Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project Lao PDR ADB Loan 3156-LAO Tourism Development Department Ministry of Information, Culture and Tourism

PCU Quarterly Progress Report No. 21

1st of January – 31st of March 2020

A. Introduction and Basic Data

ADB loan number: 3156-LAO Project title: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project Project Number: 46293-003 Implementation Period: 14 January 2015 - 31 December 2020 Borrower: Government of Lao PDR, Ministry of Finance Executing Agency: Ministry of Information, Culture and Tourism (MICT) Implementing Agencies: Departments of Information, Culture and Tourism (DICT) of Champasak, Khammouane, Luang Prabang and Oudomxay Provinces Estimated Project Cost: US$ 43.57 million ADB Financing: US$ 40.00 million Counterpart Financing: US$ 3.57 million Loan disbursement to date: 74.66%

Status of project financing:

ADB Counterpa Total Cofinancing loan rt Expenditure Projection for this 10.449 10.273 0.176 none reporting period 2020*: 2020 Year to Date Project 1.361 1.317 0.044 none Expenditures: Total Project Expenditures**: 27.192 26.268 0.924 none *For ADB, based on ADB 2020 eOps Projections ** For ADB, excludes IDC of $334,888

Date of loan approval: 8 September 2014 Date of loan signing: 27 October 2014 Date of loan effectiveness: 14 January 2015 Elapsed project period: 63/72 months (87.50%) Physical progress to date: 91.83%

Reporting Period: 1st of January – 31st of March 2020

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a. Project Scope

1. The GMS Tourism Infrastructure for Inclusive Growth Project (GMS-TIIG) in Lao PDR is financed by a US$ 40 million loan from the Asian Development Bank with additional budgetary resources of US$3.57 million sourced from the Government of Lao PDR. Target provinces are Champasak, Khammouane, Luang Prabang and Oudomxay. The Ministry of Information, Culture and Tourism is the executing agency responsible for the coordination of the project. Implementing agencies are the Tourism Development Department, Ministry of Information, Culture and Tourism and the Departments of Information, Culture and Tourism of Champassak, Khammouane, Luang Prabang and Oudomxay Provinces.

2. The impact of the project will be increased tourism employment for people living in underdeveloped segments of the GMS Central Corridor. The outcome will be increased tourism receipts in Champassak, Khammouane, Luang Prabang, and Oudomxay. By 2019, aggregate annual tourism receipts in the project provinces will increase to $330 million, helping to stimulate the creation of 27,000 additional tourism-related jobs by 2025. Based on current workforce participation rates, it is expected that 50% of these jobs will be held by women.

3. The project outputs are (i) improved last-mile tourism access infrastructure, (ii) improved environmental services in cross-border tourism centers, (iii) strengthened institutional capacity to promote inclusive tourism growth, and (iv) effective project implementation and knowledge management.

4. Project areas for Outputs 1 and 2 include the venerated Buddhist shrines That Sikhottabong and Xang Cave; United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Sites and National Protected Areas in Champasak, Khammouane, and Luang Prabang; and the Chom Ong Cave in Oudomxay, which has 16 km of underground passages.

5. Output 3 complements infrastructure investments in Khammouane, Luang Prabang, and Oudomxay, and augment ongoing ADB assistance in Champasak by building capacity to (i) improve destination management, (ii) promote small and medium-sized enterprise development, and (iii) prevent the negative social and environmental impacts of tourism. The focus will be on assisting residents better understand the challenges and opportunities that tourism growth presents, and widening access to tourism-related economic opportunities such as retail services, food and craft production, recreation services, and wage employment in hotels and guesthouses.

6. Output 4 focuses on counterpart capacity building to ensure that financial management and procurement, civil works design and supervision, environmental and social safeguards monitoring, and the preparation of operation and maintenance (O&M) plans for project facilities is compliant with ADB and government requirements. Output 4 will support knowledge management and training programs that are aligned with the Association of Southeast Asian Nations tourism standards, help steer tourists to project provinces by intensifying the promotion of multi-country tour circuits in GMS corridors in cooperation with the private sector, and assist the participating countries develop common systems to collect and report tourism statistics to facilitate informed decision making and the formulation of sound policies.

b. Summary of Project Progress

7. The Ministry of Information, Culture and Tourism (MICT) is effectively fulfilling its role as the project’s executing agency and has established organizational and staffing structures, and is conforming to implementation arrangements.

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8. Time elapsed since loan effectiveness is 87.50% (based on 24 quarters (6 years), 2015- 2020), with overall weighted progress of implementation of 91.83% and disbursement to date of 74.66%.

9. All contracts for civil works packages have been awarded and physical progress for infrastructure subprojects is estimated at 90.65%, with progress of Output 1 subprojects at 81.32% (including additional works under W03 and new works package W02a) and output 2 subprojects at 100%.

10. Implementation for outputs 3 and 4 have accelerated and on track. During this quarter (Q1 2020) most output 3 and 4 activities were wrapped up. The remainder of the project (Q2- Q4 2020) will focus on preparing and operationalizing O&M plans for project supported infrastructure and tourist facilities, including preparation and facilitation of PPP for the operation of tourist facilities where appropriate.

c. Weighted progress:

11. Project progress by weighted activity is 91.83% as calculated in attachment B. Figure 1 illustrates the percentage of project progress relative to percentage of project funds disbursed and time elapsed (based on 24 quarters (6 years), 2015-2020).

B. Utilization of Funds

12. As of 31 March 2020, cumulative contract awards (CA) under the ADB loan is $35.211 million, which represents 97.94% while cumulative disbursements are $26.842 million, which represents 74.66% of net loan amount of $35.952 million. For 2020 achievement, cumulative contract awards of $35.212 million represents 99.5% of cumulative (March 2020) e-Ops contract award projection of $35.382 million while disbursement of $29.843 million represents 101.6% of cumulative (March 2020) e-Ops disbursement projection of $29.385 million. After the midterm review mission, ADB projections were revised to reflect actual achievements and revised implementation plan. Due to this, the Project is rated as an “on track” Project. For 2020, the Project has achieved actual contract awards of $0.291 million and disbursement of $1.025 million against yearly projection of $0.461 million and $10.273 million respectively.

Table 1: Loan Allocation, Contacts Awards, Disbursement and Balance (31 Mar 2020) Status of Loan As of 31 March 2020

Original Current Contract Uncommitted Undisbursed Curr Allocation Allocation Awards Disbursement a/ Balance Balance 01 Works US$ 2 4,599,722 22,049,439 21,634,401 13,784,911 415,038 8,264,528 SDR 1 5,948,000 15,948,000 15,622,310 9,880,945 325,690 6,067,055 02 Equipment US$ 1 ,469,998 1,857,897 1,787,248 1,725,823 70,648 132,074 SDR 9 53,000 1,331,254 1,279,326 1,234,506 51,928 96,748 03 Consulting Services US$ 2 ,460,281 4,228,986 4,368,479 3,202,038 - 139,493 1,026,949 SDR 1 ,595,000 3,052,888 3,152,354 2,299,533 - 99,466 753,355 Capacity Buiding and 04 Training US$ 2 ,634,583 5,605,077 6,141,959 5,641,219 - 536,881 - 36,142 SDR 1 ,708,000 4,009,988 4,403,590 4,038,226 - 393,603 - 28,239 05 Recurrent Costs US$ 1 ,437,606 1,498,341 1,279,814 1,154,401 218,527 343,941 SDR 9 32,000 1,077,870 917,125 825,480 160,745 252,391 06 Interest Charges US$ 7 89,758 703,674 - 334,388 703,674 369,286 SDR 5 12,000 512,000 - 240,845 512,000 271,155 07 Unallocated US$ 6 ,043,696 - - - - - SDR 4 ,284,000 - - - - - 99 Imprest Account US$ - 8,402 - 1,000,000 8,402 - 991,598 SDR - - 726,567 - - 726,567 4 0,000,000 35,951,817 35,211,902 26,842,780 739,915 9,109,037 2 5,932,000 25,932,000 25,374,706 19,246,102 557,294 6,685,898

Percent to Loan Amount 97.94% 74.66%

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Figure 1: Time Elapsed, Disbursement and Weighted Activity Progressa

a Timeline was adjusted from 20 to 24 quarters following approval of extension of the project until December 2020.

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Table 2: 2020Contract Awards and Disbursement by Quarter Contract Awards 2015 0.523 0.000 3.041 0.220 3.784 3.784 2016 0.427 0.237 0.706 0.000 1.370 5.155 2017 0.455 2.403 0.797 16.254 19.909 25.064 2018 0.906 0.544 0.493 0.958 2.900 27.964 2019 0.864 0.521 4.790 0.782 6.957 34.921 2020 Q1 Q2 Q3 Q4 Total Cum Projection 0.461 0.000 0.000 0.000 0.461 3 5.382 Actual 0.291 0.000 0.000 0.000 0.291 35.212 Percent 63.2% 0.0% 0.0% 0.0% 63.2% 99.5% Disbursement 2015 1.000 0.002 0.000 0.669 1.671 1.671 2016 0.412 0.383 0.524 0.422 1.741 3.412 2017 0.688 0.312 0.747 1.609 3.356 6.768 2018 0.791 2.995 1.669 2.770 8.225 14.993 2019 1.843 2.198 2.645 4.138 10.825 25.818 2020 Q1 Q2 Q3 Q4 Total Cum Projection 3.567 6.706 0.000 0.000 10.273 2 9.385 Actual 1.025 0.000 0.000 0.000 1.025 29.843 Percent 28.7% 0.0% 0.0% 0.0% 10.0% 101.6%

13. ADB has approved an extension in the loan closing from 31 December 2019 to 31 December 2020, and reallocation of loan proceeds. The reallocation of loan proceeds included the transfer from contingency to equipment, consulting services and capacity building and training, and recurrent costs categories. Contract awards for consulting services and capacity building and training have exceeded the revised allocation but still within the overall loan allocation. However, as of this reporting period, uncommitted balance net of interest charges is $36,642, and expenditures without PCSS incurred from February 2020 onwards have still to be committed. This may result in cost overrun. To avoid this, the EA is closing open commitments that are no longer active/required and processing contract variations to reduce commitments where possible, and at the same time carefully planning expenditure for the remainder of the project. To date, the US$ equivalent of the ADB Loan of SDR25,932 million has reduced from $40 million to US$35.952 million.

C. Project Purpose

a. Implementation Arrangements

14. Implementation arrangements conform to the arrangements described in the Report and Recommendation of the President to the Board of Directors (RRP) and the Project Implementation Manual (PAM). At project start the implementation period was revised to January 2015-December 2019 with estimated completion date 31 December 2019, to align with actual loan effectiveness. Recently ADB approved extending the project to 31 December 2020 to allow for completion of the ongoing works in Luang Prabang (Package TIIG-LAO-W03) and Oudomxay (Package TIIG-LAO-W02) and additional road work Oudomxay (Package TIIG-LAO- W02a, signed on 25 September 2019 and scheduled for completion by December 2020).

b. Status of Development Objectives

15. The outcome indicator is aggregated annual tourism receipts in Champasak, Khammouane, Luang Prabang and Oudomxay provinces increased from $160 million in 2012 to $330 million in 2019. 2018 aggregate tourism receipts in these provinces was $431.3 million,

5 and so the project well on-track to achieve the expected outcome, and no remedial measures are required. Changes to the key assumptions and risks that affect attainment of the development objectives are also not deemed necessary at this stage. However, COVID-19 impacts on the tourism sector may affect 2020 results but at this point, the project’s viability and accomplishment of immediate objectives are not considered at risk.

D. Implementation Progress

a. Project Organization and Management

i. Implementation Arrangements:

16. The Ministry of Information, Culture and Tourism (MICT) has appointed its Vice Minister to serve as the Lao PDR representative on the project’s Subregional Project Steering Committee. At the national level, the Vice Minister of MICT serves as the National Project Steering Committee Chairman. Appointed members of the National Steering Committee are the Vice Governors of Champasak, Khammouane, Luang Prabang, and Oudomxay, and senior MICT officials. Provincial Steering Committees have been also established in each target province, chaired by the provincial Vice Governors.

ii. Establishment of PCU and PIUs:

17. A Project Coordination Unit (PCU) with 6 full time staff has been established in the Ministry of Culture, Information and Tourism headquarters building in Vientiane. Four project Implementation Units (PIU) have been established in the provinces Champasak, Khammouane, Luang Prabang, and Oudomxay.

18. Each PIU is staffed with 6 to 12 individuals. A roster of PCU and PIU staff and project consultants is shown in attachment C. Equipment and materials to outfit PCU and each PIU have been procured.

iii. Organization and Staffing of PCU and PIUs:

19. The PCU consists of a National Project Director, National Project Manager, Financial Controller, Chief Accountant, Office Manager and Office Assistant. Each PIU is staffed with a team of existent government employees and externally recruited staff. A staff roster with names in attachment C.

iv. Internal operations that may impact on the implementation arrangements or project progress:

20. No particular issues to report.

b. Consulting Services

i. Recruitment of Consultants

21. Consultants have been recruited in accordance with the consulting service requirements outlined in the PAM. Using advance action for recruitment, MICT has recruited a number of individual consultants to assist with implementation of outputs 3 and 4, using the individual consultant selection (ICS) method and a consulting firm (Eptisa Servicios De Ingenieria S.L. in association with Lao-Asie Consultants Group) to assist with implementation of output 1 and 2 infrastructure subprojects using the quality and cost-based selection (QCBS) method, which mobilized in November 2015.

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22. The first International Tourism Specialist-Deputy Team Leader, Ms Conny Fuchs, resigned in March 2017, and was replaced by Mr. Paul Eshoo. Following Mr Eshoo’s resignation in April 2018, ADB approved assigning the tasks of the International Tourism Specialist-Deputy Team Leader to Mr Rik Ponne, the International Heritage Specialist, who has team leader experience from a previous ADB-financed tourism project at MICT.

