating to Procurement Under ADB Loans 8. Handbook on Problems in Procurement for Projects Financed by ADB 9. Standard Bidding Documents: Procurement of Goods (including related services)

Single-stage: One-Envelope Single-stage: Two-Envelope Two-stage: Two-Envelope Two-stage User’s Guide

10. Guide on Prequalification of Civil Works Contractors

Appendix 12 93

11. Sample Bidding Documents – Procurement of Civil Works 12. Sample Bidding Documents – Procurement of Civil Works (Small Contracts) 13. Guide on Community Participation in Procurement 14. Contract Awards and Disbursement Projections D. Disbursement 14. Disbursement Letter issued by Controller’s Department 15. Loan Disbursement Handbook E. General – may be downloaded from the following website: www.adb.org/integrity/default.asp 16. Anticorruption Policy 17. Anticorruption Policy: Description and Answers to Frequently Asked Questions 18. Guidelines for Economic Analysis of Projects 19. Ethnic Group Development Plan Framework 20. Environmental Assessment and Review Procedure 21. Handbook on Management of Project Implementation

94 Supplementary Appendix A

STAFF AND FACULTY DEVELOPMENT STRATEGIES AND PLAN A. Rationale 1. The capacity building needs of the higher education system in Lao People's Democratic Republic (Lao PDR) are significant and need to be urgently addressed to provide quality education for the professionals that the country needs to meet its development challenges. The national need for capacity building within the higher education sector is widely recognized, and in particular, the need for quality graduates is highlighted in the national strategies set out by the Government of Lao PDR in their current national education sector development plans. The key needs are for more staff and faculty members, with higher qualifications and with improved ability to teach and research. National coordination is required at this time in the upgrading of staff qualifications, but the long term goal should be for each university to work towards a self-sustaining in-house staff development program in each of the three universities. 2. Larger numbers of staff and faculty members need to undertake advanced degree studies in order to build the critical expertise needed to be able to offer higher degree studies in Lao and to support such study with good research skills. With a large number of faculty staff needing such upgrading, the major constraints identified during the project preparatory technical assistance (PPTA) are:

(i) Language skills: most such studies for higher degrees require study abroad, other than in Thailand, and require the staff to have an adequate level of a foreign language prior to departure;

(ii) The high cost of study abroad: fees, travel and living costs; (iii) The opportunity cost: by definition, the most likely (and best candidates for such

awards) are the better academics and management staff. These are the people who are most needed at his stage of development of their respective institutions; and

(iv) In the light of the critical shortage of academic staff, particularly Champasak University (CU) and Souphanovoung University (SU), the removal of even a small number of key staff leaves the universities with insufficient staff to continue the operation of some university study programs.

3. Data on the current status of staff qualifications at the three targeted universities are presented below:

Table SAA.1: Qualifications profile for staff at NUOL, SU, and CU (April 2009) STAFF QUALIFICATIONS NUOL SU CU Doctorate 55 (Female 12) 2 (Female 0) 4 (Female 0) Master’s degree 436 (Female 111) 21 (Female 4) 31 (Female 8) Bachelor’s degree 774 (Female 350) 145 (Female 43) 153 (Female 38) Higher Diploma 92 (Female 53) 4 (Female 0) 13 (Female 7) Others 163 (Female 88) 0 20 (Female 6)

Total 1520 (614) 192 (47) 221 (59) CU = Champasak University, NUOL = National University of Laos, SU = Souphanovoung University. Source: Asian Development Bank.

Supplementary Appendix A 95

B. Staff and Faculty Development Strategy 4. To address the issues outlined above, the Project will support the following strategic program: (i) International and Domestic Degree Programs, (ii) International Matching Scholarship Grant Scheme, (iii) Short-term Training, (iv) On-line Degree Programs, (v) Professional Development Programs, and (vi) Administrative Skills Upgrading. 5. International and Domestic Degree Programs. The Project will provide the opportunity for 147 staff and faculty members to undertake study for postgraduate degree qualifications in Lao PDR and abroad over years 1–3. This includes 44 Masters degrees in neighbouring countries (Approximately 20 for CU, 13 for SU, 7 for National University of Laos [NUOL] and 4 for the Ministry of Education [MOE]) Also included is 23 Ph.D. programs in neighbouring countries (10 for CU, 7 for SU, 3 for NUOL, and 3 for MOE). In addition, the Project will fund 80 academic staff to study at Masters degree level at NUOL in Vientiane. The bulk of the degree training will be undertaken over Years 1–3 of the Project, phased carefully to minimize the impact of the removal of key staff from faculties that are already under-staffed. This timeframe will also allow the project to ensure that recipients of scholarships return to their respective workplaces, and that returnees subsequently make full use of skills acquired from their training. 6. International Matching Scholarship Grant Scheme. A new scheme of matching scholarship grant (50:50 matching between the Project and partner foreign universities who provide scholarships to Lao PDR) will be implemented on a pilot basis. This is expected to significantly extend the number of scholarships that might be offered in the Project. Such arrangements will be actively sought during project implementation, and partnership agreements will be formalized with partner foreign universities. It should be noted that the Project would cover the tuition fess and travel costs, while partner foreign universities will be those in developed countries and cover the living costs and other expenses which would be higher than neighbouring countries. 7. Short-term Training. The Project will fund a program of international and domestic short term training programs for 140 senior management personnel (40 international training; 100 domestic training) from the Department of Higher Education (DHE) and the three universities. These will include courses on educational leadership and management, strategic planning and educational financial management. 8. On-line Degree Programs. The implementing agency will also investigate opportunities to study for recognized internet-based degree courses, studied wholly or partially on-line. A suitable supervisory mechanism would need to be set up by the professional development unit (PDU), and progress monitored closely by project management. Such training could provide a very cost effective alternative to high cost training abroad. 9. Professional Development Programs. The Strengthening of Higher Education Project (the Project) will provide a range of professional development programs for up to 900 academic staff to upgrade their technical skills. These include training in classroom instructional skills, assessment and testing, and using information and communications technology (ICT) in tertiary study. Places will be provided for up to 300 staff to participate in each of these programs. 10. Administrative Skills Upgrading. To upgrade the capacity of university administration and management, opportunities are provided for up to 200 staff to undertake targeted short-term training in the areas of Quality Assurance, Information Management, and Human Resources Management.


C. Professional Development Units and their Functions 11. A central PDU will be established at NUOL, with outreach PDUs at CU and SU. Initially the staff appointed to the PDUs will work under the guidance of International and National human resource development (HRD) specialists. The PDU will be mobilized to set the priorities and targets for staff development nationally. The central PDU will work closely with universities and DHE at MOE to formulate comprehensive 5-year professional HRD plans which take account of labor market demands and long term national development goals. A key activity for the PDU is to develop a transparent selection process for staff and faculty to undertake study awards abroad or in-country, or to participate in in-house professional development activities. The universities are expected to have the resources (skills/materials/facilities) to be able to maintain their functions after Year 4 of the Project. 12. Structure and Reporting Mechanisms. The central PDU will be located at NUOL, the most likely site being the existing professional development facility at NUOL, strengthened via project inputs. The Director of the PDU will report directly to the project coordination unit (PCU) via the Director General of DHE. Early in year 1, outreach PDU offices will be established at CU and SU.(PDUs will be linked electronically via the ICT/education management information system [EMIS] network provided under the Project). 13. The Central PDU will be headed by an appropriately qualified and experienced full-time Director, selected from among senior staff from MOE or University management personnel, and the appointment endorsed by the Minister of Education. The appointee will receive an honorarium when performing specific-project interventions such as leading scholarship selection panels, conducting HRD strategic planning meetings and workshops, leading missions to establish partner relationships with foreign universities, planning short-term professional development training programs, both abroad and in-country. The Director and agreed support staff will receive appropriate allowances for travel to CU and SU to co-ordinate establishment of outreach PDUs, and to periodically monitor their operation. Support staff for the PDU will be seconded from DHE and the universities during and beyond the period of the project. It is not planned that additional remuneration will be provided for these staff members, many of whom are expected to be sourced from existing human resource and professional development departments. D. Role and Functions of the PDU Network 14. The Central PDU together with its outreach offices will perform a range of important functions that are key to the achievement of Output 3 of the Project. It will also need to coordinate closely with the curriculum development and quality assurance enhancement activities undertaken by the Project, also prescribed under Output 3. The PDU network will carry out the following central functions:

(i) HRD Strategic Planning for Higher Education. The central PDU will coordinate with DHE and the universities to formulate comprehensive 5-year professional HRD plans which take account of labor market demands and long term national development goals. Initial training targets will need to take account of, and address current critical staff shortages in high demand programs. Study plans must be formulated for individual faculty staff, including making provision for replacement during their absence. For later cohorts the PDU will seek to build capacity in professional and technical fields identified as highest priority in labor


market studies. Standardized selection packages will be developed and efficient systems established for data processing and management.

(ii) Merit-based Scholarship Selection. The PDU will develop a merit-based and

transparent selection process for Lao staff and faculty to undertake study awards abroad, or attend in-house activities, and for selection of staff for the Asian Development Bank Project scholarships or other ‘matching’ scholarship arrangements. Selection will initially be prioritized to address current critical shortfalls in staffing within particular faculties or disciplines. Selection will also take account of priority needs determined by initial labor market needs analyses. The selection package for the first scholarship cohort will be produced and implemented by Q3 year 1. The same process will be repeated for the two successive cohorts in year 2 and year 3.

(iii) Tracking of Alumni. The PDU will utilize participant feedback methodologies,

including post-activity assessment, to assess the effectiveness of staff and faculty development programs. The PDU will also maintain contact with awardees during their study to monitor progress and to provide support if required. Maintaining contact with alumni following their return to Laos is important in establishing relevance in future program development.

(iv) Visiting scholars. The Project will include provisions to invite foreign scholars to

give advice on academic program development and review, teaching support, E-learning approaches, building university-industry linkages, and research methodology and enhancing publication skills. It is expected that foreign scholars will be central in fostering long-term relationships between foreign and Lao universities.

