Document of
The World Bank FOR OFFICIAL USE ONLY
Report No: ICR00004318
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IDA-H5470 TF-93083 IDA-H7890)
ON A
GRANT
IN THE AMOUNT OF SDR 17.9 MILLION (US$30 MILLION EQUIVALENT)
AND
ON AN
ADDITIONAL GRANT
IN THE AMOUNT OF SDR 14 MILLION
(US$21 MILLION EQUIVALENT)
TO THE
LAO PEOPLE’S DEMOCRATIC REPUBLIC
FOR A
ROAD SECTOR PROJECT ( P102398 )
March 27, 2018
Transport & Digital Development Global Practice
East Asia And Pacific Region
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CURRENCY EQUIVALENTS
(Exchange Rate Effective {September 30, 2017)
Currency Unit = Lao Kip
Lao Kip 8,293 = US$1
US$1.41 = SDR 1
FISCAL YEAR
July 1 - June 30
Regional Vice President: Victoria Kwakwa
Country Director: Jean-Christophe Carret
Senior Global Practice Director: Jose Luis Irigoyen
Practice Manager: Almud Weitz
Task Team Leader(s): Sombath Southivong
ICR Main Contributor: Chanin Manopiniwes
ABBREVIATIONS AND ACRONYMS
AADT Annual Average Daily Traffic
AF Additional Financing
CAS Country Assistant Strategy
CBA Cost-Benefit Analysis
DPWT Department of Public Work and Transport
EA Environmental Assessment
EGPF Ethnic Groups Policy Framework
EIA Environmental Impact Assessment
EIB European Investment Bank
EIRR Economic Internal Rate of Return
EMP Environmental Management Plan
ESOM Environmental and Social Operation Manual
EU European Union
FS Feasibility Study
GDP Gross Domestic Product
GoL Government of Lao PDR
HDM Highway Development and Management Model
ICT Information and Communication Technology
IDA International Development Association
IFC International Finance Corporation
IFR Interim Financial Report
IRI International Roughness Index
LRSP2 Lao Road Sector Project 2
M&E Monitoring and Evaluation
MPWT Ministry of Public Work and Transport
MTR Mid-term Review
NPV Net Present Value
NSEDP National Socio-Economic Development Plan
NTSP National Transport Strategic Plan
PAD Project Appraisal Document
PDO Project Development Objectives
PPIAF Public Private Infrastructure Advisory Facility
PPP Public-Private Partnership
PROMMS Provincial Road Maintenance Management System
PTI Public Works and Transport Institute
RAMP Road Asset Management Project
RAP Resettlement Action Plan
RMF Road Maintenance Fund
RMS Road Management System
SCF Standard Conversion Factor
SDR Special Drawing Right
TED Technical Environmental Division
VOC Vehicle Operating Cost
VOT Value of Time
TABLE OF CONTENTS
DATA SHEET ....................................................................... ERROR! BOOKMARK NOT DEFINED.
I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5
A. CONTEXT AT APPRAISAL .........................................................................................................5
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................8
II. OUTCOME .................................................................................................................... 10
A. RELEVANCE OF PDOs ............................................................................................................ 10
B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 11
C. EFFICIENCY ........................................................................................................................... 12
D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 13
E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 13
III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 15
A. KEY FACTORS DURING PREPARATION ................................................................................... 15
B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 15
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 17
A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 17
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 18
C. BANK PERFORMANCE ........................................................................................................... 20
D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 21
V. LESSONS AND RECOMMENDATIONS ............................................................................. 22
ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 24
ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 35
ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 37
ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 38
ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 41
ANNEX 6. MPWT’S ICR ......................................................................................................... 42
The World Bank Road Sector Project ( P102398 )
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DATA SHEET
BASIC INFORMATION
Product Information
Project ID Project Name
P102398 Road Sector Project
Country Financing Instrument
Lao People's Democratic Republic Specific Investment Loan
Original EA Category Revised EA Category
Partial Assessment (B) Full Assessment (A)
Related Projects
Relationship Project Approval Product Line
Additional Financing P129347-LA - Additional Financing Road Sector Project
26-Jul-2012 IBRD/IDA
Organizations
Borrower Implementing Agency
Ministry of Finance Ministry Of Public Works and Transport
Project Development Objective (PDO) Original PDO
The project development objectives are (a) to improve road services on two main national corridors and the provincial road network, (b) to rehabilitate roads damaged by Typhoon Ketsana, and (c) to establish and operationalize a contingency fund for quick disaster response in the road sector.
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FINANCING
Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$)
World Bank Financing IDA-H5470
27,800,000 27,800,000 27,569,317
TF-93083
1,000,000 918,013 918,013
IDA-H7890
21,000,000 21,000,000 20,684,618
Total 49,800,000 49,718,013 49,171,948
Non-World Bank Financing
Borrower 14,380,000 27,880,000 26,650,000
JAPAN: Ministry of Finance - PHRD Grants
1,000,000 1,000,000 918,013
Total 15,380,000 28,880,000 27,568,013
Total Project Cost 65,180,000 78,598,013 76,739,961
KEY DATES
Approval Effectiveness MTR Review Original Closing Actual Closing
25-Mar-2010 01-Jul-2010 24-Nov-2014 30-Sep-2014 30-Sep-2017
RESTRUCTURING AND/OR ADDITIONAL FINANCING
Date(s) Amount Disbursed (US$M) Key Revisions
06-May-2015 41.00 Change in Safeguard Policies Triggered Change of EA category
14-Mar-2017 48.25 Reallocation between Disbursement Categories
KEY RATINGS
Outcome Bank Performance M&E Quality
Highly Satisfactory Satisfactory High
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RATINGS OF PROJECT PERFORMANCE IN ISRs
No. Date ISR Archived DO Rating IP Rating Actual
Disbursements (US$M)
01 03-Jan-2011 Satisfactory Satisfactory 8.54
02 04-Jan-2012 Moderately Satisfactory Moderately Satisfactory 12.15
03 02-Jun-2012 Satisfactory Satisfactory 13.50
04 13-Feb-2013 Satisfactory Moderately Satisfactory 21.45
05 23-Oct-2013 Satisfactory Moderately Satisfactory 33.03
06 24-Jun-2014 Satisfactory Moderately Satisfactory 36.17
07 08-Jan-2015 Satisfactory Moderately Satisfactory 40.51
08 11-Aug-2015 Satisfactory Moderately Satisfactory 43.40
09 29-Feb-2016 Satisfactory Moderately Satisfactory 45.73
10 21-Sep-2016 Satisfactory Satisfactory 48.25
11 12-Apr-2017 Satisfactory Satisfactory 48.25
SECTORS AND THEMES
Sectors
Major Sector/Sector (%)
Transportation 100
Public Administration - Transportation 5
Rural and Inter-Urban Roads 95
Themes
Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 45
Jobs 11
Job Creation 11
Regional Integration 34
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Finance 8
Finance for Development 8
Disaster Risk Finance 8
Urban and Rural Development 46
Urban Development 11
Urban Infrastructure and Service Delivery 11
Rural Development 11
Rural Infrastructure and service delivery 11
Disaster Risk Management 24
Disaster Response and Recovery 8
Disaster Risk Reduction 8
Disaster Preparedness 8
ADM STAFF
Role At Approval At ICR
Regional Vice President: James W. Adams Victoria Kwakwa
Country Director: Annette Dixon Ellen A. Goldstein
Senior Global Practice Director: John A. Roome Jose Luis Irigoyen
Practice Manager: Jeeva A. Perumalpillai-Essex Almud Weitz
Task Team Leader(s): Zhi Liu Sombath Southivong
ICR Contributing Author: Chanin Manopiniwes
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I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES
A. CONTEXT AT APPRAISAL
Context
1. At appraisal in February 2010, Lao PDR had achieved steady economic growth, but remained one of the world’s
poorest countries in East Asia and the Pacific. Its per capita gross national income was US$740 in 2008. The economy
of Lao PDR was primarily natural resources-based with more than half of the GDP from agriculture, forestry, livestock
and fisheries. Agriculture was the major sector of the economy (44% of GDP), employing about 80% of the labor
force. Given Lao PDR’s central location within the Greater Mekong Sub-region, the country’s transport network
comprised an integral part of the sub-region’s transport network and associated economic corridors. The Sixth
National Socio-Economic Development Plan (NSEDP, 2006-2010) aimed to ensure that an efficient transport system
creates favorable conditions for sustainable growth and poverty reduction, as well as regional integration.
2. Road is still the predominant mode of transportation in Lao PDR. In 2010, the road network carried 90% of
passenger traffic (passenger-km) and 86% of freight traffic (ton-km). In total, the road system extended over 35,000
km. The national road network comprised approximately 6,900 km of roads, most of which had either a sealed (56%)
or gravel (30%) surface. The national network was mostly in an acceptable condition (80% of paved roads were
classified as good or fair) and generally constructed to an appropriate standard for the volume and nature of the
traffic carried. However, the provincial roads (totaling 5,500 km) and district and rural roads (almost 18,000 km) were
mostly gravel or earth roads and vulnerable to heavy rains and floods.
3. Lao PDR is one of the ASEAN region’s most vulnerable countries to natural hazards with the highest 100-year
Probable Maximum Loss relative to GDP (as high as 11.7 percent). Five major storms or tropical cyclones have
affected the country over the past two decades. In 2009, Typhoon Ketsana resulted in estimated damages and losses
of US$58 million. In 2011, Typhoon Haima and Tropical Storm Nok-Ten caused damages of US$66 million and US$72
million, respectively. In 2013, a series of storms caused extensive flooding affecting 350,000 people in 12 provinces
(out of a total of 18). Global and regional climate change projections suggest that natural disasters in Lao PDR are
likely to intensify and become more frequent. On September 29, 2009, Typhoon Ketsana swept across the southern
part of Lao PDR, causing enormous damages and losses in five provinces (Attapeu, Sekong, Saravanh, Champasak,
and Savannakhet), killing 28 people, affecting more than 180,000 people, or almost 30,000 households. A Post-
Disaster Damage, Loss, and Need Assessment estimated that about 1,842 km of roads and a number of small bridges
were severely or partially damaged, and that the cost of restoring these roads and bridges could amount to about
US$13 million. If not restored soon, the damages would cause economic losses, mainly in terms of higher vehicle
operating costs and longer travel times, further hampering the recovery of the severely affected local economy.
4. Financing remained a major constraint for the Government of Lao PDR (GoL) to achieve its strategic objectives
in the road sector. Road construction and maintenance were, and continue to be, funded mainly from three sources:
external assistance, government budget and a dedicated Road Maintenance Fund (RMF). The RMF was established
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in 2001 with revenue mainly from a fuel levy, starting from US$2 million in 2002 and growing at about 10% per year.
Funding from the Nam Theun 2 Hydropower Project was also expected to help fund poverty reduction-focused basic
rural road improvement and maintenance.
5. Given that the World Bank had been one of the key donors in Lao PDR’s transport sector for two decades and
the support had achieved good results, the rationale for the Bank’s continuing assistance to the road sector was
strong. Bank support for the last two decades has been adjusted to the country’s needs, which had been evolving
over time – i.e. from national roads rehabilitation in the 90s to provincial infrastructure development, road
maintenance, and institutional strengthening. A significant achievement was the establishment of the RMF in 2001.
RMF is still in operation with growing revenue from US$2 million in 2002 to US$80 million in 2017. The GoL has put
in place a road asset management system, financial management system, and strengthened capacity of both public
and private sectors involved in the road sector development. Lao Road Sector Project (LRSP) was built on the previous
achievement and capitalized on institutional outcomes achieved from previous operations, especially the two-phase
Bank-led multi-donor-funded Road Maintenance Program. In particular, the Bank’s involvement in LRSP would
enable further development and implementation of the building blocks of integrated road asset management and
sector governance. The project would build necessary capacity to manage and utilize the road asset database, which
would be the basis for road sector’s planning and prioritization. At the same time, the Bank could enable GoL to
establish an emergency contingency fund for rapid response to disasters, and thereby provide immediate relief for
typhoon recovery. For the latter, support in the form of an IDA Grant would help the country maintain debt
sustainability.
Theory of Change (Results Chain)
6. The theory of change below illustrates the project’s chain of impacts, from activities to output, to outcomes (at
PDO level), which affect long-term outcomes. Key components related to road upgrading, maintenance and disaster
recovery contributed directly to transport service outcomes; while the institutional strengthening component played
a supporting role to project implementation (at output level) as well as contributing to the longer-term sector-level
strategy and capacities.
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Project Development Objectives (PDOs)
7. The objectives of the Project in the Financing Agreement were: (a) to improve road services on two (2) main
national corridors and the provincial road network; (b) to rehabilitate roads damaged by Typhoon Ketsana; and (c)
to establish and operationalize a contingency fund for quick disaster response in the road sector.
Key Expected Outcomes and Outcome Indicators
8. The key outcome indicators were:
• Reduced travel time on national roads
• Increased number of people served by paved national roads
• Increased share of provincial road network in good/fair condition
• Recovered condition of road damaged by Typhoon Ketsana
• Contingency fund established and operationalized to ensure the passability and safety of the affected
national and provincial road links
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Components
9. Component A: Road Network Improvement and Preservation (Total US$3 1.93 million; of which RMF US$8.00
million, other GoL contribution US$6.38 million and IDA US$17.55 million). This component financed physical works
for the upgrading of two priority national road links, the periodic maintenance of the provincial road network, and
road safety improvements. The two national roads to be upgraded are: (a) NR 1B from Pak Nam Noy to Ban Yo,
Phongsaly Province, 109 km; and (b) NR 6A from Sop Bao to Ban Dan, Houaphan Province, 62 km. The provincial
roads to be included under the project were identified from MPWT’s three year rolling plan and Annual Works
Programs (AWP).
10. Component B: Institutional Strengthening (Total US$2.45 million; of which from the Policy and Human Resource
Development or PHRD Fund US$1.00 million and IDA US$1.45 million). The component provided technical assistance
to both MPWT and the Provincial DPWTs in the areas of strategic planning and management, country system for
environmental safeguards, fiduciary management, and internal controls.
11. Component C: Disaster Recovery and Contingency (Total US$8.80 million from IDA Crisis Response Window
resources). The component supported quick recovery of about 1,100 km of Typhoon Ketsana damaged roads in the
five southern provinces (Attapeu, Sekong, Saravanh, Champasack and Savannakhet) and establishment of an
emergency contingency fund for quick response to the impacts of natural disasters on the road network.
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE)
Revised PDOs and Outcome Targets 12. The PDO was not changed during implementation.
Revised PDO Indicators 13. N/A.
Revised Components 14. Components were not changed or cancelled. There were changes from Additional Financing (AF), which are
reflected in the section below on ‘Other Changes’.
Other Changes
15. Additional Financing (AF) was approved in 2012. The project was also restructured four times: first in 2012, then
in 2014, in 2015, and lastly in 20171. The AF provided an additional US$21 million equivalent (SDR 14 million) to finance
1 Reference to restructuring papers approved on January 26, 2012 (Report No. 66575); on August 1, 2014 (Report No. 91240); on April 9, 2015 (Report No. RES16540); and, on March 25, 2017 (Report No. RES26371).
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unanticipated cost overruns, enabling the project to complete its original road improvement targets. The AF was also
used to scale up project impact by: (a) enhancing the disaster resilience of two national roads and priority sections of
the provincial network; (b) further strengthening the institutional capacities of MPWT; and (c) topping up the
emergency contingency fund, depleted following rehabilitation efforts in 2011. The institutional strengthening
aspects were expanded to include development of sector capacities for the management of Public Private
Partnerships (PPP) as well as feasibility studies of PPP pilots. The AF also extended the original closing date from
September 30, 2014 to September 30, 2017.
16. The 2012 restructuring reallocated SDR1.86 million from various components to Component C – Disaster
Recovery and Contingency – as an emergency response to Typhoon Haima and Nokten.
17. The 2014 restructuring reallocated SDR1.17 million (US$1.8 million equivalent) from the disaster contingency
fund to finance cost overruns for National Road 6A and to finance the repair of sections of National Road 1B that was
damaged by flash floods during the previous rainy season.
18. The 2015 restructuring (Level 1) revised the project’s Environmental Assessment (EA) Category from B to A. As
discussed below, this change was required to ensure that the feasibility studies for the road sector PPP would comply
with both World Bank environmental and social policies and IFC Performance Standard requirements.
19. The 2017 restructuring (Level 2) reallocated project proceeds from Category 1 to Category 3 to cover payment of
retention money for emergency repairs on NR13 after typhoon Haima, and from Category 1 to 4 to cover costs
incurred mainly for (a) a supervision consultant for additional works related to upgrading NR 6A, seven bridges on NR
6A and NR 1B, and (b) consultants for the Social and Environment Survey for NR 13.
Rationale for Changes and Their Implication on the Original Theory of Change
20. Rationale for Additional Financing. The AF in 2012 was deemed necessary to address the cost overruns that
resulted from design changes to enhance the disaster resilience of the two national road sections, discrepancies in
the original design of these two roads, the need to accommodate the installation of electricity lines along both roads,
severe deterioration of the provincial road network following typhoons Haima and Nok Ten in 2011, and overall price
escalation for materials and fuel, which was as high as 31.2% (year-on-year) in June 2011.
21. Rationale for the restructuring in 2015. The original project had been accorded EA Category B as the scope of
activities, including road improvement works of two national roads and maintenance works of provincial roads, was
not expected to be have large scale, significant, and/or irreversible environmental or social impacts. When the AF was
approved, the overall potential of PPP road development was uncertain in Lao PDR. To determine PPP viability,
location, and scope, parallel funding was initially mobilized from the Public Private Infrastructure Advisory Facility
(PPIAF) for a preliminary Feasibility Study (pre-FS). The pre-FS was conducted between February and May 2013,
identified sections of National Road 13 (NR13) where PPP could potentially be viable, and recommended that a full FS
be carried out to identify specific sections of NR13.
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22. The full FS concluded that a PPP could potentially be viable for the two road sections from Km12 to Km70 of NR13
North and from Km13 to Km63 of NR13 South. The FS also found that road expansion from two to four lanes would
be viable on NR13N from Km12 to Km44 and NR13S from Km21 to Km28. The proposed scope was determined to
trigger the Bank’s Environmental Assessment Category A under OP4.01, as the PPP pilot roads would pass through
semi-urbanized areas and, if the road were widened for the full length of the pilot sections, would affect some 1,600
landowners, 30% residential and 70% commercial entities. Therefore, safeguards instruments related to the PPP road
sections needed to be prepared as part of the FS on the basis of a Category A project.
II. OUTCOME
A. RELEVANCE OF PDOs
Assessment of Relevance of PDOs and Rating Rating: High 23. The objectives of LRSP are relevant today as at appraisal. The project strengthened road asset management
planning and implementation process and capacity, which follows the goals and guidelines set out in the 6th National
Socio-economic Development Plan (NSEDP) – ensuring road infrastructures are in good condition and able to support
socio-economic activities. The project objectives and achievements are consistent with MPWT’s National Transport
Strategic Plan (NTSP) for 2009-2015, which prioritized a rolling investment and maintenance program for the road
sector based on a Unified Road Management Framework (URMF). In addition, the project has been influential in
setting the direction of the NTSP, which is updated from time to time during implementation.
24. The project was fully consistent with the World Bank’s Country Assistance Strategy (CAS) for Lao PDR (2005-2011).
It supported the first CAS pillar of sustained growth through enhanced regional integration and private sector
development, and also the CAS objective to improve alignment of donor resources with the Government’s National
Growth and Poverty Eradication Strategy and strengthen aid coordination. During implementation, the project
remained relevant to the Country Partnership Strategy (CPS, 2012-2016) – on the first pillar: Competitiveness &
Connectivity, as well as on cross-cutting areas of planning and budgeting.