23. As agreed in the Aide Memoir of the ADB Review Mission of 17 September-10 October 2019, MICT recruited the following new construction supervision team for contract TIIG-LAO- W02a in Oudomxay and new team of safeguards specialists for the project as individual consultants, who mobilized in late November/early December 2019:

Package No Name of Consultant Position Construction Supervision Team for W02a TIIGP-LAO-C16 Mr. Gerardo P. Manuel International Civil Engineer TIIGP-LAO-C17 Mr. Soulak Sihalath National Resident Engineer TIIGP-LAO-C18 Mr. Souksavanh Chounlamany National Construction Supervisor 1 TIIGP-LAO-C19 Mr. Sophouthavong Kongsavanh National Construction Supervisor 2 Social and Environmental Safeguards Team (all subprojects) TIIGP-LAO-C20 Mr. Paul van Strijp International Social Safeguards Specialist TIIGP-LAO-C21 Mr. Sae Senpaty National Social Safeguards Specialist TIIGP-LAO-C22 Mr. Bounheuang Phanthasith National Environmental Specialist

24. Also agreed in the Aide Memoir of the September-October 2019 ADB Review Mission was that the EA would recruit individual O&M consultants to support preparation of O&M plans for project-supported infrastructure and tourist facilities. Recruitment was somewhat delayed due to unavailability of funds, but following planned reduction of contract value of the PMCES Consultant (Eptisa) recruitment of these individual O&M consultants has now commenced and it is expected that contracts will be signed and consultants mobilized in June 2020.

ii. Consulting services utilized during this reporting period

25. Utilization and balance of consulting services to date is presented in Attachment D.

c. Goods and Works

i. Procurement of goods and works

26. Procurement procedures: Procurement of four of the five civil works packages has followed the ADB international competitive bidding (ICB Works) procedure, and one smaller package (TIIG-LAO-W04) has used the shopping method using the harmonized national request for quotations (NFRQ). The procurement of PCU and PIU vehicles has followed the national competitive bidding (NCB Goods) method in accordance with the approved harmonized ADB/MOF bidding documents, while additional vehicles for construction supervision in Oudomxay has used the shopping method. Procurement of PCU and PIU office equipment and furniture, equipment for DMO partner organizations, heritage interpretation, SME development and solid waste and wastewater management has used the shopping procedure.

27. Value of contracts: The value of the PCU and PIU vehicle equipment contract was $219,900. The PCU and four PIUs office equipment and furniture was estimated to cost around $22,000 each. Equipment for DMO partner organizations, heritage interpretation, SME development and solid waste and wastewater management estimated cost per contract is typically less than $10,000 package ranges from $5,000 to $30,000. Value of ICB Works

7 contracts are shown in Table 3. Value of the three original civil works packages was $16.0 million and value of completed and ongoing ICB works packages to date is $21.7 million.

Table 3: Value of ICB Works Contracts as of 31 March 2020 Variation for Original Total contract ICB Works Package additional contract value value work Original ICB Works Packages TIIG-LAO-W01: Access and Environmental Improvement at Xang Cave and That Sikhottabong, Khammouane $1,899,815.85 $1,899,815.85 province TIIG-LAO-W02: Chom-Ong cave access improvements, $9,566,034.88 $9,566,034.88 Oudomxay province TIIG-LAO-W03: Chomphet heritage district access improvements and Ban Xang Hai-Tham Ting cave access improvements, Luang Prabang province (incl. additional $4,563,596.36 $1,612,445.13 $6,176,041.49 work for access to Ban Chan Neuan and Ban Chan Tai, Chom Phet District, and bridges along road to Kuangxi Waterfall) Subtotal original ICB works packages $16,029,447.09 $1,612,445.13 $17,641,892.22 Additional ICB works packages TIIG-LAO-W02a: Ban Birtakai-Ban Chom-Ong junction $4,035,448.91 $4,035,448.91 access improvements, Oudomxay province Subtotal additional ICB works packages $4,035,448.91 $4,035,448.91 Total ICB works packages $20,064,896.00 $1,612,445.13 $21,677,341.13

28. Specifications: Vehicle equipment consisted of seven double cab 4-wheel drive pickup trucks. PCU and PIU equipment and furniture included laptops, printers, photocopiers, air conditioners, desks, chairs, and office improvements, etc. Works packages were prepared in accordance with feasibility studies and consultations and surveys during detailed design.

29. Status of preparation of bid/documents: Preparation of bid documents for all NCB Goods and ICB Works packages including additional package TIIG-LAO-W02a, has been completed. Procurement using shopping method is ongoing for some packages.

30. Schedule of advertising of bid invitations: Procurement of all NCB Goods and ICB Works packages has been completed. Procurement using shopping method is ongoing.

31. Status of contract awards: All originally planned NCB Goods and ICB Works contracts have been awarded, as well as additional package TIIG-LAO-W02a (25 September 2019). Awarding of small shopping contracts is ongoing.

ii. Implementation of Physical Works

32. The first construction contract TIIG-LAO-W01 was signed on 29 May 2017 for Khammouane Province. Engineer’s cost estimates for package W03 exceeded available allocation for Civil Works at the time of advertisement, and the scope in bidding documents was reduced from 54 km road circuit to 39 km western section with cave access. By October 2017, all original three infrastructures works packages (W01, W02, and W03) were contracted and under construction.

33. W02: The completion date of W02 has been revised due to a temporary suspension ordered on 1 October 2019 for two road sections due to safeguards non-compliance. The compliance issues have now been resolved and construction in the suspended areas is

8 proceeding. A contract variation was approved extending the completion period to 30 June 2020, at no additional cost.

34. W02a: In Oct 2018, ADB approved to use loan savings resulting from lower than estimated bid prices for the works contracts and unallocated funds to finance the remaining 16km road circuit that were earlier removed from package W02. Following completion of the bidding process, a contract for TIIG-LAO-W02a was signed on 25 September 2019. Estimated completion date for this additional package is December 2020. As mentioned above, the supervision of W02a is being undertaken by a new construction supervision team of individual consultants engaged directly by the EA. The team mobilized in December 2019, with the National Resident Engineer W02a and National Construction Supervisors W02a moving to site and the International Civil Engineer W02a (ICE-W02a) undertaking his first mission to site. The ICE-W02a reviewed the approved design and reported design flaws that would need to be addressed to avoid major social and environmental impacts and bring down the quantities of excavation to enable the contractor to complete the work within the given time (i.e. by December 2020). The EA and ADB acknowledged the problems with the original design and agreed with the proposed revision by ICE-W02a, which he implemented in collaboration with the Contractor over the course of January-March 2020. The revised design was submitted to ADB for approval and a contract variation is under preparation to replace the original with the revised design in the contract, and to reduce the contract value due to reduced quantities of excavation.

35. W03: A variation of contract W03 was also approved for additional work in Chomphet, Luang Prabang, using loan savings, and later a second variation was agreed for the improvement of five bridges along the access road to Kuangxi Waterfall. Estimated completion of this package including the additional work was March 2020, but was extended to May 2020 due to delays in delivery of materials from China due to COVID-19 restrictions.

36. Package W01 was completed and handed over in September 2019.

Table 4 – Implementation of Physical Works (Estimated) Physical Total contract Completion Original Completion value (incl. date (incl. ICB Works Package Contractor contract as of 30 any additional any signed September work) additional 2019 work) Original ICB Works Packages TIIG-LAO-W01: Access and Environmental Improvement at Dala Xang Cave and That $1,899,815.85 Construction 29-May-17 06-Sep-2019 100% Sikhottabong, Khammouane Sole Co. Ltd. province TIIG-LAO-W02: Chom-Ong Chitchareune cave access improvements, $9,566,034.88 Construction 17-Nov-17 Jun-2020 96% Oudomxay province Co. Ltd. TIIG-LAO-W03: Chomphet heritage district access improvements and Ban Xang Hai-Tham Ting cave access improvements, Luang Prabang R8CE-PKCC- $6,176,041.49 11-Oct-17 May-2020 98% province (incl. additional work TSC J/V for access to Ban Chan Neuan and Ban Chan Tai, Chom Phet District, and bridges along road to Kuangxi Waterfall) Subtotal original ICB works $17,641,892.22 packages Additional ICB works packages TIIG-LAO-W02a: Ban Birtakai- 68 Trading $4,035,448.91 25-Sep-19 Dec-2020 11% Ban Chom-Ong junction access Construction

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improvements, Oudomxay and Service province Joint Stock Company Subtotal additional ICB $4,035,448.91 works packages Total ICB works packages $21,677,341.13

iii. Operation and Maintenance of Project Facilities

37. Status of development of O&M manuals: Initial discussions with the Khammouane PIU and local stakeholders regarding preparation of O&M plans for facilities constructed under TIIG-LAO-W01 have taken place during Q3 2019. Follow up on this and starting O&M planning work for TIIG-LAO-W03 and TIIG-LAO-W02/W02a was lagging behind and, in consultation with ADB, the EA has removed the O&M planning this from the PMCES Consultant and is now in the process of recruiting individual consultants to support the preparation of O&M manuals, with an eye to complete the plans by Q2/Q3 2020 and operationalization by Q3 2020.

38. On-the-job training for O&M: No on-the-job training related to project facilities at this stage of the project. Training will be undertaken during the preparation of and following completion of the O&M plans.

39. Equipment for O&M: No O&M related equipment was purchased during this reporting period.

d. Assessment of Implementation Progress

i. Summary of Project Progress and Outcome of Activities

40. A summary of overall project progress is reported in Chapter A, section b. above. Attachment B, the “Percentage of Project Progress by Weighted Activity” illustrates the percentage of project progress by weighted activity up to 31 March 2020.

ii. Outcome of activities undertaken during this reporting period (1st January – 31st March 2020)

Output 1: Last Mile Tourism Access Infrastructure Improved & Output 2: Environmental Services in Cross Border Tourism Destinations Improved a) W01: Access and Environmental Improvement at Xang Cave and That Sikhottabong – 100% completed b) W02: Chom-Ong cave access improvements = 96% completed as of Mar. 31st 2020 c) W02a: Ban Birtakai-Ban Chom-Ong junction access improvements: 11% completed as of Mar. 31st 2020 d) W03: Chomphet heritage district access improvements and Ban Xang Hai-Tham Ting cave access improvements (incl additional work): 98% completed as of Mar. 31st, 2020

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First Bailey Bridge Restoration on road to Kwang Si Falls

Fourth Bailey Bridge Restoration on road to Kwang Si Falls

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Pedestrian Suspension Bridge Ban Charn Tai – 100 meters in span

Suspension Bridge Ban Charn Tai

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Pedestrian Walkway Bridge Chomphet

Pottery Center Ban Chian Neu

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New Steel Riveted Plate Concrete Protection of Chomphet Ferry Ramp

New Chomphet Market relocated from main road

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Output 3: Institutional Capacity to Promote Inclusive Tourism Growth Strengthened

41. A comprehensive overview of output 3 activities implemented during Q1 of 2020 is included in Attachment I.

3.1 Institutional Strengthening of Destination Management Organizations & 3.2 Preparation of Destination Management Plans

42. Support for tourism sector staff to upgrade their educational qualification through post graduate courses continued.

3.3 Heritage Protection, Management and Interpretation Program

43. At national level, a compendium of new heritage-based tourism products was published and a workshop was conducted to disseminate the Lao PDR sustainable tourism manual/handbook (12 par, 3 women).

44. In Luang Prabang, measures to enhance cultural heritg sites in town through lighting were implemented at Vat Pha Houak, Phou Si, Vat Xieng Thong and Vat Vixoun.

45. Champasak completed the additional works to finalize the construction of the welcome arch for Vat Phou.

46. Along the NSEC, improvements of the public toilets at the Phou Phet Phou Kham tourist site were completed and are now compliant with the ASEAN Clean Public Toilet Standard.

3.4 Facilitate the Establishment of Public Private Partnerships

47. In Luang Prabang models for PPP of operation of tourist facilities in Pak Ou and Chomphet districts were trialed (55 par, 13 women). These will be followed up on as part of O&M planning during Q2 of 2020.

3.5 Development of Tourism-Related Micro- and Small Enterprises

48. At national-level, ethnic minority/indigenous handicrafts production demonstration activity was conducted (36 par, 26 women); follow up support was provided for the Lao handicraft Festival 2019 participants, such as through the promotion of handicraft skills of young people (86 par, 66 women); and support was provided to improve the displays at shop of the Lao silk museum (16 par, 11 women).

49. Luang Prabang support was provided for the outfitting of the Ban Chan Pottery Center.

50. Around The Loop (Khammouane and Bolikhamxay provinces), support was provided to establish a camp site at the Vang Nam Yen (Cool Pool).

51. In Oudomxay, training was provided to improve textile products and natural dyes at Ms. No’s shop (20 par, 10 women).

52. In Xieng Khouang (Northern Heritage Route), training was conducted on designing the Xieng Khouang Mat Mi motifs and patterns for local entrepreneurs and their staff (10 par, 7 women).

53. An overview of SME units supported by the project including baseline and progress data on number of employees and income is provided in Attachment I.

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3.6 Destination Marketing and Promotion Program

54. At national level, support was provided to update www.tourismlaos.org and support was provided to hosting the Lao International Marathon.

55. Luang Prabang produced a video to promote safe driving and reduction of environmental pollution and a video on the Fire Boat Festival.

56. Khammouane finalized and published a new English language tourist map and guide book.

3.7 Public Health and Safety Promotion Program

57. No activities implemented during this reporting period.

3.8 Tourism Awareness Programs

58. Within the framework of The Loop (Khammouane and Bolikhamxay provinces), a food festival was organized in Thaphabath (200 par, 120 women) and participation in an international Lantern Festival (48 par, 27 women).

3.9 Program to Combat Child Exploitation and Human Trafficking

59. No activities implemented during this reporting period.

Output 4: Effective project implementation and knowledge management

60. A comprehensive overview of output 4 activities implemented during Q1 of 2020 is included in Attachment J.

4.1 Establish Project Steering Committees, PCU and PIUs

61. No changes to report.

4.2 Mobilize Consultants and Procure Equipment

62. As mentioned in section D.b.i above, during this reporting period, the EA has launched the recruitment process for individual O&M specialists to assist with preparation of O&M manuals for project supported infrastructure.

4.3 Implement Training on Financial Management

63. PCU staff participate in ADB-organized financial management trainings. No trainings on financial management were conducted by project consultants during this reporting period.

4.4 Finalize and train PIU/PCU staff to implement comprehensive sex disaggregated PPMS, including safeguards monitoring

64. The PCU and PIUs reported sex disaggregated statistics on most activities implemented during the quarter, which is being fed into the GAP implementation progress reports attached to quarterly progress reports.

4.5 Establish Web-based Knowledge Center

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65. Knowledge products produced by the project are systematically uploaded to the project website.

4.6 Gender Equality and Ethnic Participation Program

66. Women and ethnic participation in project activities continued to be promoted and recorded.

4.7 GMS Marketing & Tourism Statistics Harmonization

67. In terms of subregional marketing, the annual NSEC review and planning workshop was conducted (6 par, 2 women) and along the NSEC, materials (text, photos) were collected to produce a NSEC guidebook, and guidebook was prepared.