E. Collaborative Professional Development Activities 15. The PDU network will co-ordinate closely with other activities undertaken during Project implementation. These include the following: 16. Teacher Induction Training Package. The Quality Assurance Center (QAC) and the Central PDU, collaborate to develop, trial, implement a 3-week induction program for all new academic staff. This activity will be jointly planned and coordinated by the by the Curriculum Development Specialists with advisory support from the Human Resource and Professional Development Specialists. This will be a pre-service, induction training package which will be mandatory for all new academic staff. Existing staff without prior training in tertiary teaching should also be enabled to participate in this training. While the development of the package will be largely the responsibility of the Curriculum Development specialists, the HRD specialists with the PDU, will be primarily involved in its implementation. The PDU will certify (issue a Certificate of Completion) to attest that new teachers have successfully completed the induction module. The package will also be available in digital versatile/video disc (DVD) format. A draft standardized induction package will be produced ready for trialing from Q3 year 1. A package in DVD format package will completed by Q1 year 2. Final packages will be fully implemented for all new academic staff from Q3 year 2. 17. Teacher Performance Advisory Assessment. The QAC and the Central PDU will develop standardized teacher performance assessment instruments including a teacher appraisal package to assess teaching performance against internationally recognized


benchmarks. This activity will be managed by the central and outreach PDUs with initial advisory support provided by the Human Resource and Professional Development Specialists and with technical support from the Quality Assurance, Measurement and Evaluation Specialists. Trial versions of the teacher performance assessment package will be administered by Q2 year 2. The final version will be implemented Q2 Year 3. 18. Teachers will be assessed by a senior faculty member (Dean or above) according to standardized performance criteria, given feedback, and advised on individual professional upgrading activities required. All teaching staff must be observed once in each academic year, and successful completion of these appraisal cycles will be a pre-condition for promotion or salary progression. The PDUs will supervise the administration of the teacher advisory assessment scheme, and develop new systems to manage career development pathways of academic staff. The PDUs will also utilize the EMIS via the ICT network to manage staff data systems effectively and efficiently. 19. The Project initiative will provide accurate information on the skills status of faculty teaching staff. At present there is virtually no information on the quality of instruction in Lao universities. It will also provide the opportunity to identify common weaknesses in classroom delivery. If necessary, teachers will be required to undertake targeted training, as determined by the PDU, to address weaknesses identified during their appraisal process. Introduction of these fundamental quality assurance systems to monitor, evaluate and strengthen teacher performance, both in and out of the classroom, will have a considerable impact on raising the quality of teaching in Lao universities.


Table SAA.2: Indicative Professional Development Packages

TYPE OF TRAINING NUOL CU SU MOE TOTAL Duration of study

Unit cost US$ TOTAL US$

Scholarship Degree Programs

Masters international (neighboring countries) 7 20 13 4 44 2 years 40,000 1,760,000

PhDs international (neighboring countries) 3 10 7 3 23 4 years 60,000 1,380,000

Masters in-countrya 80 2 years 3,000 240,000

Short Training Programs

International study visits (senior management) 5 5 5 5 20 5 days 2,250 45,000

International training (strategic planning/mgt.) 5 5 5 5 20 5 days 2,250 45,000

Domestic training (institutional leadership & mgt.) a 50

Includes resource persons

500 33,000

Domestic training (strategic planning/mgt.) a 50


500 33,000

Continuing Professional Development Programs

Academic pedagogy & classroom methodologya 300


500 158.000

Curriculum development and learner assessmenta 300


800 252,000

Use of ICT-based methodology and flexible learning modesa

300 Includes resource persons

500 158,000

Professional Development Programs for Administrative Staff

Quality assurancea 70 Includes resource persons

800 68,000

Information managementa 70 Includes resource persons

800 64,000

Personnel managementa 70 Includes resource persons

800 64,000

Total ADB Share: 4,300,000

ADB = Asian Development Bank, CU = Champasak University, ICT = information and communication technology, MOE = Ministry of Education, NUOL = National University of Laos, PDU = professional development unit, Ph.D = doctor of philosophy, SU = Souphanovoung University. a Precise numbers of participants from each institution to be determined during project implementation. Selection to be

managed by Central and Outreach PDUs. Source: Asian Development Bank.

100 Supplementary Appendix B

FUND FLOW DIAGRAM FOR MATCHING SCHOLARSHIP GRANT SCHEME

1. As part of the Strengthening of Higher Education Project's (the Project) staff and faculty development strategies and plan, the Project will pilot a new scheme of matching scholarship grant (50:50 matching between the Project and partner universities), as an initiative in public-private partnership. For this purpose, the Project's grant amounting to $2 million will be matched with scholarship grant of any partner universities in the amount of $2 million equivalent in cash contributions. Partner universities will be any public and private foreign universities willing to provide scholarships for postgraduate (master and doctoral) degrees program to administrative/academic staff of the three public universities. 2. The Project will provide the opportunity for 60 staff and faculty members of three public universities (National University of Laos [NUOL], Suophanovoung University [SU], and Champasak University [CU]) to obtain postgraduate degree qualifications abroad. The Project will provide international master and doctoral degree programs comprising approximately 40 and 20 staff and faculty members respectively (approximately 30 for CU, 20 for SU, and 10 for NUOL, in total). This comprises 40 masters degrees (approximately 20 for CU, 13 for SU, 7 for NUOL) and 20 doctoral programs (10 for CU, 7 for SU, 3 for NUOL). This matching scholarship scheme will finance approximately 40 out of 60 staff and faculty members for postgraduate degree programs. The bulk of the degree training will be undertaken in three annual batches (Years 1–3 of the Project), phased carefully to minimize the impact of the removal of key staff from faculties that are already under-staffed. This timeframe will also allow the Project to ensure that recipients of scholarships return to their respective workplaces, and that returnees subsequently make full use of skills acquired from their training. 3. The Project (ADB Grant portion) will cover tuition fess, registration fees and entrance fees (when applicable), and international travel costs, while partner foreign universities will cover housing and living costs, local travels, and other expenses. This scheme will be more relevant to provide scholarships for staff and faculty members of three public universities who seek to study in development countries such as Australia, Japan, New Zealand, United Kingdom, and U.S., where costs of postgraduate degree programs will be much higher than those in neighbouring countries. Should the Project matching fund can cover degree program costs on a 50:50 basis with partner foreign universities, the more staff and faculty members can benefit from the scholarship provisions under the Project. 4. To implement the Project's staff and faculty development strategies and plan, the professional development unit (PDU) will be established under the Department of Higher Education (DHE), Ministry of Education (MOU) and will be located at NUOL, and linked to outreach PDUs established at CU and SU. The Project fund can be directly matched with cash contributions from partner universities or channeled through intermediary agencies which help PDU to coordinate with partner universities in terms of identifying partner universities, making payment arrangements, and proper after care of scholarship beneficiaries. This scheme is expected to significantly increase the number and amount of scholarships that can be offered under the Project. The PDU, in coordination with outreach PDUs at SU and CU will be responsible for finalizing selection criteria for the matching scholarship scheme, and will assist participating universities in identifying partner universities. The diagram below shows fund flow of the scheme and functions of each organization and unit which will be involved in the scheme.

Supplementary Appendix B

101

Figure SAB: Funds Flow Diagram for Matching Scholarship Grant Scheme

Signed memorandum/ payment record

Payment scholarship

Signed memorandum/ payment record

Payment of scholarship (tuition fees/ international

travel)

Submit withdrawal

applications

Deposit advance/

replenishment Disbursement

Submit application for advance/ replenishment/liquidation

PCU (at MOE)

PDU (located at NUOL)

• Selection of

candidates • Identification of

partner universities

MOE (DOF)

Imprest Account

ADB (ADF Grant)

$2 million • Tuition fees • Registration

and Entrance fess

• International Travel

Intermediary Agencies

• Identification of partner universities

• Coordination between PDU and partner universities

Partner Universities

($2 million: cash contributions)

• Housing

allowances • Living allowances • Local travel • Other expenses

SU PIU

Subaccount for petty cash

Outreach PDU (at SU)

• Selection of candidates • Briefing on Scholarship • Monitoring, reporting,

and assessment

CU PIU

Subaccount for petty cash

Outreach PDU (at CU)

• Selection of candidates • Briefing on Scholarship • Monitoring, reporting, and

assessment

ADB = Asian Development Bank, ADF = Asian Development Fund, CU = Champasak University, DOF = Department of Finance, MOE = Ministry of Finance, NUOL = National University of Lao, PCU = project coordination unit, PDU = Professional Development Unit, PIU = project implementation unit, SU = Souphanouvong University. Source: Asian Development Bank.

102 Supplementary Appendix C

SCHOLARSHIP SUMMARY AND INDICATIVE SELECTION CRITERIA 1. The Strengthening Higher Education Project (the Project) will provide a program of international and in-country master’s and doctoral degree programs for academic staff, and for senior management personnel from the Ministry of Education (MOE) and universities. A priority for the Project is to address the issue of low professional qualifications of academic staff at the country’s universities, particularly at Champasak University (CU) and Souphanouvong University (SU). Upgrading of qualifications, teaching skills, and research capabilities of existing staff is urgently needed, and additional new staff recruited to respond to anticipated increases in student enrollment. At present, the new universities (CU and SU) are staffed by mainly new graduates with limited opportunities to upgrade their qualifications or carry out research. 2. In 2009, of the total 1,265 graduate academic and administrative staff at the National University of Laos (NUOL), 55 had doctoral education (4%), 436 had master’s degrees (34%), and 774 had bachelor degrees (62%). The universities have articulated a target qualification ratio of 10%:60%:30% by 2015. The current mix at CU is 2:16:82; at SU, it is 1:12:77. The Project provides a significant scholarship program to redress this staffing qualification shortfall. A. Program Description 3. International and Domestic Degree Programs. The Project will provide the opportunity for 147 staff and faculty members to undertake study for higher degree qualifications in the Lao People's Democratic Republic (Lao PDR) and abroad. This includes 40 master’s degrees mostly in neighbouring countries (approximately 20 for CU, 13 for SU, 7 for NUOL); and 20 doctoral programs in neighboring and developed countries (10 for CU, 7 for SU, 3 for NUOL). In addition, the Project will fund 7 postgraduate degrees (4 master’s degrees and 3 doctoral degrees) for the staff of the Department of Higher Education (DHE) of MOE, and 80 public university academic staff to study at the master’s level at NUOL in Vientiane. The bulk of the degree training will be undertaken over years 2–4 of the Project, phased carefully to minimize the impact of the removal of key staff from faculties that are already understaffed. This time frame will allow the Project to ensure that recipients of scholarships return to their respective workplaces, and that returnees subsequently make full use of skills acquired from their training. 4. International Matching Scholarship Grants. A new scheme of matching scholarship grants (50:50 matching between the Project and partner foreign universities that provide scholarships to the Lao PDR) will be implemented on a pilot basis. Of the 60 master’s and doctoral scholarships specified, up to 40 are expected to be funded through the matching grant scheme, with a view to providing study in postgraduate degree programs in developed countries such as Australia, Japan, United Kingdom, or United States. This is expected to significantly extend the number of scholarships that might be offered by the Project. The Project will cover the tuition fess and international travel costs, while partner foreign universities in developed countries will cover the living costs and other expenses that would be higher than in neighbouring countries. B. Scholarship Selection Criteria (Indicative) 5. Selection will initially be prioritized to address current critical shortfalls in staffing within particular faculties or disciplines. Selection will take account of priority needs determined by initial labor market needs analyses. The selection package for the first scholarship cohort will be produced and implemented by the third quarter of year 1. The same process will be repeated for the two successive cohorts in years 2 and 3.

