The World Bank Report No: ISR9481 Implementation Status & Results Lao People's Democratic Republic Lao PDR Customs and Trade Facilitation Project (P101750) Public Disclosure Copy Operation Name: Lao PDR Customs and Trade Facilitation Project (P101750) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 11-Mar-2013 Country: Lao People's Democratic Republic Approval FY: 2008 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 17-Jun-2008 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 21-Jan-2013 Last Archived ISR Date 18-Aug-2012 Effectiveness Date 20-Oct-2008 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 28-Jan-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to facilitate trade by improving the efficiency and effectiveness of customs administration. The project will simplify customs procedures, eliminate duplication and redundancy, reduce transaction costs and time to cleargoods, and increase transparency and accountability. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Implementation of ASYCUDA 4.00 Customs Modernization Support 2.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview This Implementation Status Overview for the Customs and Trade Facilitation Project is based on the findings of the Mid Term Review mission conducted during January 28-31, 2013. Implementation progress under the project has been strong with the nationwide rollout of ASYCUDA now well under way, the preliminary introduction of risk based approaches and selectivity at the border and measured improvements in import and export clearance times. Significant progress has also been made with the introduction of a modernized customs legal framework. Project management has improved with a now fully staffed project team that has progressively developed its capabilities. However, there are also clear challenges associated with ensuring that the private sector is able to take advantage of the full benefits of automation and benefit from meaningful reductions in manual processes and physical inspections. Similarly, key elements of the reform agenda, including on risk management and valuation, remain incomplete. Page 1 of 5 The World Bank Report No: ISR9481 Locations Country First Administrative Division Location Planned Actual Laos Khoueng Xaignabouli Khoueng Xaignabouli ✔ Public Disclosure Copy Laos Khoueng Viangchan Khoueng Viangchan ✔ Laos Khoueng Savannakhet Khoueng Savannakhet ✔ Laos Khoueng Louangnamtha Khoueng Louangnamtha ✔ Laos Not Entered Lao People's Democratic Republic ✔ Laos Khoueng Khammouan Khoueng Khammouan ✔ Laos Khoueng Houaphan Khoueng Houaphan ✔ Laos Khoueng Champasak Khoueng Champasak ✔ Laos Khoueng Bokeo Khoueng Bokeo ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Customs Efficiency: Reduction in mean import, Text Value 17.9 11.2 Reduction by 10 percent per export, and transit clearance times. year. Date 22-Mar-2010 01-Feb-2013 30-Jun-2013 Comments Baseline data was collected Reduction in mean time to by WCO Time Release Study clear imports of 34 percent (TRS) during November during 2009-2012. 2009-January 2010. Customs Efficiency: Reduction in number of Text Value 9, 7 5, 4 Reduction by 25 percent. steps to clear commercial shipments. Public Disclosure Copy Sub Type Date 22-Mar-2010 01-Feb-2013 30-Jun-2013 Breakdown Comments 9 steps for imports and 7 for Reduction in number of steps exports to import from 9 to 5 and to export from 7 to 4 during 2009-2012. Customs Effectiveness: Increase in the ratio of Text Value No quantifiable data. 1.2 Increase in detection ratio by detections/inspections by customs. 10 percent per year. Date 01-Feb-2013 Comments The mission recommends that The ratio appears very low. data required to produce a Page 2 of 5 The World Bank Report No: ISR9481 baseline be collected and produced as soon as possible, for a baseline to bedeveloped in 2011. The Public Disclosure Copy Lao Custom Department is committed to provide the information to produce the baseline in order to populate the Result Framework. Customs Effectiveness: Increase in the Text Value 2.08 (LPI 2007) 2.17 (LPI 2010) and 2.38(LPI Improvement in perception of perceptions of customs performance and Sub Type 2012) customs performance by 25 integrity by clients. percent Breakdown Date 30-Jun-2007 01-Feb-2013 30-Jun-2013 Comments Lao customs scores 2.08 in Sustained improvements in global Logistic Performance customs performance as Index (LPI) of 2007. measured by the LPI. --------------------------- Lao customs scored 2.17 and 2.38 in global LPI of 2010 and 2012, respectively. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Full acceptance of electronic data submission Text Value Not initiated Partially completed (2012) Completed (2013) for customs declaration procedures Date 30-Jun-2009 01-Feb-2013 28-Jun-2013 Comments Completed at Thanaleng Full rollout of electronic data checkpoint pilot site submission for the identified remaining checkpoints Prototype developed and accepted by Text Value Not initiated Completed (2011) government Date 30-Jun-2009 01-Feb-2013 Comments Progress reports by LCD Public Disclosure Copy Accepted prototype validated at the pilot site Text Value Not initiated Completed (early 2012) Date 30-Jun-2009 30-Apr-2012 Comments Progress reports by LCD Prototype replicated at the remaining Text Value Not initiated On-going Completed (2013) checkpoint sites Date 30-Jun-2009 01-Feb-2013 Comments Progress reports by LCD. Replication at remaining checkpoints has been started since May 2012. Page 3 of 5 The World Bank Report No: ISR9481 Integrated IT system is in place by 2010, pilot Text Value Not initiated In place (2012) Completed (2013) completed and reviewed by 2011, and fully Date 30-Jun-2009 01-Feb-2013 operational in all implementation sites by 2012 Comments Prototype was developed by Six remaining checkpoints will Public Disclosure Copy the end of 2010 and accepted have the system for operation by GOL by early 2011. The by June 2013 pilot site at Thanaleng was completed by the end of 2011, reviewed and accepted by early 2012. The system is fully operational in four implementation sites by February 2013. Appropriate front line staff and affected traders Text Value Not initiated Completed (2012) Completed (2013) trained in advance of pilot testing and pre Date 30-Jun-2009 01-Feb-2013 nationwide rollout. Comments Data on Financial Performance (as of 30-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P101750 IDA-H4030 Effective 17-Jun-2008 25-Jul-2008 20-Oct-2008 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101750 IDA-H4030 Effective XDR 3.70 3.70 0.00 3.04 0.66 82.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR9481 Public Disclosure Copy Key Decisions Regarding Implementation The Customs and Trade Facilitation Project is a critical operation for the Government of Lao PDR and its development partners. This project is an integral part of the overall strategy of Lao PDR and relates to several of the World Bank country partnership strategy (CPS) themes, including on improving competitiveness and connectivity, and strengthening public sector management. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5