68. Within the framework of the LXCQ, Luang Prabang participated in the tourism exhibition held on the occasion of “Boun Dok Fai Festival” in Loei, Thailand (6 par, 2 women); promotional materials for the LXCQ Tourism Routes were finalized and published; members of the LXCQ Network Secretariat participated in the Xayabouly Elephant Festival (29 par, 14 women), including the tourism exhibition (4 par, 0 women), as well as in a tourism trade fair in Thailand (3 par, 1 women); a consultation workshop with public and private sectors to identify and prioritized activities to be implemented in the framework of the LXCQ Network during the first 6 months on 2020 was conducted (10 par, 3 women); a consultation workshop was held to report on impacts of COVID-19 on the implementation of LCQN activities (14 par, 5 women); support was provided for the participation of LXCQ Network members in the TITF 2020 in Bangkok (13 par, 5 women) and the GMS Tourism Sustainable Network Meeting in Chiang Mai (3 par, 1 woman).

4.8 ASEAN Tourism Standards Implementation

69. A consultation workshop was conducted on the implementation of activities under the national DMN and ASEAN Tourism Standards (38 par, 15 women), and a workshop to disseminate the ASEAN Clean Public Toilet Standard was held for public and private sector tourism stakeholders in Khammouane Province (25 par, 5 women).

70. In Luang Namtha (along NSEC), support was provided to upgrade Phou Villa to the ASEAN Green Hotel Standard.

E. Financial Performance

a. Amount of funds liquidated during the period

71. Project funds: As of 31 March 2020, the Project has spent $26.268 million representing payment to contractors, consultants, training/meeting costs, suppliers and externally hired PCU/PIU staff’s salaries, and PCU/PIU running costs. Out of this, the amount of $9.604 million was submitted to ADB for liquidation of advance, and $15.904 million for direct payment to contractors, consultants and suppliers.

72. Matching government funds: For its counterpart contribution, the Project has incurred expenses for salaries of PCU and PIU (Government) staff involved in project implementation and the use of PCU and PIU offices.

b. PCU financial position:

17

73. Status of advance account: On 6 February 2015, ADB released the amount of $1,000,000 as initial advance to the advance account. As of 31 March 2020, the amount of $10.363 million, has been withdrawn by the Project for the advance account for payment of consulting services, office equipment and furniture), training costs, salaries of PCU and PIU staff and other administrative costs. The advance account has a current balance of $0.240 million since the replenishment of $0.759 million are either not yet submitted to ADB or not yet processed by ADB for liquidation and replenishment of the advance.

74. Total expenditure (from SOE) for the reporting period: $376,121 (January-March 2020)

75. Estimated budgetary expenditure for next quarter: Estimated budgetary requirement for year 2020 is US$ 10.273 million (ADB US$8.539 million and GOL US$0.176 million).

F. Gender Action Plan Implementation

76. The project is categorized as Effective Gender Mainstreaming.

77. The GAP is being implemented. GAP progress reporting is currently being reviewed and enhanced. An updated GAP progress report will be attached to next quarterly report.

G. Safeguards Implementation

a. Social safeguards (land acquisition, involuntary resettlement and indigenous peoples)

78. Land acquisition, involuntary resettlement. The provincial Resettlement Plans (RP) were updated following detailed design of the subprojects. ADB approved and published the updated RPs for subprojects in Khammouane in May 2017, for Chomphet, Luang Prabang in June 2017 and for Chom Ong Cave access in Oudomxay in November 2017. Table 5 provides an overview of land acquisition and resettlement (LAR) impacts foreseen in the updated RPs.

Table 5 – Land acquisition and resettlement impacts in updated RPs Province Works Package Number of affected LAR costs households Khammouane TIIG-LAO-W01 3 AHs $ 4,094 Luang Prabang TIIG-LAO-W03 22 AHs $ 19,264 Oudomxay TIIG-LAO-W02 7 AHs $ 7,049 Total 32 AHs $ 30,407 AH = affected household; LAR = land acquisition and resettlement

79. Progress and issues related to the implementation of the RPs are regularly reported in the Semi-annual Integrated Safeguards Monitoring Reports (SMR). However, updates on implementation of Indigenous Peoples’ Plan (IPP) activities had been omitted in SMRs 1-4. This has now been corrected in SMR 5.

80. As reported in previous quarterly reports, ADB and MICT agreed in the Aide Memoir of the September-October 2019 Review Mission that MICT would recruit a new International Social Safeguards Specialist and National Social Safeguards Specialist as individual consultants. This new team of safeguards consultants mobilized in December 2019 and commenced safeguards due diligence related to land acquisition and resettlement (LAR) resulting from design changes in sections of the W02 road that were not prior-approved by ADB and for which no adequate safeguards due diligence had been conducted. Detailed measurement survey, socioeconomic household survey and consultations with affected households have now taken place, an

18 addendum to the Resettlement Plan prepared outlining the compensation plan, compensation paid and documented in a compensation completion report, submitted to and approved by ADB.

81. The new team of safeguards consultants initiated safeguards due diligence for W02a based on the revised design that was completed in March 2020, but COVID-19 restrictions prevented field missions, and completion of this work has now been postponed until after COVID-19 restrictions are eased or lifted and travel to the provinces is again possible.

82. Indigenous peoples.

83. The new safeguards team also followed up on the on implementation of the project’s Indigenous Peoples’ Plan (IPP) for Oudomxay Province, reporting on which had been omitted from previous SMRs and quarterly progress reports. In consultation with the tourism specialists, they prepared an IPP implementation progress report that was incorporated into SMR Nr. 5 (Jul- Dec 2019), and is also attached to this report. As shown in the report, progress has been made on the implementation of the IPP, but there are still a few outstanding IPP activities that need to be implemented (particularly related to O&M planning) and others that could be strengthened during the remainder of the Project. Starting in Q2 of 2020 O&M plans for the W02/W02a will be prepared with a particular focus on planning and building the capacities of the Ban Chom Ong community tourism groups to operate (parts of) the Chom Ong Cave site and community- based tourism activities (already set up) in Ban Chom Ong.

b. Environmental safeguards

84. Progress and issues related to the implementation of the environmental safeguards plans are regularly reported in the SMRs.

85. In response to concerns raised by ADB in its September-October 2019 Review Mission about environmental safeguards compliance during construction of the W02 road in Oudomxay, a corrective action plan was prepared to address these issues. The new individual environmental safeguards specialist undertook an environmental compliance mission to Ouomxay during this reporting period that focused on verifying compliance of the Contractor with the Contractor’s Environmental Management Plan (CEMP) and advised on the implementation of the corrective actions. The environmental monitoring report prepared following the mission concludes that the Contractor has followed the pre-construction and construction plans outlined in the CEMP, but that reporting on environmental compliance in its monthly progress reports should improve.

86. The national environmental safeguards specialist also joined the initial stage of the due diligence for W02a, particularly focusing on supporting the contractor to update its CEMP in response to the revised design. Due to COVID-19 restrictions, this work is proceeding home- based for now, until COVID-19 restrictions are eased/lifted.

87. During this reporting period, the international social safeguards specialist and national environmental specialist also conducted a training on environmental and social safeguards management plans to rasie awareness and build capacity on safeguards requirements and responsibilities for Oudomxay PIU staff, W02 and W02a Contractors, DPWT/OPWT, DONRE/OONRE and Village Heads.

H. Compliance with Loan Covenants

88. Status of compliance with loan covenants is presented in Attachment G. Issues with non-compliance with safeguards-related covenants reported in previous progress report are proactively being addressed.

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I. Major Project Issues and Problems

c. Difficulties encountered and lessons learned

89. As reported in previous quarterly report, MICT removed safeguards responsibilities from the PMCES Consultant due to lack of performance in tis area and has engaged individual safeguards consultants who are currently addressing compliance issues and catching up with outstanding and inadequate safeguards monitoring and reporting. This, in combination with their regular safeguards monitoring tasks, is straining the safeguards consultants, as well as project management. During this reporting period, O&M planning tasks were also removed from the PMCES Consultant due to lack of progress on preparation of O&M plans, and MICT is in the process of recruiting additional individual consultants to support O&M planning, putting even more pressure on the system. A variation of the contract with the PMCES Consultant is currently being processed to recoup part of the additional costs associated with engaging individual safeguards and O&M consultants.

90. As of this reporting period, uncommitted balance net of interest charges is $36,642, and expenditures without PCSS incurred from February 2020 onwards have still to be committed. This may result in cost overrun. To avoid this, the EA is closing open commitments that are no longer active/required and processing contract variations to reduce commitments where possible, and at the same time carefully planning expenditure for the remainder of the project.

d. Requests and recommendations for next quarter

91. No requests or recommendations for next quarter at this stage.

e. Other issues

92. The COVID-19 pandemic is affecting the ability of international experts to travel to Lao PDR and for all project staff and consultants to work from the office, travel within the country and implement project activities. To mitigate these impacts as much as possible, in order for activities to proceed, project personnel (PCU and PIUs) and consultants who are working from home are communicating and collaborating through electronic media including WhatsApp, Skype and email.

93. The COVID-19 lockdown also required Contractors to suspend work, affecting their construction schedules. This may impact their ability to complete work by the current completion dates in their contracts, likely resulting in requests for extension.

List of attachments:

A. Progress towards targets in Design and Monitoring Framework as of 31 March 2020 B. Percentage of Project Progress by Weighted Activity through 31 March 2020 C. Name of PCU and PIU personnel and project consultants D. Utilization of Consulting Services as of 31 March 2020 E. Gender Action Plan Monitoring Matrix – not available F. Indigenous Peoples Plan implementation progress as of 31 March 2020 G. Status of Compliance with Loan Covenants as of 31 March 2020 H. Status of Financial Management Assessment Action Plan as of 31 March 2020 I. Overview of SME support J. Record of Output 3 and 4 activities implemented during Project Quarter 21 (Q1 2020, 1 January - 31 March 2020)

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Attachment A: Progress towards targets in Design and Monitoring Framework as of 31 March 2020

Performance Targets and Indicators Data sources Progress as of 31 March 2020

Impact: Increased tourism employment for people living in underdeveloped segments of the GMS Central Corridor

By 2025: MICT tourism statistics Pending Completion Report Aggregate tourism employment in the four Report project provinces is 70,000; 50% of jobs WTTC travel and tourism held by women economic impact report

Baseline 2014*: 43,845 jobs

Outcome: Increased tourism receipts in Champassak, Khammouane, Luang Prabang, and Oudomxay

By 2019: MICT tourism statistics Outcome target has already been exceeded in 2018. However, COVID-19 impacts on tourism Aggregate annual tourism receipts in the four report sector may affect 2020 results. project provinces equals $330 million Completion report Figures in below table have been updated following consultation with provincial DICTs. International visitor 2012 Baseline: $160 million arrival numbers and receipts reported by DICTs have been used where there were discrepancies between the national and provincial reporting.

2014 2016 2018 Province Receipts ($ Receipts ($ Receipts ($ IVA IVA IVA mill) mill) mill) Champasak 216,653 45.2 222,178.0 57.9 446,934.0 119.8 Khammouane 472,906 22.1 538,027.0 28.3 423,830.0 24.4 Luang Prabang 473,315 177.5 604,865.0 226.8 741,385.0 273.6 Oudomxay 102,050 10.1 113,834.0 12.0 130,540.0 13.5 Total, project provinces 1,264,924 254.9 1,478,904 325.0 1,742,689 431.3 Total, Lao PDR 4,158,719 641.6 4,239,047.0 724.1 4,186,432 811.0 IVA = international visitor arrivals. Source: Project’s baseline report, Provincial Tourism Departments, 2016, 2017,2018 Statistical Report on Tourism in Laos.

Output 1: Last-mile tourism access infrastructure improved.

By 2018:

1.1 Xang Cave 4.0 km paved access road Project progress reports Achieved and tourism amenities constructed and Contract with Dala Construction Sole Co. Ltd at a contract cost of $1,899,815.85; contract signed 29 benefiting at least 1,900 residents End of project impact May 2017; contractor mobilized in July 2017 (combined with works at That Sikhottabong-2.1). Evaluation

22 Performance Targets and Indicators Data sources Progress as of 31 March 2020

Package TIIG-LAO-W01: Physical progress - 100%. Handover of the construction site was on 6 Completion report September 2019. 1.2 Chomphet Heritage District 2.2 km On-going, likely to be achieved paved access road, ferry terminal, and upgraded river piers constructed and Contract with R8CE-PKCC-TSC J/V at a contract cost of $4,563,596,368.00 signed on 11 Oct 2017 and benefiting at least 2,100 residents contractor mobilized in Nov 2017 (combined with 1.3).

1.3 Ban Xang Hai–Tham Ting Cave10.0 Package TIIG-LAO-W03: ADB approved additional works to this package using loan savings: (i) km paved access road and upgraded river improvement of the 3.5 km access road from Ban Xieng Mene to Ban Chan Neua; (ii) 120m suspension piers constructed and benefiting at least foot/bicycle bridge between Ban Chan Neua and Ban Chan Tai; and (iii) improvement of five bailey 3,000 residents bridges on the road to Kwang Si Waterfall.

Physical progress (including additional works) is 98% (100% for original works, and 92% for the additional works). The remaining works are scheduled to be completed by May 2020.

1.4 Chom Ong Cave 54.0 km paved access On-going, likely to be achieved road and tourism amenities constructed and benefiting at least 8,000 residents Engineer’s cost estimates for this civil work package exceeded available loan proceeds at the time of advertisement, thus the scope in bidding documents was reduced from 54 km road circuit to 39 km western section with cave access. In Oct 2018, ADB approved the EA’s request to use loan savings resulted from lower than estimated bid prices for 3 works contracts and unallocated funds to finance the remaining 16km road circuit.

Package TIIG-LAO-W02 (39km road section): Contract with Chitchareune Construction Co Ltd at contract cost of $9,566,034.88 signed on 17 Nov 2017; contractor mobilized in Dec 2017.

Physical progress is 96% in Mar 2020. The remaining works are scheduled to be completed by June 2020.

Package TIIG-LAO-W02a (16 km road section): Contract with 68 Trading at contract cost of $4,035,448.91 was awarded on 25 September 2019 and contractor mobilized in October 2019.

Physical progress is 11.3% in Mar 2020. The subproject is scheduled to be completed by Dec 2020. Output 2: Environmental services in cross-border tourism centers improved.

By 2018: Achieved Contract with Dala Construction Sole Co. Ltd at contract cost of $1,899,815.85 signed on 29 May 2017 2.1 That Sikhottabong 2 km internal road and contractor mobilized in July 2017. (combined with works at Xang Cave-1.1) and drainage upgrade, solid waste transfer station, tourist information center, and 10 TIIG-LAO-W01: Physical progress - 100%. Handover of the construction site was on 6 September 2019. hectares of rehabilitated urban green space

23 Performance Targets and Indicators Data sources Progress as of 31 March 2020

with flood protection benefiting 35,000 residents in Thakhek City.

Output 3: Institutional capacity to promote inclusive tourism growth strengthened.