Supplementary Appendix C 103

6. The professional development unit (PDU) to be located at NUOL will develop a transparent and merit-based selection process in coordination with outreach PDUs at CU and SU and DHE project implementation unit. The selection process will be managed by the central PDU under the guidance of specialist advisors. The MOE project coordination unit will approve the final selection of each cohort. 7. The following two sets of indicative selection criteria will be used to select suitable candidates for degree scholarships: (i) general eligibility criteria, and (ii) other eligibility criteria. The general eligibility criteria include:

(i) be a citizen and resident of the Lao PDR and not have a permanent residence in any other country;

(ii) at the time of application, be not more than 45 years of age; (iii) have worked for a minimum of 2 years in relevant employment in MOE or a

higher education institution; (iv) be supported by supervisors, and have signed a written agreement for continuing

relevant employment for a minimum of 2 years after graduation; (v) provide evidence that new personal research skills in the discipline selected

could contribute to enhancing their university’s teaching and research programs; (vi) demonstrate that the training is consistent with the development priorities of the

Lao PDR; and (vii) for international programs, have met, or be able to meet before commencement

of the course, the academic entry requirements and English language proficiency set by the university for the study program for which enrollment is sought.

8. Other eligibility criteria will be established to ensure that the scholarship program assistance supports the access and equity targets specified in project design. These include the following:

(i) A target of at least 50% is specified for female candidates selected for scholarship awards.

(ii) A target of 20% is set for candidates selected from target ethnic groups or the six poorest provinces identified via recognized poverty indicators.

C. Evaluation and Sustainability 9. The anticipated impact of the scholarship program will be measured in terms of the extent to which graduate alumni return to their respective workplaces. The Project will execute agreements with all candidates receiving scholarships or grants for undertaking foreign degrees and local master’s degrees to ensure scholarship recipients continue working with the same ministry or higher education institution for at least 5 years after completing a foreign degree program and 2 years after completing local master’s degrees. To assess the efficacy of the staff and faculty development programs, participant feedback methodologies including postactivity assessment will determine the extent their newly acquired skills will be utilized in their respective workplaces.

104 Supplementary Appendix D

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country and Project Title: Lao People's Democratic Republic: Strengthening Higher Education Project

Lending/Financing Modality: Grant Department/Division: Southeast Asia Department/ Social Sectors Division

I. POVERTY ANALYSIS AND STRATEGY A. Link to the National Poverty Reduction Strategy and Country Partnership Strategy The comprehensive National Growth and Poverty Reduction Strategy (NGPRS) is built on the concept of growth with equity. It notes that increasing the number of tertiary school graduates is needed to improve economic rates of return on human capital investment, and that professionals and intellectuals are required to harness modern science and technology for development needs. Improving tertiary education supports delivery of quality social services while reducing dependence on cheap labor to attract foreign domestic investment. The NGPRS targets a 6% increase in the number of tertiary school graduates between 2005 and 2020. The Education Sector Development Framework 2009–2015 is an explicitly pro-poor framework addressing inclusiveness and equity in education for poor and ethnic minority pupils from preschool through nonformal and tertiary education. Thus investments in tertiary education are planned in the context of the overall system. The midterm review of the 2009 country partnership strategy recognizes the need to include tertiary, and technical and vocational education and training (TVET) development as part of the comprehensive education sector development supported by the Asian Development Bank (ADB) to increase the quality of human capital in the public and private sectors.a The Project is in line with the ADB Strategy 2020, which notes that "future competitiveness will be determined less by low wages for labor and more by the ability to produce and master technology and produce higher-value goods and services.”b The 2008 ADB study report, Education and Skills, discusses the role of higher education in national and regional development.c B. Poverty Analysis Targeting Classification: General Intervention (GI) 1. Key Issues Poor quality human resources constrain the delivery of social services and the development of employment in small- and medium-sized enterprises. The shortage of tertiary school graduates and their relatively low quality contributes to a poverty trap where poorly educated college graduates return as teachers to teach poorly educated secondary school students, and where manufacturing and industry are based on ample availability of cheap unskilled laborers who without technological skills are unable to advance to higher value-added sectors. The current incidence of poverty is 28%,d down from 33% in 2003—a major achievement for the country. Further inroads in poverty reduction will require development of processing industries, and creation of higher productivity and better paid jobs. The Lao People's Democratic Republic (Lao PDR) is surrounded by countries with highly skilled labor. More investment is needed at all levels of education to enable the country to move ahead rather than fall further behind. Equity is a major issue. Enrolment in tertiary education has been primarily male, from specific ethnic groups, and from better-off households. To promote national unity and women's equality the Government provides a 50% quota or scholarships emphasizing admission of women and ethnic minorities. The quota system has suffered from low transparency and the perception that students from better-off households were the primary beneficiaries. Due to funding constraints, the scholarship and living allowance provided is insufficient to cover actual costs, therefore students from poor households often are unable to afford to continue their education despite the scholarship. The result is that opportunities for the advancement of ethnic minorities and women are missed. The Project is designed to strengthen the higher education system as a whole. As Souphanovoung University in Luang Prabang and the National University of Laos (NUOL) in Vientiane have already received substantial external assistance to increase their physical capacity, only the unserved Champasak University (CU), serving the five southern provinces, is scheduled for investment in increase physical capacity. Investments in other capacity building activities including staff and faculty development programs, and textbook and material development are allocated across the national university system.

II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis The social analysis indicates huge demand for post senior secondary education driven by increased participation rates in lower education, decreasing poverty, and the importance students and their families place on tertiary education. While enrollment capacity of public universities has more than tripled since 2000, the private sector has responded to fill the gaps. The increase in capacity has not been matched by the increased quality required to obtain the true value of the finances and effort expended. As a result, a public sector intervention is needed to improve the quality of the public system and to provide guidance and leadership for the private sector. The private sector is unlikely to invest in accreditation and creation of standards since these are public goods whose benefit they cannot capture. Therefore the public sector’s role is to intervene.

Supplementary Appendix D 105

Access is a major concern. Tertiary education is largely for male, although the gap is closing. Students from rural areas, especially areas where ethnic groups are concentrated have difficulty competing because of the relatively poor quality of basic and secondary education in these areas. Providing remedial actions such as scholarships and living allowances, ensuring adequate dormitory facilities for women, and providing academic support to students from underrepresented areas are important. The investment in CU is needed to equalize opportunities across the country, as the north and central regions are already served. While students from the southern provinces can enroll in Souphanovong University or NUOL, the region misses the development impact of having an institution for higher education nearby. The university can and should play a role in supporting development of the business community. At present however few linkages exist in Champasak, Vientiane, or Luang Prabang. Another project initiative is to create these linkages to increase the contribution of universities to regional growth and job creation. Employers and students are disappointed with the current higher education system. Employers feel they are not getting the desired expertise and graduates are not getting the good jobs they expected (Appendix 9). The issues involve the combination of a new and inexperienced private sector, a pool of university graduates mainly comprising new labor market entrants, and a need to improve the curriculum content based on various factors including inputs from the private sector. B. Consultation and Participation 1. Provide a summary of the consultation and participation process during the project preparation. During project preparation, the consultant and project team visited the three universities to meet with staff, propose project objectives, and collect data and other information on higher education. The design was informed by a small-scale survey of students on why they decided to enter university. Discussions were held with nonacademic stakeholder organizations such as the national and provincial chambers of commerce, Lao Women’s Union, Lao Front for National Construction, and Poverty Reduction Fund staff. 2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring?

Information sharing Consultation Collaborative decision making Empowerment 3. Was a C&P plan prepared? Yes No C. Gender and Development 1. Key Issues The official policy of the Government of the Lao PDR is to promote national, district, and village gender equality. A key element of this policy is to increase access for women and girls to education at all levels. In 2005, educational attainment of employed females in the labor force was 7.7% for technical and vocational qualification, college diploma, and university degree. Educational attainment was comparatively higher for employed males: 8.6%, 2.2%, and 14.1% respectively. A gender imbalance exists in accessing primary and lower secondary education. Girls' enrollment in primary school lags that of boys’ by approximately 14%, and in lower secondary education by more than 12%. The net enrollment ratio for girls is also influenced by access in rural and urban areas: for primary education it is estimated at 49% for girls in rural areas without road access (56% for boys), 72% in rural areas with road access (75% for boys), and 91% in urban areas (88% for boys). This leads to lower completion rates in primary education for girls (47%) compared with boys (52%). These differentials continue for lower and upper secondary education. The low rate of female enrollment in lower secondary school leads to significantly lower female enrollment in teacher training colleges, and subsequently, low representation in the field of teaching, particularly in lower and upper secondary schools. The same situation exists at universities. In terms of enrollment at CU, data shows that in 2008/09, of 4,750 total enrollment, 1,918 students were female (40.3%) and 274 were from ethnic groups (37%). However when income data is factored into this equation, the female participation figure is considerable lower. Thus for the lowest income group, the data shows total enrollment of 206, with 34 females (16.5%) and 41 ethnic origin students (20%). The data clearly show that the gender disparity for both samples is greater for students from ethnic rather than nonethnic groups. Poor students are severely underrepresented at CU. 2. Key Actions The Project will address these issues through implementation of pro-female policies and strategic plans. These include effective targeting of female quota students; maximizing female participation in workshops, scholarships, and other professional development activities; ensuring gender sensitivity in all curriculum materials; and providing accommodation and facilities at CU catering specifically to the needs of female students. A gender and ethnic groups action plan was prepared; its implementation will be monitored by quarterly progress reports and semiannual, midterm, and project completion review missions.

