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

SUMMARY

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

FINANCING

APPROVED FUNDING
USD40 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
December 19, 2017
APPRAISAL REVIEW/FINAL REVIEW
January 15, 2019
FINANCING APPROVAL
April 4, 2019
LATEST FIELD VISIT
December 2020
LOAN CLOSING/LAST DISBURSEMENT
May 31, 2023

OBJECTIVE

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.

DESCRIPTION

The project will support national strategy and socio-economic development of Lao PDR by enhancing its road connectivity of the most critical sections of the backbone road network of the country. Specifically, the project will widen the 19 km high traffic section close to Vientiane capital city (Sikeut to Songpeuay market) from the existing two-lane to a four-lane road; and an improvement/strengthening of a 39-km section of two-lane road (Songpeuay market to Phonhong) with Portland cement concrete pavement. The project will use an innovative contracting model, an Output- and Performance-based Road Contract (OPBRC)

The project will comprise three components as described below.

- Component 1: Road Improvement, Maintenance and Operation (USD 120.5 million). This component will finance road widening, improvement, operation and maintenance works and land acquisition required for road works.

- Component 2: Technical Assistance and Supervision (USD 4.8 million). This component will support MPTW to manage the implementation of the OPBRC, traffic safety activities, overloading control; and enhance environmental and social monitoring and supervision. It will also support preparation of studies for future investments on other sections of NR 13.

- Component 3: Project Management (USD 2.7 million). This component will support project management, including technical and operational assistance for the day-to-day management of project activities including training on output and performance-based contracting, project planning and execution, financial management, procurement, monitoring and evaluation, and technical and financial audits. The sub-component will be financed by IDA.

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.

Disclosure. The draft ESIA, RAP and EGEP were consulted on with stakeholders during public consultation, and disclosed on MPWT’s website in English and Lao and the World Bank external website (www.worldbank.org) in January 2018. The final ESIA, RAP and EGEP were disclosed on MPWT’s website and the World Bank website in February 2018. See project summary.

GRM. The project has in place a Project-level Grievance Redress Mechanism (GRM). Grievances will be handled by the relevant village mediation committee, in collaboration with the contractor’s focal person or MPWT’s safeguards specialist.

Grievance Redress Service/Inspection Panel. Since AIIB has agreed to the application of the WB’s ESSP, it has also agreed, consistent with AIIB’s Policy on the Project-affected People’s Mechanism (PPM), to rely on the WB’s corporate Grievance Redress Service (GRS) in lieu of the PPM’s Project Processing Query and Dispute Resolution functions, and to rely on the WB’s Inspection Panel in lieu of the PPM’s Compliance Review function. Communities and individuals who believe that they are adversely affected by the project may submit complaints to the existing project-level GRM or the WB’s GRS. See http://www.worldbank.org/en/projects-operations/products-andservices/grievance-redress-service for the GRS or www.inspectionpanel.org for the Inspection Panel.

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

 

IMPLEMENTING ENTITY

Pheng Douangngeun

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

pheng_dng@yahoo.com

 

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