By 2019:

3.1 Eight DMNs (DMO) formed with systems Achieved and procedures in place to implement • Eight DMNs formed: five DMNs directly formed by the project, one national and four in the target destination management plans (40% of DMN provinces, and three additional through collaboration with development partners in Bolikhamxay, management positions are held by women) Xieng Khouang and Luang Namtha provinces. • Approved destination management plans (DMPs) at national level and in target provinces • National-level DMN task forces created covering marketing, tourism management, hospitality skills, and product development • 261 (43%) out of 607 of all DMN board members are women • National-level DMN meetings held twice a year, and in the target provinces 1-2 times per year • DMN secretariats and taskforces receive regular training and capacity building assistance 3.2 At least 80% of newly constructed On-going vendor space allocated to women • 87% of Oudomxay Night Market vendors are women (approximately 21 of 24 vendors) • Stall operators (at least 80% are women) at That Sikhottabong and Xang Cave in Khammouane, in Ban Xieng Mene, Chom Phet and Pak Ou, Luang Prabang, and Chom Ong Cave, Oudomxay, will return to/move into original/new retail space.

3.3a Awareness of heritage protection On-going measures, health and safety, and tourism - Attention to gender target impacts increases among 6,000 people (50% women) 8,454 people reached (42% women, ~8% ethnic people)

3.3b Trainings to build capacity related to On-going Institutional Strengthening of Destination - Attention to gender target Management Networks DMN provided to 2,000 people (50% women) 2,424 people trained (39% women (same as previous quarter), ~9% ethnic minorities).

3.4 At least five service enterprises are On-going operating tourist attractions under public– O&M plans for project supported tourist facilities will include PPPs, target facilities for PPP operations private partnerships include: 1. Khammouane:

24 Performance Targets and Indicators Data sources Progress as of 31 March 2020

a. That Sikhottabong multi-purpose buildings and/or operation of reception area incl. market stalls etc. – first round of stakeholder consultations held during Q2 2019, , second round scheduled for Q2 2020, completion foreseen for Q2/Q3 2020 b. Xang Cave reception area (parking, market stalls etc.) and cave – first round of stakeholder consultations held during Q2 2019, second round scheduled for Q2 2020, completion foreseen for Q2/Q3 2020 2. Luang Prabang: a. Ban Chan Handicraft Center operation, consultations scheduled for Q2 2020, completion foreseen for Q2/Q3 2020 b. Pa Ou Tham Ting Cave Operation, consultations scheduled for Q2 2020, completion foreseen for Q2/Q3 2020 3. Oudomxay; a. Chom Ong Cave site operation, consultations scheduled for Q2 2020, completion foreseen for Q2/Q3 2020

3.5 Operators of 500 small and medium- sized On-going enterprises (50% of whom are women) gain - Attention to gender target access to professional tourism-related - Target of 500 SMEs unlikely to be met business support services and microfinance 4,781 participants in small and medium enterprise trainings in tourism-related business topics (49% female (up from 46% in previous quarter), ~11% ethnic people

32 SMEs units received support (financial, equipment) from project to upgrade production and quality (ref. Attachment I) – next quarter will include a new count also including support provided to SMEs under ASEAN Tourism Standard program.

Output 4: Effective project implementation and knowledge management

By 2019:

4.1 PCU and PIU staff possess the knowledge, Achieved skills, and equipment needed for effective • PCU and PIU have sufficient equipment project management (at least 30% of PCU and • Skills development ongoing PIU staff are women) • 33% (15 out of 45) of all PCU and PIU staff are women

4.2 12 new knowledge products published to Achieved the Lao People’s Democratic Republic’s web- 32 knowledge products uploaded to date. http://www.tiigp-laos.org/other.html based tourism knowledge center

4.3 20% of tourism enterprises in the four On-going project provinces meet ASEAN tourism - Targets are being developed standards.

25 Performance Targets and Indicators Data sources Progress as of 31 March 2020

In the four target provinces: • 2 (x%) out of xx targeted homestay villages received ASEAN Homestay Standard certificate • 3 (x%) out of xxx targeted CBT operations received ASEAN Community-based Tourism Standard certificate • 2 (x%) out of xx targeted spa services received ASEAN Spa Standard certificate • 4 (x%) out of xx targeted public toilets received ASEAN Public Toilet Standard certificate • 26 (13%) out of all hotels in the target provinces (202 in 2018) certified under the ASEAN Green Hotel Standard. 4.4 Collection and reporting of tourism On-going statistics by all GMS national tourism organizations in a harmonized format • 2016 Lao PDR National Statistics Report printed (1,500 copies) • 2017 Lao PDR National Statistics Report printed (x copies) • 2018 Lao PDR National Statistics Report printed (2,000 copies) • MICT participated in GMS tourism statistics harmonization workshop, March 2017. • The Tourism Department’s Tourism Research and Administration Division received project support to improve tourism statistical and tourism development related databases to bring them in line with regional standards.

4.5 At least three joint marketing activities On-going – catching up undertaken annually in cooperation with another GMS country (2012 baseline: 1 event) 2016 • 2016 ASEAN Ecotourism Forum 2017 • 2017 Lane Xang Heritage Quadrangle maps published jointly with Thailand • 2017 Lane Xang Heritage Quadrangle cooperation meetings, surveys and promotional materials produced • 2017 Mekong Tourism Forum 2018 • Forum “Ecotourism in Laos on a Crossroad: Challenges Amidst a Changing World”, organized in collaboration with DASTA, Thailand, in the framework of the Lane Xang Cultural Quadrangle initiative with participation from public and private sectors. • 2018 Mekong Tourism Forum 2019 • Collaborate with Thailand within the framework of the Lane Xang Cultural Quadrangle initiative in marketing and promotion activities held in Nong Bua Lamphou, N.E. Thailand • 2019 Mekong Tourism Forum 2020 • Publish promotional materials of Lane Xang Cultural Quadrangle Tourism Routes

26 Performance Targets and Indicators Data sources Progress as of 31 March 2020

• Lane Xang Cultural Quadrangle participation in Xayabouly Elephant Festival Tourism Exhibition • Lane Xang Cultural Quadrangle participation in TITF Tourism Trade Fair in Bangkok

4.6 Well-maintained infrastructure in Planned accordance with O&M plans O&M plans for all subprojects are being prepared. They will be considered successful if operation is sustainable and covers expected maintenance costs of the tourist facilities.

4.7 PCU and PIU staff effectively implement On-going gender-sensitive PPMS, with sex- disaggregated data • 21 quarterly reports and 1 midterm report submitted with sex-disaggregated data • Sex-disaggregated data in nearly all activity reports, fed into quarterly progress reports • Ethnic people’s participation also reported for most activities.

DICT = Department of Information, Culture and Tourism, DMN = destination management network, GAP = gender action plan, Lao PDR = Lao People’s Democratic Republic, LWU = Lao Women’s Union, MICT = Ministry of Information, Culture and Tourism, SME = small- and medium-sized enterprises, NCS = National Steering Committee, PCU = project coordination unit, PIU = project implementation unit. *** indicator added to baseline report, January 2015

27 Attachment B: Percentage of Project Progress by Weighted Activity through 31 March 2020

Activities 2014 2015 2016 2017 2018 2019 (a) (b) (a) x (b) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Assigned Actual Weighted weight (%) Progress Progress Project year Year 1 Year 2 Year 3 Year 4 Year 5 (%) (%) Project quarter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Output 1. Last-mile tourism access infrastructure improved 1.1 Prepare detailed civil works design and bidding documents 10.00% 100.00% 10.00% 1.2 Approval of updated safeguards documents (IEE, IPP, and RP) 1.00% 100.00% 1.00% 1.3 Complete land acquisition and resettlement if necessary 1.00% 100.00% 1.00% 1.4 Civil works contracts awarded 2.00% 100.00% 2.00% 1.5 Civil works completed and equipment supplied 20.00% 81.30% 16.26% Output 2. Environmental Services in cross-border tourism centers improved 2.1 Prepare detailed civil works design and bidding documents 10.00% 100.00% 10.00% 2.2 Approval of updated safeguards documents 1.00% 100.00% 1.00% 2.3 Complete land acquisition and resettlement if necessary 1.00% 100.00% 1.00% 2.4 Civil works contracts awarded 2.00% 100.00% 2.00% 2.5 Civil works completed and equipment supplied 20.00% 100.00% 20.00% Output 3. Institutional capacity to promote inclusive tourism growth strengthened 3.1 Destination management plans prepared 2.00% 100.00% 2.00% 3.2 Implement heritage protection and interpretation program 2.00% 99.00% 1.98% 3.3 Implement micro- and small enterprise support program 4.00% 99.00% 3.96% 3.4 Implement health, safety and tourism awareness programs 1.00% 100.00% 1.00% 3.5 Facilitate establishment of public-private partnerships 1.00% 40.00% 0.40% 3.6 Implement national marketing and promotion program 1.00% 99.00% 0.99% 3.7 Implement program to combat child exploitation and human trafficking 1.00% 100.00% 1.00% Output 4. Effective project implementation and knowledge management. 4.1 Establish project steering committees 1.00% 100.00% 1.00% 4.2 Mobilize consultants and procure PCU/PIU equipment 1.00% 100.00% 1.00% 4.3 Implement training on financial management 1.00% 100.00% 1.00% 4.4 Finalize and train PIU/PCU staff to implement comprehensive sex disaggregated 2.00% 100.00% 2.00% PPMS, including safeguards monitoring 4.5 Establish and maintain web-based knowledge center 2.00% 95.00% 1.90% 4.6 Implement gender action and indigenous peoples plans 3.00% 90.00% 2.70% 4.7 Implement GMS marketing and statistics harmonization programs 3.00% 100.00% 3.00% 4.8 Implement ASEAN tourism standards program 2.00% 97.00% 1.94% 4.9 Approve and implement O&M plans with sustainable finance mechanisms 3.00% 10.00% 0.30% 4.10 Update baseline information and prepare end of project impact evaluation 2.00% 70.00% 1.40% Total 100.00% 91.83%

28 Attachment C: Name of PCU & PIU Staff and Project Consultants

PCU & PIU staff: No. Name Organization Position PCU-Vientiane 1 Mr. Soun Manivong Director, Tourism Development Department National Project Director 2 Mr. Thavipheth Oula Deputy Director, Tourism Development Department National Project Manager 3 Ms. Sengkeo Keobounma Deputy Chief, Planning and Financial Division Financial Controller 4 Mr. Somxay Sipaseuth Chief of Tourism Planning and Development Division Environment Focal Point 5 Ms. Champhone Vongsa Deputy Chief of Tourism Planning and Development Division Gender Focal Point 6 Ms. Phonmany Soukhathammavong Chief of Tourism Planning and Development Unit Activity Focal Point 7 Mr. Bounsert Xayaseng Technical Staff, Tourism Management Department Tourism Management Focal Point 8 Mr. Vongdeuan Keosoulivong Technical Staff, Tourism Marketing and Promotion Tourism Marketing & Promotion Focal Point Department 9 Ms. Souphalak Bouphavan Chief, Tourism Training Unit, Mass Media-Culture & Tourism Tourism Training Focal Point Institution 10 Ms. Souvandeth Phimmaksysone Chief Accountant 11 Ms. Bounleua Sorachampa Office Manager, Safeguards and Monitoring Coordination 12 Mr. Khanthavisay Soumphonphakdy Office Assistant PIU-Luangprabang 1 Mr. Onchan Souvannalith Director, Department of Information, Culture and Tourism Project Supervisor, Provincial Level 2 Ms. Soudaphone Khomthavong Deputy Director, Department of Information, Culture and Project Director Tourism 3 Mr. Phayvan Chanthasouk Department of Information, Culture and Tourism Project Manager 4 Mr. Nui Vongmanichan Department of Information, Culture and Tourism Project Coordinator 5 Ms. Bounthanom Sengmany Department of Information, Culture and Tourism Project Finance Officer 6 Ms.Viphaphone Xaysensouk Department of Information, Culture and Tourism Project accountant 7 Mr. Houmphan Ninthala Tourism Training Focal Point 8 Mr. Litthiphon Chittanousone Tourism Planning Focal Point 9 Mr. Vongdavone Vongxayalath Tourism Marketing & Promotion Focal Point Infrastructure Focal Points, Department of Public Work and Transport (DPWT) 10 Mr. Souliphone Vannalath Infrastructure coordinator 11 Mr. Phanthamith Sixana Civil engineer 12 Mr. Bounthavy Silathsamy Inspector/Controller PIU-Oudomxay 1 Mr. Phonsavan Phanthavichith Director, Department of Information, Culture and Tourism Project Supervisor, Provincial Level (DICT)

29 2 Mr. Bounkouam Mithmeuangxay Deputy Director, Department of Information, Culture and Project Director Tourism (DICT) 3 Ms. Vansy Phuangmalay Chief of Division, DICT Project Manager 4 Mr. Kham Chittivong Technical Staff, DICT Project Coordinator 5 Mr. Van Mingboupha Technical Staff, DICT Project Finance Officer 6 Mr. Saichay Panyongxeu Technical Staff, DICT Project Accountant Infrastructure Focal Points, Department of Public Work and Transport (DPWT) 7 Mr. Somxay Soulisak Chief of Land Transport Management Division Infrastructure coordinator 8 Mr. Khamphao Inkeomany Chief of Survey and Design Unit Civil engineer 9 Mr. Boualom Phoummavongxay Chief of Materials Experiment and Analysis Unit Inspector/Controller PIU-Khammuane 1 Mr. Bounthouay Silipanyathong Director, Department of Information, Culture and Tourism Project Supervisor, Provincial Level (DICT) 2 Mr. Panya Chanthalath Deputy Director, Department of Information, Culture and Project Director Tourism (DICT) 3 Ms. Phoxay Simoukda Chef of Tourism Division, DICT Project Manager 4 Mr. Kenta Xayahan Technical Staff, Tourism Division, DICT Project Coordinator 5 Ms. Sila Nolahath Technical Staff, Tourism Division, DICT Project Accountant 6 Ms. Phonanong Xayasth Technical Staff, Tourism Division, DICT Project Finance Officer PIU-Champasak 1 Mr. Bouathong Souvannasan Director, Department of Information, Culture and Tourism Project Supervisor, Provincial Level (DICT) 2 Ms. Mala Chanthalam Deputy Director, Department of Information, Culture and Project Director Tourism (DICT) 3 Mr. Soulichan Sombathduang Chief of Tourism Development Division Project Manager 4 Ms. Thenkham Sengkeovongphachan Deputy Chief of Tourism Business Management Division Project Coordinator 5 Mr. Anousone Keobouphaphan Technical Staff, Tourism Business Management Division Project Finance Officer 6 Ms. Khammay Xatakoun Technical Staff, Administrative Division Project Accountant

