The World Bank Report No: ISR9468 Implementation Status & Results Lao People's Democratic Republic TA for Capacity Development in Hydropower and Mining Sector (P109736) Public Disclosure Copy Operation Name: TA for Capacity Development in Hydropower and Mining Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 26-Jun-2013 Sector (P109736) Country: Lao People's Democratic Republic Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 12-Jan-2010 Original Closing Date 30-Sep-2014 Planned Mid Term Review Date 14-Jan-2013 Last Archived ISR Date 25-Nov-2012 Effectiveness Date 04-Aug-2010 Revised Closing Date 30-Sep-2015 Actual Mid Term Review Date 14-Jan-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) Development objective is to increase human capacity and improve the performance of Government oversight institutions for the hydropower and mining sectors. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Joint Hydropower and Mining Learning Program 2.26 Hydropower Sector Development 2.71 Mining Sector Development 2.31 Project Administration and Management 0.72 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Implementation Status Overview The project has faced challenges since the start of project implementation and has suffered delays. The challenges include restructuring of the key implementing agencies - Ministry of Energy and Mines (MEM) and Ministry of Natural Resource and Environment (MONRE), low absorption capacity, weak coordination and rapid change in sector context. The project's mid-term review was conducted in January 2013 and subsequently the project was restructured to respond to the sector changes and make the targets achievable within Page 1 of 7 The World Bank Report No: ISR9468 available resources. The restructuring included revision of the results framework, modifications of project activities, budget reallocation and extension of the project closing date. Despite a phase of slow implementation, the project is now making progress towards increasing human capacity and improving the performance of Government oversight institutions in the hydro-power and mining sectors. Implementation progress has visibly accelerated since the last implementation support mission in January 2012 and project's mid-term review Public Disclosure Copy in January 2013. Locations Country First Administrative Division Location Planned Actual Laos Khoueng Viangchan Khoueng Viangchan ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased number of trained national human Number Value 0.00 2540.00 3806.00 resources in the mining and hydropower Date 08-Dec-2009 31-May-2013 31-Aug-2015 sectors within the public sector and from higher Comments Learning program activities 100% of the project training and technical education institutions (EIs) being implemented. TA plan under MEM’s HRD support is now in place. strategy implemented. At Procurement of computers least 3800 trained personnel and lab equipment for NUOL benefited from learning is complete. The delivery of program the equipment to NUOL is expected by mid-June. Procurement of lab equipment for PTC and LGS is underway. Teachers at all four education institutes have received training. Technical training and workshops have been provided for MEM staff Public Disclosure Copy members at both central and local levels. Enhanced institutional capacity for the Text Value No monitoring framework for The consultant is now in Standard procedures for CA planning, management, and monitoring of CA compliance in place. place. monitoring applied in 50% of hydropower plants current hydro power plants Date 08-Dec-2009 31-May-2013 31-Aug-2015 Comments Consultant for development of monitoring framework for CA compliance is in place. Work is in progress. Page 2 of 7 The World Bank Report No: ISR9468 Increased percentage of mining inspections Text Value Absence of comprehensive Frist draft standard 30% of exploration and 30% performed through the use of improved inspection procedures investment agreement has of exploitation inspections systems and procedures been prepared. carried out using improved systems and procedures. Public Disclosure Copy Date 08-Dec-2009 31-May-2013 31-Aug-2015 Comments The consultant has started the assignment. The first draft standard investment agreement has been prepared. Direct project beneficiaries Number Value 1500.00 2540.00 3806.00 Date 11-Dec-2009 31-Jan-2013 31-Aug-2015 Comments Direct project beneficiaries About 2540 teachers, At least 3800 trained are students graduated from students at education nationals are benefiting from Mining and Hydro training institutes and staff members educational courses courses and also Government of MEM and MONRE at supported by the project. officials who received training central and local levels are related to the Hydro and benefitingfrom educational Mining sector development. courses and technical training supported by the project. Female beneficiaries Percentage Value 0.00 127.00 150.00 Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Application of avoided costs methodology in Text Value Avoided cost not analysed Procurement of the consultant Methodology applied for at hydropower development planning is in progress least three Power Purchasing Agreements (PPAs) Date 08-Dec-2009 31-May-2013 31-Aug-2015 Public Disclosure Copy Comments Revised scope during MTR. Procurement is almost complete. The consultant is expected