25. Towards completion, the project remained even more relevant to the Country Partnership Framework (CPF, 2017-
2021) in several areas. The project directly linked with Objective 1.3 – Investing in infrastructure for growth and
inclusion under Focus Area 1: Supporting inclusive growth. In addition, Under Focus Area 3: Protecting the
environment, the project addressed in the transport sector what Objective 3.2 – Putting in place enhanced disaster
risk management and climate and disaster resilience – was set out to do.
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B. ACHIEVEMENT OF PDOs (EFFICACY)
Assessment of Achievement of Each Objective/Outcome Rating: High
26. As described in the previous section, the key expected outcomes of the project were: (i) improvement of road
services on two main national corridors and the provincial road network; (ii) rehabilitation of roads damaged by
typhoon Ketsana; and, (iii) establishing and operationalizing a contingency fund for quick disaster response in the road
sector.
PDO (i): Improvement of road services on two main national corridors and the provincial road network
Rating: High
27. This part of the PDO refers to the improvement of road services on the two national corridors – NR 6A and NR 1B
– as well as on the provincial road network maintained under the project. Key outcome indicators for road services
improvement that contributed directly to this were: (a) reduced travel time on national roads, (b) increased number
of people served by paved national roads, and (c) increased share of provincial road network in good/fair condition.
28. At appraisal, the travel times on NR 6A (62km) and NR 1B (109km) were 3 hours and 5 hours, respectively. The
target was to reduce travel time by 40%. The civil works on NR 1B were completed ahead of schedule, and by August
2013 travel time had been brought down to 2.5 hours (50% reduction), this level was sustained through to the end of
the project. The construction work on NR 6A was completed by the end of 2016, and the travel time reduced to 50
minutes (72% reduction).
29. It was expected that the project would serve at least 26,500 people (49% female, i.e., at least 12,985 female). The
project’s annual survey in 2016 showed that the paved national roads (NR 6A and NR 1B) were serving 116,581 people
(44% of whom were female, i.e., 51,296 female).
30. The share of the provincial road network in good and fair condition was 46% at appraisal, against a target of 64%.
By project end, implementation of annually planned provincial road maintenances programs had resulted in 65% of
the provincial road network in good and fair condition. It was noteworthy that the km of provincial roads maintained
had exceeded the planned targets in every year of implementation.
31. Overall implementation of project components that contributed to this objective were completed on time, above
target, and within revised budget with additional financing. The results of these activities contributed as expected to
the outcome of the project. The outcomes contribute to the broader objective of economic growth and shared
prosperity – better connectivity for people in the districts and improved quality of national road’s services. It also
served as a case for a sector-wide approach, which set the path toward better alignment of donor resources.
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PDO (ii): Rehabilitation of roads damaged by Typhoon Ketsana
Rating: High
32. The rehabilitation of roads damaged by Typhoon Ketsana was implemented quickly and as soon as the project
started, through advance contracting arrangements. The magnitude of impact from Typhoon Ketsana, as mentioned
earlier, was as large as US$58 million in damages and losses; and it impacted more than 300,000 people in 12
provinces. Against a target of 60%, 55% of roads damaged by Typhoon Ketsana were rehabilitated by the end of 2011,
whereas the remaining 45% (of repair works) were completed by the Recipient using other sources of funds. As this
objective was achieved by the client partly with other sources of funding, this component also demonstrates the
outcome of better alignment of donor resources, where the government is taking the lead toward a common
(country’s own) development objective. Overall, this objective was achieved in a timely manner and within budget.
PDO (iii): Establishing and operationalizing a contingency fund for disaster response in the road sector
Rating: High
33. The contingency fund mechanism for quick disaster response under the project was established in 2011. The fund
was triggered following Typhoon Haima and Nock Ten in July 2011 for urgent road repair works. The objective was
achieved, as US$ 3.63 million was utilized right away for emergency repair of 28.6 km of National Road 13 North after
the actual natural disaster event. The mechanism implemented under LRSP has been institutionalized and is now being
used for GoL budget including RMF. The procedure of requesting for emergency funding from the RMF is incorporated
in MPWT’s financial management guidelines.
Justification of Overall Efficacy Rating
Rating: High 34. The project achieved the PDOs through activities and outcomes as explained above. Although the project was
affected by natural disaster events, the efficacy was further enhanced by introduction of both non-structural
(contingency fund) and structural (strengthen selected vulnerable road sections) climate resilience into the project
design. In addition, the technical assistance component on sector strategy enhanced the Ministry’s ability not only to
roll out the road asset management program to the provinces but also to have a clear direction for strengthening the
sector and tackling the sector’s issues.
C. EFFICIENCY
Assessment of Efficiency and Rating Rating: Substantial
35. This project achieved the expected efficiency from the national road improvement part and exceeded
expectations from the provincial road maintenance part. Construction works on national roads were completed well
before project completion, whereas the estimated benefits from vehicle operating cost (VOC) and value of time saving
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(VOT) are around the expected value. The economic internal rate of return (EIRR) at completion is 28.1% with net
present value (NPV) of approximately US$24.7 million. The EIRR at completion is much higher than at appraisal
because the additional financing added climate resilience design to the project. Extra benefits come from avoided
emergency maintenance as well as the additional benefits from better provincial road connectivity. The provincial
road maintenance program functioned much better than expected, because the project could implement more
provincial road maintenance than appraisal estimates - 2,500 km of provincial roads maintained (compared to the
target of 1,600 km at appraisal). The EIRR at completion for provincial road maintenance is 47.5% with NPV of US$14
million. See Annex 4 for details of the economic analysis.
Table: Results of Economic Analysis at Different Stages
PAD (2010)
Additional Financing (2012)
Completion (2017)
National Road 1B & 6A
EIRR (%) 16.5% / 13.6% 26.0% 28.1%
NPV (US$ million) 1.6 / 1.9 24.3 24.7
Provincial road maintenance
EIRR (%) 23% 27% 47.5%
NPV (US$ million) 1.87 - 14.0
36. Other aspects of efficiency, particularly on implementation in the sector, have also been improved through
institutional strengthening and business process of MPWT and DPWT, including road sector prioritization, planning,
budgeting, procurement, contract management and monitoring.
37. Considering the achievements above, the overall efficiency for this project is rated Substantial.
D. JUSTIFICATION OF OVERALL OUTCOME RATING Rating: Highly satisfactory
38. The project objectives were highly relevant to country priorities as well as within the scope and direction of
the Bank’s CAS at the design stage, and remained relevant at completion. There are no shortcomings in the
project’s achievement of its relevance, objectives, and efficiency.
E. OTHER OUTCOMES AND IMPACTS (IF ANY)
Gender
39. A key project outcome included a target on female beneficiaries along and benefits from national roads 6A and
1B. The target was at least 12,985 females, who live along the national roads, would benefit from improved national
roads. Data collected during implementation showed the total number of beneficiaries to be substantially higher than
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originally estimated, with 51,296 females among the 116,581 people served by the two national roads. This is because:
(a) the methodology at appraisal only accounts for number of people who lives along the national roads, while the
project was able to also collect data on beneficiaries in the districts who benefit from using the national roads as well,
and (b) the improved provincial roads enabled more people in the districts to access and utilize national roads.
Institutional Strengthening
40. The technical assistance component on the transport sector strategy was instrumental in strengthening MPWT’s
role as a national institution with enhanced capability to provide clear direction for improving transport sector
performance. A functioning road asset management system, with associated tools and database at the national level,
is important for cost-effective management of the sector. With MPWT’s appetite continuously to evolve, the ministry
began under LRSP to explore how best to (a) incorporate climate resilience aspects into the road asset management
decision-making process; and (b) roll out a road asset management system for the provinces. Implementation of
these two important aspects is now proceeding under the follow-on project, Lao Road Sector Project 2 (LRSP2, Credit
Number 5920-LA).
Mobilizing Private Sector Financing
41. Although the project did not originally address private sector financing, the AF included a feasibility study for
NR13 to assess the potential for use of a PPP in the Lao road sector. While portions of NR13N and NR13S were
identified as potential PPP project, issues pertaining to country readiness suggested that a full-fledged PPP with toll
collection would face road users’ affordability issue, which introduce political risk to the potential project. However,
based on the findings of the FS, MPWT has endorsed use of an Output and Performance Based Road Contract (OPBRC)
for improvement of the NR13 sections. Private sector elements inherent in OPBRC include: (i) design and construction
risk transferred to the private sector with longer term contract; (ii) contractor accorded more responsibility, not only
for construction of the road but also for road asset management throughout the period of contract; and (iii) payment
from GoL spanning a longer time period, thereby mobilizing more resources from the private sector to address urgent
needs for road improvement and maintenance.
Poverty Reduction and Shared Prosperity
42. The improved road services for national roads impacted low-income households in Phongsaly province
(approximately 14,800 households in Khua, Boonneua, and Boontai Districts) and Huaphan province (approximately
14,100 households in Xienkhor, Sopbao, and Add Districts). Most of them, based on the location, are low-income
households in rural areas.2 The provincial road maintenance was implemented country-wide and has impact on the
rural population, which is more than 2/3 of the total population. Because most of provincial roads are unpaved and
vulnerable to flood and landslides, road maintenance is crucial in ensuring all year round accessibility, which provides
access to employment, market, school, and health services. The project’s benefits have been distributed more to
lower-income population, as well as shared among all provinces in Lao PDR.
2 According to the Census 2015, more than 80% of Phongsaly’s households are in rural areas, and more than 85% of Huaphan’s households are in rural areas.
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Other Unintended Outcomes and Impacts
N/A
III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME
A. KEY FACTORS DURING PREPARATION
43. Realistic objectives and simple design. The project objectives were straightforward and appropriately
conservative in view of the urgent response required to address a natural disaster. The project’s objectives
thus focused more than they might otherwise have done on restoration, strengthening and climate resilience
of physical infrastructure. At the same time, the project design was well balanced as it directly addressed key
institutional and capacity requirements to achieve results. The three project components aligned well with
mandates of departments within MPWT, which made implementation effective and manageable.
44. Well-designed results and monitoring frameworks. The results framework focused on the important
building blocks (both from processing and institutional knowledge perspectives) that feed into delivering
physical outputs (i.e. roads as transport services; including emergency response fund). These physical outputs
in turn had clear linkages to the PDOs and outcome indicators. While there was room for improvement (such
as better coordination among MPWT’s own departments and units on monitoring and data collection), the
clear structure of implementation ensured that appropriate monitoring data was collected and available for
timely review.
45. Adequate risk and mitigation measure identification. The risk assessment was appropriately conservative.
The risks were understood to reflect systemic weaknesses, including the provincial government’s lack capacity
for implementation, in particular a weak control environment and limited financial management capacity. The
project design addressed these risks well, and along with expectations of intensive oversight, placed important
emphasis on capacity building activities.
46. Readiness for implementation. In summary, the project was well prepared with simple and straightforward
objectives and design, as well as clear understanding of the strengths and weaknesses of the participating
agencies. At the national level, the preparation built on capacity that had been developed in the course of
previous projects. However, provincial authorities had not been fully engaged in past road projects, and thus
the institutional strengthening and capacity building aspects of project design were of key importance during
implementation.
B. KEY FACTORS DURING IMPLEMENTATION
(i) Factors subject to government and/or implementing entities control
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47. Coordination, engagement, and approval processes needed a push at the beginning. The slow progress in
the beginning of the project showed that, despite the good coordination and stakeholder engagement during
preparation, not all participants were ready to discharge their respective responsibilities. It took two years for
the project to catch up, as procurement processes were slow and disbursements lagged behind targets.
48. Capacity constraints within MPWT. Although there was technical capacity within the ministry, it tended to
be limited (for example, to a single official who knows or can perform important tasks, such as procurement
and data collection for provincial road management database). Staff turnover and lack of continuity posed a
challenge early on during implementation, especially with respect to timely processing and achieving key
milestones.
49. Strong commitment and leadership by key stakeholders. The government’s strong commitment, as
reflected in the efforts of MPWT and the provincial authorities, was an important factor in breaking through
the first two years of implementation difficulty. Both MPWT and provincial governments realigned staffing to
ensure sufficient capacity for implementing the project. More capable officials were put in place and assigned
to go through required trainings (on safeguards, financial management, and procurement).
50. Procurement compliance, especially with provincial road maintenance, needed close implementation
support. Capacity at the provincial level (and of MPWT to coordinate) on procurement and financial
management was weak early on in project implementation. Although indications of procedural deviation were
found, corrective measures were quickly put in place. After more emphasis on capacity through mobilization
of more qualified staff, and extensive training and support from the procurement consultant, the fiduciary
compliance and performance (for both procurement and financial management) improved to ‘moderately
satisfactory’ in mid-2012. Procurement aspects required close supervision throughout the project, to resolve
minor delays and miscommunication between MPWT and the provincial departments.
51. Strengthened risk management. An investigation by the World Bank’s Integrity Vice Presidency (INT)
substantiated fraud and corruption allegations reported to INT that were related to a few contracts financed
under LRSP. Therefore, the combined fiduciary risk is assessed as Substantial. Risk management includes
continued technical support and capacity building to strengthen the FM system and procurement and contract
management capacity. The Government has enhanced its procurement information disclosure on the MPWT’s
website and all staff involved in procurement decisions are required to sign disclosure of their interest.
52. Safeguard compliance strengthened with country system integration. The implementation of
Environmental and Social Operation Manual (ESOM) was piloted under the project. This proved to be a useful
tool for MPWT to perform environmental and social safeguard due diligence that complied with the
requirements of both the government and international donors (including the World Bank).
53. Monitoring and Evaluation (M&E) was adequate, but could have been better. Data were collected as
needed, but not very systematically. MPWT did make progress in building up a data collection system for both
technical and implementation monitoring, but the process was not fully mainstreamed as a decision-making
tool during project implementation.
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(ii) Factors subject to World Bank control
54. Implementation support was adequate. Taking advantage of an in-country Task Team Leader (TTL), project
implementation support was carried out on a continuous rather than intermittent basis. The close proximity of
the TTL and some of the Bank’s fiduciary staff helped the Bank anticipate problems, e.g., gaps in coordination
and engagement, and be proactive and timely in assisting government to resolve them. Opportunities were
identified and acted upon, as evidenced in the decisions to include climate resilient designs and PPP analytical
work in the Additional Financing. Reporting, as in ISRs and Aide-Memoires, was candid throughout.
(iii) Factors outside the control of government and or implementing entities
55. Natural disaster and related cost escalation. Following Typhoons Haima and Nok Ten in 2011, there was
overall price escalation for materials and fuel. The fuel prices rose by 31.2% (year-on-year) in June 2011, from
29% in May, and 26.5% in April3. This led to the Additional Financing, which was used not only to cover cost
overruns, but also to address climate resilience aspects of road design in the civil works under the project.
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME
A. QUALITY OF MONITORING AND EVALUATION (M&E) Rating: High
M&E Design
56. The theory of change in the PAD was clear and straightforward. The intermediate outcome indicators
include: (a) those that directly linked with the performance toward PDO (such as km of national roads upgraded
as per specification, km of Typhoon Ketsana affected roads repaired, and km of provincial roads preserved
through periodic maintenance), and (b) those that contributed as project implementation enablers and toward
policy/sector level development. Examples of the latter include: acquiring knowledge and capacity on sector
strategic planning and internal control, MPWT’s staff trained to use country systems for environmental
assessment, fiduciary, and supervisory capacity strengthened at provincial level.
57. At design stage, the result frameworks are close to output level and the higher-level outcome objectives
have been more implicit. This is mainly because the project was designed at post-disaster stage, where the
priority was to quickly respond to the natural disaster’s impact at hand.
3 Government of Lao PDR (2011). Typhoon Haima Joint Damage, Lossess and Needs Assessment (JDLNA) - A Report prepared by the Government of the Lao PDR With support from the ADB, ADPC, FAO, GFDRR , Save the Children, UNDP, UNFPA, UNICEF, UNHABITAT, WFP ,WHO, World Bank, World Vision, AND WSP.
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M&E Implementation
58. MPWT managed M&E implementation with its own resources plus the support of consulting services. A
consultant was contracted for the Unified Road Management Framework (URMF) data collection and ICT
development that serves the Ministry’s strategic planning of the sector. MPWT’s related department
performed M&E through its utilization of Road Management System (RMS) and Provincial Road Maintenance
Management System (PROMMS). Data analysis was performed by the Public Works and Transport Institute
(PTI – an extended research institute under MPWT), which helped to inform implementation decisions well
and in a timely manner.
M&E Utilization
59. Given that MPWT carried out most of the M&E implementation in-house, data and results from analyses
were embedded in the decision-making process. The URMF and ICT infrastructure that was developed will be
utilized beyond the project, i.e. for all of MPWT’s projects, in the future.
Justification of Overall Rating of Quality of M&E
60. There were no shortcomings, and the M&E system worked as it was supposed to. The M&E system was
able to quickly identify gaps and needs and inform decision makers through simple but comprehensive
database and data analysis. Disbursement targets and results indicator targets were achieved well before the
project closed.
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE
Environmental safeguards
61. The project was initially classified as a Category B Project, and thus triggered Environmental Assessment
(OP/BP 4.01, which is piloted under OP 4.00). The Environment and Social Operations Manual (ESOM) was
piloted under OP 4.00, in line with OP 4.01, and has been applied satisfactorily to all civil works financed by the
project – i.e. when there’s a gap between government regulation and World Bank’s safeguard policy, ESOM
enabled implementation to follow both.
62. During early implementation, the government issued a new Environmental Impact Assessment (EIA)
Decree. The Bank and MPWT jointly conducted a consistency analysis for the new EIA Decree and ESOM. Based
on the results of the assessment, the ESOM was updated in line with the new EIA Decree, and also consistent
with the Bank’s safeguards requirements. Both the Initial Environmental Examination (IEE) and Environmental
Management Plan (EMP) for the two national road improvements were developed by the Technical and
Environmental Division (TED) of Roads Department in MPWT, and were implemented on the ground by the
supervision consultant and Provincial Department of Public Works and Transport (DPWT) to ensure effective
supervision of contractor performance and provide the required safeguards monitoring reports. The
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implementation of ESOM worked well throughout implementation, with no major negative impact on the local
environment or people.
63. In 2015, the Environmental Assessment category was changed to Category A through full project
restructuring (see paras 15-16). The resulting FS for the PPP proposed widening of two national road sections
(NR13 North and NR13 South), for which land acquisition would be required. Although LRSP only financed the
FS, the change in EA category ensured that the feasibility study’s scope and outputs would comply with the
World Bank’s safeguards policies. The Terms of Reference (TOR) for the Environmental and Social Impact
Assessment (ESIA) Report, Resettlement Action Plan (RAP), and Ethnic Group Development Plan (EGDP) were
prepared as part of the FS report. However, the Environmental and Social sections of the FS prepared during
March - April 2015 were found to be insufficient for the level of a World Bank Group (WBG) Category A project.
Thus the ESIA, RAP and EGDP/EGEP were revised to meet category A project requirements as part of NR13
project preparation.
Social safeguards
64. The LRSP triggered (a) Involuntary Resettlement (OP/BP 4.12), and (b) Indigenous People (OP/BP 4.10)
social safeguards policies. The Resettlement Policy Framework (RPF), RAP, and the Ethic Groups Policy
Framework (EGPF) were prepared by TED and monitored by PTI. Project implementation was in line with the
social safeguards frameworks and plans, and there were no reports of major social safeguards issues in the
progress reports (only minor issues about traffic control during construction, which were addressed by the
contractors and project manager).