Gender and ethnic group action plan Other actions/measures No action/measure

106 Supplementary Appendix D

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Significant, Limited, No

Impact

Strategy to Address Issue Plan or Other Measures Included in

Design Involuntary Resettlement

None No involuntary resettlement is involved at NUOL and Souphanouvong University. Development of the CU campus and facilities will take place within CU's existing site of 66 hectares in which there are no households to be relocated and no households using agricultural land.

Full Plan Short Plan Resettlement

Framework No Action

Indigenous Peoples

Limited impact Not significant. The Project will most likely have positive impacts on equitable access to tertiary education by ethnic groups, especially ethnic females. This will be achieved by more effectively targeting ethnic students; and increasing opportunities for ethnic groups to work as faculty members and university staff.

Gender and Ethnic Groups Action Plan

Other Action Framework No Action

Labor Employment opportunities Labor retrenchment Core labor

standards

Limited impact The Project will enhance employability of graduates from the universities to be developed, which will lead to increased employment opportunities. At the construction sites, employment opportunities for workers will be increased. Labor standards will be maintained and basic facilities (water and sanitation) will be provided for the construction workers. National labor laws against child labor or discriminatory practices will be complied with.

Plan Other Action No Action

Affordability None. No negative impact. The Project will sharpen the targeting of disadvantaged quota students, especially students from poor households and ethnic groups, by increasing living allowances.

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking Others(conflict,

political instability, etc), please specify

None. None. Plan Other Action No Action

IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No

a ADB. 2009. Lao People's Democratic Republic: Country Strategy Program, 2007–2011 Midterm Review. Manila. b ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008–2020. Manila. c ADB. 2008. Education and Skills: Strategies for Accelerated Development in Asia and the Pacific. Manila.

d Ministry of Planning and Investment. 2008. Lao Expenditure and Consumption Survey 2008. Vientiane: Department of Statistics, Ministry of Planning and Investment

Supplementary Appendix E 107

Supplementary Appendix D Project Number: 42134 August 2009

Initial Environmental Examination

Lao PDR: Strengthening Higher Education Project

TABLE OF CONTENTS

Map i I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1

III. DESCRIPTION OF THE ENVIRONMENT 3

A. Physical Resources 3 B. Ecological Resources 4

C. Human and Economic Development 5

IV. SCREENING OF POTENTIAL IMPACTS AND MITIGATION MEASURES 6 A. Impacts related to Sites and Design 6 B. Construction Impacts 8 C. Operation Impacts 9

V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN

10

A. Relevant Regulations 10 B. Project Implementation Arrangement 10 C. Environmental Responsibilities

D Environmental Mitigation and Monitoring Plan 11 12

E. Environmental Monitoring 12

VI PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 13

VII FINDINGS AND CONCLUSION 13

PROJECT MAP Lao PDR

KHAMMOUANE

Pakse

Proposed Project Site

CHAMPASACK

Bachieng

Pathumphon

Mekong River

MAP OF THE PROPOSED PROJECT AREA (CHAMPASAK UNIVERSITY)

Existing campus site of 66 has

I. INTRODUCTION 1. The Strengthening Higher Education Project (the Project) aims to expand and improve the higher education system and institutions mainly by upgrading the three public universities, National University of Laos (NUOL) in Dong Dok, Vientiane Capital, Champasak university (CU) in Pakse, and Souphanouvong University (SU) in Luang Prabang, in order to produce skilled graduates in key disciplines responding to the demands of the labor market. During recent years, demand for university places has increased substantially in the Southern region of Laos. To cater for further increases in demand anticipated in the future, and to create quality learning environment, CU was founded in late 2002, following Prime Minister’s Decree No. 214 of 28 November 2002. The university started its first teaching course in 2002. 2. A central activity of the Project is campus and facility development at CU, which will be implemented in order to provide a foundation for incremental expansion of enrolments and programs in the decades ahead. As an immediate priority, the Project support will focus on fully and intensively utilizing the current 66 hectare campus. Minor civil works to develop basic infrastructure such as road, drainage, water and power supply systems will concentrate on the utilization of the existing site of 66 hectares. This concentrated approach for campus and facilities development will enhance CU's enrolment capacity while at the same time minimizing implications for operations and maintenance related costs. Although the campus development activities will have minimal environmental impacts, there may be potentially adverse effects associated with the physical development of the CU campus. These would include solid waste disposal issues, supply of and demand for water resources, and adequacy of sewerage and drainage infrastructure. 3. The Initial Environmental Examination (IEE) focuses on the on the agreed CU development site (66 hectares). It specifically examines potential impacts arising from site preparation, infrastructure development, and construction of university buildings on the CU campus area and its surrounding hinterland. This IEE report is based on information gained from a field visit to CU and a series of questionnaires administered to communities that may potentially face environmental issues related to the proposed CU campus development activities (see Appendix 1 for Questionnaire). An Environmental Mitigation and Monitoring Plan (EMMP) is also prepared, which identifies options to be adopted to reduce the impact of these potential environmental impacts. The IEE is prepared according to the ADB's Environment Policy 2002, and in accordance with the Environmental Protection Law (1999) of the Government of Lao PDR (GOL) and its Implementing Decree (2002) and Regulation on Environmental Assessment (2000).

II. DESCRIPTION OF THE PROJECT

4. The four outputs to be delivered by the Project are (i) Output 1: strengthened management, financing, and governance of higher education system; (ii) Output 2: enhanced relevance and capacity for quality improvement; (iii) Output 3: increased equity and access in higher education; and (iv) Output 4: effective project management and implementation. The civil works for the Project are those in Output 2 and 3, while 1 and 4 are designed to strengthen management, financing and governance of higher education system, and to support effective project management and implementation. The IEE was conducted mainly for output 2 and 3, while environmental considerations were incorporated in the remaining outputs. A description of the work under these outputs are as follows:

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5. Output 1: Strengthened Management, Financing, and Governance of Higher Education System. The Project will build management, financing and governance of the higher education system through (i) strengthened management capacity of Ministry of Education (MOE) and public Higher Education Institutions (HEIs); (ii) improved higher education financing; and (iii) enhanced governance systems for public and private HEIs. 6. Output 2: Enhanced Relevance and Capacity for Quality Improvement. The Project will support the following sub-outputs (i) enhanced relevance of courses, curriculum and teaching materials; (ii) strengthened quality assurance, accreditation and credit system; (iii) enhanced teaching and research capacities of public university faculty; and (iv) improved teaching and learning environment; and (v) strengthened regional and international dimensions. To enhance relevance of course, curriculum and teaching materials, the Project will support development of textbooks/learning materials in Lao language, prioritizing new materials to be developed for interdisciplinary common-core courses. 7. To improve teaching and learning environment, the Project will support the establishment and development of an information and communication technology (ICT)-based Teaching and Learning Center at CU rather than focusing investment on the development of traditional libraries, or financing procurement of discrete packages of information technology systems. Furthermore, the Project will support campus and facilities development at CU. The Project will develop basic infrastructure such as road, water and power supply systems. The Project will also develop facilities that comprise civil works, equipment, and furniture, including one multipurpose central building (for the ICT-based Teaching and Learning Center), two faculty/department office blocks, two faculty housing blocks, one science laboratory building and equipment (for physics, biology and chemistry), and one auditorium/conference hall. This concentrated approach for campus and facilities development will minimize implications for operations and maintenance related costs, and environmental impacts. 8. Output 3: Increased Equity and Access in Higher Education. The Project will have the following sub-outputs (i) sharpened quota targeting and increased support for disadvantaged students; and (ii) expanded classroom and dormitory facilities at CU. The Project will provide a foundation for incremental expansion of enrolments and programs in the decades ahead by enhancing CU's enrolment capacity. To fill the gap between expected enrollment growth and admission capacity at CU, the Project will provide (i) 5 multipurpose buildings with furniture, each consisting of 12 classrooms (a total of 60 classrooms); (ii) 2 student dormitories with furniture (female and male) accommodating 300 students each; and (iii) 6 toilet/wash facility blocks. Created additional classroom places can absorb students graduating from upper secondary education who at present need to seek jobs or enroll in technical and vocational institutions for tertiary education. Special attention (e.g., boarding fee exemption) will be given to the poor and female students of ethnic origins in availing expanded student dormitories. 9. Output 4: Effective Project Management and Implementation. To facilitate project management and implementation, the Project will provide equipment, vehicles, and other necessary materials and furniture for the Department of Higher Education (DHE) of MOE and CU, as well as a core package of equipment for NUOL and SU.

III. DESCRIPTION OF THE ENVIRONMENT A. Physical Resources 1. Topography, Geology and Soils

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10. CU is located in the East of Pakse District, approximately nine kilometers (km) from Pakse City center. The university’s land holding is bordered by the Mekong River to the west and south. It is located near Route 13 South to the west and north. The campus covers two districts in Pakse: Pathomphone and Bachieng. The campus is surrounded by seven villages and one industrial zone predominantly occupied by sawmills. 11. The elevation of the site is between 164 meters (m) to 190m above sea level. It is surrounded by undulating and hilly terrain. There is one natural pond and three perennial streams (Houy Luesi noy, Houy Luesi Nyai and Houy Lomsak). The site also contains two large isolated ponds: Nong Xang and Nong Houaling. Students and villagers who live near the campus depend on these perennial streams as their main source of fresh water to meet daily needs. These natural water courses should be carefully managed in future in order to preserve the natural draining patterns which will continue to provide a supply of fresh water to the local inhabitants of the area. 12. Before 2000, the Project area was part of a provincial protected area in Champasak Province. After 2000, approval was granted by the Provincial Government to construct the university on a delineated core site of 66 hectares. This concession area consists of a range of soil types. These are mixed in character, but the 66 hectares site delineated for construction is underlain by a ‘strong’ soil type, with relatively flat topography which provides a sound foundation for building construction.

