GMS Sustainable Tourism Development Project in Lao PDR
ADB Grant - 0117 Lao [SF]
PCU Quarterly Progress Report 5
1 April 2010 – 30 June 2010
1. Introduction
Grant Data: ADB Grant 0117 Lao [SF]
Grant Amount: US$ 10 million
Estimated Project Cost: USD ($) 10.99 million
Date of Grant Effectiveness: 30 March 2009
Project Implementation Period: 1 April 2009 – 31 December 2013 (54 months)
Time Elapsed Since Grant Effectiveness: 15 months (27.78%; 15 of 54 months)
Overall Implementation Progress: 33.64 %
Project Budget
ADB: 10,000,000 US$
Government Contribution: 994,276.98 US$
Total: 10,994,276.98 US$
Expenditure projection for this 3-month reporting period: 885,921.24.US$
Government contribution: 88,886.24 US$
Budget spent for this 3 month reporting period: 415,182.47 US$
Government contribution: 1,683.91 US$
Cumulative expenditure since Grant effectiveness
Q1: 431,433.12
+ Q2: 423,126.35
+ Q3: 433,914.63
+ Q4: 472,297.56
+ Q5: 415,182.47
= 2,175,954.13 US$ or 19.79% of $10,994,277
Project Scope:
The GMS Sustainable Tourism Development Project (GMS-STDP) in Lao PDR is mainly financed by a US$ 10 million grant from the Asian Development Bank with additional budgetary resources of $0.87 million sourced from the Government of Lao PDR. The Lao National Tourism Administration (LNTA) is the executing agency responsible for the coordination, management and implementation of the project in the 9 target provinces of Champasak, Salavanh, Savannakhet, Vientiane Province, Houaphanh, Oudomxay, Sayabouli, Bokeo and Luang Namtha.
The expected impacts of the Project are the development of a sustainable, culturally and environmentally sound, pro-poor approach to tourism in the GMS and the preservation of natural and cultural heritage. Expected project outcomes in Lao PDR are poverty reduction, sustainable development, protection of the natural and cultural heritage and protection of vulnerable groups from exploitation. To achieve this goal the project seeks to enhance the protection and conservation of natural, cultural and urban heritage assets of importance for tourism; increase tourism’s contribution to poverty reduction by expanding the traditional community-based tourism approach to include tourism-related supply and value chains interventions; improve the facilitation of tourism along the economic corridors by improving services and management of tourist attractions found there; raise public sector official’s tourism management skills at the national, provincial, district and site level; improve service and hygiene standards among staff in small to medium hospitality enterprises; and enhance local private sector participation in small and medium scale tourism enterprise investment and operation.
There are 5 parts of the project in Lao PDR:
Part 1.A: Biodiversity Conservation and Protection through Tourism at the Siphandone Wetland
Part 1.B: Urban Environment Protection and Management - Vang Vieng Town Waste Water Centralization and Treatment
Part 2: Pro-Poor Tourism Development in Salavanh, Vientiane Province, Houaphanh, Oudomxay, Sayabouli and Bokeo
Part 3: Facilitation of Tourism on the North-South (Part 3.A) and East-West (Part 3.B) Economic Corridors
Part 4: Human Resource Development
Part 5: Institutional Strengthening and Implementation Assistance
The GMS-STDP also includes the Socialist Republic of Viet Nam where the project shares the same goal and expected outcomes. Implementation, coordination and management of the project in Viet Nam is the Ministry of Culture, Sports and Tourism in 5 target provinces of Bac Kan, Cao Bang, Quang Binh, Quang Tri, and Thua Tien Hue. The East-West Economic Corridor traverses Quang Tri and Savannakhet provinces in Central Lao PDR and Central Viet Nam. Other target provinces that share common borders are Thua Tien Hue in central Viet Nam and Salavanh in southern Lao PDR.
This report concerns project progress in Lao PDR only.
Summary of Project Progress:
Implementation of the GMS Sustainable tourism development project in Lao PDR is proceeding smoothly, and in general, the project is on track to achieve or exceed its expected outcomes. The Lao National Tourism Administration is effectively fulfilling its role as the project’s executing agency and has established project supervisory, financial, and technical and personnel administration systems that meet ADB and Lao Government (GoL) guidelines.
This period progress report covers in detail project quarter 5 (1 April 2010 – 1 June 2010)
Project Support Facilities & Personnel:
Adequate facilities have been established at the LNTA headquarters in Vientiane where the Project Coordinating Unit (PCU) is located. Project Implementation Units (PIU’s) have been established in 9 Provincial Tourism Departments and the Vang Vieng Urban Management Authority. Computers, vehicles and office equipment and supplies have been provided to each PIU/PCU to facilitate project logistics and implementation. Each PIU/PCU is staffed with a contingent of at least 4 civil servants and sub-contractors to implement and administer the project.