PCU Based Consultants in year 5: International Team Leader / Civil Engineer: Mr. John O’Brien (USA) International Tourism Specialist / Deputy Team Leader / Heritage Specialist: Mr. Rik Ponne (Netherlands) National Tourism Destination Management & Training Specialist: Ms. Phongsith Davading (Lao) National SME Specialist: Ms. Sipaseuth Chanthapanya (Lao) International Financial Management & Procurement Specialist: Ms. Nida Calma (Philippines) International Archeologist: Dr. Joyce White (US) 30 International Speleologist: Dr. Terry Bolger (US) National Lead Civil Engineer / Deputy Team Leader: Mr. Ounheuane Vongxaya (Lao) National Resident Engineer: Mr. Bounthan Sayavong (Lao) National Resident Engineer: Mr. Khamko Vannachit (Lao) National Construction Supervisor: Mr. Sooliyan Lasaboud (Lao) National Construction Supervisor: Mr. Chanthai Phimmavong (Lao) National Construction Supervisor: Mr. Sisavanh Sanchanthong (Lao) National Construction Supervisor: Mr. Leokham Thoummavong (Lao) National Construction Supervisor: Mr. Xayavath Chantavongsa (Lao) National Environmental Specialist: Mr. Somsanouk Vongsomphou (Lao) International Environmental Specialist: Ms. Pinar Suren (Turkey) International Social Safeguards Specialist (Resettlement & Indigenous Peoples): Ms. Pinar Suren (Turkey) National Social Safeguards Specialist (Resettlement & Indigenous Peoples): Mr. Somsanouk Vongsomphou (Lao) National Gender and Social Development Specialist: Ms. Sipaseuth Chanthapanya (Lao)

Newly recruited individual consultants mobilized in Nov/Dec 2019: International Civil Engineer (W02a): Mr. Gerardo P. Manuel (Philippines) National Resident Engineer (W02a): Mr. Soulak Sihalath (Lao) National Construction Supervisor 1 (W02a): Mr. Souksavanh Chounlamany (Lao) National Construction Supervisor 2 (W02a): Mr. Sophouthavong Kongsavanh (Lao) International Social Safeguards Specialist: Mr. Paul van Strijp (Netherlands) National Social Safeguards Specialist: Mr. Sae Senpaty (Lao) National Environmental Specialist: Mr. Bounheuang Phanthasith (Lao)

31 Attachment D: Status of Utilization of Consulting Services, as 31 March 2020

Name Package/Positions Person- Contract Original Current Current Cumulative Balance (pm) Notes Months (pm) signing contract contract incl. contract person- as per PAM date (total pm) variations closing months (total pm) date utilized as of 31-Mar-20

Project Management and Civil Engineering Support (Firm) International 1 Mr John O'Brien International Civil Engineer/ Team Leader 30 Dec-15 30 34 Mar-20 38.91 -4.91 2 Ms. Pinar Suren International Environmental Specialist 6 Dec-15 6 6 Mar-20 4.50 1.50 First contract signed Dec 2015; contract with current consultant signed in May 2017 3 Ms. Pinar Suren International Social Safeguards Specialist 3 Dec-15 3 4 Mar-20 2.77 1.23 First contract signed Dec 2015; contract with current consultant (Resettlement & Indigenous Peoples) signed in May 2018 4 Ms. Irene Villapando International Monitoring and Evaluation Specialist 3 Nov-15 3 3 Mar-20 1.64 1.36 5 Ms. Joyce White International Archaeologist 2 Oct-15 2 2 Mar-20 1.82 0.18 6 Mr Terry Bolger International Speleologist 2 Oct-15 2 2 Mar-20 1.39 0.61 Subtotal 46 46 51 51.02 -0.02 National 1 Mr. Ounheuane Vongxaya National Lead Civil Engineer 50 Nov-15 50 54 Sep-20 52.41 1.59 2 Mr. Thonglor Soutummavong National Civil Engineer 1 12 Nov-15 12 12 Sep-20 9.23 2.77 3 Mr. Soulit Phouthatam National Civil Engineer 2 12 Nov-15 12 12 Dec-17 12.00 0.00 Closed 4 Mr. Somsanouk Vongsomphou National Environmental Specialist 12 Nov-15 12 15 Sep-20 13.95 1.05 5 Mr. Somsanouk Vongsomphou National Social Safeguards Specialist (Resettlement & 12 Nov-15 12 15 Sep-20 11.50 3.50 Indigenous Peoples) 6 Mr. Pany Keodalavong National Monitoring and Evaluation Specialist 10 Nov-15 10 10 Sep-20 1.95 8.05 7 Mr. Khamko Vannachit National Resident Engineer 0 Mar-18 28 28 Jun-20 21.14 6.86 8 Mr. Sooliyan Lasaboud Site Supervisor 1 0 Mar-18 24 24 Jun-20 19.59 4.41 9 Mr. Chanthai Phimmavong Site Supervisor 2 0 Mar-18 24 24 Jun-20 24.00 0.00 10 Mr. Sisavanh Sanchanthong Site Supervisor 3 0 Mar-18 24 24 Jun-20 17.59 6.41 11 Mr. Leokham Thoummavong Site Supervisor 4 0 Mar-18 26 26 Jun-20 23.09 2.91 Subtotal 108 234 244 206.46 37.54 Subtotal PMCES Destination Management Capacity Building Support (Individuals) International 1 Paul Eshoo (replaced Conny International Tourism Specialist/Deputy Team Leader 35 30-Jan-15 35 28 31-Dec-19 28.00 0.00 Conny Fuchs 19.0 p-m + Paul Eshoo 9.0 p-m. Closed Fuchs) 2 Mr. Robert Brown International Public-Private Partnership Specialist 2 25-Apr-16 2 2 31-Dec-16 2.00 0.00 Closed 3 Mr. Paul Eshoo International Small and Medium Enterprise 3 29-Mar-16 3 3 31-Dec-16 3.00 0.00 Closed Development Specialist 4 Mr. Henricus Ponne International Heritage Specialist 3 28-Mar-16 3 8 31-Dec-19 7.27 0.00 Closed 5 - International Gender and Social Development 3 - 0 0 - 0.00 0.00 Not recruited Specialist Subtotal 46 43 41 40.27 0.00 National 1 Ms. Phongsith Davading National Tourism Destination Management and Training 40 30-Jan-15 40 44.5 31-Dec-19 43.50 0.00 Closed 2 Mr. Bountham Sitthimanotham National Tourism Value Chain Specialist 3 25-Mar-15 3 3 31-Dec-16 3.00 0.00 Closed 3 Ms. Sipaseuth Chanthapanya National Tourism Small and Medium Enterprise 12 28-Mar-16 12 27 31-Mar-19 21.66 0.00 Contract #1 (12 p-m) 4 April 2016 - 31 Dec 2017; Contract #2 Development Specialist (15 p-m) 1 Aug 2017 - 30 Mar 2019. Closed 4 Ms. Sipaseuth Chanthapanya National Gender and Social Development Specialist 12 5-Feb-15 12 19.5 31-Dec-19 19.40 0.00 On 1 Jun 2018 # of p-m in contract was increased from 12 to 22 and on 5 April 2019 reduced to 19.5 p-m. Closed Subtotal 67 67 94 87.56 0.00

32 Name Package/Positions Person- Contract Original Current Current Cumulative Balance (pm) Notes Months (pm) signing contract contract incl. contract person- as per PAM date (total pm) variations closing months (total pm) date utilized as of 31-Dec-19

Construction Supervision Support (individuals) International 1 Mr. Gerardo P. Manuel International Civil Engineer (TIIG-LAO-W02a) 0 28-Nov-19 4 4 31-Dec-20 0.68 3.32 New position added following Sep-Oct 2019 ADB Review Mission Subtotal 0 4 4 0.68 3.32 National 1 Mr. Xayavath Chantavongsa National Construction Supervision Specialist (TIIG-LAO- 0 1-Sep-17 15 19 15-Aug-20 18.30 0.70 On 1 Dec 2018 contract was extended to 31 Dec 2018 and # of W01) p-m inceased from 15 to 17, on 10 Jan 2019 contract was extended to 28 February 2019 and # of p-m increased from 17 to 19, contract period was further extended and OPE increases to cover defects period of Works Contract TIIG-LAO-W01.

2 Mr. Bounthan Sayavong National Construction Supervision Specialist (TIIG-LAO- 0 15-Nov-17 18 28.5 29-Feb-20 28.50 0.00 Closed W03) 3 Mr. Soulak Sihalath National Resident Engineer (TIIG-LAO-W02a) 0 21-Nov-19 13 13 31-Dec-20 3.77 9.23 New position added following Sep-Oct 2019 ADB Review Mission 4 Mr. Souksavanh Chounlamany National Construction Supervisor 1 (TIIG-LAO-W02a) 0 21-Nov-19 13 13 31-Dec-20 3.77 9.23 New position added following Sep-Oct 2019 ADB Review Mission 5 Mr. Sophouthavong National Construction Supervisor 2 (TIIG-LAO-W02a) 0 21-Nov-19 13 13 31-Dec-20 3.77 9.23 New position added following Sep-Oct 2019 ADB Review Kongsavanh Mission Subtotal 0 72 86.5 58.11 28.39 Social and Environmental Safegaurd Support (individuals) International 1 Mr. Paul van Strijp International Social Safeguards Specialist 0 25-Nov-19 4 4 31-Dec-20 3.09 0.91 New position added following Sep-Oct 2019 ADB Review Mission Subtotal 0 4 4 3.09 0.91 National 1 Mr. Sae Senpaty National Social Safeguards Specialist 0 21-Nov-19 6 6 31-Dec-20 1.77 4.23 New position added following Sep-Oct 2019 ADB Review Mission 2 Mr. Bounheuang Phanthasith National Environmental Specialist 0 21-Nov-19 6 6 31-Dec-20 1.45 4.55 New position added following Sep-Oct 2019 ADB Review Mission Subtotal 0 12 12 3.22 8.78 Financial Management & Procurement Support (Individuals) International 1 Ms. Nida Calma International Financial Management and Procurement 3 30-Jan-15 3 6 31-Dec-19 5.16 0.00 Closed Specialist Subtotal 3 3 6 5.16 0.00 National 1 Mr. Bouangeunh Khensabeb National Financial Management and Procurement 3 30-Jan-15 3 3 31-Dec-19 3.00 0.00 Closed Specialist Subtotal 3 3 3 3.00 0.00 External Auditor (Firm) 1 External Auditor lump sum lump-sum Summary Total Intenational 95 100 106 100.22 4.21 Total National 178 388 439.5 358.35 74.71 Grand Total 273 488 545.5 458.57 78.92

33 Attachment E: Gender Action Plan Monitoring Matrix – not available

GAP progress reporting is currently being reviewed and enhanced. An updated GAP progress report will be attached to next quarterly report.

34 Attachment F: Indigenous Peoples Plan implementation progress as of 31 March 2020

Activities Progress as of 31 December 2019 Responsibility Action 1: Strengthen community-based tourism activities in ethnic villages (in Chom Ong and other villages along the road in ODX) a) Establish Community Tourism a) Several community tourism groups Responsibility for Group (CTG) and designate were established in villages along the Action 1: The PIU staff members from ethnic households loop road, including: and project implementation as representatives to the CTG • Ban Chom Ong (all members are consultants will assist b) Within Destination Management ethnic Khmu):. ethnic groups in Plan for Oudomxay, identify tourist ▪ Chom Ong Cave service group preparing the plans. attractions that will draw visitors to (tour guiding and ticket selling): 24 Project funds will be ethnic villages such as road people, 0 female held by the PIU and stops/look-outs, walking trails and ▪ Community lodge service unit: 3 disbursed based on local market people, 0 female plans submitted by the Village Chief following ▪ Cultural performance group: 25 c) Establish small funds for these consultations. A community-based tourism activities people, 14 female lump-sum amount is in ethnic villages to assist the ▪ Handicraft production group included in the IPP development of tourist attractions. (weaving textile, bag embroidery budget for this activity. The village head and and basketry for tourism markets): PIUs will assist Chom representatives of CTG will consult 32 people, 20 females, 12 males Ong and the 10 other villages with the ethnic village residents on for basketry. form/strengthen CTGs the use of the fund. • Ban Nalae (members are Tai Lue): under the guidance of ▪ Rice noodle (khao poon) PCU Safeguards production group: 3 families Officer and Social ▪ Rice noodle (khao poon) food Safeguards stalls: 5 families consultants. • Ban Nasao (members are Tai Lue: ▪ Rice noodle (khao poon) production group: 10 people • Ban Houy Oun (members are Khmu): ▪ Organic farming (Grapes, vegetables…) ▪ Service providing during festival, events (near tourist attraction Nam Hin lake/reservoir) b) The Oudomxay Destination Management Plan (DMP) 2016-2019 includes specific activities to attract tourists to visit Chom Ong Cave, including: • Enhancement of cave access by improving access roads from Xay Town to the Ban Chom Ong and the cave (creating a 54km loop road passing several other ethnic villages with tourism potential, such as Ban Nalae, Ban Nasae and Ban Houy Oun which offer culinary and other cultural attractions) – being implemented with Project support

35 • Improvement of Chom Ong Cave site facilities and access to and into the cave – being implemented with Project support • Training for homestay owners on food safety, hygiene etc. – implemented with Project support • Local tour guide training (language, hospitality) –implemented with Project support • Encourage investment in high-end eco-tourism hotels and products in strategic locations (potential for the Chom Ong Cave area (will be part of the O&M approach for the cave site), as well as other locations along the loop road) – planned under the Project’s Development of Tourism- Related Small Enterprises program and being considered during O&M planning • Encourage investment in Agri-tourism products in strategic locations – being implemented with Project support in Ban Houy Oun • Develop a call for proposals for one or several concessions for running the restaurant, shops and tourist information centre at Chom Ong Cave site and conduct fam trips for potential investors / concessionaries – planned under the Project’s SME support program and being considered during O&M planning • Develop an investment proposal and encourage investment in ethnic villages within a 10 km radius of Oudomxay town (potential for Ban Chom Ong and other ethnic villages long the loop road) • Expand handicraft development within key ethnic communities – implemented with Ban Chom Ong (weaving textile, bag embroidery and basketry), Ban Nalae and Ban Nasao (rice noodle production) • MSME support implemented for Ban Chom Ong, Nalae, Nasao and Houay Oun through the provision of training, equipment, small facilities and signage