2. Climate 13. Lao PDR has a tropical monsoon climate which features a rainy season (September to November), a wet season (May to August) and dry season in (December to May). The dry season is general cooler, although temperatures rise significantly in from February to May). Some anecdotal data indicates that the region has been mildly affected by climate change, with respondents reporting that the rainy season arrives earlier than previously while the winter is shorter. However the climate data does not yet reflect such a permanent climatic change outside of natural climate cycle variations. Rainfall is generally high averaging 1,600m over the country and the highest elevations may reach 3,700m in the South. Moreover, high rainfall during the wet season is common particularly during July and August, leading to soil saturation. The temperature averages 24°C over the year, ranging from 13°C in January and February, to 39°C in April. The monthly maximum temperature remains above 30°C from March to September.

3. Water Resources and Quality 14. The Project total land area has similar soil condition to the Mekong River. There are enough water for consumptions and uses for the entire concession area. There are three underground water sources within the CU site: one is located near the women’s dormitory, the second near the men’s dormitory and the third behind the Administration building. This artesian water is said to be suitable for domestic consumption, according to local residents who were interviewed during the field visit. Some anecdotal evidences are:

“The underground water is clear. I do not see any thing in the water especially after I boiled it. Besides drinking, I use the underground water for watering my vegetable gardens and also feed animals” (Ms. Xaysavan Menvilay, a teacher, 25 July 2009).

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“The underground water is drinkable. It is clean. My friends and I use the water for drinking and cleaning.” (Ms. Kitsamai Maladeng, Ms. Khampho Phetsyya, and Ms. Manila Keobobpha, village residents, on 25 July 2009).

15. However, the underground water table is significantly reduced during the dry season, so that water shortages are experienced by residents and students who must compete for a diminished supply. These artesian wells will be clearly insufficient to supply future needs of an expanded CU, and its surrounding area. As part of the infrastructure development program proposed for CU, it has been agreed that the CU campus will be connected with town water supply, and water bills paid by the GOL as a constituent of the GOL contribution to the Project. B. Ecological Resources

1. Forests 16. In Lao PDR, forests are key habitats for the countries flora and fauna biodiversity. Loss of forests cover is highly correlated with loss of biodiversity. While the country is still the most forested country in South-East Asia, forest cover is declining—now at 41.7% down from 47% in 1991 due to a variety of pressures. 50% of Champasak Province covered by forest. The Project site used to have plenty of thick wood in the past. Therefore, replant some forests in the Project site could prevent air polluted for the Project area and to maintain good air quality. 17. Non-timber forest products is a significant food security products for local people especially woman and children who live inside the Project or outside the Project site. The villagers could raise their income from selling products from their forests. Hundreds of forest species are use for food, roofing, building materials, utensils, containers, rope making, dyes, medicines, fish poisons and etc. the most important specie for all villagers is bamboo. They use it for building houses and making common households equipment. Other common foods they found from the forest include wild taro, bamboo shoots, mushrooms, wild tree fruits, wild herbs, and vegetables.

2. Protected Areas 18. There are three provincial protected areas in Champasak Province with the total land area of 328,600 hectares. These land areas covered 5 districts, 11 groups of villages, 157 villages on the Prime Minister Decree No. 164 dated 29 October 1993. There are four forest protected areas in Champasak province with total land area of 54,500 hectares, and four conservation forest with total land areas of 87,600 hectares. There are three production forest with total land areas of 64,330 hectares and the one provincial forest with the total land area of 58,000 hectares. The National Protected Area covered Bajieng mountain with the total land area of 2,800 hectares and covered Malong mountain with the total land area of 21,600 hectares. These two mountains became the National Protected Area in 1995 by Prime Minister’s Decree No. 173.

3. Aquatic Ecosystems 19. The Mekong River flows about 5 km from the Project area. Also, there are different rivers flowing nearby the Project area. These rivers then join the Mekong River. The wetland located on the back of the Project area is an important area for the nearby villagers. The closest village called Houaling village is about 1 km from the Project area. This wetland area is currently used

5

by the Faculty of Agriculture, CU, as a model farm, containing some fish ponds. These wetland areas should be preserved intact during and following the civil works activities.

4. Archeological and Cultural Significance 20. Champasak Province has considerable historical significance. Noted historical sites such as Wat Phu, Bajieng and Phoumalong mountains located near the campus are national protected areas. These areas will not be affected in any way by the civil works program at CU. C. Human and Economic Development

1. Health

21. The Project site is located on an appropriate land area. The CU campus is only 200m away from the Km 9 Hospital and is easily accessible to all nearby villagers including students and teachers. Other hospitals are located nearby in Pakse City and Km 14 hospital is a farther option. In addition, to the hospital facilities regular visits from provincial doctors and nurses to villagers for medical check-ups help enhance their health conditions. Almost 10% of students and teachers used to have malaria and diarrhea, while most of the villagers had malaria, diarrhea and diabetes. The health care messages included sexual transmitted diseases and birth flu (interviews with village heads, teachers and students).

2. Livelihood 22. Cahampasak people have similar livelihoods as other Lao people. Most of them are farmers and they sometimes raise animals and livestock. Seventy percent of Champasak people are farmers while 20% are government officials and 10% are vendors. Most government officials earn about KN9 million per year while some of them earn about KN3 million to KN6 million per year. The closest road access from the Project site is 100m and the closest market is located only 200m from the project site. These are two potential points supporting appropriate site selection for the Project.

3. Ethnic Groups 23. Almost 85% of the CU students are categorized as Lao Loum, about 8% are Lao Theung, about 5% are Lao Soung, and the rest, 2% are Hmong. All of Lao Soung are from Luang Namtha, Bokeo and Oudomxay provinces. Approximately 15% of the CU's student enrolments belong to ethnic minority groups.

4. Poverty Levels 24. The GOL aims to achieve the Millennium Development Goals (MDGs) on poverty, which have guided most of development projects in Lao PDR. Along with the MDGs, sustainable development is the main focus for many projects in Lao PDR. The idea of having this Project was to provide higher education opportunities for students in the South. Student data for CU, disaggregated by socio-economic status and ethnicity, show the following results. For the academic year 2008–2009, from a total of 4,750 students (1,918 women, and 2,832 men), 206 students are from poor families (34 women and 172 men). Those from ethnic background are 65 (13 women and 52 men).

5. Land Use in Surrounding Area

6

25. As already mentioned above (para. 11), soil on the back side of the Project site consists of appropriate soil condition for agriculture use. Villagers have relied on this land area for a long time for non timber products for their food security. Students, teachers and villagers still go to this forest and find food. It is recommended that the Project’s management teams consider the villagers reliance on non timber products for living making sure these villagers as well as students and teachers have alternative plans for their foods security.

6. Public Health Infrastructure 26. During the field visits, it was determined that actions need to be taken to ensure adequate toilet management and waste management. There is currently no liquid waste disposal or sewerage system on the campus area. This factor will be addressed during the initial site development phase when toilet blocks will be constructed and a sewer network installed. The quantity of solid waste is gradually increasing, particularly in areas around foodstalls immediately outside the campus area. Plastic bags are also scattered throughout the area. It is recommended that the CU management need to educate students and staff on proper rubbish disposal methods, and the relevant local authorities will need to carry out regular solid waste collection, funded by GOL contributions to the Project and by recurrent funds allocations following completion of the Project.

7. Unexploded Ordinance (UXO) 27. Unexploded ordnance or UXO spread almost everywhere in Laos during 1960s. There are still a lot of UXO from the North to the South. Champasak is rated as lower risk for UXO compared with other provinces. A report from the UXO Provincial Office Champasak Province (dated 9 July 2009) approved that 10 districts in Champasak Province were lowest hit by the UXO. It should be emphasized that to date no UXO has ever been found in or nearby the Project area.

IV. SCREENING OF POTENTIAL IMPACTS AND MITIGATION MEASURES 28. Interviews and field visits to the Project site found that the most important and urgent need is to improve the water use system. Students, teachers and villagers are not having enough water for consumption and use. These people are facing water shortage situation and it is getting worse during the dry season. Waste garbage is another problem that needs to be considered at the Project area. It is recommended that the lessons learned from NUOL in Vientiane Capital could be a good framework to cope with the water shortage situation. A. Impacts Related to Sites and Design

1. Adequacy of Groundwater Source 29. Most villagers nearby the project site use underground water for their consumption and use. However, the underground water resource is inadequate for the current water requirements and the situation will worsen when more people come to live in the project site. The impacts of inadequate hygiene could also lead to health problems. The inadequate supply of groundwater, especially during the dry season, will be addressed by the provision of piped water from Pakse city.

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2. Water Resource Conflicts 30. The increased population (students, teachers, villagers) at the project site (estimated at 10% per year) could lead to serious water conflicts since the main water supply is from three artesian wells located within the campus that currently do not meet the demand for water during the dry season. However, the proposed infrastructure development program for CU includes the provision of piped town water supply and the GOL has agreed to pay on-going water usage bills during operation of the facilities as part of its contribution to the project. The piped water supply will eliminate CU’s dependence on the existing artesian well system and should avoid potential water use conflicts associated with ground water resources. 31. To ensure adequate safe water supply will be provided and maintained at the project site during both the construction phase and during operation of the CU and its new facilities into the future, water resource studies will be undertaken during the site preparation stage to (i) determine the current and future water requirements for the CU taking account of the expected increased population associated with construction and operation of the facilities; (ii) assess the maximum sustainable yield of the artesian system during wet and dry seasons currently providing water supply to the project site; (iii) undertake water quality testing at the existing artesian wells to determine the status of ground water quality in regard to appropriate uses as defined by national water quality usage standards. These studies will provide the necessary information to design the piped water system in terms of capacity requirements. They will also indicate the water quality status of the artesian wells currently in use and help to determine what controls need to be applied on usage of water from the artesian system to ensure both the health safety of users and sustainability of the ground water resource. 32. Based on the results of the studies a water resources management plan will be formulated for the CU aimed at (i) ensuring that a safe and adequate water supply will be provided to the site to meet the demands of students, teachers, villagers and construction contractor during construction and future operation of the CU; and (ii) ensuring that there will be insignificant impact on the sustainability and quality of the existing ground water resources. 33. To avoid water use conflicts associated with construction it is recommended that the construction contractor provides his own water supply at the site to meet the demands of construction personnel and construction activities. The construction contractor will ensure that construction activities will not give rise to water use conflicts at the site.