Procurement
65. Procurement delays contributed to the slow startup of the project during the first two years of
implementation, but the progress accelerated in year three and caught up with planned targets thereafter.
The procurement delays affected the national road improvement sub-component in the early years, as well as
procurement of road safety equipment and recruitment of various consultants (e.g. quality assurance and
supervision advisors for provincial roads). The main causes of delay included (i) limited human resources and
staff turnover, and (ii) a lengthy internal approval process within MPWT. MPWT had put more focus on the
typhoon-affected roads, which with limited human resource, caused delays in other parts. The long internal
approval process associated with how the procurement committee functioned – i.e. availability to meet and
discuss – was another factor.
Financial Management
66. Financial Management performance lagged behind at the beginning of the project, due to poor quality and
delayed submission of the Interim Financial Reports (IFRs) and project audit reports. The quality of the IFRs and
timing of submission of both IFRs and audit reports continued to improve after the second year of
implementation. The audit opinions were unqualified (clean) throughout project implementation. Despite the
complex structure of disbursement arrangements (i.e. with MPWT and DPWT), FM staffing, accounting and
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internal control systems, and maintenance of supporting documents were sufficient. As all of the staff working
on the financial management of the project were staff of MPWT and DPWT, the project was instrumental in
improving the overall capacity of ministry staff to manage the finances of ODA projects. Work on strengthening
internal controls, internal audit and accounting within MPWT commenced in this project, and the plan is to
continue the process in future engagements.
C. BANK PERFORMANCE Rating: Satisfactory
Quality at Entry 67. As discussed, the project design was simple and straightforward, with a PDO of strategic relevance to the
country’s NESDP and NTSP. The technical, financial, and economic appraisal was approached with room for flexibility
– which enabled, among other things, the project to scale-up toward climate resiliency in the initial road improvement
designs. Flexibility also was provided via the project’s adoption of MPWT’s Annual Work Programming process as the
basis for identifying the provincial road network periodic maintenance program to be financed each year under the
project. Poverty, gender, and social development aspects were considered and related outcome indicators reflected.
Environmental and social safeguards were prepared properly, with a focus on strengthening country systems through
the ESOM along with other required safeguard instruments (such as EMP, EGPF, RAP). The fiduciary team adequately
assessed the procurement and financial management capacity of the implementation units and incorporated
assistance in the project design as required. A minor shortcoming was that the procurement assessment and actions
did not fully account for procurement staff turnover in MPWT. This turnover caused procurement implementation
delays, which were resolved later on through implementation support. The Bank team put a lot of effort into ensuring
that the policies, institutions and implementation arrangements were set up right and fit for implementation – which
is one of the most crucial aspects of the project. The M&E arrangement not only took advantage of the existing
monitoring system (i.e. RMS & PROMMS), but also enhanced the process through actual utilization of the system.
Quality of Supervision 68. Understanding of implementation agency’s potential and limitations. The Bank’s supervision was effective in
supporting MPWT’s implementation of the project. With good understanding of the weaknesses and strengths of the
implementing agency, the Bank’s team was able to address the issues detected in a collaborative fashion, with the
Bank and the client working together to find solutions. This collaborative approach led to the right capacity building
support and training (e.g. on procurement and FM in the beginning of the project, technical aspects and on safeguards
at preparation and during implementation). The capacity enhancement also went beyond the project. For example,
the Department of Finance established under the project has become a part of the Ministry’s standard practice. The
Bank also facilitated knowledge exchange activities with neighboring countries, such as Vietnam, to share and
exchange experiences with PROMMS, resulting in adapting the PROMMS for the local road maintenance management
system in Vietnam; and later on during implementation, with South Africa on road sector reform, PPP, public works
and transport research, and overloading control.
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69. Mid-term review (MTR). A thorough and well-documented MTR was carried out towards the end of 2014, which
confirmed that (a) the project design was still relevant and practicable, (b) risks identified during appraisal were being
effectively managed, and (c) implementation was on track towards attainment of the PDO. The assessment concluded
that implementation was still appropriately focused not only on civil works, but also on systems development and
strengthening. The MTR team identified areas in need of further support and/or strengthening, particularly at the
DPWT/provincial level, was proactive in identifying resources and approaches to provide such support, and monitored
progress for the duration.
70. Lao-based implementation support. Given that the Bank’s team was largely in the region (with the TTL stationed
in Vientiane), responses to issues did not have to wait for the next mission. Problems could be discussed and handled
expeditiously and - given a high frequency of dialogue – often could be solved before they became problematic.
Technical assistance and training could be made available whenever needed, as opposed to waiting for the next
mission. Local implementation support was especially helpful in facilitating coordination and dialog between MPWT
and the provinces during project implementation.
71. Technical support and flexibility within scope. The Bank’s team was well placed to provide technical support to
help MPWT cope with unexpected changes, i.e. cost overruns and financing gap due to natural disasters, typhoons.
The team supported the client in adjusting the project design within the original scope to consider climate resilience,
a more realistic design that resulted in higher efficiency. Further support also was provided by Additional Financing
approved two years into implementation. Various technical assistances were also mobilized to support the client, such
as Transport sector strategic advisory services, internal control system and tools development, PPP feasibility study,
Integrated Road Asset Management System (IRAM), and Financial Management System.
Justification of Overall Rating of Bank Performance
72. The Bank’s performance was rated Satisfactory for both Quality at Entry and Quality of Supervision, hence Bank
performance overall is rated Satisfactory.
D. RISK TO DEVELOPMENT OUTCOME
73. There were three key risks to development outcome: (a) overloading trucks cause road to deteriorate
faster than expected, causing service level to decline faster; (b) the government does not allocate adequate
budget for road maintenance; and/or (c) the government neglects the climate resilience and emergency
response initiative.
74. It is unlikely that the government will not continue to maintain the roads because the government has set
up (and continues to develop) a viable road asset management system, a Road Fund4 to address road
maintenance matters, and the capacity of agencies concerned was built throughout the project
implementation period. The Road Fund is the key mechanism to ensure predictable and sustained allocations
4 Road Fund Decree No. 130 in June 2016 to change the name from “Road Maintenance Fund” to “Road Fund”
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of funds for road maintenance. Its main source of funds is a fuel levy and the annual revenue generated by the
RMF which has been increasing steadily from US$2 million in 2002 (when the fund became operational) to
US$80 million in 2017. It is expected that the fund will continue to grow more than 10% annually over the next
5 years. As per Prime Minister’s Decree 130/PM of 2016, national roads receive 80% the RMF allocation, and
local roads, the remaining 20%. The subsequent LRSP2, which became effective in February 2017, directly
supports this initiative.
75. It is also unlikely that the government will neglect the climate resilience and emergency response initiative
because MPWT has started to mainstream climate resilience aspects into the planning process under LRSP2 as
well. Steps are being undertaken for the road asset management system to include climate resilience aspects
in its database module, which in turn will incorporate climate resilience into the maintenance prioritization and
the decision-making process, and establishment of climate resilience road maintenance procedures was
included as a policy action for the recently approved Green Growth Development Policy Operation.
V. LESSONS AND RECOMMENDATIONS
76. Key lessons from project preparation and implementation experience are the following:
77. Straightforward project design supported easy adjustments during the life of the project. Clear, not overly
ambitious targets were set and sufficiently straightforward to be easily adjusted when required, e.g., after the
typhoons and to accommodate associated cost overruns through Additional Financing. The project design
provided a clear line-of-sight from outputs to objectives, which made it possible for the project to be easily
adapted to unexpected challenges. The approach will likely continue to be relevant in the Lao context. From
the project’s experience, capacity building takes time and will likely require continuing support due to staff
movments.
78. Institutional leadership by MPWT was key to the success of the project. Many aspects of the project have
an impact at the sector level, which is possible because MPWT has taken the lead in donor coordination,
financial management practice, safeguards implementation, etc., beyond the project. This would not be
possible without the institutional leadership and ownership of MPWT. With MPWT’s leadership, advances in
the road sector planning and management arising from project interventions, have been carried forward into
the sector’s strategic planning and prioritization system for road improvement and maintenance. This includes
how the government handled the fiduciary case investigated by INT. The Government had quickly enhanced
its transparency of procurement information disclosure and of all staff involved in procurement decisions to
contain and lower the risk level.
79. Innovative implementation turned the natural disaster into an opportunity. Because of the need to respond
to the typhoon which caused cost overrun, the project used the opportunity to introduce adaptation to climate
change and streamlining the practice. South-South knowledge exchange with South Africa had been useful for
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MPWT and provincial governments to explore the new policy direction – i.e. utilizing road funds and enhancing
climate resilience.
80. Strong relationship and trust foster sustainability. Institutional capacity building was developed hand-in-
hand with strong relationship and trust between MPWT and the Bank’s team. With flexibility and focus on
sustainability at the institution level, the approach that the World Bank task team used in provide
implementation support has built and strengthened relationship and trust, which has provided opportunities
to introduce innovative approaches including OPBRC and business processes for road asset management.
LRSP2 is a good example of how the institutional strengthening, improved business processes, and the capacity
of MPWT to manage a sector-wide approach have sustainably evolved, and expanded beyond national level to
provincial level. Lao National Road 13 project is another good example of how the government moves toward
a long-term performance-based road maintenance contracting practice like OPBRC.
Coordination challenge
81. Coordination between central and provincial agencies was more of a challenge than anticipated. More
dialogue with stakeholders, more training, and more agreements were required to move the project forward.
It is important not to underestimate the coordination requirements, especially between central and local
governments. Another aspect of the coordination challenge links to the capacity and availability of MPWT
officials at sufficiently high levels for decision-making purposes. Director-General level officials, when
empowered to make decisions, will resolve issues quickly and enable the project to move forward.
82. A partnership style and in-country implementation support were key to the successful implementation of
the project. Problems and issues were quickly addressed, both informally and formally through quick and timely
communication. The close proximity of the TTL and fiduciary team helped to develop a partnership built on
cooperation, trust and candor. It also facilitated provision of useful technical advice, made possible by the
Bank’s in-depth understanding of sectoral issues and relevant government systems and modalities.
.
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ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS
A. RESULTS INDICATORS A.1 PDO Indicators
Objective/Outcome: To improve road services on two main national corridors and the provincial road network
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Vehicle travel time on upgraded roads reduced by 40%
Text NR 1B (109 km): 5 hours; NR 6A (62 km): 3 hours
40% reduction (NR1B=3 hours; 6A=108 minutes)
40% reduction (NR1B=3 hours; 6A=108 minutes)
50% - NR 1B (109 km): 2.5 hours;
72% - NR 6A (62 km): 50 minutes
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): Vehicle travel time on upgraded national roads NR 1B and NB6A reduced by 50% (or 2.5 hours) and 72% (or 50 minutes), exceeding the end target of 40% by the end of project.
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
At least 26,500 people (49% female), most of whom live
Text 0 At least 26,500 (49% female)
At least 26,500 (49% female)
About 116,581(44% female)
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by the roadside, served with paved roads along NR 1B and 6A
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): About 116,581 people (44% female), most of whom live by the roadside, served with paved roads along NR 1B and 6A, exceeding the end target of at least 26,500 people.
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Share of provincial road network in good and fair condition (by Lao standards) increased from 46% to 64%
Text 46% 64% 64% 65%
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): Share of provincial road network in good and fair condition (by Lao standards) increased from 46% to 64% - target achieved by project closing.
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Roads rehabilitated, Non-rural
Kilometers 90.00 456.40 456.40 456.40
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): 456km of non-rural roads (which is the total length of the rehabilitated Ketsana damaged national roads and improvement of NR 1B & 6A) rehabilitated – target achieved.
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Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Roads rehabilitated, Rural Kilometers 0.00 731.00 731.00 813.00
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): 813km of rural roads rehabilitated (which is the length of rural roads damaged by Ketsana) – target achieved.
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Roads in good and fair condition as a share of total classified roads
Percentage 42.00 55.00 55.00 65.00
31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Size of the total classified network
Kilometers 30679.00 40000.00 40000.00 40000.00
31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): 65% of Roads in good and fair condition as a share of total classified roads – exceeding the end target of 55%
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Share of rural population with access to an all-season road
Percentage 57.20 60.40 60.40 64.00
31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Number of rural people Number 3220000.00 0.00 3400000.00 3400000.00
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with access to an all-season road
31-May-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): 64% of rural population with access to an all-season road - target achieved.
Objective/Outcome: To rehabilitate roads damaged by Typhoon Ketsana
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
About 60% of Ketsana damaged roads (including small and wooden bridges) repaired and improved
Percentage 5.00 60.00 60.00 60.00
23-Feb-2010 24-Feb-2012 30-Sep-2012 22-Feb-2017
Comments (achievements against targets): About 60% of Ketsana damaged roads (including small and wooden bridges) repaired and improved – target achieved.
Objective/Outcome: To establish an operationalize a contingency fund for quick disaster response in the road sector
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
A contingency fund established for quick restoration of passability and safety of disaster affected national and provincial roads
Text Contingency fund not established
Functional Functional Functional
23-Feb-2010 24-Feb-2012 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): A contingency fund established for quick restoration of passability and safety of disaster affected national and provincial roads - target achieved.
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A.2 Intermediate Results Indicators
Component: Component A: Road Network Improvement and Presevation
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
171 km of national roads (NR 1B and NR 6A) upgraded as per specifications
Text 0 171 171 171
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): 171 km of national roads (NR 1B and NR 6A) upgraded as per specifications - target achieved
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
About 1,600 km of provincial roads preserved through periodic maintenance
Text 0 1600 1600 2500
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): About 2,500 km of provincial roads preserved through periodic maintenance - exceeding the end target of 1,600 km
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Road safety facilities Text 0 Fully installed Fully installed Fully installed
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acquired and installed as per specifications
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets): Road safety facilities acquired and fully installed as per specifications - target achieved.
Component: Component B: Institutional Strengthening
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Knowledge and practical experiences acquired on transport sector strategic planning and management
Text First sector strategic plan produced
Strategic Plan updated and expanded
Strategic Plan updated and expanded
Strategic plan updated - Basis for preparing the MPWT transport sector vision, strategy and five- year plans
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets):
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Country system for EA used and staff trained
Text Country system just piloted and only a few staff trained
Safeguard actions under the country system for EA undertaken by MPWT and DPWT
Safeguard actions under the country system for EA undertaken by MPWT and DPWT
Training provided to 260 provincial and district engineers received ESOM training
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
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Comments (achievements against targets):
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Acquired knowledge and practical experiences on internal control
Text Internal control function non existent
Third internal audit report produced
Third internal audit report produced
Internal control sections established in 17 provinces & internal control divisions in 8 departments, 2 institutes and 2 State Own Enterprises. Capacity building in in progress.
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets):
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Fiduciary and supervisory capacity strengthened at provincial level
Text Capacity development program not yet started
Capacity development program completed
Capacity development program completed
Impletmentation of training program is on-going and more than 1500 people trained.
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23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets):
Component: Component C: Disaster Recovery and Contingency
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
About 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved as per specifications
Text 90 KM 1,100 KM 1,100 KM All repair works were completed. Target met
23-Feb-2010 24-Feb-2014 30-Sep-2012 22-Feb-2017
Comments (achievements against targets): About 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved as per specifications target achieved.
Indicator Name Unit of Measure Baseline Original Target Formally Revised
Target
Actual Achieved at Completion
Length of time to process payment to contractors for emergency works shortened
Text Time of payment delayed for up to 2 years
The fund established and time of payment shortened to less than 1 months
The fund established and time of payment shortened to less than 1 months
Payment made by about 4 months
23-Feb-2010 24-Feb-2014 30-Sep-2017 22-Feb-2017
Comments (achievements against targets):
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B. KEY OUTPUTS BY COMPONENT
Objective/Outcome 1: To improve road services on two main national corridors and the provincial road network
Outcome Indicators 1. Vehicle travel time on upgraded national roads NR 1B and NB6A reduced by 50% (or 2.5 hours) and 72% (or 50 minutes), exceeding the end target of 40% by the end of project.
2. About 116,581 people (44% female), most of whom live by the roadside, served with paved roads along NR 1B and 6A, exceeding the end target of at least 26,500 people.
3. Share of provincial road network in good and fair condition (by Lao standards) increased from 46% to 64% - target achieved by project closing.
4. 456km of non-rural roads (which is the total length of the rehabilitated Ketsana damaged national roads and improvement of NR 1B & 6A) rehabilitated – target achieved.
5. 813km of rural roads rehabilitated (which is the length of rural roads damaged by Ketsana) – target achieved.
6. 65% of Roads in good and fair condition as a share of total classified roads – exceeding the end target of 55%
7. 64% of rural population with access to an all-season road - target achieved.
8. 3.4 million of rural people with access to an all-season road - target achieved.
Intermediate Results Indicators 1. 171 km of national roads (NR 1B and NR 6A) upgraded as per specifications - target achieved
2. About 2,500 km of provincial roads preserved through periodic maintenance - exceeding the end target of 1,600 km
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3. Road safety facilities acquired and fully installed as per specifications - target achieved.
Key Outputs by Component
(linked to the achievement of the Objective/Outcome 1)
1. NR 1B (109km) and NR 6A (62km) upgraded including 7 bridges
2. 2,500 km of provincial roads preserved through periodic maintenance
Objective/Outcome 2: To rehabilitate roads damaged by Typhoon Ketsana
Outcome Indicators 1. About 60% of Ketsana damaged roads (including small and wooden bridges) repaired and improved – target achieved.
Intermediate Results Indicators 1. About 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved as per specifications target achieved.
Key Outputs by Component
(linked to the achievement of the Objective/Outcome 2)
1. 1,100 km of Ketsana damaged roads (including small and wooden bridges) repaired and improved.
Objective/Outcome 3: To establish an operationalize a contingency fund for quick disaster response in the road sector
Outcome Indicators 1. A contingency fund established for quick restoration of passability and safety of disaster affected national and provincial roads - target achieved.
Intermediate Results Indicators 1. Length of time to process payment to contractors for emergency works shortened - target achieved.
