The World Bank Report No: ISR8945 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: 10 Status: ARCHIVED Archive Date: 20-Feb-2013 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): 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 08-Sep-2012 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 2.05 Community and Biodiversity 0.60 Management and Monitoring Support 0.35 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 Low Implementation Status Overview The project is on the way to achieve its Project Development Objective (PDO) as demonstrated by the progress towards meeting the key PDO outcome targets. Current records suggest that of four Environmental Compliance Certificates (ECC) issued since June 2010 for hydropower project construction have signed their Concession Agreements (CA), all four have incorporated the Social and Environment Standard Obligation (SESO). However, number of new hydropower projects are being proposed, therefore the final assessment of the achievement of this project outcome will be carried out by the task team during the last project completion mission planned in May 2013. For the grievance mechanism performance, current records suggest that 96 percent of complaints have been resolved in Bolikhamxay, and 100% in Khammouane province. Page 1 of 7 The World Bank Report No: ISR8945 However, the rating of the PDO remains Moderately Satisfactory due to the uncertainty of the sustainability of the Environmental Protection Fund (EPF) and it becoming an eligible entity for receiving the NT2 revenue. Project implementation is advancing, and 84% of project sub-grants will be fully disbursed by the end of December 2012, with the remaining three extended until the end of project in Public Disclosure Copy June 2013. The final project completion report (PCR) that is currently being prepared and will be based on the completed sub-grants will highlight the key issues such as the importance of the sub-grants, implementation experience, lessons learned and recommendation for future similar projects. Most of the Ministry of Natural Resources and Environmental Protection junior consultants (41 out of 74) who were supported by the project have now been recruited in the government positions and receive government salary since October 2012. 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 Grievances registered related to delivery of Percentage Value 0.00 98.00 50.00 project benefits addressed (%) Date 04-Jun-2010 16-Nov-2012 31-Dec-2012 Comments Increase in the % of Met complaints resolved in Bolikhamxay (96%) and Khammouane (100%) Provinces Grievances related to delivery of project Number Value 0.00 509.00 509.00 benefits that are addressed-(number) Sub Type Supplemental Public Disclosure Copy 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 16-Nov-2012 30-Jun-2013 adequate quality as judged by a third party Comments All four (100%) of Concession annually starting June 2010 Agreements (CA) signed since June 2010 for ongoing construction hydropower projects have incorporated Social and Environment Standard Obligation (SESO). Page 2 of 7 The World Bank Report No: ISR8945 The process of issuing ECC is continuing by MoNRE, thus the assessment will be carried out again in May mission to Public Disclosure Copy conclude the achievement of this indicator. Increase in the % of complaints resolved in Percentage Value 0.00 98.00 50.00 Bolikhamxay and Khammouane Provinces. Date 04-Jun-2010 16-Nov-2012 30-Jun-2013 Comments Data suggested that 96% (229 of 238) in BLKX and 100% (280) in Khammouane complaints have been resolved through this mechanism Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Areas brought under enhanced biodiversity Hectare(Ha) Value 0.00 protection (ha) Date 04-Jun-2010 16-Nov-2012 30-Jun-2013 Comments No management plan Management plans have Management plans have been developed for six been developed for six provincial protected areas in provincial protected areas in three project target provinces. three project target provinces. The value in ha will be added The value in ha will be added after client consultation in the after client consultation in the next ISR. next ISR Sub-projects with post-project community Percentage Value 0.00 120.00 100.00 engagement or O&M arrangements (%) Date 04-Jun-2010 16-Nov-2012 31-Dec-2012 Comments No subproject in the villages 12 sub-projects are being Met. Target was 10 supported under the communities but project community conservation actually worked in 12 villages, Public Disclosure Copy network subgrant and all of them are continued their activity after the subgrant completed. Sub-projects that are expected to have a Number Value 0.00 12.00 10.00 mechanism for post-completion operation Sub Type Supplemental 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 16-Nov-2012 31-Dec-2010 the Selected Provinces is established. Comments Met Met Page 3 of 7 The World Bank Report No: ISR8945 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 16-Nov-2012 31-Dec-2012 complaint handling mechanism are established Comments SIMUs were initiated in BLKX in Bolikhamxay and Khammouane Provinces. Public Disclosure Copy and KM provinces. The provinces are in the process of issuing legal letter to map SIMU under PoNRE. 