3. Pollution and Health Risks from Increased Drainage Systems 34. There are currently two open waste water drainage channels in the campus area. One connects the men’s dormitory to the women’s dormitory and extends outside the university area. The second channel runs from the Administration building and continues outside the campus boundary. These two channels represent a health risk due to mosquitoes and other contamination. In addition, waste from nearby shops and restaurants exacerbate the problem. Drainage work to be undertaken as part of CU civil works will substantially alleviate this risk. B. Construction Impacts 35. There are a number of potential negative impacts likely to arise during construction. They include (i) dust; (ii) noise; (iii) disposal of excavated fill; (iv) solid and sanitary waste disposal; (v) pollution related to spillages and disposal of fuel and lubricants; (vi) safety risks from construction traffic; and (vii) access constraints to nearby villages. These impacts are

8

described below along with mitigation measures to ensure that there will be no unacceptable residual impacts resulting from the works. 36. The mitigation measures proposed are commonly associated with good construction practice and it is recommended that they be included as particular specifications in construction contract documents. 37. Dust. Potential impacts include dust causing a nuisance and health hazard to students and residents living near the construction site. Dust could be generated from construction traffic during construction and upgrading of site access roads, transport of fill and excavated material on open trucks, general excavation work and dust blown off soil stockpiles. To mitigate these impacts the contractor will be required to (i) water all unpaved site access roads being constructed, upgraded and/or used for construction traffic at least twice per day during dry weather, particularly before class hours and after class hours; (ii) ensure soil materials being transported by trucks are properly covered with tarpaulins; and (iii) ensure temporary stockpiles of soil are covered, or regularly sprayed with water to prevent wind-blown dust arising 38. Noise. Potential impacts include noise from construction activities affecting nearby sensitive receptors namely university classrooms, staff and student residences and nearby villages. Key noisy activities will be the use of excavators, graders and trucks during road upgrading and construction, trucks transporting construction materials to and from the site and limited excavations associated with building foundations. To mitigate impacts the construction contractor will (i) ensure that all construction equipment is well maintained; (ii) as much as possible schedule noisy construction activities outside of class hours; (iii) coordinate closely with university authorities at all times, advising them in advance of the timing, location and type of construction activities that could give rise to noise impacts during normal class hours; and (iv) in cases where noisy construction activities are necessary during class hours the construction contractor shall provide temporary noise barriers to limit the noise impacts to acceptable levels. 39. Disposal of surplus excavated material. There will be little if any need for disposal of surplus excavated material off-site during the construction activities. Surplus excavated material is likely to be limited and will be utilized within the site for landscaping purposes. The buildings to be constructed are either one or two storeys and will not require significant excavation for foundations. Some surplus excavated materials from road construction and upgrading may need to be disposed of off-site but wherever possible such material will be re-used within the works or for landscaping purposes within the site. If surplus material does need to be disposed offsite the Contractor shall dispose of it in approved dumping sites which shall be managed in such a way as to prevent undue erosion and sedimentation. Such management measures shall include slope stabilization and re-vegetation planting. The contractor will be responsible for obtaining local permission and any necessary permits for utilizing dumping sites. Prior to utilizing such dumping sites the contractor shall seek approval from the supervising engineer who will check that all necessary approvals have been obtained and that appropriate dump site management measures are in place. 40. Solid and sanitary waste disposal. Solid and sanitary waste from the construction site if not properly managed and disposed of appropriately could give rise to health risks to the nearby community of students, staff and local residents as well as the contractors workers. It could also cause pollution of nearby land and water courses. To prevent health risks and land and water pollution the Contractor shall (i) establish a solid waste management system on the site to ensure that all solid waste arising from the construction works is routinely collected, stored and disposed of in an approved landfill; (ii) submit a plan for the solid waste management

9

system to the supervising engineer for approval prior to commencement of works; (iii) establish septic sanitation facilities on site for construction workers; and (iv) Prevent untreated human waste from being discharged onto the site or onto land or water courses off the site. 41. Pollution related to spillages and disposal of fuel and lubricants. Heavy equipment used during construction will comprise mainly several excavators, a grader, and trucks. These will require regular refueling and periodic maintenance on site during construction work. This could give rise to the potential for oil and fuel spillages contaminating the ground and water courses. The Contractor shall ensure that fuel and oil storage areas are located well away from any watercourses and are provided with a concrete platform and are bounded so that any fuel leakage is stored on site. Additionally these areas should be provided with interceptor traps so that accidental spills cannot escape and contaminate the aquatic environment. Refueling should be carried out at the fuel storage area. All waste oil and replacement oil and fuel filters should be stored and disposed of to acceptable industry standards. 42. Safety risks from construction traffic. The movement of construction traffic working within and around the site will increase the risk of accidents both on and off-campus. The Contractor will be required to implement safe construction traffic management measures on site to reduce risks from traffic accidents. This will include appropriate signage, slow traffic speed, provisions for temporary walkways and other measures as required. 43. Access constraints to nearby villages. Construction operations could give rise to blocked or reduced access to nearby villages. The Contractor shall ensure that construction activities do not result in reduced access to nearby villages and will implement appropriate measures as necessary to ensure that access to all nearby villages is properly maintained throughout the construction period. C. Operation Impacts 44. To supply sufficient water for the CU development is an urgent matter that the Project needs to address. As noted above the proposed infrastructure development program for CU includes the provision of piped town water supply and the GOL has agreed to provide sufficient recurrent funding to maintain and pay for the water supply during operation of the facilities as part of its contribution to the project. Studies including current and future water demands for the project, maximum sustainable yield of the ground water resources and water quality testing of ground water resources will be undertaken. These studies will contribute to the design of the piped water system and determination of appropriate measures to protect the ground water resources and ensure the heath safety of water users. 45. It is important that the piped water supply meets national drinking water standards to ensure that water users are not at risk due to the project. It will be the responsibility of the CU to ensure that the piped water supply meets national drinking water standards. 46. Improved drainage infrastructure provided by the project will ensure that health impacts are minimized. The project must ensure that appropriate sewerage treatment and disposal infrastructure is provided for the new facilities so as to avoid pollution of nearby surface and ground water resources. Waste water discharges will be required to meet provincial or national wastewater discharge standards.

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47. An appropriate solid waste management system will be established during operation of the new facilities to ensure routine collection storage and safe disposal of solid waste. Solid waste shall be disposed of at an existing formally designated landfill.

V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN

A. Relevant Regulations 48. The 2002 Decree for Regulation of Environmental Assessment is currently under consideration by the Water Resources and Environment Authority (WREA). WREA is the main co-coordinating government agency for environmental planning and management issue for all socio and development projects. It is understood that the 2002 Decree for Regulation of Environmental Assessment is currently under consideration by the WREA. Revised legislation is expected to be available in late 2009 (see Table SAE.1 for Key Relevant Lao PDR Laws and Regulations).

Table SAE.1: Key Relevant Lao PDR Laws and Regulations Title Date Environment Protection Law 1999 Law on Water and Water Resources 1996 Land Law 1997 The Electricity Law 1997 Forestry Law 1996 Decree for the Regulation on Environmental Assessment in Lao PDR 2002 Decree to Implement the Law on Water and Water Resources 2001 Decree on the Preservation of Cultural, Historical and Natural Heritage 1997 Law on Natural Heritage 2005 Decree on Resettlement and Compensation Laws for Development Projects 2005 Implementing Decree for the Environment Protection Law 2001 Industrial Waste Discharge Regulation 1994 Regulation on the Management of the National Biodiversity Conservation Areas, Aquatic and Wild Animals

2001

Regulation for the Adoption of Ambient Environmental Standards (Draft) 1999 Technical Guidelines for Resettlement and Compensation 2005 Regulation for Health Impact Assessment (Draft) 2007

Source: Asian Development Bank.

B. Project Implementation Arrangement 49. The executing agency of the Project will be MOE. The Project Steering Committee (PSC) established under the project preparatory technical assistance (PPTA) will continue to provide overall guidance to the Project and support cross-agency policy dialogue. Within DHE, (i) a Project Coordination Unit headed by Director General of DHE/Project Director will be established to undertake overall coordination of the Project activities; and (ii) a DHE project implementation unit (D-PIU) headed by Deputy Director General of DHE/Project Manager will be established to implement and supervise Project activities at the central level. Project implementation units will be established in each participating university (NUOL-PIU, CU-PIU

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and SU-PIU) to coordinate with D-PIU and concerned provincial authorities in implementing and supervising the Project, including procurement activities, monitoring, and reporting. C. Environmental Responsibilities 50. Main environmental responsibility divided by WREA, PCU, CU-PIU, and Provincial Government in Champsack. The CU-PIU with overall guidance from the PCU is responsible for ensuring that the mitigation and monitoring measures proposed in the IEE report are undertaken in accordance with the EMMP (see Appendix 2). The following responsibilities apply for environmental management details (Table SAE.2):

Table 2: Environmental Responsibilities Agency Role Construction Operation WREA Foresee overall supervision and guidance: PCU Overall supervision IEE preparation and implementation:

- Review the IEE and coordinate on approvals from ADB;

- Ensure the environmental mitigation and monitoring plan is included in contract documentation; and

- Advise and coordinate with other government agencies concerning the environmental issues

- Submit environmental monitoring reports to ADB for review. Environmental monitoring reports will be included as part of the routine project progress reports to ADB.

CU PIU Principal responsibility for environmental mitigation and monitoring plan implementation:

- Arrange site assessment of livelihood of occurrence of fossils at excavation sites, and arrange appropriate supervision to identify and preserve fossil specimens that may appear;

- Submit the IEE to Provincial Government for getting an approval and deliver it to PCU to secure the WREA and the ADB’s approvals;

- Update and revise the IEE as required in secure the necessary approvals;

- Conduct consultations meeting with local residents in respect of specific sites where the proposed works include excavation. Determine the needs for any further investigation and/or clearance services and then submit to the PCU; and

- Prepare an environmental mitigation and monitoring plan as part of the IEE or during the preconstruction period

- Monitor compliance with environmental mitigation and monitoring plan

- Submit environmental monitoring reports to PIU for inclusion in project progress reports to ADB.