Key Outputs by Component
(linked to the achievement of the Objective/Outcome 2)
1. A contingency fund established and operationalized.
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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION
A. TASK TEAM MEMBERS
Name Role
Preparation
Supervision/ICR
Sombath Southivong Task Team Leader(s)
Hoai Van Nguyen Procurement Specialist(s)
Siriphone Vanitsaveth Financial Management Specialist
Vachraras Pasuksuwan Operations Assistant
Flavio Chaves Consultant
Vatthana Singharaj Program Assistant
Siriphone Sourivanh Sr. Financial Management Specialist
Sybounheung Phandanouvong Sr. Social Development Specialist
Khamlar Phonsavat Consultant, Environment Specialist
Van Anh Thi Tran Sr. Transport Specialist, Road Safety
Martin Henry Lenihan Social Safeguards Specialist
Chanin Manopiniwes Infrastructure Economist
Vilayvanh Phonepraseuth Operations Analyst
Paul Vallely Sr. Transport Specialist
Reaksmey Keo Sok Consultant
Wasittee Udchachone Environmental Safeguards Specialist
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B. STAFF TIME AND COST
Stage of Project Cycle Staff Time and Cost
No. of staff weeks US$ (including travel and consultant costs)
Preparation
FY07 7.825 101,313.95
FY08 13.620 188,543.29
FY09 33.014 175,451.30
FY10 17.666 95,318.87
Total 72.13 560,627.41
Supervision/ICR
FY10 5.225 18,691.75
FY11 22.259 64,812.09
FY12 33.785 84,426.49
FY13 28.174 209,358.77
FY14 31.129 268,234.25
FY15 55.650 322,920.81
FY16 45.823 288,404.71
FY17 37.988 288,746.63
FY18 19.457 67,251.56
Total 279.49 1,612,847.06
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ANNEX 3. PROJECT COST BY COMPONENT
Components Amount at Approval
(US$M) Actual at Project
Closing (US$M) Percentage of Approval
(US$M)
Component A: Road Network Improvement and Preservation Component
31.93 47.55 149%
Component B: Institutional strengthening
2.45 6.03 246%
Component C: Disaster Recovery and Contingency
8.80 10.60 120%
Total 43.18 64.18 149%
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ANNEX 4. EFFICIENCY ANALYSIS
1. Overview Methodology at appraisal estimate. The economic evaluation for the original project at appraisal was carried out for two parts of the project: (i) evaluation of the periodic maintenance interventions (for provincial roads), and (ii) road improvement sub-projects (NR 1B & NR 6A). A conventional cost-benefit analysis (CBA) was carried out, using the Road Management System (RMS) which is supplemented by the Highway Development and Management Model (HDM-4) – particularly for the provincial road maintenance part. Key benefits in both parts of the project were estimated from reductions of vehicle operating cost (VOC) and time savings, which resulted from improved road condition measured in terms of the International Roughness Index (IRI). The appraisal evaluation was based on the following key assumptions: (i) an analysis period of 24 years from 2009 to 2032; (ii) the discount rate of 12% per year; and, (iii) standard conversion factor (SCF) of 0.9 to determine economic costs, where information on tax is not available. Methodology for post-project economic analysis. The economic evaluation at project completion follows the same methodology as at appraisal – utilizing HDM-4 results to support the conventional cost-benefit analysis. This is also because the project components remain largely unchanged since appraisal, and the implementing agency has been using the same methodology for its own overall planning. The key assumptions are: (i) an analysis period of 24 years from 2011 to 2034; (ii) a discount rate of 12% per year; and, (iii) standard conversion factor (SCF) of 0.92 for construction costs and 0.87 for maintenance costs (which is based on a study conducted during the project implementation) to determine economic costs more accurately. 2. Assumptions and components of the Cost-Benefit Analysis Project costs. The analysis considers actual civil works disbursements as the investment costs. Table A4.1 shows the cumulative disbursement of civil works by sub-component, which is taken from a series of IFRs. The CBA also assumes that routine maintenance is annually conducted to preserve road in good condition – i.e. maintaining the IRI for the analysis period. The maintenance cost of US$387 per km per year is used, based on the updated costs by MPWT (for another project; LRSP2). Table A4.1: Cumulative disbursement of civil works by sub-component
Description 2010 2011 2012 2013 2014 2015 2016 2017
NRN 1B Improvement - 0.46 9.45 16.25 17.51 19.05 19.05 19.05
NRN 6A Improvement - 0.10 2.44 5.72 6.31 6.69 6.69 6.69
Bridge Construction - - - 0.10 2.47 5.00 5.49 5.49
PRN Periodic Maintenance 0.29 4.27 6.77 12.29 17.55 17.96 22.82 22.82
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The estimation of benefits is from the project’s impact on VOC and VOT savings. Factors that affect VOC and VOT are: annual average daily traffic (AADT), growth rate, roughness (IRI), and VOC based on HDM-4. Traffic and growth. The following traffic data from MPWT was used as inputs to the cost-benefit analysis model (see Table A4.2). Most of the traffic is motorcycles, with more trucks on NR 1B. For provincial road maintenance, PROMMS data indicates 50-100 vehicles per day for provincial and district roads. The AADT of 50 vehicles per day was used for the CBA.
Table A4.2: Traffic counts for NR 1B and NR 6A
Type of Vehicle NR 1B NR 6A
2011 2017 2011 2017
Mini-tractor 13 25 6 12
Motorcycle 80 153 183 346
Light vehicle (Car) 34 62 14 27
Bus 9 18 3 9
Truck 131 201 7 13
Vehicle operating costs. The analysis uses VOC produced by an updated HDM-4 Model. The results are in Table A4.3. The average VOC saving from improving the road from IRI of 16 to IRI of 4 is approximately US$0.17 per vehicle-km. The analysis uses actual differences for each of the vehicle type to determine the actual savings for national road improvement, while use the average VOC saving for provincial road maintenance.
Table A4.2: Traffic counts for NR 1B and NR 6A
IRI 4.0 8.0 12.0 16.0
Motorcycle 0.09004 0.09246 0.09868 0.10782
Mini-Tractor 0.15469 0.16702 0.19331 0.22787
Car 0.21216 0.23305 0.27229 0.32133
Pickup 0.22804 0.25569 0.30264 0.35785
Small bus 0.23408 0.26747 0.32007 0.38011
Medium bus 0.25487 0.28616 0.33160 0.38494
Heavy bus 0.43675 0.49729 0.58003 0.67528
Light truck 0.73997 0.85440 1.00461 1.17930
Medium truck 1.05249 1.20788 1.43563 1.70166
Heavy truck 0.27646 0.31568 0.38298 0.46437
Truck trailer 0.60472 0.73828 0.93660 1.16210
Cycle 0.82146 1.01166 1.31259 1.65753
Value of time. Time saving is additional benefits. The average hourly wage of US$0.82 was used as a baseline in 2010 and assumed to grow at a real rate of 4%. Value of time saving was estimated based on improvement of
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speed, due to better road condition. 3. Evaluation Results The results of the evaluation are summarized in the following table in terms of EIRR and NPV of the original project at appraisal, for additional financing, and at completion.
PAD
(2010) Additional Financing
(2012) Completion
(2017)
National Road 1B & 6A
EIRR (%) 16.5% / 13.6% 26.0% 28.1%
NPV (US$ million) 1.6 / 1.9 24.3 24.7
Provincial road maintenance
EIRR (%) 23% 27% 47.5%
NPV (US$ million) 1.87 - 14.0
Economic evaluations of NR 1B & 6A were conducted separately without a combined analysis, while the evaluation for the Additional Financing (AF) was conducted together. The EIRR of national road improvements is higher than at appraisal, and around the same value as with the AF. This is because the AF enhanced the national road improvement designs to be more climate resilient, which was additional benefits at additional financing stage. Also, the economic assessment at appraisal did not have sufficient information on (or was conservative about how) additional benefits that come from the connectivity of national and provincial roads. Extra costs and benefits come from avoided emergency maintenance.
For the provincial road maintenance, both EIRR and NPV at completion are much higher than the estimates at appraisal. This is because the project could achieve 2,500 km of provincial road maintenance, versus the target of 1,600 km at appraisal. The benefits expand with scale.
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ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS
MPWT has provided their comments, which have been incorporated into the ICR. In addition, MPWT has also prepared its own ICR. Please see MPWT’s ICR in the ANNEX 6.
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ANNEX 6. MPWT’s ICR
LAO PEOPLE’S DEMOCRATIC REPUBLIC Peace Independence Democracy Unity Prosperity
Ministry of Public Works and Transport
Department of Planning and Cooperation
LAO ROAD SECTOR PROJECT Project No. P102398
(Grant No. H547-LA, No. H7890-LA and No. TF093083)
IMPLEMENTATION COMPLETION REPORT
March 2018
LRSP – Implementation Completion Report
i
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
AF Additional Financing
AFTA Asean Free Trade Area
ASEAN Association of South East Asian Nations
AusAID Australian Agency for International Development
AWPB Annual Work Plan and Budget
BER Bid Evaluation Report
CO Cabinet Office
CRM Community Road Model
CSC Consultant Selection Committee, of DOR
DBST Double Bitouminous Surface Treatment
DD Disbursement Division, DOR, MPWT
DESIA Department of Environmental and Social Impact Assessment, of MONRE
DG Director General
DIT Division of Infrastructure and Transport, PTI
DOI Department of Inspection, MPWT
DOP Department of Personnel, MPWT
DOR Department of Roads, MPWT
DOT Department of Transport, MPWT
DPC Department of Planning and Cooperation, MPWT
DPWT provincial Department of Public Works and Transport (at provincial level)
E&Y (Laos) Ernst & Young Laos Co. Ltd
EA Environment Assessment
EGDP Ethnic Group Development Plan
EGPF Ethnic Group Policy Framework
EIA Environmental Impact Assessment
EMP Environment Management Plan
EOI Expression of Interest
ESD Environment and Social Division, PTI, MPWT
ESOM Environment and Social Operations Manual
FD Financial Division of DPC
FDI Foreign Direct Investment
FM Financial Management
FMCBP Financial Management Capacity Building Project
FMM Financial Management Manual
FMS Financial Management System
GDP Gross Domestic Product
GFDRR Global Facility for Disaster Reduction and Recovery
GHG Green House Gas
GMS Greater Mekong Subregion
GNI Gross National Income
LRSP – Implementation Completion Report
ii
GOL Government of the Lao People's Democratic Republic
HDM4 Highway Development and Management Model, Version 4
IA Internal Audit
ICB International Competition Bidding
ICCC Internal Control Coordination Committee
ICD Internal Control Division, DOI, MPWT
ICT Information and Communication Technologies
IDA International Development Agency
IEE Initial Environment Examination
IFB Invitation for Bids
IFI International Financial Institution
IFR Interim Financial Report
IOC Incremental Operating Cost
IRI International Roughness Index
IRR Internal Rate of Return
ISWG Infrastructure Sector Working Group
JBIC Japan Bank for International Cooperation
Km Kilometer
LAK Lao Kip
LPB Luang Phabang province
LRD Local Road Administration Division, DOR, MPWT
LRSP Lao Road Sector Project
LSRSP-3 Third Lao-Swedish Road Sector Project
LTEC Lao Transport Engineering Consultant
M&E Monitoring and Evaluation
MMDD Manpower Management and Development Division of Department of Personnel
MOF Ministry of Finance
MONRE Ministry of Natural Resources and Environment
MPWT Ministry of Public Works and Transport
MTEF Medium-term Expenditure Frame Work, GOL
NCB National Competition Bidding
NOL No-Objection Letter
NORAD Norwegian Agency for Development and Cooperation
NR National Road
NR National Road
NR13N National Road 13 North
NR13S National Road 13 South
NRN National Road Network
NRSC National Road Safety Committee
NSEDP National Socio-Economic Development Plan
NT-2 Namtheun 2 Hydropower Project
NTSP National Transport Strategic Plan
NUOL National University of Laos
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iii
OC Office Cabinet (of MPWT)
ODA Official Development Assistance
OPWT district Office of Public Works and Transport (at district level)
PAD Project Appraisal Document
PAL Phase Alternate Line
PAU Project Accounting Unit, LRSP
PBC Performance Based Contract
PDF Portable Document Format
PFM Public Finance Management
PFU Provincial Finance Unit
PHRD Japan Population and Human Resource Development Fund
PIP Provincial Infrastructure Project, funded by IDA
PR Provincial Road
PRN Provincial Road Network
PRoMMS Provincial Road Maintenance Management System
PRTP Participatory Rural Transport Planning
PSL Phongsaly province
PTI Public Works and Transport Institute, MPWT
PTTC Public Works and Transport Training Centre, MPWT
RAD National Road Administration Division, DOR, MPWT
RAP Resettlement Action Plan
RMF Road Maintenance Fund
RMFAB Road Maintenance Fund Advisory Board
RMP Road Maintenance Program
RMP1 Road Maintenance Program, Phase 1
RMP2 Road Maintenance Program, Phase 2
RMS Road Management System
ROW Rights of Way
RPF Resettlement Policy Framework
RSF Road Safety Fund
RTIP Rural Transport Infrastructure Policy
SAO State Audit Organization
SBD Standard Bidding Document
SDR Special Drawing Rights
SEA Strategic Environment Assessment
SEZ Special Economic Zone
SGDR Safeguards Diagnostic Review
SIDA Swedish International Development Agency
SOE State Owned Enterprise
STC Science and Technology Council
STMQ Standard, Metrology, Testing and Quality
SWAp Sector-Wide Approach
TA Technical Assistance
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iv
TED Technique and Environment Division of DOR
UCS Use of Country System
UNIDO United Nations Industrial Development Organization
URMF Unified Road Maintenance Framework
USD United States of America Dollars
VMC Village Maintenance Committee
VOC Vehicle Operating Cost
VPD Vehicles Per Day
VTC Vientiane capital
VTP Vientiane province
WB World Bank Group
WREA Water Resource and Environment Administration, Lao PDR
LRSP – Implementation Completion Report
TABLE OF CONTENTS Page
ABBREVIATIONS AND ACRONYMS i
1. INTRODUCTION 1
2. PROJECT CONTEXT, DEVELOPMENT OBJECTIVE AND DESIGN 2
3. COST ALLOCATION AND DISBURSEMENTS 5
4. DETAILED OUTCOMES 7
4.1 Road Network improvement and preservation 7
4.1.1 Network Upgrading 7
A.1.a National Road 1B (NR1B) 7
A.1.b National Road 6A (NR6A) including construction of seven bridges 8
A.1.c Resettlement 10
A.1.d Supervision consultants 10
A.1.f Monitoring and evaluation 10
4.1.2 Provincial Network Maintenance 10
A.2.a Periodic maintenance and spot improvements 10
A.2.b Supervision 10
A.2.c Capacity building 10
4.1.3 Road Safety 11
A.3.a Road safety – goods 11
A.3.b Road safety – awareness and capacity building 11
4.2 Institutional Strengthening 11
4.2.1 Strategic management 11
B.1.a Strategic management advisory and capacity development 11
B.1.b Advisory services for provincial and rural management 11
B.1.c ICT development 12
B.1.d URMF data collection 12
B.1.f Fiduciary support 12
4.2.2 ESOM 12
B.2.a ESOM preparation 12
B.2.b Environment, social and safeguard monitoring 13
4.2.3 Internal controls 13
B.3.a Advisory services and training for internal control division 13
B.3.b Technical audit 14
B.3.c Financial audit 14
B.3.d Capacity building 14
LRSP – Implementation Completion Report
4.2.4 Provincial capacity development 14
4.3 Disaster Recovery and Contingency 14
5. ASSESSMENT OF OUTCOMES 15
6. PERFORMANCE 19
7. ECONOMIC ASPECTS 22
8. ENVIRONMENTAL AND SOCIAL ASPECTS 23
9. LESSONS LEARNED 25
APPENDIXs:
Appendix A – Project Result Framework
Appendix B – Progress of seven bridges construction
Appendix C – Supervision consultants’ quarterly progress report as at December 2015
Appendix D – Provincial road maintenance contracts
Appendix E – Traffic Safety
Appendix F – List of counterpart payables as at 30 September 2017
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Page 1 of 94
1. INTRODUCTION
The transport sector in Lao PDR is dominated by the road sub-sector, which represents 98% of total passenger–km traveled, and 86%
of freight moved in the country. Road transport remains at the core of the country’s policy “from land-locked to land-linked” and central
to economic development and poverty reduction. Therefore, the road network is the key priority for the transport sector, linking people
to resources, markets, and public services.
The total length of the road network reported is 37,552 km, of which 7,019 km is national roads, and 29,468 km is local roads. Urban
road amounts to 718 km and around 166 km is Special roads.
Table 1: Road Length (Km) by Road Classes and Provinces from RMS Statistics, 2016
Source: RMS Database, 2016
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A graphical distribution of the share of each road class is provided in the figure 1 below which shows
that rural road network covers around 46% of the total road length. While national and provincial
road network shares about 19% and 18% of the total length respectively. Urban road and Special
road share small portion of total road length.
Figure 1: Proportion of Lao Road Network by Road Classes from RMS statistics, 2016
Source: RMS Database, 2016
The road sector is under the overall jurisdiction of the Ministry of Public Works and Transport
(MPWT). With the ongoing devolution of responsibilities, MPWT has progressively delegated
maintenance and operational tasks for local roads (Provincial, District, and Rural roads) to the
Department of Public Works and Transport (DPWT) of each province, while retaining a mandate for
policy making, financing, strategic planning, oversight, and management for the road sector.
Maintenance and operational tasks for National roads remain with MPWT.
Lao Road Sector Project (the Project) is capitalized on the institutional outcomes achieved from
previous operations, especially the Bank-led, multi-donor funded Road Maintenance Program Phase
1 and 2, and add value through financing crucial physical investment, and supporting the strategic
planning, design, preparation, implementation, and management of road infrastructure in an
environmentally and socially responsible manner. The Project is also built on the MPW’s continuing
effort in aid harmonization, the Project is a pilot use of country system (or sector wide approach) for
environmental assessment, the establishment of internal audit function, the strengthening of
fiduciary management systems especially at the provincial level, and the establishment of an
emergency contingency fund for repaid response to disasters. All these are designed as relevant
supporting functions to improve the effectiveness of physical investments and delivery of road
services to the people.
The Project is fully consistent with the World Bank’s Country Assistance Strategy (CAS) for Lao
PDR. It supports one of the main CAS pillars of sustained growth through enhanced regional
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integration and private sector development, and to a lesser extent, one of the supporting CAS
objectives regarding better alignment of donor resources with the objectives of the Government’s
National Growth and Poverty Eradication Strategy and strengthened aid coordination.
In line with these objectives, the Project supports the country’s economic growth and poverty
reduction through: (i) reducing road transport costs for goods and passengers; (ii) rehabilitating the
road damaged by Typhoon Ketsana; and (iii) developing an emergency contingency fund for rapid
response to natural disasters in the road sector. Support to the second CAS objective is mainly
through the strengthening of the MPWT’s systems for strategic planning, fiduciary management, and
environmental safeguards, which are required for achieving better aid harmonization and
coordination.
2. PROJECT CONTEXT, DEVELOPMENT OBJECTIVE AND DESIGN
Lao PDR has received initial financing from the International Development Association (IDA) and
grant co-financing from the Policy and Human Resources Development Fund (PHRD) of Japan
toward the cost of the Project as follows:
► Grant No. H547-LA as per the Grant Agreement dated 2 April 2010 between the IDA and the
Government of Lao PDR (GoL), as represented by the Ministry of Finance: USD 27.8 million.
GoL contributes to the Project via Road Maintenance Fund (RMF) USD8 million and Government
budget USD6.38 million, the total of Lao PDR contribution to Project is USD14.38 million, the
grant total of Project cost is USD43.18 million.
► Grant No. TF093083 as per the Grant Agreement dated 17 May 2010 between the Government
of Japan under the PHRD, as represented by the IDA, and the GoL, as represented by the
Ministry of Finance: USD 1 million.
To address the cost overrun that resulted from design changes to enhance the disaster resilience of
the two national roads sections, discrepancies in the original design of these two roads and also to
scale up project impact by: (a) enhancing the disaster resilience of two national roads and priority
sections of the provincial network; (b) further strengthening the institutional capacities of the MPWT;
and (c) topping up the emergency contingency fund, depleted following rehabilitation efforts in 2011,
World Bank approved additional funding to the Project through Grand No. H7890-LA as per the
Grant Agreement dated 8 August 2012 between the IDA and the GoL, as represented by the Ministry
of Finance: USD 21 million. GoL also contributes to the Project via RMF USD7.2 million and
Government budget USD6.3 million, the total of Lao PDR contribution as additional to Project is
USD13.5 million, the grant total of Project cost for this additional is USD34.50 million.
The Project is implemented by MPWT for the period from 1 July 2010 to 30 September 2017.
The Project development objective (PDO) are: (i) to improve road services on two main national
corridors and the provincial road network; (ii) to recover the conditions of Typhoon Ketsana damaged
roads; and (iii) to establish a contingency fund for quick disaster response in the road sector.