International and Domestic consultants have been contracted by the EA as needed and on schedule. A complete list of project staff and consultants that have been involved with the project since its inception is shown in attachment C. Consultants are effectively fulfilling their role to build the capacity of the EA and PIU’s to implement the project and are providing both advisory services and hands-on assistance to ensure project activity implementation meets set targets, and project administration is in-line with ADB and GoL requirements.
At the end of March, 2010, the Project’s International Team Leader resigned from the project to pursue a regular staff position with ADB. The EA has recruited Mr Rik Ponne (The Netherlands) as the new International Team Leader who assumed his position on 1 May 2010. Prior to his appointment as Team Leader, Mr Ponne was the International Ecotourism Planner on the project, from which psotion he resigned as of 30 April 2010. The EA has recruited Mr Jim Johnston (Australia) as the new International Ecotourism Planner, who assumed his position as of 1 June 2010.
While individual consultants and the Firm Lao Consultants Group have been recruited on schedule, the preparation of construction drawings and cost estimates is proceeding slower than anticipated because of the high number of proposed works/structures that need to be designed and costed. Section 5 of this report presents the revised Procurement Plan.
Weighted progress:
Project progress by weighted activity is 33.64% as calculated in attachment A. Figure 1 illustrates the percentage of project progress relative to percentage of project funds disbursed and time elapsed.
Figure 1. GMS-STDP in Lao PDR: Time elapsed, disbursement and weighted activity progress
Activity output records:
A complete record of the percentage of activity outputs (including project supported training activities) achieved for the first three months of APP (from 1 April 2010 – 30 June 2010) versus activity targets, including gender disaggregated data, is summarized in attachment B. Participation in project related trainings, workshops and seminars for the first year of project implementation is shown in the table below. Combined Q5 & Q6 attendance will be reported in the next (Q6) progress report.
Summary of Attendance in project-supported workshops, seminars and trainings
Reporting Period / Male / Female / TotalQ 1 & Q 2
1 April 2009 - 30 Sep 2009 / 1,584 / 798 (33.5%) / 2,382
Q 3 & Q 4
1 October 2009 - 31 March 2010 / 1,621 / 1,303 (44.5%) / 2,924
Q 5 & Q 6
1 April 2010 – 30 Sep 2010 / - / - / -
Total / 3,205 / 2,101 (39.5%) / 5,306
Source: Summary of project outputs attachments in project quarterly reports 1-4
A review of attachment B shows that so far, the PCU and PIU’s are meeting most activity output targets. However, it is anticipated that not all the activities in the ambitious work plan can be completed due to heavy PIU/PCU workloads, a lack of personnel at the PCU or LNTA and some turnover in project consultants. Activities in APP3 that are not completed by the end of Q6 will be carried over to APP 4 beginning 1 October 2010.
As reported above, in general the project is making solid progress, but the large number of PIU’s, complicated ADB and GoL administrative requirements, ambitious work plan and geographically disbursed project target areas is both challenging and exhausting project staff and consultants. PIU’s generally low capacity and a lack of experience to plan for and develop stainable tourism independently without assistance from project consultants exacerbates this challenge.
2. Project Organization and Management
Implementation Arrangements:
The Lao National Tourism Administration (LNTA) has appointed a Vice–Chairman of LNTA to serve as the Lao PDR representative on the project’s Subregional Project Steering Committee. One Subregional Steering Committee meeting was held on 7 May 2010 in Siem Reap in conjunction with the TWG-25 and Mekong Tourism Forum 2010.
At the national level, the National Project Director (Director-general of the LNTA’s Department of Planning and Cooperation) serves as the National Project Steering Committee Chairman and members of relevant organizations (Planning and Investment, Foreign Affairs, Prime Minister’s Office, Finance, Water Resource and Environment Agency and Vice-Governors from participating provinces) have appointed representatives to the National Project Steering Committee. The most recent 6-month project review and planning meeting was held in Houaphanh, Lao PDR from 31 March 5 April 2010. The next one is planned for 16-21 September 2010 in Savannakhet.
At the provincial level in 9 provinces, Provincial Steering Committees are established and chaired by the Deputy Provincial Governor. This committee is comprised of related Departments (Transport, Environment, Culture and Information, Planning and Investment) and district authorities.
During APP 4, the project’s Domestic Team Leader is visiting each target village to review operational regulations on the establishment of village committees, service groups and village funds and mechanisms to contribute a portion of community tourism revenue to this fund.