Provincial Government

- Coordinate provincial and district agencies as necessary for implementation of the

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Agency Role Construction Operation environmental mitigation and monitoring plan during construction and operation, and ensure compliance monitoring.

ADB = Asian Development Bank, CU = Champasak University, IEE = Initial Environmental Examination, PIU = project implementation unit, WREA = Water Resources and Environment Authority. Source: Asian Development Bank. D. Environmental Mitigation and Monitoring Plan 51. A proposed EMMP for the project is presented in Appendix 2. The plan summarizes:

(i) the key environmental impacts identified in the IEE for various project stages; (ii) recommended mitigation measures that would reduce each identified impact to

acceptable levels; (iii) the relevant parties responsible for implementing the mitigation measure; and (iv) environmental monitoring requirements.

52. Construction related environmental mitigation measures identified in the plan will be incorporated into the contract documents. 53. At the commencement of the project a national environmental specialist (ES) will be appointed to assist the PCU and CU-PIU update the IEE and implement the EMMP.6 The ES will also review and update the EMMP. During construction the ES will monitor the contractor’s compliance with environmental specifications in the contract document and report the status of compliance to the PCU and CU-PIU. Where noncompliance is identified the ES will instigate corrective actions and follow-up as necessary. The role of the ES will be an important one in facilitating a proactive approach to environmental mitigation as well as ensuring that contractual environmental mitigation measures are properly implemented and effective. The ES will also provide a key interface between the public, the contractor and the CU-PIU. E. Environmental Monitoring 54. Environmental monitoring has several objectives (i) To determine whether the impacts have been correctly predicted; (ii) to ensure that mitigation programs are in fact implemented and meet specified targets; and (iii) to meet environmental compliance parameters such as releases to water, soil and air bodies. Monitoring will allow the actual situation to be compared to the required release standard or the predicted situation so as to allow corrections to be made to the mitigation intervention. 55. In the case of the Project the potential environmental impacts identified are mainly temporary construction impacts that can be readily mitigated through implementation of standard mitigation measures commonly associated with good engineering practice and integrated into contract documents. In this case monitoring objectives can be best achieved through proactive site supervision involving regular visual inspection and ensuring that the mitigation measures and procedures for ensuring good environmental practice specified in the contract documents are fully implemented. The ES will play a key role in this regard. 56. During the operational phase it will be necessary to undertake limited quantitative monitoring of water quality parameters to ensure compliance with national drinking water standards and waste water discharge standards. 6 Terms of Reference for the national environmental specialist are provided in Appendix 3.

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57. Proposed Environmental monitoring requirements for each phase of the project are presented in the EMMP (Appendix 2).

VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 58. Consultations took place during the PPTA phase among provincial, district (village), and university level stakeholders. The objectives of consultations were to collect necessary information and data for conducting the IEE, and to inform the local government authorities, surrounding villages and university community of the overall CU development plan under the Project, and IEE findings and proposed measures. The Project is highly supported and appreciated by the provincial government and district authorities, as well as villagers, university teachers and students, including the Chief of village of Chansan, which is the closest village to the Project area. Teachers, students (both women and men) were also interviewed and consulted. 59. The findings from all interviews showed that the first priority is to have water supply system running that can be used throughout the year. The second priority is set up drainage system around the Project area. The third priority is garbage management. The fourth priority is road improvement to avoid mud during rainy season and dust during dry season. Such concerns were taken into considerations in the design of the Project interventions. Willingness among teachers and students to contribute to O&M of infrastructure and facilities was also recognized. Public consultation is an on-going process and continuous dialogue with the project affected communities and people will be carried out during the detail design and implementation period. A summary of consultations is in Appendix 4.

VII. FINDINGS AND CONCLUSION 60. Issues. Major environmental issues raised by the CU can be summarized as follows:

(i) Potential impacts on surface water and groundwater quantity and quality; (ii) Impacts on air quality from dust generation from the construction process and

road transportation; (iii) Soil erosion of disturbed areas and the potential for in-stream or floodplain

sedimentation; (iv) The impact of noise emissions, particularly locations near the construction site; (v) Potential increase in pressure on land due to the concentrated approach on

facilities development; and (vi) Impacts associated with construction and operation of the road upgrading.

61. Mitigation. The Project will address key environmental issues of access to improved water, toilet/sanitation facilities, and drainage system. The water supply improvements are expected to have a major positive impact on the public health and quality of life for administrative staff, teachers, and students who come to and live in the CU campus and for nearby communities. Establishment of a new piped water system will eliminate water shortages and conflicts over water use. The improved drainage system will lead to improved sanitation conditions. Setting up a new waste management system will promote good health condition for people who live within the Project area and nearby communities. Infrastructure development is another important benefit. An internal road and connecting corridor within the CU campus area will increase accessibility for students and teachers to all buildings without any inconveniences. In addition, a new curriculum and textbook/learning materials development for CU, especially

14

those in interdisciplinary common-core courses, will include elements of awareness raising for better and sustainable environment including awareness on climate change. 62. Budget. The Project will involve a total cost of approximately $2.5 million to improve the campus road and drainage system, and approximately $0.5 million to improve the water supply system including the cost for ground water investigation. Approximately $2.25 million will be spent on curriculum and textbooks/learning materials development including awareness raising for better and sustainable environment, and approximately $2.5 million will be provided for laboratory equipment including laboratory water quality testing equipment. A national (6 months) environment specialist will be recruited to assist PCU and CU-PIU in reviewing and updating the IEE and implementing the EMMP. 63. Conclusion: The overall findings of the IEE is that the Project will not cause significant environmental problems and that potential adverse environmental impacts are minor and manageable through the implementation of the environmental mitigation and monitoring plan. The Project will have significant positive impacts on the quality of the environment for the surrounding villages and CU campus through providing safe, reliable water supply and clean sanitation/toilet facilities, and road and drainage improvements. No further environmental assessment is therefore required, beyond the issues to be reviewed during detailed design.

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Appendix 1

Questionnaire

Interview name: Date: 7/2009 Interviewer name: Village Chief’s name: Village representative group (age, gender, household wealth) 1. 2. 3. 4. 5. 6. 7. 1. Location, Access and transportation 1.1 Name of main transport route: All year access (Y/N): 1.2 Name of secondary transport route: All year access (Y/N): 1.3 Distance from District center using main transport route (km/time): 2. Demographics: Information from village book 2.1 Total number Households: 2.2 Total population: 2.3 Ethnicity Group Religion Total number of (households) 2.4 Demographic changes over the last year Number of people Number of births last year? Number of deaths last year? Number of new people moving to village Why people come? Number of people leaving village Why people leave?

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3. Wealth Rankings 3.1 Wealth groups: Level Number

HHs Average household income (Kip per year)

Indicators used

Well off

Average

Poorest

3.2 Disadvantaged households: Type Number of

households Single female head of household

Household with no labour

Household with Infirmed/elderly

Landless HHs Other sub group:

4. Plantations 4.1 What types and areas of plantations does the CU currently manage?

Plantation Type Ha Year planted

Teak Plantations (ha)

Rubber Plantations (ha)

Paper Plantations (ha)

Other Plantations 1 (ha) specify:

Other Plantations 2 (ha) specify:

4.2 Type of soil around the campus area type Percentage Using Hard soil Hard soil mix with big stone Plantation soil

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5. Temperature change: How is the temperature changed in last 5 years ago? Lowest Temperature From month To month Highest Temperature From month To month How is the raining season? Come early Come late 6. Key Fishery areas/zones Area Number/size (ha) Fish Conservation Zones Fish Holes Fish ponds Aquaculture areas 7. UXO Clearance Has UXO team has been surveyed here before? Yes No When

Anyone had ever found UXO? Anyone get hurt before? 8. Main livelihood activities: What is the primary source of income for the village? (i.e. rice product, livestock raising, fish, tourism, etc.)? 9. Are there any deep pools close to this campus (about 10 to 30m in depth)? (Yes or No). 9.1 Where are they? 9.2 If so, are any of them protected by village rules as conservation areas? (Yes or No).

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10. Access to Services 10.1 Services available to Village: Location (which

village) Distance from your village (km or time/transport)

Any development plans are going happen in nearly future

Temple Permanent Market Primary school Lower Secondary School

Upper Secondary School

Clinic Hospital Agriculture extension Other (specify)

10.2 Water and sanitation in the village: No. of wells No. Water tanks No. toilets in village No. HH use river water for domestic supply

11. What water resources are accessed by the village?

Water Number Description

Mekong stream access point

Tributary access point

Pump (water diverted from Mekong)

Type Distance from house/dorm (walking time)

Wet season (Y/N)

Dry season (Y/N)

Boil or treated before drinking (Y/N)

Shallow Well Deep Well Bore Water tank Stream Spring

Nam lin (gravity fed spring)

River

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Nam Lin

Groundwater Well (open)

Groundwater Pump

Pond (fish)

Irrigation channel/pumps

Other (specify):

12. Electricity No. of households with electricity? Main source of electricity? power line Small hydro Solar Battery Oil

13. Health 13.1 Where do people mostly go for medical treatment? (please circle) a. treat at home b. village health rep c. clinic d. hospital d. Provincial hospital 13.2 What is main cause of death in village?: 1. 2. 3. 4. 5. 6. 13.3Health issues in community ( clinic, sook sala, village health volunteer records): Issue Number Cases over last

12 months Caused Deaths over last 12 months

Malaria Dengue Diarrhea Infant mortality HIV / AIDS Other: Lung cancer Liver Bao wan cancer

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13.4 How many times has the government vaccination team visited the village in the last 12 months 14. Education level of community Total percentage Education Level % Adult population 18-

39 % Adult population 40-60

Male Female Male Female No schooling Finish Primary school Finish High school Technical or Higher training University Post graduate 15. Waste Types Very Much

normal Not much

Every week Kip/month UDAA Kg

Solid waste Liquid waste How is waste systems How much do you pay? Average waste at your house/dorm

16. General community concerns, problems, issues: 17. What are your main concerns about this project? 18. If the project happens, what things would you want done to address these concerns.