36 c) Establishment of a village fund(s) will be considered as part of the overall operational plan for the Chom Ong Cave site (as part of O&M planning) Action 2: Support to Chom Ong Village Management Association. a) At the start of project a) At the beginning of the Project, the PIU Responsibility for implementation, the PIU, with organized dissemination workshops Action 2: Oudomxay support from gender and social regarding the Project objectives and PIU to establish operational procedures development specialists and other related issues for all 13 villages with from guidance of tourism planning specialist, will along the Chom Ong loop road. Over PCU Safeguards hold a consultation with Chom Ong the course of the following years, Officer and Social village to determine how to operate several rounds of further consultation Safeguards and the newly developed cave site. with Chom Ong villagers have taken Tourism consultants. b) Based on the above consultation, place, including on future operation of Chom Ong village representative the cave site and related community- and Provincial DICT will draw up based tourism in Ban Chom Ong; more an O&M plan for Chom Ong cave consultations planned as part of site. detailed O&M planning scheduled for c) The Provincial DICT, with support Q2-Q4 2020 from the Gender and Social b) O&M planning for the Chom Ong Cave Development Specialist and subproject (loop road and cave Tourism Planning Specialist will facilities) and Ban Chom Ong CBT and prepare a capacity development cave operation, will be undertaken Q2- plan for the Chom Ong Cave Q3 2020 Village Management c) While specific capacity building for Committee/CTG implementation of the O&M plan will be planned and undertaken alongside the O&M planning process, training for various aspects of the Chom Ong Cave operation have already taken place already in anticipation of completion and implementation of the O&M plan, including: • Hospitality training (food preparation, reception and housekeeping work…) • Training on handicraft production techniques • Tour guide training for local guides/cave guide specialists • Training on food preparation, food hygiene and safety • Training on traditional performance (dance and music instrument) • Participation in the training in Xay town on capacity building for information providers and tourism marketing subjects • Participation in the training in Xay town on Environmental and Social Safeguards Management Action 3: Support business planning and microenterprise development for ethnic group members

37 a) As part of the activities planned a) In the framework of the project’s Responsibility for under Output 3, design and Development of Tourism-Related Small Action 3. The Output 3 conduct training in business Enterprises program a study was consultants and PCU/PIU staff will planning and microenterprise undertaken including consultations, develop and implement development (including hospitality, surveys and analysis in Oudomxay training programs in marketing to tourists, and food Province. Small-enterprise development these areas in hygiene), with separate classes for support packages that were the results cooperation with the women, with targeted participation of this exercise relevant for the villages Lao Women‘s Union. of Khmu and Hmong villagers. along the Chom Ong access road The PCU Safeguards Officer will ensure: (i) b) Prepare training materials and include: preparation of training • Support Small Business Kao Poon hand-outs in local languages or materials and handouts using easily understood visuals Production Process Display & in local languages; (ii) appropriate to the local context Restaurant – conducted for Ban community facilitators c) As part of the value chain analysis Nalae and Ban Nasao from ethnic groups are planned under Output 3, consult • Chom Ong Cave Private Sector trained to coach with Khmu and Hmong women Investment & Management (Ban women in microenterprise about their interest in production Chom Ong) – to be conducted as part development at the and sale of souvenirs and of O&M planning in Q2-3 2020 end of the training; handicrafts. Skills trainings in • Product Development & and, (iii) establishment traditional handicrafts will be Diversification Trainings for SMEs of small revolving organized accordingly. (Ban Chom Ong and others) – funds to provide start- d) Establish small revolving funds to conducted for Ban Chom Ong up capital for ethnic households who are provide start-up capital for ethnic • Hospitality, Guide & English Trainings ready to open a minorities wishing to open at Conducted for Ban Chom Ong tourism-related tourism-related microenterprises b) Not completed. business. A budget is e) Provide training in hospitality and c) Several rounds of consultations were allocated in the IPP for selling to tourists. held to discuss people’s interest in this purpose. f) Conduct training in English and production and sale of handicrafts, and guiding. training on handicraft production techniques was a part of the project’s Development of Tourism-Related Small Enterprises program implementation d) Revolving funds external to the businesses was deemed unfeasible and instead, SMEs were supported through the provision of equipment and the constructions of small facilities, which boost production capacity and sales, which in turn generates income to maintain the provided equipment/facilities and over time expand operations. Examples of support include provision of equipment for production of Khao Poun (rice noodles, construction of stalls and toilets, directional and interpretation signs in Ban Houay Oun. e) Completed: Hospitality training (food preparation, reception and housekeeping work) for Ban Chom Ong service groups

38 f) Completed: Tour guide training for local guides/cave guide specialists for Ban Cho Ong village guides Action 4: Support livelihood development in ethnic villages a) Consult with ethnic populations, a) Completed as part of the many rounds Responsibility for including separate groups with of consultations. Action 4: women, on their interests and b) Equipment and materials were provided The PCU and PIU, with support of the preference for agriculture support, to support local Khao Poon production consultants, will animal husbandry, and production and sales and the improvement of the develop and implement and sale of processed food and facilities around an organic farm the assistance non-timber forest products (grapes, vegetables) and market to programs and help b) Provide households with training in improve opportunities to sell directly to CTGs establish improved techniques in areas such visitors and locals at Ban Houay Oun revolving funds. The as vegetable production and c) Operation of a small funds facility was Village Chief and representatives of the deemed unfeasible and instead, animal-raising (including fodder CTGs will consult with production), handicraft design, and producers were supported directly village members on the home-based food processing that through the provision of equipment, raw use of the village will help them to benefit from materials and small facilities, such as revolving funds increased tourist arrivals in the support for the establishment of the area. organic farm in Ban Houy Oun c) Establish a small fund for start-up agriculture, livestock, raw materials and equipment for handicraft production, and home-based food processing for local households so they can benefit from the increased tourist arrivals. Action 5: Integrate ethnic group concerns in project management a) A social/gender focal person and a a) Gender Focal Points were established monitoring and evaluation (M&E) at PCU and Oudomxay PIU. Responsibility for focal person will be appointed as b) A national gender and social Action 5: The PCU Director in coordination members of the PCU and PIU development specialist was recruited to with PIU Directors are b) An international and a national support IPP implementation, supported responsible for social and gender development by the PMCES Social Safeguards implementation of the specialist with prior experience in Specialist. above actions. dealing with ethnic group issues c) Approximately 30% of PIU is ethnic will support the government in Khmu or Hmong. project implementation, including d) While not directly serving on the various implementation of the IPP. project committees, the Lao Front for c) Ethnic group representation in the National Construction plays an PIU will be proportional to the local important role in promoting the interest provincial population. of Lao PDR’s various ethnic people and d) Representative(s) from the Ministry is an important member of the national, of Information, Culture and provincial and district government Tourism, the Lao Front for National structures, and through that mechanism Construction and Lao Women‘s engages with project activities in ethnic Union in Lao PDR will be invited to villages along the Chom Ong loop road. sit on the sub-regional steering Similarly, the Lao Woman Union is also committee, national steering integrated through its members into all committee and the provincial levels of government, and is actively project steering committee involved in implementation of various meeting. project activities related to gender,

39 e) Monitoring data will be inclusion and prevention of exploitation disaggregated by sex, ethnicity and of women. income. e) Monitoring data is by collected by f) All progress reports, internal or gender and ethnicity, not by income external, shall include a section since it was decided that was culturally which reports on progress sensitive. implementing the IPP, and the f) Quarterly progress reports and impact the project is having on semiannual safeguards monitoring ethnic groups—positive and/or reports (SMR) have so far lacked negative. progress on IPP implementation. This is being rectified as of quarterly progress report 21 (Q1 2020) and SMR #5 (Jul- Dec 2019). Action 6: Promotion of responsible tourism and regular consultation to avoid negative impacts a) Provincial PIUs will set up regular a) At the beginning of the Project, the PIU Responsibility for meetings with the District organized dissemination workshops Action 6: The PIU will Committee, Women's Union regarding the Project objectives and ensure ongoing consultation and (LWU), Lao PDR Front for National other related issues for all 13 villages participation with ethnic Construction (LFNC) and along the Chom Ong loop road, with groups, their leaders, concerned village leaders project participation of members from the LFNC and mass inception, and on a semi-annual and LWU at village levels. Over the organizations working basis to review project course of the following years, several in concerned villages implementation, and ensure that all rounds of further consultation with local officials and village leaders villages participating in project activities have full awareness and (such as Ban Chom Ong, Ban Nalae, understanding about the project Ban Nasao, Ban Houay Oun) have content. These meetings will taken place. More consultations are review the status of tourism growth planned with Ban Chom Ong as part of in the local area, whether the detailed O&M planning scheduled for benefits are spread sufficiently Q2-Q4 2020. across villages and ethnic groups, b) See under Action 1a above and if actions are needed to ensure c) As mentioned under 6.a above, at a more balanced distribution of project start, the PIU organized benefits. These meetings will also dissemination workshops regarding the identify the need to control any Project objectives and other related negative impacts from tourist issues for all 13 villages along the Chom growth. Consultations will be held Ong loop road, and socioeconomic data with law enforcement officials to as well as wishes and opportunities for determine if any negative impacts involvement in project activities were such as drugs, human trafficking or collected. At mid-term, another round of child exploitation are taking place consultations was held to take stock, and require intervention. and a final round is planned during the b) Provincial PIUs will request ethnic last two quarters of the project to collect villages to designate data and information relevant for representatives (in proportion to inclusion in the government’s project ethnic population, with equal completion report. numbers of men and women) to Community Tourism Groups. The CTG will provide inputs to the PIU and consultants engaged by the project on the content of training and awareness raising programs to

40 take place in their villages – ethnic group representatives will provide inputs into the specific needs and cultural context of training / awareness-raising in their community c) Village-level consultations will be organized on an annual basis as part of project performance monitoring system to review the activities that have taken place, ethnic groups‘ views on project impacts and additional activities or corrective actions required to ensure all ethnic groups equally benefit from the project. In keeping with their role as community mobilizers, the Women‘s Union and Lao Front for National Construction at the District Level will support the organization of the consultations and ensure information and disclosure about project activities to all ethnic groups in the project‘s catchment area.

41 Attachment G: Status of Compliance with Loan Covenants as of 31 March 2020

Item Covenants Reference Status of Compliance in Loan as of 31 March 2020 Agreement 1 In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, Article IV, Compliant or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement. Section 4.01

2 (a) The Borrower shall Article IV, Compliant (i) maintain separate accounts and records for the Project; Section 4.02 (ii) prepare annual financial statements for the Project in accordance with accounting principles (i) MOF and PCU maintain separate accounts for the acceptable to ADB; project. (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international (ii) Annual financial statements for the project were standards for auditing or the national equivalent acceptable to ADB; prepared based on accounting framework (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors’ acceptable to ADB (IPSAS) opinion on the financial statements, use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for imprest fund(s) (iii) Project’s financial statements were audited and statement of expenditures) and a management letter (which sets out the deficiencies in the annually by auditor acceptable to ADB. The audit internal control of the Project that were identified in the course of the audit, if any); and followed international auditing standards. (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, (iv) auditor reports include auditors’ opinion, use of and such other information concerning these documents and the audit thereof as ADB shall from loan proceeds, statement of cash receipt and time to time reasonably request. payments, and management letter.

(v) as of Sept 2019, four audit reports were submitted to ADB, by due date.

The 1st audit report for FY Sept 2015 was submitted to ADB on 31 March 2016.

2nd audit report for FY Oct 2015 to Dec 2016 has been submitted to ADB on 19 June 2017

3rd audit report for FY 2017 was submitted to ADB on 29 June 2018.

4th audit report for FY 2018 was submitted to ADB on 27 June 2019.

42 3 (b) ADB shall disclose the annual audited financial statements for the Project and the opinion of Compliant the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB’s website. The 1st audit report for FY Sept 2015 was submitted to ADB on 31 March 2016 and disclosed on 28 March 2017.

2nd audit report for FY Oct 2015 to Dec 2016 has been submitted to ADB on 19 June 2017 and disclosed on 24 October 2017.

3rd audit report for FY 2017 was submitted to ADB on 29 June 2018 and disclosed on 22 August 2018.

4th audit report for FY 2018 was submitted to ADB on 27 June 2019 and under reviewed by ADB.

4 (c) The Borrower shall enable ADB, upon ADB's request, to discuss the financial statements for Compliant the Project and the Borrower's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Borrower, unless the Borrower shall otherwise agree. 5 The Borrower shall enable ADB's representatives to inspect the Project, the Goods and Works, Article IV, Compliant and any relevant records and documents. Section 4.03 6 Implementation Arrangements Schedule 5, Compliant The Borrower shall ensure that the Project is implemented in accordance with the detailed para. 1 arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Borrower and ADB. In the event of any discrepancy between the PAM and this Loan Agreement, the provisions of this Loan Agreement shall prevail.

7 Stakeholder Consultation Schedule 5, Compliant The Borrower shall ensure that consultation with the Project stakeholders takes place during para. 2 Project implementation, in accordance with the stakeholders communication strategy set out in the PAM. 8 Safeguards Schedule 5, Not fully compliant The Borrower shall ensure that the preparation, design, construction, implementation, operation para. 3 and decommissioning of the Project comply with (a) all applicable laws and regulations of the Social and environmental safeguards non-compliance Borrower relating to environment, health and safety; (b) ADB’s Safeguard Policy Statement 2009 issues related to TIIG-LAO-W02 reported in previous (SPS); and (c) all measures and requirements set forth in the IEE, the EMP, and any corrective or quarterly report have been rectified to the satisfaction preventative actions set forth in a Safeguards Monitoring Report. The Borrower shall further of the Government and ADB. ensure that the foregoing is applied and implemented for all parts of the Project, regardless of the Social safeguards due diligence for revised design for W02a is ongoing, but delayed due to COVID-19

43 financing source. If there is any discrepancy between the SPS and the Borrower’s laws and restrictions. This will be completed once COVID-19 regulations, the SPS shall prevail. restrictions are eased or lifted, and will liely involve the preparation of a compensation plan followed by a compensation completion report. CEMP improvements and updates are also ongoing.

