The World Bank Report No: ISR5885 Implementation Status & Results Lao People's Democratic Republic Lao Environment and Social Project (P090693) Public Disclosure Copy Operation Name: Lao Environment and Social Project (P090693) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 08-Sep-2012 Country: Lao People's Democratic Republic Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 30-Jun-2005 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date 25-Oct-2011 Last Archived ISR Date 10-Aug-2011 Effectiveness Date 14-Apr-2006 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date 19-Nov-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the management of environmental and social issues associated with the sustainable use of natural resources in Lao PDR. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Policy Implementation 1.60 Community and Biodiversity 1.46 Management and Monitoring Support 0.94 Overall Ratings Previous Rating Current Rating Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Progress towards achievement of PDO Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview The project has substantially contributed to the establishment and operation of the new MoNRE including institutional set up(support has been provided for the operation of the Cabinet Office, Department of Environmental Impact Assessment, Department ofEnvironment, Department of Forest Resources Management, and the Nam Theun Nam Kading River Basin Organization), and implementationof decrees (Resettlement and Compensation, Environmental Impact Assessment, and River Basin Committee Decrees). The project alsosupports MoNRE through the subgrant which aims to strengthen the coordination and cooperation function, and develop Land Policywhich will be presented at next National Assembly meeting at the end of 2012. The mandate, organization, and staffing of the newministry however are yet to be finalized. In this context, implementation of four of the five MoNRE subgrants is somewhat behindthe schedule due to the need to adjust the work plans in line with MoNRE’s mandate and priorities. However, the delay of thesesubgrants Page 1 of 6 The World Bank Report No: ISR5885 implementation is unlikely to affect achievement of the PDO and all key project outcome targets are either met or are onthe way of being achieved, and the subgrants will be completed before the project closing date of June 30, 2013. The project hasengaged with Lao National Front for Construction, National University of Lao, Bolikhamxay and Khammouane provinces on the socialinclusion and right protection, Public Disclosure Copy established Social Impact Management Unit in two provinces, and the Public Consultation Guidelineis being developed. The project has contributed to the protection of National and Provincial Protected Areas by supporting thedevelopment of the Management Plan in six provincial protected areas and established a model of a Community Conservation Network in12 villages around Nakai Nam Theun and Nam Ka Ding National Protected Areas. The Environmental Protection Fund (EPF) board has meton May 28 to discuss EPF sustainability and concluded that the performance of EPF during 2011 and first quarter of 2012 issatisfactory. EPF will continue to monitor all remaining subgrants to ensure completion as planned. The meeting approved 2011 andfirst quarter of 2012 reports, and the next five- year plan. EPF will remain in the Prime Minister’s Office, the Executive Directorwill stay until a new person will be assigned in June 2013. An International Consultant to support EPF develop and strengthen itsfinancial mechanism is being recruited. Locations Country First Administrative Division Location Planned Actual Laos Khoueng Savannakhet Khoueng Savannakhet Laos Khoueng Khammouan Khoueng Khammouan Laos Khoueng Bolikhamxai Khoueng Bolikhamxai Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in the % of environment compliance Percentage Value 0.00 100.00 60.00 certificates (ECCs) issued by WREA that are of Date 30-Jun-2010 15-Jun-2012 30-Jun-2013 adequate quality as judged by a third party Comments Since June 30, 2010, DESIA annually starting June 2010 has incorporated SESO into the CA for all large hydropower projects. Public Disclosure Copy Increase in the % of complaints resolved in Percentage Value 0.00 46.00 50.00 Bolikhamxay and Khammouane Provinces. Date 31-Dec-2010 15-Jun-2012 30-Jun-2013 Comments Recent data suggested that about 46% in BLKX and 90% in KM of the complaints have been resolved through this mechanism. Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR5885 Indicator Name Core Unit of Measure Baseline Current End Target By December 31, 2010, database for tracking Number Value 0.00 2.00 2.00 type and number of development projects in Date 18-Dec-2009 15-Jun-2012 31-Dec-2010 Public Disclosure Copy the Selected Provinces is established. Comments Met Met By December 31, 2012, a unit responsible for Number Value 0.00 2.00 2.00 monitoring social impacts and a functional Date 30-Jun-2010 15-Jun-2012 31-Dec-2012 complaint handling mechanism are established Comments SIMUs were initiated in BLKX in Bolikhamxay and Khammouane Provinces. and KM provinces. Discussion of formal establishment of SIMU is underway. By June 30, 2010, the River Basin Committee Number Value 0.00 1.00 1.00 for NT-NKD is established. Date 11-Oct-2010 15-Jun-2012 30-Jun-2010 Comments Met. One RBC was The target is met. Further established. capacity building is needed. By December 31, 2012, an implementation Number Value 0.00 1.00 1.00 model for a river basin organization in Lao PDR Date 11-Oct-2010 15-Jun-2012 31-Dec-2012 is developed. Comments No model available NT-NKD RBC was The model has been setup established, RBS functioned but further implementation support is needed. WREA has prepared guidelines for Number Value 0.00 1.00 1.00 incorporating ECC measures in Concession Date 18-Dec-2009 15-Jun-2012 31-Dec-2010 Agreement for hydropower projects signed by Comments No guideline SESO has been applied to Met; however, this is an Recipient after enactment of the Environment and Social Impact Assessment decree large hydropower and mining ongoing process for all major projects. Considering it is hydro and mining projects. It completed 100% of the work. will be applied to other sectors as well. Social safeguard training program is developed Number Value 0.00 100.00 100.00 for agencies and provinces participating in the Date 18-Dec-2009 22-Nov-2011 31-Dec-2012 Project and at least 60 trainees aretrained Comments Training completed Met Public Disclosure Copy By December 31, 2012 national guideline for Number Value 80.00 100.00 Ethnic Groups' consultation has been Date 18-Dec-2009 15-Jun-2012 31-Dec-2012 completed and the relevant agencies' staff Comments No guidelines; no staff trained Guideline has been In progress. It will be have been trained on how to conduct such consultation. submitted for Minister's approved and consultation will approval. It is considered 80% be completed by the end of of the work has been December 2012. Additional completed. DESAI staff have Page 3 of 6 The World Bank Report No: ISR5885 been trained, training have training will be provided to been conducted for northern southern provinces. and middle provinces. By December 31, 2010, site plans for 6 Number Value 0.00 6.00 6.00 Public Disclosure Copy protected areas are available and the site plans Date 18-Dec-2009 22-Nov-2011 31-Dec-2012 have identified priority actions. Comments No site plans 6 site plans completed Met By December 31, 2012, at least 60% of the Percentage Value 0.00 20.00 60.00 priority activities identified are being Date 18-Dec-2009 15-Jun-2012 31-Dec-2012 implemented in the 6 protected areas. Comments No site plans Five of six PA subgrants This target could not be met completed, it is not possible to since no resources to meet the 60% target as it is implement prioritized activities limited busted to implement under the PA management priority activity. plans. By December 31, 2012, at least 10 Number Value 0.00 12.00 10.00 conservation communities are established in Date 18-Dec-2009 15-Jun-2012 31-Dec-2012 NT-NKD Comments No Community Conservation Met; Community Met Unit Conservation Network was established in 12 communities. By December 31, 2012, EPF's annual Percentage Value 33.00 13.00 15.00 administrative cost (about 33% of a Sub-grant Date 18-Dec-2009 15-Jun-2012 31-Dec-2012 amount) has been reduced to no more than Comments 33% WMU budget is about $0.35 Met 15% of anAdditional Grant million for $2.65 million grant or 13%. 80% of Sub-projects financed by the Original Percentage Value 0.00 99.00 80.00 Grant have been completed satisfactorily by Date 04-May-2010 31-Dec-2010 31-Dec-2010 December 31, 2010. Comments N/A Of 154 total subgrants signed Met under LENs, 152 subgrants were physically and financially completed (99%). Public Disclosure Copy 80% of Sub-projects financed by the Additional Percentage Value 0.00 31.00 84.00 Grant have been completed satisfactorily by Date 18-Dec-2009 15-Jun-2012 31-Dec-2012 December 31, 2012. Comments 0% 19 subgrants has been signed The remaining three and the implementation is on- subgrants will be maintained going. Six subgrants have to the end of June 2013. been completed, 16 subgrants will be completed by the end of December 2012. Page 4 of 6 The World Bank Report No: ISR5885 EPF and WREA have received part of the NT2 Amount(USD) Value 0.00 1.50 revenue for financing their respective priority Date 18-Dec-2009 15-Jun-2012 31-Dec-2010 development projects by December 31, 2010. Comments None received Partially met; NT2 revenue It could be any amount, but Public Disclosure Copy begins to flow to MonRE (1.5 EPF should be eligible to billion kip) but could not flow receive funds. to EPF. Data on Financial Performance (as of 19-Jul-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P090693 IDA-H1770 Effective 30-Jun-2005 15-Aug-2005 14-Apr-2006 31-Dec-2010 30-Jun-2013 P090693 IDA-H5400 Effective 12-Jan-2010 08-Feb-2010 21-Apr-2010 30-Jun-2013 30-Jun-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090693 IDA-H1770 Effective XDR 2.70 2.70 0.00 2.70 0.00 100.00 P090693 IDA-H5400 Effective XDR 1.90 1.90 0.00 1.60 0.30 84.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Page 5 of 6 The World Bank Report No: ISR5885 None Restructuring History Public Disclosure Copy Level one Approved on 12-Jan-2010 Related Projects P116734-Lao Environment and Social Project - Additional Financing Public Disclosure Copy Page 6 of 6