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 16-Nov-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 16-Nov-2012 28-Jun-2013 is developed. Comments No model available Consultant has been recruited The model is setup. to develop a model. A report will be produced by May 2013 as part of PCR. WREA has prepared guidelines for Number Value 0.00 1.00 1.00 incorporating ECC measures in Concession Date 18-Dec-2009 16-Nov-2012 28-Jun-2013 Agreement for hydropower projects signed by Comments No guideline Four CAs signed since 2010 Met; however, this is an Recipient after enactment of the Environment and Social Impact Assessment decree for ongoing hydropowere ongoing process for all major project has all incorporated hydro and mining projects. SESO. This is an ongoing process for all major hydro and mining projects. Social safeguard training program is developed Number Value 0.00 60.00 60.00 for agencies and provinces participating in the Date 18-Dec-2009 16-Nov-2012 31-Dec-2012 Project and at least 60 trainees aretrained Comments Training completed, 150 Met trainees were trained. By December 31, 2012 national guideline for Number Value 0.00 1.00 1.00 Public Disclosure Copy Ethnic Groups' consultation has been Date 18-Dec-2009 16-Nov-2012 30-Jun-2013 completed and the relevant agencies' staff Comments No guidelines; no staff trained In progress. It will be The guideline is approved and have been trained on how to conduct such consultation. approved and consultation will and consultation is be completed by early 2013. completed. Additional training Additional training will be will be provided to southern provided to provinces. southernprovinces. The subgrant is extended to June 2013 Page 4 of 7 The World Bank Report No: ISR8945 By December 31, 2010, site plans for 6 Number Value 0.00 6.00 6.00 protected areas are available and the site plans Date 18-Dec-2009 16-Nov-2012 31-Dec-2012 have identified priority actions. Comments No site plans 6 site plans completed Met. Public Disclosure Copy 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 16-Nov-2012 31-Dec-2012 implemented in the 6 protected areas. Comments No site plans Six PA subgrants completed, This target could not be met it is difficult to meet the 60% since no resources to target as it is limited budget to implement prioritized activities implement priority activity. under the PA management However,more than 60% of plans. activities planned under the first annual work plan are financed by various donors. By December 31, 2012, at least 10 Number Value 0.00 12.00 10.00 conservation communities are established in Date 18-Dec-2009 16-Nov-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 16-Nov-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 16-Nov-2012 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 84.00 80.00 Grant have been completed satisfactorily by Date 18-Dec-2009 16-Nov-2012 31-Dec-2012 December 31, 2012. Comments 0% Of 19 subgrants, 16 or 84% The remaining three confirm their closure by the subgrants will be maintained end of December 2012. to the end of June 2013. EPF and WREA have received part of the NT2 Amount(USD) Value 0.00 1.50 1.50 revenue for financing their respective priority Date 18-Dec-2009 16-Nov-2012 30-Jun-2013 development projects by December 31, 2010. Comments None received It could be difficult as EPF will It could be any amount, but only receive government Page 5 of 7 The World Bank Report No: ISR8945 budget including the NT2 EPF should be eligible to revenue if it became eligible receive funds. to receive the fund. EPF will work with its board on this Public Disclosure Copy issue. Data on Financial Performance (as of 26-Nov-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 1.82 0.08 96.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Page 6 of 7 The World Bank Report No: ISR8945 Restructuring History Level one Approved on 12-Jan-2010, Level two Approved on 20-Dec-2012 Public Disclosure Copy Related Projects P116734-Lao Environment and Social Project - Additional Financing Public Disclosure Copy Page 7 of 7