9 4. The Borrower shall ensure, and cause the Participating Provinces to ensure, that all land and all Not fully compliant rights-of-way required for the Project are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with: (a) all applicable laws and regulations See 8 above. of the Borrower relating to land acquisition and involuntary resettlement; (b) the SPS; and (c) all measures and requirements set forth in the resettlement plans (RPs), and any corrective or preventative actions set forth in the Safeguards Monitoring Report. Without limiting the application of the SPS or the RPs, the Borrower shall ensure that no physical or economic displacement takes place in connection with the Project until: (a) compensation and other entitlements have been provided to affected people in accordance with the RPs; and (b) a comprehensive income and livelihood restoration program has been established in accordance with the RPs. 10 5. The Borrower shall ensure the Project is implemented in compliance with: (a) all applicable laws Compliant and regulations of the Borrower relating to indigenous people; (b) the SPS; and (c) all measures and requirements set forth in the indigenous peoples plan (IPP), and any corrective or preventative Reporting issues reported in previous quarterly report actions set forth in the Safeguards Monitoring Report. have been rectified. IPP progress report included in this quarterly report. 11 6. The Borrower shall ensure that ADB funds are not applied to the activities described on the ADB Compliant Prohibited Investment Activities List set forth at Appendix 5 of the SPS. 12 7. The Borrower shall make available necessary budgetary and human resources to fully Not fully compliant implement the EMPs, RPs, IPP and GAP. MICT shall cause contractors to (a) comply with measures in the IEEs, the EMPs, the RPs, and the IPP; (b) make available budgets for Contractors not fully compliant with (C)EMP reporting environmental and social mitigation measures; and (c) provide MICT with written notice of any requirements. This is being addressed with support unanticipated impacts arising during the contract period. MICT shall submit to ADB semiannual form safeguards consultants. Safeguards Monitoring Reports, including occurrence of any unanticipated events, corrective Submission of 4th Semiannual Safeguards Monitoring actions undertaken, and any actual or potential breach of compliance with the measures and Report was delayed, but has now been submitted. requirements set forth in the EMPs, the RPs and the IPP. SMR 5 is under preparation and will be submitted in April/May 2020. 13 Gender and Development Not fully compliant 8. The Borrower shall ensure that the Gender Action Plan is fully implemented and that all Project activities are designed and implemented in accordance with ADB’s Policy on Gender and GAP is being implemented, but reporting is currently Development (1998) including, but not limited to the requirement for: (a) 30% of the overall staff being reviewed and enhanced. Updated GAP positions and 30% of the management positions in the PCU and PIUs to be filled by women; (b) progress report will be attached to next quarterly appointment of gender focal points in the PCU and each PIU; (c) 20% of unskilled labors hired for report. Project-related construction are to be women; (d) 40% of Destination Management Organization management positions are to be filled by women; and (e) disaggregation of all monitoring and Disaggregated data by sex and ethnicity is being evaluation data by sex and ethnicity. collected for the project performance monitoring

44 system. Gender focal points are assigned in the PCU and all PIUs.

14 Labor Standards Compliant 9. The Borrower shall ensure that all Works contractors: (a) comply with all applicable labor laws of the Borrower; (b) use their best efforts to employ women and local people, including disadvantaged people, living in the vicinity of the Project; (c) disseminate information at worksites on health safety for those employed during construction; (d) provide equal pay to men and women for work of equal type; (e) provide safe working conditions and separate culturally appropriate facilities for male and female workers; and (f) abstain from child labor. 15 Counterpart Funds Compliant 10. The Borrower shall ensure counterpart funds for Project implementation are available on time and assist the Participating Provinces to prepare timely requests for annual budgetary appropriation requests. The Borrower shall further ensure prompt disbursement of appropriated funds during each year of Project implementation. 16 Operations and Maintenance Not fully compliant 11. The Borrower shall cause each Participating Province to: (a) prior to their physical completion, prepare and adopt a plan for achieving full cost recovery of the operation and maintenance W01 is completed but O&M plan not yet completed. expenditures of each Project facility within their province; and (b) finance through budget allocation O&M plans for all subprojects are under preparation any shortfall in the operation and maintenance of the Project facilities within their province. and will be completed Q2-Q3 2020 and operationalized in Q3. 17 Governance and Anticorruption Compliant 12. The Borrower shall (a) comply with ADB’s Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Project; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation. 18 13. The Borrower through the Project Executing Agency shall ensure that the anticorruption Compliant provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of the executing and implementing agencies and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

19 14. Within 3 months of the Effective Date, the Project Executing Agency shall establish a Project Compliant website to disclose Project-related information on procurement, quarterly progress reports, safeguards documents and knowledge products developed under the Project.

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Attachment H: Status of Financial Management Assessment Action Plan as of 31 March 2020

Planned Action Output Responsible Due Date Action taken as of 31 March 2020 Party 1. PCU and • As outlined in the PAM EA and DICTs Prior to ADB Completed with delay – Board PIU financial • PCU Financial Board approval approval was on 8 September 2014. management Controller and PCU and of project teams PIU Directors and • Executing and implementing established. Managers appointed agencies’ financial management teams and PCU and PIU were established on 19 March 2015. accounting and finance staff recruited • PCU finance and accounting staff recruited and commenced on 5 January 2015. • PIU Champasak finance and accounting staff recruited and commended on 20 February 2015 • PIU Khammouane finance and accounting staff recruited and commended on 1 February 2015 • PIU Luang Prabang finance and accounting staff recruited and commended on 25 March 2015 • PIU Oudomxay finance and accounting staff recruited and commended on 1 February 2015 2. National and • As outlined in the PAM. EA and Prior to ADB Completed with delay – Board Provincial Project Provinces Board approval was on 8 September 2014. Steering approval of Committees project • National Project Steering Committee established and established on 19 March 2015 operational. (reference documents 402/MICT)

• Provincial Project Steering Committees in Champasak established on 14 August 2015 (reference documents 1107/PG.CPS) • Provincial Project Steering Committees in Khammouane established on 23 March 2016 (reference documents 733/PG.KM) • Provincial Project Steering Committees in Luang Prabang established on 6 November 2014 (reference documents 623/PG.LPB) • Provincial Project Steering Committees in Oudomxay established on 5 December 2016 (reference documents 930/PG.ODX)

3. Project funds • As outlined in the PAM MOF, EA, Prior to first Completed by due date – The fund flow • Concerned MOF, EA, PCU, and disbursement. flow arrangement outlined in the PAM arrangements PCU, and PIU staff PIUs assisted has been adopted and operated. PCU adopted briefed, imprest account by international and PIUs have been briefed on the & operational. opened and project and national funds flow arrangements by the sub- financial financial management consultants. accounts established. management PCU has opened an advance account & and PIUs have opened sub-accounts.

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procurement specialists (individual consultants) 4. PCU and • Financial management EA, assisted Within six Completed by due date – Project PIU financial & procurement support by the months of effectiveness was 14 January 2015. management consultants mobilized; consultants project capacity built project accounting and effectiveness • International and National Financial and systems financial reporting Management and Procurement operational. systems established; Specialists recruited and PCU and PIUs attend commenced on 30 January 2015. training on project • PCU and PIUs attended the accounting. project accounting and financial • Project disbursement training on 22 October 2015. arrangements and • The project’s disbursement procedures arrangements and procedures established, and staff established. Staff trained in their trained in their operations on 23-28 April 2015. operation. The initial imprest advance system. received on 22 January 2015.

5. PCU and • At least 1 staff member Within one Completed by due date – Project PIU staff attend from the PCU and year of effectiveness was 14 January 2015. disbursement each PIU attends project seminar. ADB’s in-country effectiveness • PCU staff attended the ADB’s in- disbursement seminar. country disbursement seminar on 27-29 April 2015.

ADB = Asian Development Bank; DICT = Department of Information, Culture and Tourism; EA = executing agency; MOF = Ministry of Finance; PCU = project coordination unit; PIU = project implementation unit. Source: Asian Development Bank and Ministry of Information, Culture and Tourism.

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Attachment I: Overview of SME support

1. SMEs in target provinces/areas/sub-project sites

No. Target groups Members/employees Type of support Income in Kip Before After (M,F) Before Project To date (M,F) (2014/15) (Sep 2019) 1 Don Kho Homestay 0 12 houses/families -Small facilities (reception sala, handicraft demonstration room) N/A N/A Xanasomboun, CPS (Husband and wife, -Homestay improvement (provide equipment to upgrade the 24 people) quality of service -Hospitality training (food and beverage, housekeeping, Hygiene and food safety) - Training on basic financial management 2 Don Kho handicraft group 6 families 75 families (more Training on basic financial management 600,000/month 1,500,000/month Xanasomboun, CPS than 100 people, and 750,000/month 3,000,000/month some families are 2-3 people working on it), 45 families are the member of Saphai Handicraft Center 3 Saphai Handicraft Center (Production 70 families 400 families - Improve information center/room and restaurant 600,000/month 1,500,000/month Group), Xanasomboun, CPS (150 male - help in - Boat landing steps 750,000/month 3,000,000/month the production - Training on basic financial management Lowest and Lowest and process) highest highest -10people (6F) working based on the Saphai handicraft Center 4 Service Groups - Infrastructure/facility Improvement (Access N/A N/A -Ticket selling 6 people (6F) road, bridge, kiosks, ticket booth, toilets, lighting, directional and interpretation signs…)

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No. Target groups Members/employees Type of support Income in Kip Before After (M,F) Before Project To date (M,F) (2014/15) (Sep 2019) - Attribute/Flower and soft drink selling - Hospitality training Tham Xang Cave, Thakhek, KM - Hospitality training 5 Pottery Production Group/ Pottery 6 families/12 people - Small facilities (Improve landscaping of pottery production 2,000,000/month 3,000,000/month Demonstration Center Ban Chan, (6F) demonstration Center, walking path, directional and Chomphet district LPB Husband and wife interpretation signs and provide some equipment) - Hospitality training - Organize skill training for Pottery Production Group (plan – last 6month) 6 Tham Ting cave service group (selling 20 20 - Small facilities improvement (public toilet, ticket booth, N/A 30,000/family/day attributes for praying) Ban Pak Ou, LPB families/year - Awareness program on solid waste management, water

(rotation treatment and environmental protection daily among participating families) 7 Handicraft/retail shops/restaurants 16 + 4 = 20 Husband and wife - Access road improvement from National Route 13N N/A N/A Ban Pak Ou, LPB families - Improving access, safety, sanitation and solid waste (4 management facilities (public toilet, ticket and information restaurants, booths, parking lot, walking path around the village, a 16 retail pontoon, boat landing steps, directional and interpretation shops) signs...) - Hospitality training in Ban Pak Ou - Awareness program on food hygiene and safety - Activity to reduce environmental pollution: trash collection and disposal and improvement of solid waste collection point in Ban Pak Ou 8 Boat service group 68 people, 0 - Improve the sample boat to meet the standard (quality N/A N/A Ban Pak Ou, Pak Ou district, LPB 68 male standard)

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No. Target groups Members/employees Type of support Income in Kip Before After (M,F) Before Project To date (M,F) (2014/15) (Sep 2019) - Training/seminar on boat service safety 9 - Handicraft shops 68 families 0 - Improving access, safety, sanitation and solid waste N/A N/A - Lau Lao production 16 families (Husband and wife) management facilities (public toilet, ticket and information group,Ban XangHai, (Husband booths/kios, parking lot, walking path, boat landing steps, Pak Ou - LPB and wife) directional and interpretation signs) - Hospitality training - Activity to reduce environmental pollution: trash collection and disposal and improvement of solid waste collection point 10 Ban Xieng Men, Chomphet district, LPB - Food processing and packaging - Hospitality training - Do and Don’t and business ethics 11 Ban Muang Kham, Chomphet district, - Food packaging (Khai Phen) LPB 12 -Chom Ong Cave service group (tour 21 0 -Access road improvement guiding and ticket selling) -Small facility improvement (parking lot, toilets, ticket booth, -Community lodge service unit improve inside and around the cave…) - Cultural performance group 3 0 -Hospitality training -Handicraft production group -Training on handicraft production techniques -Tour guide training for local guides/cave guide specialists -Training on food preparation, food hygiene and safety

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2. SMEs along tourism circuits/the Loops (Chom Ong Cave, Khammouane – Bolikhamxay and Bolaven Plateau Loops)

No. Target groups Members/employees Type of support Income in Kip Before After Before Project To date (2014/15) (Sep 2019) 1 Phu Ta Wen Farm, Tha Pha Bath N/A N/A -Produce promotional materials to support agro-tourism N/A N/A district, Bolikhamxay province (along (Organic Farm), including panels/posters, brochures the Loop) -Food processing training for local people in the area - Support the seasonal events for the site And other related activities and etc. 2 Tad Nyeuang waterfall site/business N/A N/A - Develop Site Protection and Management Plan N/A N/A unit, Paksong, CPS - Small tourism facilities improvement (walking path, steps and handrails to downstream and viewpoint 3 Tad Ta Yeuk seua waterfall/business N/A N/A - Develop Site Protection and Management Plan N/A N/A unit, Paksong, CPS - Small facilities (waterfall viewpoint) 4 Thalang guesthouse/ business unit, N/A 6 (4female) Improve hotel room to meet the standard (to be a sample N/A N/A Nakai, KM 5 Phosy guesthouse/ business unit, N/A 10(8female) Improve hotel room to meet the standard (to be a sample N/A N/A Nakai, KM 6 Weaving Handicraft Center, Ban N/A 18(18female) -Improve village market and turned it into weaving handicraft N/A N/A Shopkham Nakai, KM center (install the fence around the weaving center) -Improve landscaping, toilet, natural dyes demonstration room (plan - ongoing) 7 Ban Napavan Homestay and CBT, N/A N/A -Equipment and utensils for homestay group N/A N/A BLKX, the Loop - Training on hospitality ((front office, food and beverage/food preparation and housekeeping) 8 Vang Nam Yen/cool pool, Ban N/A N/A Improvement of public toilets to meet the ASEAN public clean N/A N/A Napavan, BLKX, the Loop toilet standard 9 Mixayphone Local Food Restaurant, N/A N/A -Provide food packaging training for local business N/A N/A LPB

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No. Target groups Members/employees Type of support Income in Kip Before After Before Project To date (2014/15) (Sep 2019) (improve souvenir products by better packaging and to add value for local products), 10 -Khao poon (rice noodle) N/A 3(3female) -Provide equipment for Khao poon producers and food stalls N/A N/A production group, Ban Nalae, Xay Families -Improve landscaping at Khao poon food tall area, toilets district, Oudomxay province directional and interpretation signs -organize Khao poon – food festival/event to promote local product and local culture -Training on food hygiene and safety 11 - Khao poon food stalls 0 5(5female) -Improvement of demonstration house (interpretation panels, Xay dictrict, ODX Families equipment…) -Provide equipment for Khao poon producers -Training on production techniques, food hygiene and safety 12 Oudomxay/Xay night market (food N/A 25(25female) -Provide some equipment for the sellers (push carts, tents, N/A N/A stalls/shops) ODX tables with forms, light sign, installation of electricity and water systems) -Provide training on food hygiene and safety 13 Km 11 waterfall, Xay district, ODX 1 family Improvement landscaping and small facilities for Km 11 N/A N/A waterfall 14 Ban Nyor Pottery and homestay groups N/A N/A -Installation of directional and interpretation signs N/A N/A -Improvement of the kiln - Provide equipment to homestay group

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3. SMEs along North – South Economic Corridor