Establishment of PCU and PIU’s: A project PCU with 3 full time supervisors & 3 staff has been established in the Lao National Tourism Administration headquarters building in Vientiane and 10 PIU’s established in 9 provinces. Vientiane Province has two PIU’s – one embedded in the Provincial Tourism Department to implement managing Part 2 of the project and one embedded in the Vang Vieng Urban Management Authority to manage part 1 B of the project. Each PIU is staffed with 4-5 individuals seconded from the Provincial Tourism Department or Urban Management Authorities (for Vang Vieng). A roster of PCU and PIU staff and project consultants active during this reporting period is shown in attachment C. Equipment and materials to outfit each PIU has been purchased as needed and within budgetary resources available. Requests to purchase additional project-related equipment will be made to ADB on an as-needed basis for the remainder of the project.
Organization and Staffing of PCU and PIU’s: The PCU consists of a National Project Director, National Project Manager, Financial Controller, Accountant, Secretary and Administration Assistant. Each of the 10 project PIU’ is staffed by a PIU Director, PIU Manager, Accountant, and 1-2 Technical Officers that meet the requirements outlined in Job Descriptions included in the Project Administrative Memorandum (PAM).
3. Assessment of Implementation Progress
Part 1.A: Biodiversity Conservation and Protection through Tourism at the Siphandone Wetland:
Bids were received for all major infrastructure works for the Siphandone subproject. A contract was awarded for the Nakasang access road, while bid evaluations are ongoing for the other packages. Improvements to the Visitor Information Center in Pakse and the construction of a Visitor Information Center on Don Khong Island are ongoing. An architectural survey was undertaken at the Don Khong district Museum for the preparation of a conservation plan for the building. In terms of CBT and supply chain villages, design of public toilets was completed and Village level hospitality training was conducted Ban Hang Khone CBT village.
Surveys, content development for directional signage for the Siphandone Wetlands were completed and design of the signs is ongoing. Promotional brochures for Champasak province in Thai Language have were designed and published. Representatives from the PIU participated in a lessons-learnt forum on the implementation of Provincial Gender Action Plan.
Part 1.B: Urban Environment Protection and Management - Vang Vieng Town Waste Water Centralization and Treatment:
Tender documents for the Vang Vieng waste water centralization and treatment subproject were completed, bids were received and bid evaluation is ongoing.
Samples were collected on a number of indicators identified in the IEE for Vang Vieng. Once the lab results on the Nam Xong water quality are received, a base-line report will be published.
Promotional materials to raise awareness on “Clean, Green, Safe & Friendly Vang Vieng” are ongoing. Public and private sector workshops to launch “Clean, Green, Safe & Friendly Vang Vieng” campaign were conducted and the production of promotional materials to raise awareness on “Clean, Green, Safe & Friendly Vang Vieng” was resumed following a delay due to illness of the subcontractor (as reported in the previous progress report). Two workshops were conducted for restaurant owners in Vang Vieng and 25 restaurants received the “Clean and Safe Restaurant” certification.
624 trees were planted along roads in Vang Vieng in accordance with the Town Master Plan.
Part 2: Pro-Poor Tourism Development in Salavanh, Vientiane Province, Houaphanh, Oudomxay, Sayabouli and Bokeo:
Representatives from the six PIUs participated in a lessons-learnt forum on the implementation of Provincial Gender Action Plan.
In Vientiane Province, the access road at Vat Donkeo was completed. The construction of the small market is planned. Infrastructure plans for Tham Khoun Lang are being finalized the design of the information center for Vang Vieng town was completed. It is anticipated that bidding for these two projects will be conducted during Q6. A survey of Tad Nam Yui waterfall was conducted and the preparation of a Development and Management plan for the site is ongoing. The Nam Yui is the main water source for Vang Vieng town. The plan will take this issue into account. Field research for the development of a tourism map for Vang Vieng was conducted during Q5 and the design and layout of the map is planned for Q6. A study tour to Luang Prabang by representatives from CBT and supply chain villages was conducted.
In Bokeo Province, construction of CBT infrastructure at Ban Nam Fa has been postponed pending a decision on a proposed dam project that would affect the area. The PCU has requested clarification on this project from the provincial authorities and are awaiting a response. Guidelines and regulations for service groups in CBT and supply chain villages were completed and village funds were established. Hands-on training was conducted for villagers and PIU staff on the sanitary collection and packaging of organic honey and a supply line was established for glass jars for the honey and the producers were linked to a trader from Vientiane who has purchased the entire 2010 harvest and is planning to continue to purchase honey from these villages. A survey was conducted together with the Firm at the French fort in Houei Xai, where the firm collected information required to prepare the restoration plan and the International Team Leader collected information needed for the development of a management plan for the site. Completion of restoration plan and management plan are foreseen for Q6. A training was conducted for local guides for Gibbon Experience support villages. Based on the outcomes of the survey at the French Fort, it was decided to house the ethnic culture exhibition at the fort instead of the tourist information center, as planned earlier. The Traditional Art and Ethnology Center in Luang Prabang was contracted to assist with the design of the exhibition and the identification of the objects to be purchased. Implementation of the exhibition and purchase of the artifacts will be included in APP4.