GMS Sustainable Tourism Development Project in Lao PDR
ADB Grant - 0117 Lao [SF]
PCU Quarterly Progress Report 7
1 October – 31 December 2010
1. Introduction
Grant Data: ADB Grant 0117 Lao [SF]
Grant Amount: US$ 10 million
Estimated Project Cost: USD ($) 10.99 million
Date of Grant Effectiveness: 30 March 2009
Project Implementation Period: 1 April 2009 – 31 December 2013 (54 months)
Time Elapsed Since Grant Effectiveness: 21 months (38.89%; 21 of 54 months)
Overall Implementation Progress: 43.98%
Project Budget
ADB: 10,000,000 US$
Government Contribution: 994,276.98 US$
Total: 10,994,276.98 US$
Expenditure projection for this 3-month reporting period: 880,000 US$
Government contribution: 80,000 US$
Budget spent for this 3 month reporting period (ADB): 599,121.16 US$
Government contribution: 24,260.08 US$
Cumulative expenditure since Grant effectiveness (ADB)
Q1: 431,433.12
+ Q2: 423,126.35
+ Q3: 433,914.63
+ Q4: 472,297.56
+ Q5: 415,182.47
+ Q6: 678,791.40
+ Q7: 559,121.16
= US$ 3,453,866.66 or 34.54% of $10,000,000
Project Scope:
The GMS Sustainable Tourism Development Project (GMS-STDP) in Lao PDR is mainly financed by a US$ 10 million grant from the Asian Development Bank with additional budgetary resources of $0.87 million sourced from the Government of Lao PDR. The Lao National Tourism Administration (LNTA) is the executing agency responsible for the coordination, management and implementation of the project in the 9 target provinces of Champasak, Salavanh, Savannakhet, Vientiane Province, Houaphanh, Oudomxay, Sayabouli, Bokeo and Luang Namtha.
The expected impacts of the Project are the development of a sustainable, culturally and environmentally sound, pro-poor approach to tourism in the GMS and the preservation of natural and cultural heritage. Expected project outcomes in Lao PDR are poverty reduction, sustainable development, protection of the natural and cultural heritage and protection of vulnerable groups from exploitation. To achieve this goal the project seeks to enhance the protection and conservation of natural, cultural and urban heritage assets of importance for tourism; increase tourism’s contribution to poverty reduction by expanding the traditional community-based tourism approach to include tourism-related supply and value chains interventions; improve the facilitation of tourism along the economic corridors by improving services and management of tourist attractions found there; raise public sector official’s tourism management skills at the national, provincial, district and site level; improve service and hygiene standards among staff in small to medium hospitality enterprises; and enhance local private sector participation in small and medium scale tourism enterprise investment and operation.
There are 5 parts of the project in Lao PDR:
Part 1.A: Biodiversity Conservation and Protection through Tourism at the Siphandone Wetland
Part 1.B: Urban Environment Protection and Management - Vang Vieng Town Waste Water Centralization and Treatment
Part 2: Pro-Poor Tourism Development in Salavanh, Vientiane Province, Houaphanh, Oudomxay, Sayabouli and Bokeo
Part 3: Facilitation of Tourism on the North-South (Part 3.A) and East-West (Part 3.B) Economic Corridors
Part 4: Human Resource Development
Part 5: Institutional Strengthening and Implementation Assistance
The GMS-STDP also includes the Socialist Republic of Viet Nam where the project shares the same goal and expected outcomes. Implementation, coordination and management of the project in Viet Nam is the Ministry of Culture, Sports and Tourism in 5 target provinces of Bac Kan, Cao Bang, Quang Binh, Quang Tri, and Thua Tien Hue. The East-West Economic Corridor traverses Quang Tri and Savannakhet provinces in Central Lao PDR and Central Viet Nam. Other target provinces that share common borders are Thua Tien Hue in central Viet Nam and Salavanh in southern Lao PDR.
This report concerns project progress in Lao PDR only.
Summary of Project Progress:
Implementation of the GMS Sustainable tourism development project in Lao PDR is proceeding smoothly, and in general, the project is on track to achieve or exceed its expected outcomes. The Lao National Tourism Administration is effectively fulfilling its role as the project’s executing agency and has established project supervisory, financial, and technical and personnel administration systems that meet ADB and Lao Government (GoL) guidelines.
This report covers project quarter 7 (1 October – 31 December 2010).