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The achievement of the objective will be measured by the following key outcome indicators by the
end of the Project:
► Reduced travel time on upgraded roads (on NR1B reduced by 40% and on NR6A by 50%);
► Increased number of people connected by paved roads (at least 26,500 people, including 49%
of females, mostly living by the roadside will be served by paved road along NR1B and NR6A);
► Increased percentage of provincial road network in good and/or fair condition (by increasing from
46% to 65%);
► Recovered conditions of Typhoon Ketsana damaged roads (about 60% of the damaged roads
repaired and improved); and
► An emergency contingency fund established for quick restoration of passability and safety of
disaster affected national and provincial roads.
The Project comprises three main components:
► Component 1: Road Network Improvement and Preservation (total USD 61.05 million; of
which IDA of USD 33.17 million, GoL’s RMF of USD 15.20 million and GoL contribution of USD
12.68 million), which finances physical works for the upgrading of two national roads, 6A and 1B
in Phongsaly and Houaphan Provinces respectively, the periodic maintenance of the provincial
road network, and road safety improvements.
► Component 2: Institutional Strengthening (total USD 6.03 million; of which IDA of USD 5.03
million and PHRD of USD 1 million), which provides technical assistance to both the MPWT and
the DPWT in the areas of sector strategic management, local road management, country
systems for environmental safeguards, fiduciary management, and internal controls.
► Component 3: Disaster Recovery and Contingency (IDA of USD 10.60 million), which funds
spot rehabilitation and periodic maintenance of roads damaged by Typhoon Ketsana in the five
affected southern provinces, and supports an emergency contingency fund for quick
disbursement of emergency civil works and construction materials ensuring the possibility and
safety of affected national and provincial road links following a natural disaster.
LRSP – Implementation Completion Report
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Figure 2: Project Location Map
LRSP – Implementation Completion Report
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3. COST ALLOCATION AND DISBURSEMENTS
The Project cost was estimated at USD77.68 million, of which IDA financing constitutes USD48.80
million equivalent and Government contribution through RMF of USD15.20 million, and Ministry of
Finance and Provincial State Budget (GoL) of USD 12.68 million. The Government contribution for
National Roads improvement at 30% and at 75% of total contracts for Provincial Roads
maintenance.
Table 2: Project cost by component and source of fund USD million
Component
Original Project costs Additional Project costs Total
Proje
ct
costs GoL RMF IDA
PHD
R Total GoL RMF IDA
Tota
l
1. Road Network Improvement
and Preservation 6.38 8.00 17.55 - 31.93 6.30 7.20 15.62
29.1
2 61.05
2. Institutional Strengthening - - 1.45 1.00 2.45 - - 3.58 3.58 6.03
3. Disaster Recovery and
Contingency - - - - 8.80 - - 1.80 1.80 10.60
TOTAL 6.38 8.00 27.80 1.00 43.18 6.30 7.20 21.00 34.5
0 77.68
The Project’s first restructuring was approved by the Bank on 9 September 2014 to cover costs
incurred during the upgrading National Road 6A (NR6A), and address the deterioration to sections
of National Road 1B (NR1B) caused primarily by unexpected severe rains and landslides while the
second restructuring was approved by the Bank on 14 March 2017 to cover costs incurred for
Technical Supervision during the upgrading NR6A and address the deterioration to sections of
NR1B. The revised Project costs and total actual accumulated disbursements as at 30 September
2017 are shown as follows:
Table 3: Revised Project costs and actual accumulated disbursements USD million
Component
Revised Project costs Actual accumulated disbursements
GoL RMF IDA PHR
D Total GoL RMF IDA
PHR
D
Tota
l
1. Road Network Improvement
and Preservation 12.68 15.20 33.17 - 61.05 11.43 15.22 32.07 -
58.7
2
2. Institutional Strengthening - - 5.03 1.00 6.03 - - 5.66 0.95 6.60
3. Disaster Recovery and
Contingency - - 1.80 - 10.60 - - 10.62 -
10.6
2
TOTAL 12.68 15.20 48.80 1.00 77.68 11.43 15.22 48.35 0.95 75.9
4
Due to fluctuating XDR rate, actual receipts from the AF were only USD20.7 million out of USD21
million which valued on the Grant signing date. Therefore, some minor works have to be eliminated.
LRSP – Implementation Completion Report
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Table 4: Details of actual project disbursements as at 30 September 2017
No Description Cumulative to 30 September 2017
GoL RMF IDA PHRD Total
A Road Network Improvement and Preservation
11,434,655.99 15,220,832.9
8 32,060,184.09 -
58,715,673.06
A.1 Network Upgrading 9,540,948.26 - 24,749,286.35 - 34,290,234.6
0
A.1.a NR1B 5,758,676.93 - 13,289,958.51 - 19,048,635.4
4
A.1. b NR6A including bridge constructions 3,407,529.00 - 8,778,943.35 - 12,186,472.3
5
A.1.c .i
Resettlement for 1B 46,209.09 - - - 46,209.09
A.1.c .ii
Resettlement for 6A 328,533.24 - - - 328,533.24
A.1.d.i Construction Supervision for 1B -
-
2,619,727.97
- 2,619,727.97 A.1.d.ii
Construction Supervision for 6A
A.1.f Monitoring and Evaluation - - 60,656.51 - 60,656.51
A.2 Provincial Network Maintenance 1,893,707.73 15,220,832.9
8 5,816,290.78 -
22,930,831.49
A.2.a PRN Maintenance 1,893,707.73 15,220,832.9
8 5,700,716.38 -
22,815,257.09
A.2.b Construction Supervision - - 33,153.00 - 33,153.00
A.2.c IOC For Provincial and DoR/DoF M&E - - 82,421.40 - 82,421.40
A.3 Road Safety - - 1,494,606.97 - 1,494,606.97
A.3.a Road Safety Goods - - 1,324,556.30 - 1,324,556.30
A.3.b Road Safety Awareness - - 170,050.67 - 170,050.67
B. Institutional Strengthening - - 5,661,030.34 943,346.15 6,604,376.49
B.1 Strategic Management - - 3,222,291.43 6,957.36 3,229,248.79
B.1.a Strategic Management Advisory Services & Capacity Development
- - 1,397,202.91 6,957.36 1,404,160.27
B.1.b Advisory Services for Provincial and Rural Management
- - 100,802.10 - 100,802.10
B.1.c ICT Development - - 618,158.33 - 618,158.33
B.1.d URMF Data Collection - - 324,301.42 - 324,301.42
B.1.e Unit Cost Analysis - - - - -
B.1.f DPC Fiduciary Support - - 781,826.67 - 781,826.67
B.2 Advisory Services and equipment for ESOM Implementation
- - 734,938.38 - 734,938.38
B.3 Internal Controls - - 1,204,687.81 - 1,204,687.81
B.3.a Advisory Services for Internal Controls - - 1,002,545.03 - 1,002,545.03
B.3.b Technical Audit - - - - -
B.3.c Financial Audit - - 84,790.52 - 84,790.52
B.3.d Internal Operating Costs - - 117,352.27 - 117,352.27
B.4 Provincial Capacity Development - - 499,112.73 936,388.79 1,435,501.52
C. Disaster Contingency, Mitigation and Preparedness
- - 10,622,345.93 - 10,622,345.9
3
C.1 Recovery of Ketsana Damaged Roads - - 6,925,658.31 - 6,925,658.31
C.1.a Recovery Civil Works - - 6,925,658.31 - 6,925,658.31
C.1.b Engineering Supervision -
- - - -
C.1.c Incremental Operating Costs -
- - - -
C.2 Disaster Contingency Fund - - 3,696,687.62 - 3,696,687.62
TOTAL PROJECT COST 11,434,655.99 15,220,832.9
8 48,343,560.37 943,346.15
75,942,395.49
Source: Interim Unaudited Financial Report as at 30 September 2017.
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LRSP – Implementation Completion Report
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4. DETAILED OUTCOMES
Overall the Project is meeting its development objectives satisfactorily as follows, however, a number
of important lessons learned, as described in No. 9, from the implementation should be addressed
in preparation of next projects:
➢ Four of five PDO Level Result Indicators have met and exceeded the target values.
➢ Target Values of Intermediate Result Indicators on road network upgrading and provincial road
maintenance have been substantially met and exceeded.
➢ Most of the Intermediate Result Indicators on Institutional Strengthening meet their target values.
Strategic Planning and Management Final Report has been utilised as one reference to produce
the Sector 8th Five-Year Plan (2016-2020), which has been approved by the Ministry. The Sector
Plan has been incorporated in the 8th National Socio-Economic Development Plan. Internal
Control Function has been expanded, since there are now Internal Control sections and divisions
in 17 provinces, 8 departments, 2 sub-departments and 2 State Owned Enterprise (SOE), Lao
Airlines . The feasibility study of PPP Pilot Project has been completed, and the recruitment of
consulting firm to undertake additional E&S survey on Road No. 13N is under process. The full
report to the government will be made once the survey becomes completed.
➢ The first payment made to contractors for disaster recovery after its declaration doesn’t meet the
target due to the process of seeking contractors & other documentation steps. (Please refer to
Appendix A: Project Result Framework).
Detailed outcomes per components are summarized as follows:
4.1 Road Network improvement and preservation
4.1.1 Network Upgrading
A.1.a National Road 1B (NR1B): Performed by China Yunnan Sunny Road & Bridge Co., Ltd: the
Taking Over Certificates for Lot 1 (Km 0-54) and Lot 2 (Km 54-88) have been issued by the Engineer
on 11 September 2014 after no objection from Inspection Committee, 100% of payment (including
retention money) of Lot 1 and Lot 2 were fully paid. Taking Over Certificate for section Km 88-108
have been issued on 7 August 2015, and which the Defects Liability Period has expired in August
2016. Taking Over Certificate for repairs and mitigation works for sections from Km 38+750 to
40+000, and from Km 54+550 to 54+850 has been issued on 5 January 2017 while the Defects
Liability Period has expired on 24 July 2016. Payment for retention money was made in June 2017.
Figure 3: National Road 1 B
LRSP – Implementation Completion Report
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Upon ending of defects liability period which was 2015, RMF allocated its budget for routine
maintenance as follows:
A.1.b National Road 6A (NR6A) including construction of seven bridges:
Upgrading NR6A: Performed by SCC-ADC-DSC Joint Venture: the road works have been completed
with a few defects which have been inspected by MPWT Defects Liability Committee in September
2015. Minor repairs in 6 small locations which have been completed by the contractor in September
2015. Taking Over Certificates have been issued and payment for remaining 50% of retention money
has been made in March 2016.
Figure 4: National Road 6A
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Construction of seven bridges on NR6A: Performed by Civil Engineering Construction Joint Stock
Company N0. 525: all seven bridges have been completed with the extension of contract period from
15 August 2015 to 30 December 2015 due to disruption of works caused by heavy rainfalls that
flooded Nam Long from 23-25 June 2015. The Taking-over certificate has been issued on 2 March
2016. Final payment for construction cost including the first 50% of retention money cost was paid
in August 2016 while the remaining 50% will be made in October 2017.
Figure 5: Nam Ma bridge in National Road 6A
Table 5: Name and length of seven bridges
No. Bridge Name Length
(m)
1 Nam Ma 190.6
2 Nam Long 50.0
3 Huay Bor 17.0
4 Huay Huang 17.0
5 Huay Mone 25.0
6 Huay Dik 25.0
7 Huay Yang 25.0
Please refer to Appendix B for details of above seven bridges.
A.1.c Resettlement: All resettlements on NR1B and NR6A were fully paid by GoL in accordance
with Law and Regulations prior to the start of constructions.
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A.1.d Supervision consultants: SweRoad in association with WSP and Burapha were assigned as
supervision consultant for road upgrading on National Roads 1B and 6A, The Consultant has also
assisted DoR in reviewing the detailed bridge designs and Drawings, including bidding documents,
for the 6 small bridges and Nam Ma bridge in NR6A which were prepared by LTEC. LTEC, under a
separate contract with MPWT, has carried out the topographic surveys, geotechnical investigations,
detailed design of the 7 bridges in NR6A. Draft bidding documents, including Drawings and BOQ
have been submitted by LTEC to DOR and copied to World Bank. The Team Leader and his team
have reviewed LTEC’s design of the bridge structures including their foundations and
confirmed/modified to comply with the technical standards and AASHTO LRFD bridge design
specifications. He also assisted LTEC in preparing the bidding documents and specifications for the
steel structures. Please refer to Appendix E for the final quarterly report of consultant as at
December 2015.
A.1.e Monitoring and evaluation: Monitoring and evaluation was performed by Project managers
who were assigned by DoR to carry out day-to-day monitoring together with supervision consultants.
4.1.2 Provincial Network Maintenance
A.2.a Periodic maintenance and spot improvements: As at 30 September 2017, more than 2,400
km of provincial road have received spot improvement and periodic maintenance under the Project
(see Appendix D for provincial road maintenance contracts). Furthermore, in order to cope with the
maintenance needs while preventing the road network from further deteriorated and not to lose the
momentum while those needs have already been prioritized systematically for the 3-Year Rolling
Plan, DoR therefore has received approval by minister for continuing to allocate fund from RMF
amount to LAK 41,674.90 million, covering 18 maintenance contracts for provincial roads, with total
length of about 300.93 km, spreading allover 18 provinces countrywide.
A.2.b Supervision: Supervision was performed by MPWT and DPWT staffs who were assigned by
DoR to carry out day-to-day supervision together with provincial and rural management consultants.
A.2.c Capacity building: To further strengthen DPWT in managing provincial roads maintenance,
a training has been provided to six provinces on planning, supervision, and contract management.
DOR conducted the technical trainings using the remaining training budget and IOC for 12 provinces
(Northern and Southern parts) in September 2017.
4.1.3 Road Safety
A.3.a Road safety – goods: Package 1 for mitigation of traffic accidents in Vientiane Capital of
USD0.58 million and Package 2 for road furniture, road marking and signage on NR13N amounting
to USD0.81 million was fully installed. The final 10% payment for Package 2 was made in February
2016.
A.3.b Road safety – awareness and capacity building: The public campaign in Vientiane Capital
and traffic management training have been successfully completed while the speed management
training had been postponed from November 2015 to January 2016 due to the readiness of AIT.
However, the speed management training had been again postponed and conducted on 14-17 June
2016 while the awareness raising was shifted from NR13N to NR1B and NR6A which expects to be
LRSP – Implementation Completion Report
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carried out in October-November 2016. Due to the minimal readiness of the communities, the actual
implementation is reset to perform in February 2017. Procurement for the safety capacity
assessment consultant, who will help on updating traffic regulation and fine decree and PRSC
workshops are postponed due to the budget constraints (see Appendix E for details).
4.2 Institutional Strengthening
4.2.1 Strategic management
B.1.a Strategic management advisory and capacity development: Strategic Planning and
Management (SPM) Consultant Services: Strategic Planning and Management Final Report has
been utilized as the basis to produce the Sector 8th Five-Year Plan (2016-2020), Strategy up to 2025
and Vision up to 2030. The Five-Year Plan (FYP) in Lao version has been finalized and received the
minister’s approval. The available edition of the FYP can be shared to all development partners.
Public-Private Partnership (PPP) financing of roads: ToRs for individual consultants and a firm on
ESIA, RAP and EGDP have been completed. Two individual consultants have been on board since
July 2016, however, due to budget constraint resulting delays in procuring a consulting firm to
perform additional surveys. Therefore, all E&S related studies were carried out under Lao Road
Sector Project 2. MPWT reported the progress of PPP to the government on 11 August 2016, and it
has been agreed that a full report, including response to government enquiries on 7 issues, from
MPWT to the government on the way to have PPP moving forward will be prepared. At current stage,
MPWT is in the process of preparing new project, Lao National Road 13 Improvement and
Maintenance Project, using one of PPP concept as Output and Performance-Based Road Contract
(OPBRC).
B.1.b Advisory services for provincial and rural management: Maintenance monitoring consultant
has been recruited for day-to-day monitoring of provincial periodic maintenance and spot
improvements.
B.1.c ICT development: The design and development of ICT tools to support road asset
management, Integrated Road Asset Management System (IRAM or system), is completed and
testing was performed in June – July 2015. ICT Steering Committee has reviewed and approved the
IRAM. Training for users was conducted in February 2016 and the system has been officially
operated in May 2016. Procurements of ICT equipment for two packages have been completed and
payments were fully made to the contractors.
B.1.d URMF data collection: Annual Road Asset Report for FY 14/15 was submitted to DoR, DPC
and WB in November 2015. The condition survey for national roads for FY 15/16 including data
collection, with limited budget of USD20 thousand, was completed in March 2016 and its analysis
has been completed in May 2016. Data input, validation and analysis of road condition for local roads
was completed and Annual Road Asset Report for FY 15/16 was issued in March 2017.
B.1.f Fiduciary support: At the first stage of the Project, this role was under DPC and later under
DoF since it was established in 2013. MPWT together with WB developed the Internal Financial
Manual of MPWT which was approved by Minister in 2010 and revision was made in September
2017 (including Standard Operating Procedures) by assisting of National Coordination and FM
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Consultants. New version of APACC (and accounting software) was upgraded and used as the
Project software in recording financial information and generating financial reports such Interim
Financial Reports (IFRs), financial statements and etc. At the first year of Project implementation,
there were poor quality and delays submission of the IFRs and Project audit reports. The quality of
the IFRs and timing of submission of both IFRs and audit reports continued to improve after the
second year of implementation. The audit opinions were unqualified (clean) throughout Project
implementation. From June 2015, the Project recruited a National Coordination Adviser and three
Financial Management Advisers to advise the Project in coordination and financial management
including revision of Internal Financial Manual. As all of the staffs working on the financial
management of the Project were staffs of MPWT and DPWT, the Project was instrumental in
improving the overall capacity of ministry and provincial staffs to manage the finances of ODA
projects.
4.2.2 ESOM
B.2.a ESOM preparation: PTI has finished its translation of ESOM to English version and already
submitted to the Bank for comments in early October 2015. Upon receiving comments from the Bank,
PTI will revise and collaborate with the Council of Science and Technology in preparation to seek
the minister’s approval on the revised ESOM. However, The Bank will review the ESOM in parallel
with safeguard preparation for the new project to ensure consistency. As recommended by the Bank,
ESD/PTI and TED/DOR completed submission work plan on E&S monitoring for provincial road
maintenance to the Bank. However, it was cancel due to the WB keep priority to the preparation
safeguards framework for LRSP 2 (ESMF, RPF, EGPF) which is urgent needed to submit to head
quarter.
B.2.b Environment, social and safeguard monitoring: The E&S monitoring (completion report) of
NR1B and NR6A, and of provincial road maintenance have been completed. Random visit to verify
the safeguard compliance for the provincial road maintenance projects of five Northern provinces
(Xayabuly, Bokeo, Luangnamtha, Oudomxay and Phongsaly) during 21-30 December 2015 with no
major issues were noticed. PTI also completed safeguard training in Laung Prabang for 8 DPWTs
in January 2016. ESD/PTI conducted several consultation for preparing safeguards framework for
LRSP 2 such as: i) the first consultation was made in Vientiane on 25 February 2016 to inform the
public and key agencies about the objective and scope of the Project as well as the draft TORs for
the ESMF, RPF, and EGPF while the second consultant was made in Vientiane on 29 April 2016 on
the draft ESMF, RPF, and EGPF; ii) two consultations were also made in the Bolikhamxay and
Xayabuly. The first consultation in BKX and XBL were made in 04 to 11 of March 2016 to describe
scope of the subprojects to be carried out in the provinces, consult the draft TORs for ESMF, and
RPF as well as collect baseline data to identify if ethnic groups are present in the subproject areas
and/or possible effected people and/or property that may be affected by the subprojects; iii) the
second consultation which was conducted in XBL during 20-23 April 2016 and in BKX in 25-27 April
2016. Results for the second consultation confirmed strong support for the project as well as the
ESMF, RPF, and EGPF to be applied to the Project; and iv) additional consultation has conducted
for concerned provincial departments in Houaphan and Oudomxay during 28 June and 9 July 2016.