by July 2013 Application of requirements and standard Text Value No monitoring framework for Consultant has been 6 CAs managed using procedures for CA monitoring and proficiency CA compliance in place mobilized and inception report requirements and standard of staff to manage contracts submitted. Work is in procedures. progress. Date 08-Dec-2009 31-May-2013 31-Aug-2015 Page 3 of 7 The World Bank Report No: ISR9468 Comments The standard procedures for CA monitoring is being developed. Public Disclosure Copy Updated NPSH and approved action plan and Text Value Original NPSH in place; no First draft updated NPSH has Updated NPSH and procedures for its implementation action plan or procedures for been prepared and is being implementation plan and its implementation consulted with stakeholders. procedures approved by National Committee Date 08-Dec-2009 31-May-2013 31-Aug-2015 Comments In collaboration with IFC, the first draft updated NPSH has been prepared and it is being consulted with stakeholders. Adoption of standardized terms and conditions Text Value No standard investment The first draft standard Standard investment for mine investment agreement template agreement for mining investment agreement has agreement template in use development been prepared. Date 18-Dec-2009 31-May-2013 31-Aug-2015 Comments Consultant is on board. The first draft standard investment agreement has been prepared and being consulted. Number of annual inspections of exploration Text Value Absence of comprehensive Inspection guildelines are Procedures for inspection are and mine activities using improved inspection inspection procedures being developed and approved and used for at system procurement of equipment for least 19 inspections. inspection is underway. Date 18-Dec-2009 31-May-2013 31-Aug-2015 Comments In collaboration with German TA project, inspection guidelines is underway and procurement of inspection equipment in progress Public Disclosure Copy Prospecting/exploration and mining Text Value Inconsistencies, overlaps in Block system, which is a 30% of total licenses located development licenses located in a developed prospection/exploration and basis for cadastral system, in the developed cadastral cadastral system mining development licenses had been developed and system approved by MEM and MONRE Date 01-Jan-2013 31-May-2013 31-Aug-2015 Comments Consultant for cadastral design, install and management is under procurement. Page 4 of 7 The World Bank Report No: ISR9468 Number of GoL personnel trained and applying Number Value 0.00 72.00 350.00 the acquired knowledge and skills in cross- Date 12-Aug-2009 31-May-2013 31-Aug-2015 cutting areas such as contract management, Comments Capacity Building Consultants financial analysis, environmental and social Public Disclosure Copy management are now on board. Training needs assessment for MEM and selected PDEMs is about to complete. Trainingplan for short-term, medium-term and long-term is expected by July 2013. Number of teachers and students benefiting Number Value 0.00 2468.00 3456.00 from educational courses supported through Date 12-Aug-2009 31-May-2013 31-Aug-2015 curriculum update/development, teacher Comments Staff and teachers from the training, technical/lab equipment and library materials NUOL and other 3 EIs received technical training courses and participated in other capacity building activities including hand-on experience in the development of curriculum for their study/teaching program with technical cooperation between their institutions and other EI’s and universities in the region, field excursion, study visit at the project sites etc. Computer equipment (120 packages) for NUOL lab in place. Procurement of lab equipment for NUOL is now complete. The delivery of the equipment is expected by mid-June. Procurement of lab Public Disclosure Copy equipment for PTC and LGS is underway. Number of mining regulations drafted and Text Value Weak mining regulatory 2 mining regulations are being 6 mining regulations approved system developed developed and approved Date 12-Aug-2009 31-May-2013 31-Aug-2015 Comments Consultant has been on board and two mining regulations including regulation on small scale mining management and industrial mineral Page 5 of 7 The World Bank Report No: ISR9468 management are being developed. Public Disclosure Copy Data on Financial Performance (as of 13-Jun-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P109736 IDA-H5390 Effective 12-Jan-2010 08-Feb-2010 04-Aug-2010 30-Sep-2014 30-Sep-2015 P109736 TF-99572 Effective 09-Apr-2012 09-Apr-2012 22-Aug-2012 01-Mar-2014 01-Mar-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P109736 IDA-H5390 Effective USD 8.00 8.00 0.00 2.58 5.06 32.00 P109736 TF-99572 Effective USD 2.54 2.54 0.00 0.99 1.55 39.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The project’s Mid-Term Review carried out between January 14 and 25, 2013 recommended a project restructuring to ensure the successful achievement of the development objective. The restructuring included revision of the results framework, modifications of project activities, budget reallocation and extension of the project closing date to September 2015. The project restructuring was completed on June 4, 2013. Page 6 of 7 The World Bank Report No: ISR9468 Restructuring History Level two Approved on 13-May-2013 Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7