Project Support Facilities & Personnel:
Adequate facilities have been established at the LNTA headquarters in Vientiane where the Project Coordinating Unit (PCU) is located. Project Implementation Units (PIU’s) have been established in 9 Provincial Tourism Departments and the Vang Vieng Urban Management Authority. Computers, vehicles and office equipment and supplies have been provided to each PIU/PCU to facilitate project logistics and implementation. Each PIU/PCU is staffed with a contingent of at least 4 civil servants and sub-contractors to implement and administer the project.
International and Domestic consultants have been contracted by the EA as needed and on schedule. Consultants are effectively fulfilling their role to build the capacity of the EA and PIU’s to implement the project and are providing both advisory services and hands-on assistance to ensure project activity implementation meets set targets, and project administration is in-line with ADB and GoL requirements.
While individual consultants and the Firm Lao Consultants Group have been recruited on schedule, the preparation of construction drawings and cost estimates has proceeded slower than anticipated because of the high number of proposed works/structures that needed to be designed and costed. However, by the end of this reporting period, all drawings and cost estimates have been completed and contracts have been awarded or bids are under evaluation.
Weighted progress:
Project progress by weighted activity is 43.98% as calculated in attachment B. Figure 1 illustrates the percentage of project progress relative to percentage of project funds disbursed and time elapsed.
Figure 1. GMS-STDP in Lao PDR: Time elapsed, disbursement and weighted activity progress
Activity output records:
A complete record of the percentage of activity outputs (including project supported training activities) achieved during this reporting period (from 1 October – 31 December 2010) versus activity targets, including gender disaggregated data, is summarized in attachment C.
Participation in project related trainings, workshops and seminars for the first three biennia of project implementation is shown in the table below. Combined Q7 & Q8 attendance will be reported in the next (Q8) progress report.
Summary of Attendance in project-supported workshops, seminars and trainings
Reporting Period / Male / Female / TotalQ 1 & Q 2
1 April 2009 - 30 September 2009 / 1,584 / 798 (33.5%) / 2,382
Q 3 & Q 4
1 October 2009 - 31 March 2010 / 1,621 / 1,303 (44.5%) / 2,924
Q 5 & Q 6
1 April 2010 – 30 September 2010 / 1,723 / 1,207(41.2%) / 2,930
Q 7 & Q 8
1 October 2010 – 31 March 2011 / - / - / -
Total / 4,928 / 3,308 (40.2%) / 8,236
Source: Summary of project outputs attachments in project quarterly reports 1-6
A review of attachment C shows that the PCU and PIUs are making progress towards achieving activity output targets. However, it is anticipated that not all the activities in the ambitious work plan can be completed before the end of this workplan period due to heavy PIU/PCU workloads. Furthermore, it was decided to postpone the production of some promotional materials (such a leaflets promoting CBT and supply chain products) until the products they are promoting are ready to be sold.
As reported above, in general, the project is making solid progress, but the large number of PIU’s, complicated ADB and GoL administrative requirements, ambitious work plans and geographically disbursed project target areas are both challenging and exhausting project staff and consultants. PIU’s general low capacity and a lack of experience to plan for and develop stainable tourism independently without assistance from project consultants exacerbates this challenge. The fact that some unfinished activities from the previous project workplan had to be carried over into the current workplan has compounded this problem. To address this, the EA is considering extending the International Ecotourism Planner’s contract with the project and to engage additional short-term subcontractors to expedite the implementation of project activities.
2. Project Organization and Management
Implementation Arrangements:
The Lao National Tourism Administration (LNTA) has appointed a Vice–Chairman of LNTA to serve as the Lao PDR representative on the project’s Subregional Project Steering Committee. One Subregional Steering Committee meeting was held on 7 May 2010 in Siem Reap in conjunction with the TWG-25 and Mekong Tourism Forum 2010. The second meeting was scheduled for November 2010 in conjunction with the TWG-26 in Jinghong, China, although had to be postponed due to unavailability of the ADB project officer. However, Lao PDR and Viet Nam PCUs were able to exchange experiences with project execution and management during a four day study tour hosted by Lao PDR in October 2010.
At the national level, the National Project Director (Director-general of the LNTA’s Department of Planning and Cooperation) serves as the National Project Steering Committee Chairman and members of relevant organizations (Planning and Investment, Foreign Affairs, Prime Minister’s Office, Finance, Water Resource and Environment Agency and Vice-Governors from participating provinces) have appointed representatives to the National Project Steering Committee. The most recent 6-month project review and planning meeting was held in Savannakhet, Lao PDR from 16-20 September 2010. The next meeting is planned for 16-19 March 2011 in Champasak, Lao PDR.