4.2.3 Internal controls
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B.3.a Advisory services and training for internal control division: Financial audit manual, financial
audit working papers, technical audit manual, technical audit working papers, quality assurance
guidance, strategy for internal auditing plan, and strategy for financial management system in
English, which produced by Nanjing Audit University, have been completely translated into Lao
language while the first workshop has been conducted on 15-19 August 2016 for gathering
comments from nationwide inspectors of MPWT (by using GoL’s budget) and second was made in
December 2016 for 9 northern provinces while for 9 southern provinces was made in January 2017.
DoI completed its procurement for equipment and vehicles to six provinces in August 2015 and
distribution to those provinces were also completed. A national coordination advisor and three
financial management advisors have been on board since June 2015 while another two internal
control consultants are now postponed and recruited under new project (Lao Road Sector Project
2). All internal control weaknesses identified by Ernst & Young in Internal Control Assessment Report
dated 21 December 2012 and certain internal control weaknesses that highlighted in the
Management Letter for the year ended 30 September 2014 by EY have been fully implemented.
B.3.b Technical audit: The consultant for technical audit of NR6A, NR1B and provincial roads has
been on board since May 2015. The consultant has been completed his technical audit report in
September 2015. During the nationwide workshop for inspection sectors, which held in September
2015 at Vangvieng of Vientiane Province, the Consultant completed his introduction to Quality
Assurance and Control.
B.3.c Financial audit: Ernst & Young Lao Co., Ltd is the external auditor for the whole period of the
Project. Although certain delays in submission of audited reports, however, the audit opinions were
unqualified (clean) throughout Project implementation. The final audit was carried out in January
2018 and now is process of signing and the audited reports will be submitted to World Bank in March
2018.
B.3.d Capacity building: Nationwide workshop for inspection sectors was held in September 2015
at Vangvieng of Vientiane Province with approximated 100 participants to introduce new Prime
Minister Decree PM01/PM dated 6 January 2015 mandates the internal control division of the
relevant department at central and provincial level to review all new contracts before these are
signed. First workshop, (on Financial audit manual, financial audit working papers, technical audit
manual, technical audit working papers, quality assurance guidance, strategy for internal auditing
plan, and strategy for financial management system), has been conducted on 15-19 August 2016
for gathering comments from nationwide inspectors of MPWT (by using GoL’s budget) and second
was made in December 2016 for 9 northern provinces while for 9 southern provinces was made in
January 2017.
4.2.4 Provincial capacity development: The capacity development plans were focused on
enhancing ministerial, provincial and district capacities for equality control, financial and contract
management. Total 2,042 participants (286 females and 1,756 males) including 727 participants
from Ministry, 1,089 from provinces and 226 from districts were trained during the Project period.
LRSP – Implementation Completion Report
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4.3 Disaster Recovery and Contingency: It has been agreed in a follow-up meeting on Agreed
Actions that DOR with a support from DOF and DPC will draft the Standard Operating Procedures
(SOP) for the management of the emergency contingency fund. The third drafted SOP for the
Emergency Response and Disaster Recovery Fund has been reviewed and commented by DoR
and DoR who agreed in principles on the fund allocation, scope of the use and activation procedures.
Final draft has been completed and attached to the Internal Financial Manual which approved by
Minister on 8 September 2017.
5. ASSESSMENT OF OUTCOMES
Project Development
Objective
Project Outcome Indicators Use of Project Outcome
Information
The Project development
objective (PDO) are: (i) to
improve road services on two
main national corridors and the
provincial road network; (ii) to
recover the conditions of
Typhoon Ketsana damaged
roads; and (iii) to establish a
contingency fund for quick
disaster response in the road
sector.
1) Vehicle travel time on
upgraded NR1B reduced
by 40%;
2) Vehicle travel time on
upgraded NR6A reduced
by 50%;
3) At least 26,500 people
(49% females) mostly
living by the roadside will
be served by paved road
along NR1B and 6A;
4) Share of provincial road
network in good and fair
condition (by Lao
standards) increased from
46% to 65%
5) About 60% of the Typhoon
Ketsana damaged roads
repaired and improved;
6) Standard operational
procedures for the
management of the
emergency contingency
fund functional
Project beneficiaries (309,400
people including 157,794
female)
For decision makers to gauge
effectiveness of the
Government’s program for
road sector management, and
to make decisions for actions
required to improve the
effectiveness.
Assess impact of improved
national and provincial road
networks and effective
transfer of benefits to road
users.
ICR outcome note:
1) Travel time on NR1B is 2.5
hours or reduced by 50%
as per observation during
mission on 24-26 January
2017;
2) Travel time on NR6A is 50
minutes or reduced by
72% as per observation
during mission on 14-16
February 2017;
3) 116,581 people (44%
female). 23,371 people
(11,438/49% female) of 52
villages living along NR1B
and 93,210 people
LRSP – Implementation Completion Report
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(40,022/43% female) of 3
districts living along NR6A;
4) Provincial road network in
good and fair condition
increased to 73% based
on received ProMMs data.
The figure might not reflect
real condition of the road
network due to the
ineffectiveness of data
collection;
5) Achieved 55% and the
remaining 45% was taken
up by GoL and other
sources of funding;
6) The Standard Operating
Procedures (“SOP”) for the
Emergency Response and
Disaster Recovery Fund
has been prepared and
attached to the Internal
Financial Manual which
approved by Minister on 8
September 2017.
Total 467,863 beneficiaries
(230,858 female)
Intermediate Outcomes Intermediate Outcome
Indicators
Use of Intermediate
Outcome Monitoring
Intermediate Result 1: Network Improvement and Preservation
1. Road conditions on
national roads 1B and
6A substantially
improved: upgrading
of 109 km NR1B and
62 km NR6A.
1. 171 km of national roads
(NR1B and NR6A)
upgraded with disaster
resilience standard.
Monitor implementation
progress and formulate action
plan to address possible
delays on NR1B and NR6A.
ICR outcome note: Objective
is met; all 171 km including
seven bridges was fully
completed.
2. Road conditions
improved on selected
provincial roads:
periodic maintenance
on priority sections of
2. About 2,100 km of
provincial roads preserved
through periodic
maintenance
Monitoring implementation
progress and formulate action
plan to address possible
delays for maintenance on
LRSP – Implementation Completion Report
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the provincial road
network.
priority sections of provincial
road network.
ICR outcome note: Objective
is met; 2,500 km of provincial
road network received
maintenance. In addition, GoL
allocates its budget from RMF
to continue provincial
maintenance approximately
300 km in year 2016/17
3. Safety pedestrian and
road users improved
on targeted roads:
support to National
Road Safety Strategy.
3. Road safety facilities
acquired and installed as
per specifications.
4. 300 police officers, local
authorities, community
members and teachers
and students exposed to
road safety training and
awareness raising
activities in 3 pilot
provinces.
Monitoring implementation
progress for road safety
facilities acquisition and
installation.
ICR outcome note:
3. Objective id met; fully
installed facilities.
4. 102 participants and 10
observers.
Intermediate Result 2: Institutional Strengthening
4. MPWT capacity for
sector strategic
planning and
management
strengthened and
streamlined: strategic
management of
transport sector.
5. Knowledge and practical
experience acquired on
transport sector strategic
planning and
management. National
plan updated and
expanded.
Assess the completion status
and impact of technical
assistance. Use continued
knowledge acquisition for
sector strategic planning and
management.
ICR outcome note: The final
edition of Sector Five-Year
Plan produced and approved.
5. Country system for
environmental
assessment adopted
and enhanced:
strengthening of
safeguard capacity.
6. Enhanced knowledge and
practical experiences
gained on safeguard
management. Country
systems used for EA and
staff trained.
Assess the completion status
and impact of technical
assistance. Use continued
knowledge acquisition for
safeguard capacity
development.
ICR outcome note: 256
provincial and district
engineers received ESOM
LRSP – Implementation Completion Report
Page 18 of 25
training. ESOM in English
version shared to the Bank for
comments. Trainings on
ESOM will be postponed to
the LRSP 2.
6. Internal control system
established and
functional:
strengthening internal
controls.
7. Acquire knowledge and
experience on internal
control, Internal audit
function established and
functional.
Assess the completion status
and impact of technical
assistance. Use continued
knowledge acquisition for
internal controls.
ICR outcome note: Internal
control sections established in
17 provinces and internal
control divisions in 8
departments, 2 sub-
departments and 2 SOEs.
7. Provincial Department
capacity further
strengthened:
Provincial Department
capacity development.
8. Knowledge enhanced and
practical experiences
gained on fiduciary
management and contract
management at the
provincial level
Assess the completion status
and impact of technical
assistance. Use continued
knowledge acquisition for
provincial capacity
development.
ICR outcome note: 2,042
people (286 females) received
trainings and workshops.
8. PPP Unit established. 9. PPP Unit established.
10. Feasibility study for two
PPP pilot road sections
Assess the completion status
and impact of technical
assistance. Use continued
knowledge acquisition for
PPP.
ICR outcome note:
9. Steering Committee
established. PPP
implementation responsibility
is with DoR, and coordinating
responsibility will remain with
DPC.
10. Feasibility study is
completed. MPWT to compile
a full report to the government
LRSP – Implementation Completion Report
Page 19 of 25
after the completion of
additional E&S study which
will be carried out under LRSP
2.
Intermediate Results 3: Disaster Recovery and Contingency
9. The conditions of
Typhoon Ketsana
damaged roads
restored and improved:
Spot rehabilitation and
periodic maintenance
of Ketsana Damaged
Roads.
11. About 1,100 km of
Ketsana damaged roads
(including small and
wooden bridges) repaired
and improved as per
specifications.
Monitoring implementation
progress and formulate action
plan to address possible
delays on NR1B and NR6A.
ICR outcome note: Target
achieved.
10. Disaster response
capacity enhanced:
Emergency
contingency fund.
12. Length of time between
declaration of disaster and
the first payment to
contractors for emergency
works shortened (time of
payment shortened to less
than 6 month).
Assess the time required for
payments made to contractors
who carried out the
emergency works.
ICR outcome note: Time of
payment for Typhoons
Ketsana and Nok Ten on
average about 10 months.
Due to the lack of fund in each
financial year, first payment
for disaster recovery works in
2010-2013 just been made in
Aug 2014.
Documentation process to
obtain the payment not
complicated.
For the WB disaster &
emergency fund took about 10
months on average for the
first payment to be made.
6. PERFORMANCE
Overall performance on a Project may be weighed against the following criteria:
▪ Relevance
▪ Effectiveness
▪ Efficiency
LRSP – Implementation Completion Report
Page 20 of 25
▪ Sustainability
Where the weighings are 20%, 30%, 30% and 20% respectively.
Scorings: Highly satisfactory > 2.7; satisfactory 2.7>S>1.6; partly satisfactory 1.6>PS>0.8;
unsatisfactory<0.8.
The performance of the Bank and Borrower were based upon the above criteria.
6.1 Bank’s Performance
Relevance – in continuation of the institutional outcomes achieved from previous operations,
especially the Bank-led, multi-donor funded Road Maintenance Program Phase 1 and 2, and add
value through financing crucial physical investment, and supporting the strategic planning, design,
preparation, implementation, and management of road infrastructure in an environmentally and
socially responsible manner. The Project is also built on the MPW’s continuing effort in aid
harmonization, the Project is a pilot use of country system (or sector wide approach) for
environmental assessment, the establishment of internal audit function, the strengthening of
fiduciary management systems especially at the provincial level, and the establishment of an
emergency contingency fund for repaid response to disasters. All these are designed as “very
relevant” supporting functions to improve the effectiveness of physical investments and delivery of
road services to the people. The Project is fully consistent with the World Bank’s Country Assistance
Strategy (CAS) for Lao PDR. It supports one of the main CAS pillars of sustained growth through
enhanced regional integration and private sector development, and to a lesser extent, one of the
supporting CAS objectives regarding better alignment of donor resources with the objectives of the
Government’s National Growth and Poverty Eradication Strategy and strengthened aid coordination.
Effectiveness – the Bank is rated “highly effective” in achieving its targeted outcomes. The inter-
relationship of the Bank’s staff and consultants with those of the MPWT proved most positive in the
development and implementation of the Project. The Bank’s dealings with MPWT and outcomes of
its missions through the Aide Memoire were effective in progressing the satisfactory outcome of the
Project as well as leading cross donor co-operation through bi-annual meetings and promoting the
Infrastructure Technical Working Group which involves MPWT and most of the Development
Partners.
Efficiency – the efficiency of the Bank is demonstrated in its interactions with the MPWT regarding
processing of procurement approvals for both consultants and civil works, revisions to the Project
affecting the scheduling of consultants for the capacity building component, time in replying to
queries, etc – the Bank’s rating in this respect is considered as “efficient”.
Sustainability – the Bank continues support with further funding to Lao Road Sector Project 2
(“LRSP2”) with co-financing from Nordic Development Fund and Government of Lao PDR through
Road Maintenance Fund’s budget and Provincial State budget. LRSP2 is supporting sector
institutional development through the preparation of financing and policy frameworks, the sector
LRSP – Implementation Completion Report
Page 21 of 25
strategic plan, improved governance systems, and development of technical capacity to maximize
the effectiveness of public expenditure in the sector. In addition, the Bank’s commitment to
sustainability is demonstrated by its continuing association with MPWT through the preparation of
the Lao National Road 13 Improvement and Maintenance Project (“NR13 project”) with the purpose
of climate resilient upgrade and improvement of 58km on NR13 North from Vientiane to Phonhong,
a critical stretch serving high traffic volumes. The works and maintenance will be carried out through
the implementation of an Output and Performance-Based Road Contract (OPBRC) – the Bank
commitment to sustainability of the Lao road networks is rated “sustainable”.
Score:
Relevance (20%) = 2.8
Effectiveness (30%) = 2.8
Efficiency (30%) = 2.4
Sustainability (20%) = 2.4
Overall rating = 2.6
The Bank’s performance is rated as satisfactory.
6.2 Borrower’s Performance Relevance - The Project supports the country’s economic growth and poverty reduction through: (i)
reducing road transport costs for goods and passengers; (ii) rehabilitating the road damaged by
Typhoon Ketsana; and (iii) developing an emergency contingency fund for rapid response to natural
disasters in the road sector. Support to the second CAS objective is mainly through the strengthening
of the MPWT’s systems for strategic planning, fiduciary management, and environmental
safeguards, which are required for achieving better aid harmonization and coordination. The Borrow
is rated as “most relevant”.
Effectiveness – the Borrower is rated as “effective” based on the targets for the Project:
▪ improve road services on two main national corridors and the provincial road network;
▪ recover the conditions of Typhoon Ketsana damaged roads; and
▪ establish a contingency fund for quick disaster response in the road sector.
The civil works have been completed, however, counterpart funding remains payable of LAK 22
billion (USD 2.67 million) (see Appendix F for details) and the implementation of all components is
considered satisfactory. In the view of the Bank, the financial management performance of the
Project remains moderate satisfactory due to: (i) late advance clearance; (ii) large expenses on
administrative expenses; (iii) un-updated fixed assets register; and (iv) inactive DA. However, at the
date of this report, all issues related to financial management have been addressed and therefore,
we consider rate is satisfactory for financial management.
LRSP – Implementation Completion Report
Page 22 of 25
Efficiency – the Borrower is rated “efficient” - all key outcome indicators and intermediate
performance indicator targets have been met as planned.
Sustainability – the Government has continued towards the goal of achieving sustainable
maintenance of the road system, all institutional outcomes achieved from this Project, as sector wide
approach project, is moved forward to LRSP2 and NR13 project. The road sector is financed through
Government budget, ODA, and the Road Maintenance Fund (RMF). The RMF, capitalized mainly
through a fuel levy, is the key mechanism to ensure predictable and sustained allocations of funds
for road maintenance. The RMF has been growing at more than 10 percent per annum in recent
years and stood at over US$80 million in 2016, from US$2 million in 2002 (when it became
operational). MPWT’s conservative projection is for future growth rates maintained at around 10
percent in the medium term. The Borrower is rated as “sustainable”.
Score:
Relevance (20%) = 2.8
Effectiveness (30%) = 2.0
Efficiency (30%) = 2.5
Sustainability (20%) = 2.5
Overall rating = 2.5
The Borrower’s and Implementing Agency’s performance is rated as satisfactory. Key outcome
indicators and intermediate performance indicator targets have been met. The results framework
and achievements are shown in Appendix B. The civil works on National Roads (NRs) 1B and 6A,
including the repairs on NR 1B and the construction of the bridges on NR 6A financed under
LRSP, have been completed. The provincial road maintenance including FY2015-2016 has also
been fully completed. By cooperation between, the DoF and DoR of MPWT, the SOP for the
Emergency Response and Disaster Recovery Fund has been prepared and attached to the
Internal Financial Manual which approved by Minister on 8 September 2017. The Sector Strategy
technical assistance has been completed and MPWT has utilized the outputs as the basis for
internal discussions and drafting of the Transport Sector Vision up to 2030, Ten-Year Strategic
Plan, and Five-Year Action Plan 2016-2020. ICT tools to support business processes for road
asset management have been developed, tested and operationalized. Provincial capacity
development activities are underway with 90% of the training plan for 2014-2016 completed.
Internal controls are being strengthened and guidelines for technical audit and internal control have
been developed as planned. Training activities are on track. The coordination among departments
has improved, and the bi-annual monitoring report for 2016 was shared with the World Bank in a
timely manner and with good quality.
7. ECONOMIC ASPECTS
The Project is fully consistent with the World Bank’s Country Assistance Strategy (CAS) for Lao
PDR. It supports one of the main CAS pillars of sustained growth through enhanced regional
integration and private sector development, and to a lesser extent, one of the supporting CAS
LRSP – Implementation Completion Report
Page 23 of 25
objectives regarding better alignment of donor resources with the objectives of the Government’s
National Growth and Poverty Eradication Strategy and strengthened aid coordination.
The improved road services for national roads impacted low-income households in Phongsaly
province (Khua, Boonneua, and Boontai Districts) and Huaphan province (Xienkhor, Sopbao, and
Add Districts). Most of them, based on the location, are low-income households in rural areas. The
provincial road maintenance was implemented country-wide and has impact on the rural population,
which is more than 2/3 of the total population. Because most of provincial roads are unpaved and
vulnerable to flood and landslides, road maintenance is crucial in ensuring all year round
accessibility, which provides access to employment, market, school, and health services. The
Project’s benefits have been distributed more to lower-income population, as well as shared among
all provinces in Lao PDR. The Project directly supports the economic growth as following:
➢ In line with these objectives, the Project supports the country’s economic growth and poverty
reduction through: (i) reducing road transport costs for goods and passengers; (ii)
rehabilitating the road damaged by Typhoon Ketsana; and (iii) developing an emergency
contingency fund for rapid response to natural disasters in the road sector. Support to the
second CAS objective is mainly through the strengthening of the MPWT’s systems for
strategic planning, fiduciary management, and environmental safeguards, which are required
for achieving better aid harmonization and coordination;
➢ At appraisal, the travel times on NR 6A (62km) and NR 1B (109km) were 3 hours and 5
hours, respectively. The target was to reduce travel time by 40%. The civil works on NR 1B
were completed ahead of schedule, and by August 2013 travel time had been brought down
to 2.5 hours (50% reduction),;this level was sustained through to the end of the project. The
construction work on NR 6A was completed by the end of 2016, and the travel time reduced
to 50 minutes (72% reduction);
➢ It was expected that the project would serve at least 26,500 people (49% female, i.e., at least
12,985 female). The project’s annual survey in 2016 showed that the paved national roads
(NR 6A and NR 1B) were serving 116,581 people (44% of whom were female, i.e., 51,296
female)
➢ The share of the provincial road network in good and fair condition was 46% at appraisal,
against a target of 64%. By project end, implementation of annually planned provincial road
maintenances programs had resulted in 65% of the provincial road network in good and fair
condition. It was noteworthy that the km of provincial roads maintained had exceeded the
planned targets in every year of implementation
8. ENVIRONMENTAL AND SOCIAL ASPECTS
Environmental Safeguards:
Safeguard compliance is considered Satisfactory based on the documents provided, discussions
with the Project stakeholders, and field visits to NR1B and NR6A and some provincial roads in
Phongsaly, Oudomxay, Houaphan and Xiengkhouang. No major safeguards related issues were
LRSP – Implementation Completion Report
Page 24 of 25
identified and reported during Project implementation. All required written evidence was made
available for the mission’s review when required. The quality of safeguard documentation could be
further improved with advanced training, and support will be provided to MPWT and the DPWTs
under LRSP2.
