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Lao People’s Democratic Republic: National Road 13 Improvement and Maintenance Project

SUMMARY

STATUS
Approved
ECONOMY
Lao PDR
SECTOR
Transport
E&S CATEGORY
Category A
PROJECT NUMBER
000066

FINANCING

PROJECT TYPE
Sovereign
APPROVED FUNDING
USD40 million
FINANCING TYPE
Cofinanced

TIMELINE

LATEST FIELD VISIT
November 25-29, 2019
CONCEPT REVIEW
December 19, 2017
APPRAISAL REVIEW/FINAL REVIEW
January 15, 2019
FINANCING APPROVAL
April 4, 2019
LOAN CLOSING/LAST DISBURSEMENT
May 31, 2023

OBJECTIVE

The objective is to improve road conditions, safety and climate resilience on critical sections of National Road 13 using an innovative contracting model (OPBRC). The road design will also be strengthened to meet ASEAN standards.

Expected Results: (i) Road condition: Improved road condition resulting in reduction of vehicle operating cost on the project road; (ii) Road safety: Improved road safety resulting in increase in average International Road Assessment Program (IRAP) star rating of the project road; (iii) Climate resilience: Improved road design resulting in project road upgraded and improved with climate resilience measures.

DESCRIPTION

Expected Results: (i) Road condition: Improved road condition resulting in reduction of vehicle operating cost on the project road; (ii) Road safety: Improved road safety resulting in increase in average International Road Assessment Program (IRAP) star rating of the project road; (iii) Climate resilience: Improved road design resulting in project road upgraded and improved with climate resilience measures.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

The project is expected to have positive environmental impacts by improving the climate resilience of the road and reducing greenhouse gas (GHG) emissions. Negative environmental impacts during the construction phase are likely to be site-specific and limited to the project areas. Regarding social benefits, the project is expected to improve travel conditions, road safety, and travel time. Adverse social impacts will be, for the most part, temporary, taking place during the construction phase. The project will result in the acquisition of 1.5 m of land along each side of the current alignment. About 2,400 households will be affected by some form of land acquisition or disruption of commercial activities. The risk associated with labor influx under the project is assessed to be moderate as most workers can be recruited locally. The project operational manual covers management of negative impacts of labor influx and potential risks related to sexual exploitation and gender-based violence. MPWT has prepared an Environmental and Social Impact Assessment (ESIA) as well as an Ethnic Groups Engagement Plan (EGEP), given the presence of the Hmong ethnic community in the project area. A Site-Specific Environmental and Social Management Plan (SSESMP) will be prepared by the construction contractors before commencement of construction works. MPWT has also prepared an Ethnic Groups Engagement Plan (EGEP) for the project, given the presence of the Hmong ethnic community in the project area.

Please review the project summary for additional information.

PROJECT TEAM LEADER

Wenyu Gu

Senior Investment Operations Specialist

wenyu.gu@aiib.org

 

BORROWER

Angkhansada Mouangkham

Deputy Director General, External Finance Department, Ministry of Finance

angkhansada@yahoo.com

 

IMPLEMENTATION AGENCY

Pheng Douangngeun

Director General, Department of Road, Ministry of Public Works and Transport

pheng_dng@yahoo.com

 

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