At the provincial level in 9 provinces, Provincial Steering Committees are established and chaired by the Deputy Provincial Governor. These committees are comprised of related Departments (Transport, Environment, Culture and Information, Planning and Investment) and district authorities.
Establishment of PCU and PIU’s: A project PCU with 3 full time supervisors & 3 staff has been established in the Lao National Tourism Administration headquarters building in Vientiane and 10 PIU’s established in 9 provinces. Vientiane Province has two PIU’s – one embedded in the Provincial Tourism Department to implement Part 2 of the project and one embedded in the Vang Vieng Urban Management Authority to implement part 1 B of the project. Each PIU is staffed with 4-5 individuals seconded from the Provincial Tourism Department or Urban Management Authorities (for Vang Vieng). A roster of PCU and PIU staff and project consultants active during this reporting period is shown in attachment D. Equipment and materials to outfit each PIU has been purchased as needed and within budgetary resources available. Requests to purchase additional project-related equipment will be made to ADB on an as-needed basis for the remainder of the project.
Organization and Staffing of PCU and PIU’s: The PCU consists of a National Project Director, National Project Manager, Financial Controller, Accountant, Secretary and Administration Assistant. Each of the 10 project PIU’ is staffed by a PIU Director, PIU Manager, Accountant, and 1-2 Technical Officers that meet the requirements outlined in Job Descriptions included in the Project Administrative Memorandum (PAM).
3. Assessment of Implementation Progress
Part 1.A: Biodiversity Conservation and Protection through Tourism at the Siphandone Wetland:
This subproject involves three civil works packages that will improve access to the wetlands main attractions, provide facilities to educate visitors about its cultural and natural heritage and improve environmental conditions. Civil works have been packaged as follows:
1. STDPII-CPS-01: Nakasang Access Road & River Promenade (contracted to Somxay Chalern Construction Company for ($588,892.43), which includes the upgrade to paved condition the 4 km dirt track (6m-wide with 0.5m shoulders) that connects Route 13 to Nakasang Village, the gateway to the tourism attractions on Done Det and Done Khone islands, construction of sidewalk and drainage (400m) and construction of a retaining wall and riverside promenade (70m) with boat landing. Recent additions to this package include improvement of the access road to market and information center (70m) and a sidewalk and drainage (212m). These additional works do not exceed the amount of contingency funds available in the contract and are within the scope of the existing resettlement plan and IEE.
2. STDPII-CPS-02: Nakasang Market & Information Center (contract awarded to Indaphone Construction Company for $429,508.18), including construction of a new Nakasang market, parking area, public toilets and a new tourist information center
3. STDPII-CPS-03: Don Det–Don Khone Track Improvement and Tourism Facilities (contract awarded to Chaloernxokxay Road and Bridge Construction Co. for $261,934.78) that will reshape and improve the island’s existing 9 km gravel track and car park (262.5m2) and construct a tourist pavilion and viewing deck (combined 133m2).
As of 31 December 2011, physical completion for these three packages combined is estimated at 43.6%. More details on these packages as well as physical completion per package are reported in section 5.b of this report.
The updated Resettlement Plan for this subproject identifies a total of 132 households with 697 affected persons (APs). 12 households will be severely affected as defined by a loss of more than 10% of their productive assets, with 3 of the severely affected households required to relocate their permanent shops from the riverbanks to the new market. The Khong District authorities have paid these 3 households a lump sum for the compensation of the structures that is lower than the calculated compensation but includes a 20m x 40m (800 m2) plot of land in the village, which is valued at around 12 million kip (15,000kip/m2). Land use agreements have been granted by the District to each of the three families. The other 9 severely affected families formerly operated food stalls on the beach during the dry season but will be prohibited from doing so by the District authorities beginning in 2011 due to environmental concerns. They will relocate to their own residential area in Nakasang Village and will be compensated for permanent loss of income due to loss of their prime location to sell food and drinks to tourists. Other impacts involve temporary loss of income for market vendors and roadside shops during civil works construction. Entitlements have been discussed and agreed with the District Resettlement Committee (DRC) and affected households during preparation of the Resettlement Plan in May 2008 and during surveys for the updated inventory of losses in Dec 2009/Jan 2010. A Public Information Booklet that includes grievance redress procedures was made available to District and village authorities in 2008 for disclosure to the affected households and again during preparation of the updated inventory of losses. Grievance redress procedures have also been posted to the www.stdplaos.com website.