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SECONDARY TOWNS URBAN DEVELOPMENT PROJECT Loan 1525-LAO (SF)

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SECONDARY TOWNS URBAN DEVELOPMENT PROJECT Loan 1525-LAO (SF) ASIAN DEVELOPMENT BANK PCR: LAO 27402 PROJECT COMPLETION REPORT ON THE SECONDARY TOWNS URBAN DEVELOPMENT PROJECT Loan 1525-LAO (SF) IN THE LAO PEOPLE’S DEMOCRATIC REPUBLIC October 2005 CONTENTS Page BASIC DATA ii MAP vii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 7 G. Conditions and Covenants 8 H. Related Technical Assistance 8 I. Consultant Recruitment and Procurement 9 J. Performance of Consultants, Contractors, and Suppliers 10 K. Performance of the Borrower and the Executing Agency 10 L. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Efficacy in Achievement of Purpose 11 C. Efficiency in Achievement of Outputs and Purpose 12 D. Preliminary Assessment of Sustainability 12 E. Environmental, Sociocultural, and Other Impacts 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons Learned 14 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. Appraisal and Actual Project Costs 24 3. Summary of ADB-Financed Contracts 25 4. Breakdown of Yearly Disbursements 28 5. Implementation Schedule 29 6. Status of Compliance with Loan Covenants 30 7. Financial and Economic Reevaluation 37 8. Summary of Resettlement and Land Compensation 42 9. Quantitative Assessment of Overall Project Performance 43 BASIC DATA A. Loan Identification 1. Country The Lao People’s Democratic Republic 2. Loan Number 1525-LAO(SF) 3. Project Title Secondary Towns Urban Development 4. Borrower The Lao People's Democratic Republic 5. Executing Agency Ministry of Communication, Transport, Post, and Construction 6. Amount of Loan SDR 19.5 million (US$27.0 million equivalent) 7. Project Completion Report Number LAO 925 B. Loan Data 1. Appraisal – Date Started 3 March 1997 – Date Completed 18 March 1997 2. Loan Negotiations – Date Started 22 May 1997 – Date Completed 23 May 1997 3. Date of Board Approval 26 June 1997 4. Date of Loan Agreement 20 November 1997 5. Date of Loan Effectiveness – In Loan Agreement 18 February 1998 – Actual 29 April 1998 – Number of Extension 1 6. Closing Date – In Loan Agreement 30 June 2003 – Actual 07 July 2005 – Number of Extension 1 7. Terms of Loan – Service Charge 1.00% – Maturity (number of years) 40 – Grace Period (number of years) 10 8. Terms of Relending (if any) – Interest Rate 6.00% – Maturity (number of years) 25 – Grace Period (number of years) 5 – Second-Step Borrower Urban Development Management Committees Luang Prabang SDR144,000 Thakhek SDR144,000 Savannakhet SDR202,000 Pakse SDR159,000 iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 06 July 1998 15 June 2005 83 months Effective Date Original Closing Date Time Interval 29 April 1998 30 June 2003 62 months b. Amount ($)a Last Net Original Amount Amount Undisbursed Category/ Component Revised Amount Allocation Canceled Disbursed Balance Allocationb Available 01-Civil Works 14,934,800 17,237,521 553,447 17,237,521 16,684,074 0 02-Equipment & Materials 1,896,220 2,650,754 (274,282) 2,650,754 2,925,036 0 03-Septage Loan 233,581 288,827 3,296 288,827 285,531 0 04-Consulting Services 4,023,096 4,021,536 4,918 4,021,536 4,016,618 0 05-Implementing 426,268 381,206 (149,527) 381,206 530,733 0 Assistance 06-Service Charge 797,180 801,672 441,778 801,672 359,894 0 07-Unallocated 3,823,244 0 0 0 0 0 Total 26,134,389 25,381,516 579,630 25,381,516 24,801,886 0 Note: SDR1.00 = $1.385820 (exchange rate during loan negotiations). a Figures vary as a result of currency fluctuations (special drawing rights against US dollar) b Net of initial cancellation of SDR667,187 ($974,580.07) made on 1 September 2004. Source: Asian Development Bank loan financial information system. 10. Local Costs (Financed) Appraisal Actual - Amount ($ million) 10.90 9.90 - Percent of Local Costs 54.77 63.88 - Percent of Total Cost 28.31 29.55 C. Project Data 1. Project ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 18.6 18.0 Local Currency Cost 19.9 15.5 Total 38.5 33.5 iv 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Foreign Local Total Foreign Local Total Implementation Costs ADB-Financed 15.3 10.9 27.0 14.5 9.9 24.4 UNDP–NORAD Cofinancing 2.1 1.1 3.2 2.7 1.3 4.0 KfW Cofinancing 0.4 0.4 0.8 0.4 0.4 0.8 Government 7.0 7.0 0.0 3.8 3.8 Beneficiaries Contribution 0.3 0.3 0.1 0.1 Total 17.8 19.7 37.5 17.6 15.5 33.1 IDC Costs 0.8 0.2 1.0 0.4 0.0 0.4 Total 18.6 19.9 38.5 18.0 15.5 33.5 ADB = Asian Development Bank, IDC = interest during construction, NORAD = Norwegian Agency for Development Coordination, UNDP = United Nations Development Programme. 