Safeguard monitoring of NR 6A and 1B and Provincial Road Maintenance: Civil works for NR 1B
and NR 6A and provincial road maintenance were completed with no major safeguards concerns.
The mission noted that the Project contributed significantly to dust reduction in communities where
roads were upgraded from unpaved to paved standard. The PTRI had conducted periodic
Environment and Social (E&S) monitoring, including final E&S monitoring during December 22–30,
2015 on road NR1B in Phongsaly and six sub-projects of provincial road maintenance in five northern
provinces (Xayabouly, Borkeo, Luangnamtha, Oudomxay and Phongsaly). Common issues found
by the mission include: improper use and poor management of borrow pits, improper camp site
management (waste management, use of materials from natural resources, etc.), inadequate
warning sign installation, soil erosion, poor construction waste disposal, etc. These issues had been
considered and included in the design of LRSP2, particularly with respect to implementation and
enforcement of safeguards obligations in contractor contracts and contractor management and
capacity building. All safeguards trainings planned for LRSP have been completed. The mission also
discussed with the DPWTs the way forward for LRSP2.
Environment and Social Operations Manual (ESOM) updates and implementation. In 2015 PTRI had
finished the ESOM updates to include new regulations and had finished an English translation. The
English version was submitted to the Bank for review in October 2015, but was found by the Bank
to require further improvement. However, since the Department of Environmental and Social Impact
Assessment (DESIA) of the Ministry of Natural Resources and Environment (MONRE) plans to
upgrade the Environment and Social Impact Assessment (ESIA) and Initial Environmental
Examination (IEE) regulations into ESIA law or decree in 2017–2018, and LRSP2 will include TA
support to prepare several guidelines on safeguards in road sector investment projects, the mission
suggested that the ESOM updates be continued and included under LRSP2 implementation.
Preparation of PPP NR13 Road Project: The Feasibility Study (FS) for the PPP for NR 13N and 13S
has been completed, but the Environmental and Social (E&S) Assessment was found insufficient for
a World Bank Group (WBG) financed Category A project. Procurement of an additional E&S study
is in process. At the same time, MPWT informed the mission that due to the current economic and
financial situation, the government is not in favor of the implementing a PPP project as proposed for
NR 13 N and 13 S road sections and had decided to terminate the Financial Advisory Services
Agreement with the IFC for the PPP road project. However, MPWT still seeks IDA support for NR
13N improvement. Investment on NR 13S is still in GoL’s plan, but would be carried out in a later
phase. With this decision and partly because of cost and financing implications, the E&S study of
NR 13N and NR 13S will now be conducted separately. The proposed first step will be to carry out
additional planning activities and update the ESIA, Resettlement Action Plan (RAP) and Ethnic
Group Development Plan (EGDP) for the 13N road section only. The MPWT has revised the E&S
TORs to reflect this split and clearly describe coverage of each contract and its interface. The
International Environmental Specialist contract for the E&S study of NR 13N and 13S, which ended
LRSP – Implementation Completion Report
Page 25 of 25
in November 2016, will be revised and renewed for only the NR 13N road section. As discussed in
para 26 under Procurement for the E&S Study, MPWT has received the revised technical and
financial proposals from the firm whose scope of work would now include all safeguards surveys and
preparation of social safeguards instruments including the RAP and EGDP. The mission discussed
that these factors - the need for more time for study completion than remains under LRSP, a higher
cost estimate than the available budget, and the requirement to incorporate preparation of a full RAP
– all suggest that the study would best be carried out under LRSP2.
Social Safeguard:
Safeguard monitoring of NR 6A and NR 1B and Provincial Road Maintenance. On the basis of the
safeguard monitoring, RAP completion reports reviewed, and field visit to NR 6A and some provincial
roads in Xiengkhouang conducted during the mission, no major issue was identified. The RAP
implementation has been completed with compensation and required support provided to all Project
Affected Households (PAH). All written evidence, including minutes of consultation meetings,
receipts and agreements, were made available for review. The PAHs met confirmed the receipt of
cash compensation from the Project and expressed their appreciation for the improved roads and
positive impacts on their livelihood. There were some grievances expressed mainly related to the
need for further improvement of road safety measures such as traffic control sign posts at some
points of the NR6A. The quality of safeguard documentation could be further improved with
advanced training, updated templates and samples of comprehensive RAPs and reports to be
provided for the MPWT and the DPWTs for their references under the LRSP2.
9. LESSONS LEARNED
Straightforward project design supported easy adjustments during the life of the project. Clear, not
overly ambitious targets were set and sufficiently straightforward to be easily adjusted when
required. The Project design provided a clear line-of-sight from outputs to objectives, which made it
possible for the project to be easily adapted to unexpected challenges.
The use of long-term improvement and maintenance contracts can help improve road asset
management and enhance sector efficiencies.
Climate resilient road designs are critical and need to be promoted to reduce infrastructure
vulnerability to current and future climate risk.
Coordination between central and provincial level: since this is the first pilot Project using sector wide
approach, coordination was more of a challenge than anticipated.
Participation/ownership from provincial level: in adequate capacity of provincial level in fully
understanding key documentations as they are in English (i.e. PAD, POM, Aide Memoire and etc).
In addition, no participations from provincial level on key missions.
LRSP – Implementation Completion Report
Page 26 of 25
Lengthy in procurement process which mainly from (i) limited human resources and staff turnover,
and (ii) a lengthy internal approval process within the Project.
Monitoring and evaluation: regular involvements in monitoring procurement and execution of the
works, and sufficient budget for carrying out systematic data collection.
Contract management: strengthen contract management capacity and registration system for
contractors.
LRSP – Implementation Completion Report
Page 1 of 5 (Appendix A)
Appendix A - Project Results Framework
Project Development Objective (PDO): (a) To improve road services on two main national corridors and the provincial road network, (b) to rehabilitate the roads damaged by
Typhoon Ketsana, and (c) to establish and operationalize a contingency fund for quick disaster response in the road sector.
PDO Level Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2010)
Progress
To Date
(Sep
2017)
Cumulative Target Values
Frequenc
y
Data Source/
Methodology
Responsibili
ty for Data
Collection
Comments 2014 2015 2016 2017
1. Vehicle travel time on upgraded NR1B reduced by
40%
(109km):
5 hours; 50% 20% 30% 40%
40%
Annual
Project
progress
report and
National Road
Survey
DoR
Travel time=2.5
hrs
Based on
observation
during mission 24-
26 January 2017.
2. Vehicle travel time on upgraded NR6A reduced by
50%
(62 km):
3 hours 72% 20% 30% 40% 50% Annual
Project
progress
report and
National Road
Survey
DoR Travel time= 50
mins.
3. At least 26,500 people (49% female) mostly living by the roadside will be served by
paved road along NR1B and 6A
Number 0
116,581
(44%
female)
13,000
At least
26,500
(51%
female)
At least
26,500
(51%
female)
At least
26,500
(51%
female)
Annual
Project
progress
report and
sampling
survey
DoR
6A total ppl incl. 3
districts= 93,210
(F=40,022/ 43%)
1B total ppl incl.
52 villages along
the road= 23,371
(F=11,438/49%)
4. Share of provincial road network in good and fair
condition (by Lao standards) increased from 46% to 65%
46% 73% 64% 64% 64% 65% Annual
Progress
report and
Annual Asset
Report
DoR
Based on
received ProMMs
data. The figure
might not reflect
real condition of
the road network
due to
the
ineffectiveness of
data collection
LRSP – Implementation Completion Report
Page 2 of 5 (Appendix A)
PDO Level Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2010)
Progress
To Date
(Sep
2017)
Cumulative Target Values
Frequenc
y
Data Source/
Methodology
Responsibili
ty for Data
Collection
Comments 2014 2015 2016 2017
5. Standard operational procedures for the
management of the emergency contingency fund functional
Text
Fund
establish
ed
Draft
prepared
Functio
nal
Functio
nal
Functio-
nal
Function
al Annual
Project
progress
report
DoR & DoF
The development of
draft SOP prepared
earlier will require
some more time.
Beneficiaries
Project beneficiaries,
Number 467,863 147,60
0 309,400
Figures of 5
districts in
Houaphan
Province and 7
districts in
Phongsaly
Province.
Of which female (beneficiaries) Number 230,858 75,276 157,794
Intermediate Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2010)
Progress
To Date
(Sep
2017)
Cumulative Target Values
Frequenc
y
Data Source/
Methodology
Responsibili
ty for Data
Collection
Comments 2014 2015 2016 2017
Intermediate Result 1: Network Improvement and Preservation
1. 171 km of national roads (NR1B&6A) upgraded with disaster resilience standard
km 0 171 80 171 171 171 Bi-annual
Project
progress
report
DoR
2. About 2,100 km of provincial roads preserved through
periodic maintenance
km 0 2,500 1,415 1,600 1,900 2,100 Bi-annual
Project
progress
report
DoR
3. Road safety facilities acquired and installed as per
specifications
Text 0 Fully
installed
Goods
procure
d
Installe
d
Fully
installed
Fully
installed Annual
Project
progress
report
DoT
4. New. Police officers, local authorities, community
members and teachers and students exposed to road
safety training and awareness raising activities in 3 pilot
provinces
Number 0
102
participa-
nts and
10
observ-
ers
100 200 300 300 Annual
Project
progress
report
DoT
Traffic
Management
Training
completed
Speed
Management was
LRSP – Implementation Completion Report
Page 3 of 5 (Appendix A)
Intermediate Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2010)
Progress
To Date
(Sep
2017)
Cumulative Target Values
Frequenc
y
Data Source/
Methodology
Responsibili
ty for Data
Collection
Comments 2014 2015 2016 2017
conducted in June
2016
Intermediate Result 2: Institutional Strengthening
5. Knowledge and practical experience acquired on
transport sector strategic planning and management
Text
First
sector
planning
produced
The final
edition of
Sector
Five-
Year
Plan
Produced
&
Approved
Strategi
c plan
updated
and
expand
ed
Strateg
ic Plan
update
d and
expand
ed
Strategi
c Plan
updated
and
expand
ed
Strategi
c Plan
updated
and
expande
d
Annual
Project
progress
report
DPC
6. Country systems used for EA and staff trained
Text
Country
system
just
piloted
and only
a few
staff
trained
256
provincia
-l and
district
engineer
s
received
ESOM
training
169
provinci
al and
district
enginee
rs
receive
d
ESOM
training
200
provinci
al and
district
engineer
s
received
ESOM
training
230
provinci
al and
district
enginee
rs
receive
d
ESOM
training
260
provinci
al and
district
engineer
s
received
ESOM
training
Annual
Project
progress
report
PTRI
No. Of trainees
from October
2010-Mar 2012
Only.
ESOM in English
version shared to
the Bank for
comments.
Trainings on
ESOM may be
postponed to the
next project.
7. Acquire knowledge and experience on internal control
Text
Internal
control
function
non
existent
Internal
control
sections
est. in 17
provinces
& internal
control
divisions
in 8
dept., 2
sub-dept
and 2
SOE
internal
audit
report
produ-
ced
internal
audit
report
produ-
ced
Annual
internal
audit
report
produce
d
Annual
internal
audit
report
produce
d
Annual
Project
progress
report
DoI
LRSP – Implementation Completion Report
Page 4 of 5 (Appendix A)
Intermediate Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2010)
Progress
To Date
(Sep
2017)
Cumulative Target Values
Frequenc
y
Data Source/
Methodology
Responsibili
ty for Data
Collection
Comments 2014 2015 2016 2017
8. Knowledge enhanced and practical experiences gained on
fiduciary management and contract management at the
provincial level
Text
Capa-city
develop
ment
program
not
started
2,042 ppl
(286
females)
participati
ng in
trainings
&
workshop
s
At least
450
people
trained
At least
600
people
trained
At least
750
people
trained
Capaci-
ty
develop
ment
pro-
gram
com-
pleted
Annual
Project
progress
report
DOP
9. New. PPP Unit established Text
Different
functions
of PPP
assigned
to DoRs
& DPC
Operati
onal
Opera-
tional
Opera-
tional
Opera-
tional Annual
Project
progress
report
DPC
Steering
Committee
established. PPP
implementation
responsibility will
be with DOR, and
coordinating
responsibility will
remain with DPC
10. New. Feasibility study for two PPP pilot road sections
Under
process
of
additional
E&S
Study 13
N
FS
comple-
ted
Compl
eted
Under
process
of
addition
al E&S
Study
DPC
MPWT to compile
a full report to the
government after
the completion of
additional E&S
study.
Intermediate Result 3: Disaster Recovery and Contingency
11. Length of time between declaration of disaster and the first payment to contractors for emergency works shortened
Text
Time of
pay-ment
delayed
for up to
2 years
Time of
payment
for
Typhoon
s
Ketsana
and Nok
Ten on
average
about 10
months
Time of
pay-
ment
shor-
tened
by less
than 6
months
Time of
pay-
ment
shor-
tened
by less
than 6
months
Time of
paymen
t shor-
tened to
less
than 6
months
Time of
pay-
ment
shor-
tened to
less
than 6
month
Annual
Project
progress
report
DOR & DOF
Due to the lack of
fund in each
financial year, first
payment for
disaster recovery
works in 2010-
2013 just been
made in Aug
2014.
Documentation
process to obtain
LRSP – Implementation Completion Report
Page 5 of 5 (Appendix A)
Intermediate Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2010)
Progress
To Date
(Sep
2017)
Cumulative Target Values
Frequenc
y
Data Source/
Methodology
Responsibili
ty for Data
Collection
Comments 2014 2015 2016 2017
the payment not
complicated.
For the WB
disaster &
emergency fund
took about 10
months on
average for the
first payment to
be made
LRSP – Implementation Completion Report
Page 1 of 2 (Appendix B)
Appendix B – Progress of seven bridges construction
LRSP – Implementation Completion Report
Page 2 of 2 (Appendix B)
LRSP – Implementation Completion Report
Page 1 of 1 (Appendix C)
Appendix C – Supervision consultants’ quarterly progress report as at December 2015
LRSP – Implementation Completion Report
Page 1 of 3 (Appendix D)
Appendix D – Provincial road maintenance contracts
Contract No. Road No.
Length Contract value In which:
LAK IDA 25% RMF 66.7% GoL 8.3%
VteCap01-0910-PM1-PR01 0126 20 1,266,498,500 316,624,625.00 844,754,499.50 105,119,375.50
PSL01-0910-PM1-PR02 1202 19 1,470,282,500 367,570,625.00 980,678,427.50 122,033,447.50
BOK01-0910-PM1-PR03 2205 22 1,078,495,020 269,623,755.00 719,356,178.34 89,515,086.66
LNT01-0910-PM1-PR04 1503 20 1,097,838,000 274,459,500.00 732,257,946.00 91,120,554.00
ODS01-0910-PM3-PR05 1803 17 824,498,605 206,124,651.25 549,940,569.54 68,433,384.22
LPB01-0910-PM1-PR06 2504 20 1,104,033,000 276,008,250.00 736,390,011.00 91,634,739.00
SYB01-0910-PM1-PR07 3602 24 1,353,387,600 338,346,900.00 902,709,529.20 112,331,170.80
SYB02-0910-PM1-PR08 3610 30 1,696,596,780 424,149,195.00 1,131,630,052.26 140,817,532.74
HOU01-0910-PM-PR09 3204 30 1,965,000,000 491,250,000.00 1,310,655,000.00 163,095,000.00
XIE02-0910-PM1-PR10 3908 29 2,242,970,000 560,742,500.00 1,496,060,990.00 186,166,510.00
XIE01-0910-PM1-PR11 3909 22 1,299,358,000 324,839,500.00 866,671,786.00 107,846,714.00
VTE01-0910-PM1-PR12 0125 20 1,442,780,500 360,695,125.00 962,334,593.50 119,750,781.50
VTE02-0910-PM1-PR13 4504 30 2,273,807,000 568,451,750.00 1,516,629,269.00 188,725,981.00
BLK01-0910-PM1-PR14 5504 20 806,555,000 201,638,750.00 537,972,185.00 66,944,065.00
KM01-0910-PM1-PR15 5507 30 1,215,500,000 303,875,000.00 810,738,500.00 100,886,500.00
SVK01-0910-PM1-PR16 5501 30 2,485,132,000 621,283,000.00 1,657,583,044.00 206,265,956.00
CHA01-0910-PM1-PR18 14B 23 1,352,076,720 338,019,180.00 901,835,172.24 112,222,367.76
SEK01-0910-PM1-PR19 7501 12 894,808,000 223,702,000.00 596,836,936.00 74,269,064.00
ATT01-0910-PM1-PR20 9001 14 835,510,000 208,877,500.00 557,285,170.00 69,347,330.00
Total PM1 432 26,705,127,225 6,676,281,806 17,812,319,859 2,216,525,560
VteCap01-1011-PM2-PR01 0106 12 802,077,528 200,519,382.00 534,985,711.18 66,572,434.82
VteCap01-1011-PM2-PR02 0122 8 559,187,500 139,796,875.00 372,978,062.50 46,412,562.50
PSL01-1011-PM2-PR03 1202 15 1,360,995,000 340,248,750.00 907,783,665.00 112,962,585.00
LNT01-1011-PM2-PR04 1502 25 1,204,460,050 301,115,012.50 803,374,853.35 99,970,184.15
LNT02-1011-PM2-PR05 2203 11 775,499,950 193,874,987.50 517,258,466.65 64,366,495.85
ODS01-1011-PM2-PR06 1863 20 1,499,955,000 374,988,750.00 1,000,469,985.00 124,496,265.00
BOK01-1011-PM2-PR07 2201 22 1,408,030,000 352,007,500.00 939,156,010.00 116,866,490.00
LPB01-1011-PM2-PR08 2504 46 1,401,562,500 350,390,625.00 934,842,187.50 116,329,687.50
LPB02-1011-PM2-PR09 2508 20 970,956,923 242,739,230.75 647,628,267.64 80,589,424.61
SYB01-1011-PM2-PR10 3613 37 1,390,735,740 347,683,935.00 927,620,738.58 115,431,066.42
SYB02-1011-PM2-PR11 3612 30 1,268,640,000 317,160,000.00 846,182,880.00 105,297,120.00
HOU02-1011-PM2-PR13 3206 69 1,228,078,480 307,019,620.00 819,128,346.16 101,930,513.84
XIE01-1011-PM2-PR14 3901 17 2,028,810,000 507,202,500.00 1,353,216,270.00 168,391,230.00
XIE02-1011-PM2-PR15 3903 25 1,112,115,000 278,028,750.00 741,780,705.00 92,305,545.00
VTE01-1011-PM2-PR16 4505 27 2,035,972,500
508,993,125.00
1,357,993,657.50
168,985,717.50
VTE02-1011-PM2-PR17 4507 23 2,388,382,000
597,095,500.00
1,593,050,794.00
198,235,706.00
SVK01-1011-PM2-PR20 6307 33 1,344,468,000
336,117,000.00
896,760,156.00
111,590,844.00
SVK02-1011-PM2-PR21 6303 26 2,023,454,855
505,863,713.75
1,349,644,388.29
167,946,752.97
SLV01-1011-PM2-PR22 6902 46 1,367,001,000
341,750,250.00
911,789,667.00
113,461,083.00
SEK01-1011-PM2-PR24 7501 5 1,493,917,840
373,479,460.00
996,443,199.28
123,995,180.72
Total PM2 517 27,664,299,866
6,916,074,967
18,452,088,011
2,296,136,889
PSL01-1213-PM3-PR03 1201 34 1,723,020,000
430,755,000.00
1,149,254,340.00
143,010,660.00
LNT02-1213-PM3-PR04 1501 23 3,604,318,000
901,079,500.00
2,404,080,106.00
299,158,394.00
ODS01-1213-PM3-PR05 1801 24 1,887,643,470
471,910,867.50
1,259,058,194.49
156,674,408.01
LRSP – Implementation Completion Report
Page 2 of 3 (Appendix D)
Contract No. Road No.