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Appendix 2

ENVIRONMENTAL MITIGATION AND MONITORING PLAN Potential Impact Mitigation Measures Responsibility Monitoring

requirements

Pre-Construction Stage Undertake water resource studies; Determine water resource demand requirements Assess maximum yield of underground water resources Undertake water quality testing of ground water resources

PCU, CU-PI, Design Consultant

Pre-construction environmental audit by Environmental Specialist (ES)

Design piped water supply system to meet future demand requirements

PCU, CU-PI, Design Consultant

Pre –construction audit by ES

Prepare water resources management plan CU-PI

Pre –construction stage audit by ES

Water use conflicts

Contractor to provide own water supply to meet construction requirements Contractor

Visual inspection by ES

Construction Stage Spray water on all unpaved site roads being constructed, upgraded and/or used for construction traffic at least twice per day during dry weather especially before and after class hours

Contractor, Visual inspection by ES

Ensure soil materials being transported by trucks are properly covered with tarpaulins; Contractor


Dust

Ensure temporary stockpiles of soil are covered, or regularly sprayed with water to prevent wind-blown dust arising

Contractor Visual inspection by ES

Ensure construction equipment well maintained Contractor


Schedule construction activities outside class hours Contractor

Discussion with Contractor and visual inspection by ES

Co-ordinate with and advise CU authorities at all times regarding proposed timing, type and location of construction activities.

Contractor Discussion with CU authorities by ES

Noise

Install temporary noise barriers to limit impacts to acceptable levels Contractor

Periodic noise measurements after complaints to determine acceptability against national standards

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Potential Impact Mitigation Measures Responsibility Monitoring requirements

Obtain supervising engineer’s approval for dumping site.

Contractor/Supervising engineer

Discussions with Supervising Engineer by ES

Disposal in approved dumping sites and obtain permission/permits as required Contractor

Visual Inspection by ES

Disposal of surplus excavated material

Stabilise slopes and revegetate progressively to avoid erosion Contractor

Visual Inspection by ES

Establish and implement construction site solid waste management plan and submit to supervising engineer for approval.

Contractor/Supervising engineer

Inspection of approved plan by ES

Ensure solid waste routinely collected, stored and disposed of in an approved landfill


Establish septic sanitation facilities on site for construction workers. Contractor


Solid and sanitary waste disposal

No untreated human waste will be discharged onto the site or allowed to enter surface water bodies


Fuel and storage areas to be located well away from water courses and are provided with a concrete platform so that fuel leakage is stored on site


Fuel storage areas to be provided with oil interceptor traps so that accidental spills cannot escape and contaminate the ground or aquatic environment


Refuelling to be carried out in fuel storage area Contractor


Pollution related to spillages and disposal of lubricants

Waste oil, replacement oil and fuel filters to be stored and disposed of to acceptable industry standards


Safety risks from construction traffic

Implement construction traffic management measures on and around the site to reduce risks of traffic accidents. This shall include appropriate signage, slow traffic speed, provisions for temporary walkways and other measures as required.


Access constraints to nearby villages

Ensure construction activities do not result in reduced access to nearby villages and ensure safe access is maintained throughout the construction period


Operation Stage

Maintenance of safe and adequate water supply

Ensure piped water supply meets national drinking water standards CU

Once per year water quality monitoring of standard water quality indicators by CU.

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Potential Impact Mitigation Measures Responsibility Monitoring requirements

Ensure adequate water supply is maintained at all times

Cahampasak Provincial Government CU

Ensure efficient operation of sewerage treatment and disposal infrastructure such that wastewater discharges meet provincial or national standards as appropriate.

CU

Annual monitoring of waste water discharges by CU (reporting to WREA) covering all parameters applicable to national discharge standards

Establishment and operation of a solid waste management system for CU. CU

Site inspection by provincial office of WREA

Water quality and health impacts

Solid waste shall be disposed of at an existing designated landfill. CU

Site inspection by provincial office of WREA

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Appendix 3

Terms of Reference for Environmental Consultant (6 person months)

I. Objective/Purpose of the Assignment

The objective of the assignment is to ensure that environmental issues associated with the design construction and operation of the infrastructure provided under the SHEP are properly addressed and managed throughout all phases of project development so that there will be no unacceptable impacts resulting from the project.

II. Scope of Work

The scope of work involves providing support for effective implementation of the environmental mitigation and monitoring plan (EMMP) for the project.

III. Detailed Tasks A. Review and Updating of the IEE and EMMP

1. Review and update the IEE in light of updated project documentation and new information on the existing environmental conditions in accordance with ADB guidelines and the Government of Lao.

2. Update and finalize the EMMP in the light of the updated IEE

3. Based on updated EMMP develop and recommend indicators for monitoring, data

gathering and reporting formats and procedures for feedback and project adjustments. Assess capacity of borrower to implement updated mitigation and monitoring measures and recommend measures to address gaps.

4. Secure endorsement of the MOE on the updated EMMP and assist MOE acquire all

necessary government clearances for mitigation measures as necessary.

5. Ensure that the EMMP is included in tender and contract documentation for all project construction contracts

6. Identify areas that may have UXO risks and advise the MOE on necessary preventative and corrective actions

B. Support in Implementation and Monitoring of Mitigation measures

1. Assist the PCU and CU-PIU in supervising implementation of mitigation measures in accordance with the EMMP including evaluation of work undertaken on mitigation measures and monitoring requirements and providing advice on corrective actions as necessary.

25

2. Provide capacity building as required on the environmental and social aspects of environmental management and monitoring and on the proper techniques of monitoring and data collection.

3. Liaise with government agencies, local communities, NGOs, and other stakeholders

concerned on the environmental aspects of the project. C. Preparation of Environmental Monitoring Reports.

1. Prepare semi-annual reports on progress and issues on environmental mitigation and monitoring.

IV. Output/Reporting Requirements 1. Updated IEE and EMMP. 2. Semi-annual monitoring reports

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Appendix 4

Summary of Consultations Date Location Persons met

(Name/Position) Issues Raised

18 May 2009 Pakse

Mr. Khamphai Luanglath/ Deputy Director, Provincial Agriculture and Forestry

Meteorology information is inadequate. Forestry and Agriculture Office is concerned with water resources, forestry and environment, but the Provincial Forestry and Agriculture office has not yet played any role in the expansion and improvement of Cahampasak University (CU).

18 May 2009 Pakse

Mr. Vilavong Vannalath/ Engineer of Provincial Agriculture and Forestry

The Forestry and Agriculture Office is concerned with noise and surplus excavated materials during construction. However, under the project campus site development at CU, there would be not so much noise and excavated materials.

18 May 2009 Pakse

Mr. Sengsouvanh Inthichak/Deputy Director, Provincial Water Sources and Environment Administration

This office is recently established (2007) but can not carry out water quality analysis since it does not have a laboratory or equipment to carry out the work and expects that equipment to be purchased under the project includes the one for water quality analysis.

19 May 2009 Pakse

Mr. Bounnad Soumphonpakdy/Deputy Head, Provincial Urban Development Administration Authorities (UDAA)

The UDAA has the responsibility to collect and dispose of waste from the urban municipality such as markets, hospitals, schools, institutes, organization, offices etc. Presently solid waste from Pakse district is, about 40 tons/day. It is collected and disposed of at a landfill site. The solid waste should be covered periodically.

19 May 2009 CU Mr. Sourivone

Boutdavong/Teacher

The students need proper toilets. The often have to use the forest. So hygiene could be a problem. Dormitories are not good standard, especially the boys’ dormitory

19 May 2009 CU Mr. Phoungeun

Phoumilay/Teacher

Presently, the water supply is inadequate and it cannot meet demand from the university. At the moment, there is no good system for collection or disposal of rubbish. Not enough and proper toilets for students.

20 May 2009

Pakse District

Mr. Somkiat Sangsoulivong/Village Head, Chansan Village

We need better roads. In the rainy season it is really muddy and a lot of dust in the dry season. It is difficult to get to our village except by motorbike.

27

24 July 2009

CU Mr. Koda Sivilay/Student (from Cahampasak)

The most needed for the CU is better roads, canteen, sport facilities, and bath rooms with separate male/female toilets in dormitories.

24 July 2009

CU Ms. Anong Souksaath/ Student (from Cahampasak)

The most priority needed for the CU is safe water supply system. We expect that the Project will include a better and safer water supply to the campus to meet the standard.

24 July 2009

CU Mr. Tephengsouvanh Chanthavong/ Student (from Khammoune)

The water supply system is the most needed for the CU. The current system does not work well.

24 July 2009

CU Mr. Thongmay Malayvanh/ Student (from Salavan)

CU needs watering the road, and proper dormitory facilities with bath and toilets. Boy's dormitory is in a bad condition.

24 July 2009

CU Mr. Singhanin Phommasone/Teacher

We need to have better roads. But, during the construction phase, we need to make sure that there would be no accidents on and off-campus due to construction traffic. We also need more toilets and safe water supply system.

24 July 2009

CU Ms. Lamay Pattivong/Teacher

We need adequate power and electricity system. The current power supply is not so stable, especially during heavy rains. We also need separate male and female toilets in the dormitory area and in classroom buildings.

24 July 2009

CU Mr. Xaysavanh Menvilay/Teacher

We need tracks to clean up garbage and any waste disposal in the campus. When the new construction starts in the campus, we need a better waste management system.

25 July 2009

CU Mr. Soutchai Sisourath/ Resident, Chansan Village

We need watering the road since they are so dusty. We need pave roads for future campus development. Then, it is necessary to make sure that there would be no health problems caused by increased dust during construction.

20 May 2009

Pakse District

Mr. Suvan Chansavang/ Resident, Chansan Village

The water supply is a problem and we need better roads to connect our village with the main road.

20 May 2009

Bachieng District

Mr. Phan Chanthery/Village Head, Khon Lai Village

Although there is too much rubbish in the campus area, we need to properly manage any solid and sanitary waste.

20 May 2009

Bachieng District

Ms. Tein Lattahanhot/ Resident, Nonsavang Village

In the dry season, there is not enough water to share among teachers, students and local residents.

20 May 2009

Bachieng District

Mr. Khamphen Chatouphonexay/Resident, Khon Lai village

We need a better water supply. Students leave rubbish around the area. Plastic bags fly around everywhere in the wind.

Supplementary Appendix E