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actuala Project Component Foreign Local Total Foreign Local Total Base Cost Land Acquisition and Resettlement 1.6 1.6 0.0 1.6 1.6 Civil Works 8.3 12.4 20.7 10.2 13.6 23.8 Equipment and Materials 3.0 0.3 3.3 2.9 2.9 Consulting Services 3.0 1.2 4.2 4.0 4.0 Implementation Assistance and Capacity Building 0.4 0.7 1.1 0.5 0.3 0.8 Subtotal (A) 14.7 16.2 30.9 17.6 15.5 33.1 Contingencies a. Physical 1.5 1.5 3.0 b. Price 1.6 2.0 3.6 Subtotal (B) 3.1 3.5 6.6 Interest/Service Charge 1. Interest During Construction 0.2 0.2 2. Service Charge on Bank Loan 0.8 0.8 0.4 0.0 0.4 Subtotal (C) 0.8 0.2 1.0 Total 18.6 19.9 38.5 18.0 15.5 33.5 a Includes Government financing of $1.85 million for civil works; $0.31 million for project administration and $1.6 million for land acquisition ($0.34 million compensation and estimated $1.26 million land value); NORAD/UNDP $4.0 million and KfW $0.8 million. 4. Project Schedule Appraisal Item Actual Estimate Date of Contract—Consulting Services and Institutional Support January 1998 July 1998a Civil Works Contract: Drainage Date of Award March 1999 November 2000 Completion of Work December 2001 May 2003 Solid Waste Date of Award January 1999 February 2000 Completion of Work December 1999 October 2002 v Roads and Bridges Date of Award October 1999 June 2000 Completion of Work September 2002 December 2001 Flood Protection Date of Award October 1999 November 2000 Completion of Work December 2002 May 2003 River Bank Protection Date of Award January 2000 November 2000 Completion of Work December 2002 February 2003 Equipment and Supplies First Procurement June 1998 June 1998 Last Procurement December 2002 May 2003 Other Milestones: 1. 11 June 2003: Extension of loan closing date 2. 10 July 2003: Minor change in implementation. Adjustment of percentage of financing for civil works and reallocation of loan proceeds 3. 1 September 2004: first cancellation of SDR667.187 ($974,580.07) and reallocation of loan proceeds 4. 7 July 2005: second cancellation of SDR345,752.26 (US$503,626) 5. 7 July 2005: Closing of loan accounts. a However, services commenced only in September 1998. 5. Project Performance Report Ratings Ratings Implementation Period Development Implementation Objectives Progress From 30 Apr 1998 to 30 Apr 2000 Satisfactory Satisfactory From 1 May 2000 to 31 Dec 2000 Satisfactory Partly satisfactory From 1 Jan 2001 to 31 Dec 2003 Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Person- Specialization of Name of Mission Dates Persons days Members a Fact Finding 25 Nov–13 Dec 1996 4 61 d, b, g, j Appraisal 3–18 Mar 1997 4 64 d, c, f, g Inception Mission 21–27 Aug 1997 1 7 d Review Mission 1 13–23 Nov 1998 1 11 b Review Mission 2 5–15 Jul 1999 1 11 d Review Mission 3 29 Nov–8 Dec 1999 3 25 d, a, h Review 4 (Midterm) 16–26 May 2000 2 22 d, h Review SLA 5 12–14 Sep 2000 1 3 a Review Mission 6 4–11 Nov 2000 1 8 a Review Mission 7 24 Apr–2 May 2001 1 9 a Review Mission 8 27 Aug–7 Sep 2001 2 24 a, h Review Mission 9 11–22 May 2002 2 24 b, i Review SLA 10 18–21 May 2002 1 3 d Review SLA 11 3–4 Jul 2002 1 1 d Review Mission 12 23–31 Oct 2002 2 18 b, h Review Mission 13 2–11 Apr 2003 1 10 b Review Mission 14 20–28 Oct 2003 2 15 b, i Project Completion Review b 21 Aug–2 Sep 2005 3 39 b, e, h a - project specialist, b - urban development specialist, c - counsel, d - project engineer, e - staff consultant, f - program officer, g - young professional, h - associate project analyst, I - project analyst (LRM), j - manager. b The Mission consisted of Januar Hakim, Urban Development Specialist/Mission Leader, Adelaida O. Mortell, Associate Project Analyst, and an infrastructure economist (staff consultant). vii 102 o 00'E 106 o 00'E PEOPLE'S REPUBLIC OF CHINA Ghot-Ou LAO PEOPLE'S DEMOCRATIC REPUBLIC SECONDARY TOWNS URBAN DEVELOPMENT Phongsaly PHONGSALY Yo Samphan R Sing Boun-Tai A er Mai M i N Rv g Luangnamtha A n Khoa Y ko M e M LUANGNAMTHA Namo La Meung Xay Nambak Viangphoukha Ngoy Sobbao Xamneua Houayxay Beng Viangkham OUDOMXAY BOKEO LUANGPRABANG Vieng Xai 20 o 00'N 20 o 00'N HUAPHANH Pakbeng Luangprabang XAYABURY Xiang Ngeun XIENGKHUANG Kham Phoukhoun Phonsavanh Xayabury Khoun VIET NAM Kasi XAYSOMBOUN Vang Vieng Phoun SPECIAL REGION Phiang Gulf of Tonkin Xaysomboun BORIKHAMXAY VIENTIANE Viengkham Thabok Pakxane Viangthong Thong Mixai Pakkading Kham Kaew Neua Keut Paklay VIENTIANE B.
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