Length Contract value In which:
LAK IDA 25% RMF 66.7% GoL 8.3%
BOK01-1213-PM3-PR06 2201 18 2,951,368,000
737,842,000.00
1,968,562,456.00
244,963,544.00
LPB01-1213-PM3-PR07 2501 25 2,488,636,000
622,159,000.00
1,659,920,212.00
206,556,788.00
SYB01-1213-PM3-PR08 3611 35 3,359,537,582
839,884,395.50
2,240,811,567.19
278,841,619.31
HOU01-1213-PM3-PR09 3202 40 2,953,063,720
738,265,930.00
1,969,693,501.24
245,104,288.76
XIE01-1213-PM3-PR10 3901 22 2,179,980,000
544,995,000.00
1,454,046,660.00
180,938,340.00
VTE01-1213-PM3-PR11 4503 9 2,946,022,000
736,505,500.00
1,964,996,674.00
244,519,826.00
BLK01-1213-PM3-PR12 5101 30 1,692,688,000
423,172,000.00
1,129,022,896.00
140,493,104.00
KM01-1213-PM3-PR13 5507 60 3,905,204,250
976,301,062.50
2,604,771,234.75
324,131,952.75
SVK01-1213-PM3-PR14 6309 3 2,008,480,000
502,120,000.00
1,339,656,160.00
166,703,840.00
SLV01-1213-PM3-PR15 6901 2 3,281,916,000
820,479,000.00
2,189,037,972.00
272,399,028.00
CHA01-1213-PM3-PR16 7812 23 2,158,093,000
539,523,250.00
1,439,448,031.00
179,121,719.00
SEK01-1213-PM3-PR17 7501 31 4,751,040,000
1,187,760,000.00
3,168,943,680.00
394,336,320.00
ATT01-1213-PM3-PR18 9001 60 2,001,210,000
500,302,500.00
1,334,807,070.00
166,100,430.00
Total PM3 439 43,892,220,022
10,973,055,006
29,276,110,755
3,643,054,262
PSL01-1314-PM4-PR02 1203 45 3,274,920,000
818,730,000.00
2,184,371,640.00
271,818,360.00
LNT02-1314-PM4-PR03 1504 30 2,069,492,000
517,373,000.00
1,380,351,164.00
171,767,836.00
ODS01-1314-PM4-PR04 1805 51 3,689,255,526
922,313,881.50
2,460,733,435.84
306,208,208.66
BOK01-1314-PM4-PR05 2203 17 1,606,240,000
401,560,000.00
1,071,362,080.00
133,317,920.00
LPB01-1314-PM4-PR06 2501 26 1,635,959,400
408,989,850.00
1,091,184,919.80
135,784,630.20
SYB01-1314-PM4-PR07 3611 24 2,351,916,000
587,979,000.00
1,568,727,972.00
195,209,028.00
HOU01-1314-PM4-PR08 3206 67 4,286,870,000
1,071,717,500.00
2,859,342,290.00
355,810,210.00
XIE01-1314-PM4-PR09 3903 23 2,983,185,000
745,796,250.00
1,989,784,395.00
247,604,355.00
VTE01-1314-PM4-PR10 4526 44 3,207,873,000
801,968,250.00
2,139,651,291.00
266,253,459.00
BLK01-1314-PM4-PR11 5101 22 2,022,035,800
505,508,950.00
1,348,697,878.60
167,828,971.40
KM01-1314-PM4-PR12 5528 23 2,358,005,040
589,501,260.00
1,572,789,361.68
195,714,418.32
SVK01-1314-PM4-PR13 6310 16 2,069,071,460
517,267,865.00
1,380,070,663.82
171,732,931.18
SLV01-1314-PM4-PR14 6910 44 4,406,535,000
1,101,633,750.00
2,939,158,845.00
365,742,405.00
CHA01-1314-PM4-PR15 7812 31 1,953,022,000
488,255,500.00
1,302,665,674.00
162,100,826.00
SEK01-1314-PM4-PR16 7501 31 1,822,424,823
455,606,205.75
1,215,557,356.94
151,261,260.31
ATT01-1314-PM4-PR17 9047 25 1,432,397,000
358,099,250.00
955,408,799.00
118,888,951.00
Total PM4 519 41,169,202,049
10,292,300,512
27,459,857,767
3,417,043,770
VteCap01-1415-PM5-PR01 0121 7 1,378,264,810
344,566,202.50
919,302,628.27
114,395,979.23
LRSP – Implementation Completion Report
Page 3 of 3 (Appendix D)
Contract No. Road No.
Length Contract value In which:
LAK IDA 25% RMF 66.7% GoL 8.3%
Psl01-1415-PM5-PR02 1204 51 1,571,893,000
392,973,250.00
1,048,452,631.00
130,467,119.00
Lnth01-1415-PM5-PR03 1503 35 3,543,867,000
885,966,750.00
2,363,759,289.00
294,140,961.00
Oud01-1415-PM5-PR04 1803 38 1,698,325,000
424,581,250.00
1,132,782,775.00
140,960,975.00
Bok01-1415-PM5-PR05 2203 6.3 2,638,788,000
659,697,000.00
1,760,071,596.00
219,019,404.00
Lpb01-1415-PM5-PR06 2501 23 2,000,000,000
500,000,000.00
1,334,000,000.00
166,000,000.00
Lpb02-1415-PM5-PR07 2508 68 2,500,000,000
625,000,000.00
1,667,500,000.00
207,500,000.00
Xyb01-1415-PM5-PR08 3604 24 2,165,087,318
541,271,829.59
1,444,113,241.34
179,702,247.42
Xyb02-1415-PM5-PR09 3609 30 2,329,922,215
582,480,553.78
1,554,058,117.49
193,383,543.85
Hou01-1415-PM5-PR10 3206 70 3,601,021,115
900,255,278.75
2,401,881,083.71
298,884,752.55
Xkg01-1415-PM5-PR11 3903 13.5 1,651,743,140
412,935,785.00
1,101,712,674.38
137,094,680.62
Xkg02-1415-PM5-PR12 3905 14.4 1,767,747,323
441,936,830.75
1,179,087,464.44
146,723,027.81
Vte01-1415-PM5-PR13 4502 13 2,407,365,000
601,841,250.00
1,605,712,455.00
199,811,295.00
BLK01-1415-PM5-PR14 5117 35 1,041,115,000
260,278,750.00
694,423,705.00
86,412,545.00
Kha01-1415-PM5-PR15 5528 22 1,896,472,082
474,118,020.50
1,264,946,878.69
157,407,182.81
Svk01-1415-PM5-PR16 6303 20 2,591,485,600
647,871,400.00
1,728,520,895.20
215,093,304.80
Slv01-1415-PM5-PR17 6910 10 1,293,560,000
323,390,000.00
862,804,520.00
107,365,480.00
Cha01-1415-PM5-PR18 7805 18
2,307,766,630
576,941,657.50
1,539,280,342.21
191,544,630.29 Cha02-1415-PM5-PR18 7808 9.7
Cha03-1415-PM5-PR18 7818 4.5
Sek01-1415-PM5-PR19 7501 20 1,391,162,888
347,790,722.00
927,905,646.30
115,466,519.70
Att01-1415-PM5-PR20 9001 12 1,976,087,000
494,021,750.00
1,318,050,029.00
164,015,221.00
Total PM5 544.4 41,751,673,121
10,437,918,280
27,848,365,972
3,465,388,869
Grand total 2,500 181,182,522,283
45,295,630,571
120,848,742,363
15,038,149,350
LRSP – Implementation Completion Report
Page 1 of 2 (Appendix E)
Appendix E – Traffic Safety
Package no. Description Cost (USD) Remarks
Road Safety – Hard component
LRSP-RSC-G-
Package 1-Vcap
Mitigate traffic accident in
Vientiane Capital: Installation of
traffic signs, traffic signals, line
marking.
Status: COMPLETED.
Planned:
500,000
Signed: 15/7/2013
Completion: 15/4/2014
Signed:
578,586
Amendment#1: 1/8/14
Completion date: 14/12/2014.
Note: Cancelation of one-way streets
(Kaison-23 Singha-Nongborn Roads)
LRSP-RSC-G-
Package 2-13N
Mitigate traffic accident along
13N: Installation of traffic signs,
guardrails, line marking.
Status: COMPLETED.
Planned:
540,000
Signed: 11/4/2014
Completion: 11/1/2015
Signed#1:
710,606
Amendment#1: 1/12/14
New Price: USD 805,320
New completion date: 14/12/2015
Reason: More signs damaged.
Cancelation of humps, curved
warning signs. Increase Chevron.
Amendment#2: 15/12/15
Contract Price: USD 805,320
New completion date: 31/1/2016
Reason: Modification of Overhang
Footing.
Contract Implementation Completed
on 31 Dec 2015.
Final Payment has been done on
26/1/2016.Performance Security
released on 22/2/2016.
Signed#2:
805,320
LRSP-RSC-G-
Package 3-13S
Mitigate traffic accident along
National Road 13S: Installation
of traffic signs, line marking.
Status: CANCELLED.
Planned:
500,000 The activity has been canceled due
to the budget constrained.
Actual:
NONE
Total 1,383,906
Road Safety –Soft component
LRSP-RSC-
Package 04a-
Campaign-Vcap
Public Campaign on the
application of Package 1 at V-
cap
Status: COMPLETED.
Planned:
10,000
Conducted on 28-29 March 2015.
2-day Rd Safety Booths.
Attendance: Chair by Vice Minister,
Privates, NGOs, Lao Red Cross,
VTE-Rescue, WB, WHO
representative, 1,000 school students
and 500 Vientiane Residents.
Addressed: (1) Good practice on WB
Project Package1-Vcap. (2) Lao RS
Actual:
10,000
LRSP – Implementation Completion Report
Page 2 of 2 (Appendix E)
Package no. Description Cost (USD) Remarks
Week, (3) 3rd UN Global RS Week,
(4) Drink Don’t Drive, Helmet
Wearing, Seatbelt Wearing, Low
Speed during Lao New Year.
LRSP-RSC-
Package 04b-
Campaign-1A/6B
Public campaign upon
completion of the road
construction 1B and 6A.
Status: PROPOSED.
Planned:
10,000
Replacement of Public Campaign on
Northern Province along 13N.
Methodology: Approach targeted
schools and/or communities with high
rate of accident and fatalities along
1B and 6A.
Imp. Plan: Oct-Nov 2016. Reset to
February 2017.
Actual 9,229
LRSP-RSC-
Package 04c-
Campaign-13S
Public Campaign on the
application of Package 3 at
Southern Province along 13S
Status: CANCELLED.
Planned:
10,000 The activity has been canceled due to
the budget constrained.
Actual:
NONE
LRSP-RSC-
Package 04d-
Workshop
Workshop with PRSCs from 6
provinces
Status: CANCELLED.
Planned:
20,000 The activity has been canceled due to
the budget constrained.
Actual:
NONE
LRSP-RSC-
Package 04e-
Training-TM
Training on Traffic
Management.
Status: COMPLETED.
Planned:
40,000 Venue: Savannaket, Khon Kean
65 participants attended.
Imp.: 15-24/6/2015. Actual:
60,618
LRSP-RSC-
Package 04f-
Training-SM
Training on Speed
Management.
Status: COMPLETED.
Planned:
40,000
Venue: Vientiane and Khon Kean
42 participants (Traffic Police 2 per
province), 3 DTP, 3 DoT; Of which
2/3 male and 1/3 female.
Imp.: 14-17/6/2016.
Actual:
32,545
LRSP-RSC-
Package 04g-
Training-ToT
Training of Trainers for Women
Union, Lao Youth Union and
Mass Media.
Planned:
40,000 The activity has been canceled due to
the
budget constrained.
Actual:
NONE
LRSP-RSC-
Package 04h-CS
Assess the Capacity Gaps and
Making of Recommendation.
Planned:
50,000
The activity has been canceled due to
the
budget constrained.
Actual:
NONE
Total 112,392
Appendix F - List of counterpart payables as at 30 September 2017
LRSP – Implementation Completion Report
Page 3 of 2 (Appendix E)
No. Contract no. Contractors
Counterpart payables as at 30 September 2017
Ministry of
Finance
Road
Maintenance
Fund
Provincial
State budget
LAK LAK LAK
I Construction
1 CW-NR1B-01 Yunnan Sunny Road and Bridge Co., Ltd 2,012,496,273 - -
2 CW-NR1B-02 Yunnan Sunny Road and Bridge Co., Ltd 1,025,993,368 - -
3 CW-NR6A-01-1 Civil Engineering Construction Joint-Stock
Company No. 525 3,197,485,174 - -
II Maintenances
1 VteCap01-1415-PM5-PR01 Sengphet Road&Bridge Construction Co.,
Ltd - 413,686,183 114,395,979
2 PSL01-1314-PM4-PR02 MCL Road&Bridge Construction Co., Ltd - - 271,818,360
3 PSL 01-1415- PM 5- PR02 MCL Road&Bridge Construction Co., Ltd - 471,803,684 130,467,119
4 LNT01-1415-PM5-PR03 Xayphachanh Road&Bridge Construction
Co., Ltd - 1,063,691,680 100,140,961
5 ODS01-1415-PM5-PR04 Phuthachack Road&Bridge Construction
Co., Ltd - 509,752,249 -
6 ODS01-1213-PM3-PR05 Sompasong Road&Bridge Construction
Co., Ltd - - 15,674,408
7 BOK01-1415-PM5-PR05 Muangpailin Road&Bridge Construction
Co., Ltd - 792,032,218 219,019,404
8 LPB01-1415-PM5-PR06 Sinthana Road&Bridge Construction Co.,
Ltd - 600,300,000 86,858,000
9 LPB02-1415-PM5-PR07 Phusy Luanprabang Road&Bridge
Construction Co., Ltd - 750,375,000 108,573,000
10 LPB01-1314-PM4-PR06 Phanthamit Road&Bridge Construction
Co., Ltd - - 63,855,630
11 SYB01-0910-PM1-PR07 Sinthana Road&Bridge Construction Co.,
Ltd - - 62,331,171
12 SYB02-1415-PM5-PR09 Phanthamit Road&Bridge Construction
Co., Ltd - 699,326,153 168,383,544
13 SYB 01-1213- PM 3- PR08 Phanthamit Road&Bridge Construction
Co., Ltd - - 198,841,619
14 SYB01-1415-PM5-PR08 Outhoomphone Road&Bridge
Construction Co., Ltd - 649,852,464 159,702,247
15 SYB 01-1314- PM 4- PR07 Outhoomphone Road&Bridge
Construction Co., Ltd - - 16,366,000
16 SYB 01-1314- PM 4- PR –
addiional works
Outhoomphone Road&Bridge
Construction Co., Ltd - - 78,843,028
17 SYB 01-1011- PM 2- PR10 Outhoomphone Road&Bridge
Construction Co., Ltd - - 65,431,066
18 SYB 02-0910- PM 1- PR08 Outhoomphone Road&Bridge
Construction Co., Ltd - - 107,177,533
19 SYB02-1011-PM2-PR11 Xayabuly Road&Bridge State Enterprise - - 44,399,729
20 HOU01-1415-PM5-PR10 Chanchaleun Building, Road&Bridge
Construction Co., Ltd - 1,080,846,488 -
21 HOU01-1314-PM4-PR08 Xokchaleun Road&Bridge Construction
Co., Ltd - - 5,810,210
LRSP – Implementation Completion Report
Page 4 of 2 (Appendix E)
No. Contract no. Contractors
Counterpart payables as at 30 September 2017
Ministry of
Finance
Road
Maintenance
Fund
Provincial
State budget
LAK LAK LAK
22 HOU02-1011-PM2-PR13 Pattanakasikam no. 1 Road&Bridge
Construction Co., Ltd - 81,912,834 -
23 XIE01-1415-PM5-PR11 Pengxay Road&Bridge Construction Co.,
Ltd - 495,770,703 107,094,681
24 XIE02-1415-PM5-PR12 Banna Road&Bridge Construction Co.,
Ltd - 530,589,359 116,723,028
25 VTE01-1415-PM5-PR13 Panyathorath Building, Road&Bridge and
Iregition Construction Co., Ltd - - 139,811,295
26 VTE01-1314-PM4-PR10 Nuanta Road&Bridge Construction Co.,
Ltd - - 37,253,459
27 BLK01-1415-PM5-PR14 Phisitxaysombat Road&Bridge
Construction Co., Ltd - 312,488,833 86,412,545
28 BLK01-0910-PM1-PR14 Sivieng Road&Bridge Construction Co.,
Ltd - - 6,680,544
29 KM01-1415-PM5-PR15 Viengsavanh Road&Bridge Construction
Co., Ltd - 569,226,094 157,407,183
30 KM01-1314-PM4-PR12 Khammuan Road&Bridge State
Enterprise - - 195,714,418
31 KM 01-1213- PM 3- PR13 Khammuan Road&Bridge State
Enterprise - - 324,097,964
32 SVK01-1415-PM5-PR16 Thongokhounhoungheung Road&Bridge
Construction Co., Ltd - 777,834,403 -
33 SLV01-1415-PM5-PR17 Phouminh Road&Bridge Construction
Co., Ltd - 388,262,034 -
34 CHA01-1415-PM5-PR18 Xaypackdy Road&Bridge Construction
Co., Ltd - 692,675,376 191,544,630
35 CHA01-1314-PM4-PR15 Pisa Road&Bridge Construction Co., Ltd - - 161,685,826
36 SEK01-1415-PM5-PR19 Phonesavanh Road&Bridge Construction
Co., Ltd - 417,547,077 115,465,218
37 SEK 01-1314- PM 4- PR16 Phonesavanh Road&Bridge Construction
Co., Ltd - 71,261,260
38 SEK01-0910-PM1-PR19 Somsay Road&Bridge Construction Co.,
Ltd - 3,335,000
39 ATT01-1314-PM4-PR17 Saysetta Road&Bridge Construction Co.,
Ltd - 118,851,020
40 ATT01-1415-PM5-PR20 Phonesavanh Road&Bridge Construction
Co., Ltd - 592,972,438 163,996,546
Total (LAK 22,142,343,710) 6,235,974,815 11,894,280,270 4,012,088,625
Equivalent to USD (USD 2,675,812) 753,592 1,437,375 484,845