No. Target groups Members/employees Type of support Income in Kip Before(M,F) After(M,F) Before Project To date (2014/15) (Sep 2019) 1 Ban Nalanneua N/A N/A -Directional signs, Village map/information, village gate. N/A N/A - Connecting water system to each homestay -Arrange the solid waste/garbage dump -Improve boat landing steps - Training on first aids and equipment -Training on hospitality ((front office, food and beverage/food preparation and housekeeping) and - Training on environment protection along Nam Ha river 2 Ban Phieng Ngam N/A N/A - Build eco/community lodge, viewpoint, equipment, directional and interpretation N/A N/A signs, lodge equipment and suspension bridge (from eco-lodge to the viewpoint - Training on first aids and equipment -Training on hospitality ((front office, food and beverage/food preparation and housekeeping) 3 Ban Vieng Neua N/A N/A -Improvement of toilets/rest room for 5 homestay (families), signage N/A N/A -Training on first aids and equipment -Training on tourism and hospitality (front office, food and beverage/food preparation and housekeeping/cleaning work 4 Ban Nam Dee N/A N/A - Homestay equipment and utensils N/A N/A 5 Phou Phet Phou N/A N/A -Improvement of toilets at Phou Phet Phou Kham park to meet the ASEAN public N/A N/A Kham Park clean toilet standard - Produce and install signage (directional and interpretation signs) 6 Phou Villa resort N/A N/A -Landscaping to improve small facilities, green areas/tree planting or gardening N/A N/A -Installation of rubbish bins, septic tanks - Produce and install signage (directional and interpretation signs) Support this resort to meet

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Attachment J: Record of Output 3 and 4 activities implemented during Project Quarter 21 (Q1 2020, 1 January - 31 March 2020)

Budget Implementing Partici- Results/Outcome/Comm Activity Date Location Objective Women Budget code Personnel pants ents

Continue to support tourism sector staff on upgrading their educational 3/01/2020; 4,740,000 Kip; qualification/post graduate ( Support 23/01/2020; 4,740,000 Kip; travelling costs, food and 21/02/2020; 3,400,000 Kip; 3.1.2 accommodation/DSA) 20/03/2020 NUOL, VTE Upgrade knowledge LNT, NSEC 1 0 LNT-NSEC staff supported 4,470,000 Kip To distribute to tour Tourism 160 copies; Tourism Publish tourism products developed and new operators and tourism Development product handbook 17,200,000 Kip 3.3.2a tourism products handbook 22/01/2020 VTE stakeholders Department 2 0 distributed Second payment 15- 18/12/2019; Tourism Workshop to disseminate Lao PDR sustainable Late Management 3.3.2a tourism manual/handbook submitted Bolikhamxay To present the manual Department 12 3 Fruitful workshop 11,886,000 Kip Installation of power supply at target sites (temples in Luang Prabang Town, such as Vat Pha Houak, Phou Si, Xieng Thong, Vat Vixoun). Install of power supply Subcontractor, 3.3.2b First payment 02-10-20 LPB to attract visitors PIU 3 2 Power supply installed 107,790,000 Kip Installation of power supply at target sites (temples in Luang Prabang Town, such as Vat Pha Houak, Phou Si, Xieng Thong, Vat Vixoun). Install of power supply Subcontractor, 3.3.2b Second payment 20/03/2020 LPB to attract visitors PIU 3 2 Power supply installed 107,782,500 Kip Additional work for construction of Vat Phou Construct Vat Phou Subcontractor, Vat Phou Welcome Arch 3.3.2b Welcome Arch 23/01/2020 Champasak Welcome Arch PIU 8 2 completed 200,205,000 Kip Support ASEAN public clean toilet standard at 12/2019- Improve quality of PCU, PIU and 3.3.2b Phou Pheth Phou Kham tourist attraction 01/2020 LNT, NSEC service business 8 3 Service quality improved 60,000 Kip Implement model PPP on service and management of tourism facilities in Pak Ou and 21- To implement PPP 3.4.2 Chomphet districts 24/01/2020 LPB model LPB-PIU 55 13 Implementing contract 21,500,000 Kip To promote ethnic Support activity to promote handicraft minority/indigenous Marketing Indigenous handicrafts 3.5.2 production demonstration procedures 22/01/2020 VTE handicrafts Department 36 26 promoted 41,740,000 Kip To promote and Support performance activities to promote Lao preserve local Handicraft Festival 2019 (such as promote handicrafts and Handicraft Local handicrafts 3.5.2 handicraft skills for young people and etc.) 22/01/2020 VTE souvenir products association 86 66 preserved 58,500,000 Kip To promote Lane Xang Cultural Support LXCQN members to participate in 14- Quadrangle LXCQN focal 3.5.2 tourism trade fair 2020 in BKK, Thailand 20/01/2020 BKK, Thailand Network/heritage route point 13 5 LCQN promoted 15,275,000 Kip Public-private sectors planning workshop for the Identify activities to be LXCQN focal 3.5.2 first 6 month of LXCQN 01-Mar-20 VTE implemented point 10 3 Activities identified 2,414,000 Kip

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To promote Lao SME Improve the display of Lao silk products 17/02- culture and Lao silk unit/Suphatta Promoting Lao silk 3.5.2 museum shop in VTE, Suphatta Sisan 3/03/2020 VTE products museum 16 11 products 26,272,000 Kip Support training on designing the Xieng Khouang Mat Mi motifs and patterns for To diversify the Mat Mi Silk Knowledge and skills 3.5.2 business staff 5-10/03/2020 XKH products producer/SME 10 7 upgraded 26,400,000 Kip To upgrade Support improvement of textile products and knowledge and skills Knowledge and skills natural dyes for Ms. No shop in Oudomxay by 16- and improve quality of Textile upgraded; Quality 3.5.2 provide trainings 20/03/2020 ODX textile products producer/SME 20 10 improved 26,400,000 Kip To diversify the pottery Pottery Knowledge and skills Support development of Ban Chan pottery 24- products and its production upgraded; Quality 3.5.2 products (production group - Ms. Vieng) 30/03/2020 LPB quality group/Ms. Vieng 0 3 improved 26,200,000 Kip Consultation workshop on implementation of Review the progress activities under the LCQN that affected by and planing for the Implementation progress 3.5.2 COVID 19 25/03/2020 VTE next step LCQN members 14 5 reviewed 2,674,000 Kip Lao Handicraft Support activity to demonstrate handicraft To promote handicraft Association, Handicraft products 3.5.2 production procedures (last payment) 22/01/2020 VTE, products to the public Marketing Dept. 36 26 promoted 58,500,000 Kip LCQN members participate in the tourism trade 14- To promote LCQN members 3.5.2 fair - TITF 2020 in BKK, Thailand 20/01/2020 Thailand LCQN/heritage routes (Lao side) 6 1 LCQN promoted 51,474,000 Kip Support camping point for tourists at Vang Nam To promote camping 3.5.3 Yen Jan-Mar 2020 Bolikhamxay activity Jo Adventure 10 3 To attract nich market 9,000 USD Support Phou Villa - green hotel standard along 12/2019- To improve service Tourism 3.5.3 NSEC 31/01/2020 LNT, NSEC quality Division, DICT 5 2 Service quality improved 83,045,000 Kip Dec 2019; Tourism Improve service quality of visitor center by Late To extend service Marketing 3.6.1 extent service hours, Dec 2019 submitted VTE hours Department 29 9 Service hours extended 4,960,000 Kip To improve tourism Improvement of Lao tourism website website, in order to 3.6.2 (www.tourismlaos.org) Jan-20 VTE attract more visitors Subcontractor 10 4 Tourism website updated 3,150 USD To promote Lao - Thai 16- tourism cooperation LCQN 3.6.2 Participate in tourism trade fair in Thailand 19/01/2020 Thailand (LCQTN) secretariat 3 1 LCQTN promoted 8,000 USD Consultants - collect information and photos to 17- To produce the Consultans, 3.6.2 produce tourism guidebook for NSEC 24/02/2020 ODX-LNT-BK guidebook DICTs 6 0 Guidebook produced 8,360,000 Kip Update Design, layout and develop contents of Subcontractor/In 3.6.2 Khammouane tourist map in English 27/03/2020 VTE Updated tourist map samai 3 1 Tourist map updated 2,350 USD Print Tourist Map of Khammouane in English Subcontractor/In Tourist map published; 3.6.2 size A2 27/03/2020 VTE To publish tourist map samai 1 1 1,000 copies 2,283 USD Update Design, Layout and develop contents of Subcontractor/In 3.6.2 Khammouane Guide Book in English 27/03/2020 VTE Update guidebook samai 3 1 Guidebook updated 2,550 USD Publish Khammouane guidebook in English Publish tourism Subcontractor/In Guidebook published; 3.6.2 27/03/2020 VTE guidebook samai 1 1 5,260 copies 2,450 USD

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Produce medals to support Vientiane Support sport event Marketing Dept. 3.6.2 International Marathon in VTE 22/01/2020 VTE for tourism Sport federation 2 0 3,500 units 84,700,000 Kip

Completed as plan; Promote cultural https://www.facebook.com tourism and its Subcontractor, /1010299139163054/video 3.6.2 Produce VDO on fire boat festival in LPB 01-02-20 LPB uniqueness PIU 1 0 s/756118908132800/ 7,275,000 Kip Provide equipment and logistics for the racers Support sport event Marketing Dept. 3.6.2 at Vientiane International Marathon 22/01/2020 VTE for tourism Sport federation 2 0 Equipment provided 87,934,000 Kip

VDO produced: 16,485,000 Kip; Produce VDO on cycling activity to promote To promote cultural https://www.facebook.com 7,060,500 Kip safety driving and mitigation of pollution 10- tourism, sport and Subcontractor, /1010299139163054/video 1st and 2nd 3.6.2 (environment protection) 25/02/2020 VTE tourism LPB-PIU 1 0 s/613193799478939/ payment To promote Lane Publish promotional materials of Lane Xang Xang Cultural Promotional materials 3.6.2 Cultural Quardrangle Tourism Routes 03-01-20 VTE network/heritage route LCQN-VTE 3 1 published 16,800,000 Kip To promote Lane LCQN (Thai - Lao) - Participate in Elephant 21- Xang Cultural Lao - Thai LCQTN/heritage routes 3.6.2 Festival in Xayaboury 23/02/2020 Xayaboury network/heritage route LCQN 24 12 promoted 12,000,000 Kip To promote Lane LPB PIU - Participate in tourism exhibition at " 31/01 - Xang Cultural 3.6.3 Boun Dok Fai Festival" in Loei province 3/02/2020 Loei, Thailand network/heritage route LPB DICT 6 2 LCQTN promoted 31,630,000 Kip To promote Lane PCU - Participate in Elephant Festival in 21- Xang Cultural LCQTN/heritage routes 3.6.3 Xayaboury (PCU) 23/02/2020 Xayaboury network/heritage route PCU 5 2 promoted 15,190,000 Kip Participate in tourism exhibition at the Elephant To promote Lane Festival in Xayaboury (LCQN members from 20- Xang Cultural LCQTN/heritage routes 3.6.3 VTE) 23/02/2020 Xayaboury network/heritage route LCQN members 4 0 promoted 13,950,000 Kip To promote new type Green Support Vang Vieng Trail 2019 (Green Vang Vieng, of nature based Adventure New tourism product 3.6.4 Adventure Travel Co.,LTd) 22/01/2020 VTP tourism Travel Co.,LTd 505 293 promoted 85,578,500 Kip Soulinthone and Organize food festival to promote tourism in To promote food and Local 3.8.1 Tha Pha Bath 03-04-20 Bolikhamxay tourism communities 200 120 Local food promoted 20,000,000 Kip Organize International Lantern Festival in To promote tourism 3.8.1 Bolikhamxay 6-8/03/2020 Bolikhamxay along the Loop 40 24 The Loop promoted 14,300,000 Kip Support SME to PCU - participate in International Lantern develop new tourism 3.8.1 Festival to promote tourism 6-8/03/2020 Bolikhamxay product PCU 8 3 New product developed 5,820,000 Kip Project car repair and maintenance (Car plate: 01/01 - To use for 4.11.2 5991) 29/02/2020 VTE administration work PCU 3 0 Project car repaired 16,177,000 Kip To review the PCU, LNT- Implementation progress 4.13.1 Annual NSEC review and planning workshop 9-11/02/2020 Bolikhamxay progress NSEC 6 2 reviewed 6,306,000 kip

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To survey and inspect the affected communities, Join ADB team to inspect the Chom Ong cave households along the access road improvement (road construction). 9-20/12/2019 1st alignment (40 km) Affected areas, First visit and second visit, regards the social and 13- and 2nd alignment (16 ADB mission, communities and 4.12.2 safeguard issues 18/01/2020 ODX Km) PCU and PIU 104 38 households identified 4,849,500 Kip To audit account 16- system and other 4.13.2 Internal audits of project accounts 19/02/2020 LPB financial documents PCU 12 6 Account system assessed 4,924,000 Kip

To audit project Need to mimprove - office 4.13.2 Annual external audits of project accounts 4-6/02/2020 KM account PCU, PIU 8 7 asset account system 3,540,000 Kip To review the 4.13.2 Financial review meeting of TIIGP1 22/01/2020 VTE progress PCU, PIUs 25 13 Completed as plan 28,214,000 Kip Follow up and inspect the project 12- 4.13.4 implementation progress for LPB 13/02/2020 LPB Inspect the progress PCU 5 2 Progress assessed 8,670,000 Kip 1/05 - Follow up and inspect tourism access road 30/11/2019 To inspect the PMCES, PCU, 4.14.1 improvement in Chomphet and Pak Ou districts late submitted LPB progress of PIU 8 1 Completed as plan 34,720,000 Kip Training on environmental and social safeguards management plans to build capacity 16 alignment, Environmental to PIU staff, subcontractors, DPWT/OPWT, 15- Xay district, Upgrade knowledge and Social Knowledge and skills 4.15.3 DONRE/OONRE, Village Heads) 20/03/2020 ODX and skills Consultants, PIU 26 3 upgraded 7,905,000 Kip To promote LCQN/heritage routes; Participate in TITF tourism trade fair and GMS Bangkok and and exchange lessons tourism sustainable network meeting in Chiang 15- Chiang Mai, with GMS member PCU, LCQN 4.16.2 Mai, Thailand (PCU) 20/01/2020 Thailand countries focalpoint 3 1 Completed as plan 25,030,000 Kip Consultation workshop on implementation of activities under the DMN and ASEAN tourism To review the 4.16.3 standards 19/03/2020 VTE implementation DMN 38 15 The progress reviewed 3,700,000 Kip Workshop to disseminate ASEAN clean public Tourism Survey toilet standard for tourism stakeholders (public 10- To upgrade and Zoning 4.16.3 and private sectors) in Khammouane province 13/03/2020 KM knowledge Division, TDD 25 5 Knowledge upgraded 11,930,000 Kip Tourism sector staff - participate in tourism exhibition at Boun Dok Fai Festivaland and workshop on LCQN cooperation framework in 31/01- To promote Tourism 4.16.3 Loei 2/02/2020 Loei, Thailand LCQN/heritage routes; Departments 5 3 Heritage route promoted 19,250,000 Kip

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