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Greater Mekong Subregion Sustainable Tourism Development Project

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Greater Mekong Subregion Sustainable Tourism Development Project Project Administration Memorandum Project Number: 38015 Grant No 0117-LAO and Loan Number: 2457-VIE September 2009 LAO/VIE: Greater Mekong Subregion Sustainable Tourism Development Project The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes. CURRENCY EQUIVALENTS (as of 15 September 2008) Lao People’s Democratic Republic Currency Unit – kip (KN) KN1.00 = $0.0001153137 $1.00 = KN8,672 Viet Nam Currency Unit – dong (D) D1.00 = $0.0000602773 $1.00 = D16,590 ABBREVIATIONS ADB – Asian Development Bank ASEAN – Association of Southeast Asian Nations CBT – community-based tourism CPS – country partnership strategy CTG – community tourism group EA – executing agency EARF – environmental assessment and review framework EIRR – economic internal rate of return EGMDF – ethnic groups and minorities development framework EMP – environmental management plan EWEC – east–west economic corridor GDP – gross domestic product GMS – Greater Mekong Subregion HRD – human resource development IEE – initial environmental examination Lao PDR – Lao People’s Democratic Republic LAR – land acquisition and resettlement LNTA – Lao National Tourism Administration MCST – Ministry of Culture, Sports, and Tourism MDG – Millennium Development Goal MOF – Ministry of Finance MPI – Ministry of Planning and Investment MTCO – Mekong Tourism Coordinating Office MTDP – Mekong Tourism Development Project NCB – national competitive bidding NGPES – National Growth and Poverty Eradication Strategy NPSC – national project steering committee NSEC – north–south economic corridor NTO – national tourism organization O&M – operation and maintenance PCU – project coordination unit PIU – project implementation unit PPMS – project performance monitoring system PPSC – provincial project steering committee SEDP – socioeconomic development plan SMEs – small and medium-sized enterprises SPSC – subregional project steering committee STDP – Sustainable Tourism Development Project TA – technical assistance TSS – tourism sector strategy TWG – Tourism Working Group UNESCO – United Nations Educational, Scientific, and Cultural Organization NOTE In this report, "$" refers to US dollars i CONTENTS Page CONTENTS i LOAN PROCESSING HISTORY ii DESIGN AND MONITORING FRAMEWORK iii I. PROJECT DESCRIPTION 1 A. Project Area and Location 1 B. Impacts and Outcome 1 C. Outputs 5 D. Special Features II. COST ESTIMATES AND FINANCING PLAN 7 A. Detailed Cost Estimates 7 B. Financing Plan 8 C. Allocation of Loan Proceeds 8 III. IMPLEMENTATION ARRANGEMENTS 9 A. Executing and Implementing Agencies 9 B. Project Management Organization 9 IV. IMPLEMENTATION SCHEDULE 10 V. PROCUREMENT 10 VI. CONSULTING SERVICES 10 VII DISBURSEMENT PROCEDURES 11 VIII AUDITING REQUIREMENT 11 IX REPORTING REQUIREMENT 11 X PROJECT MONITORING AND EVALUATION 12 XI SAFEGUARD COMPLIANCE 12 XII MAJOR LOAN COVENANTS 13 XIII KEY PERSONS INVOLVED IN THE PROJECT 17 XIV ANTI CORRUPTION 19 APPENDIXES 1. Subprojects’ Selection Criteria 20 2. Summary Gender Analysis and Action Plan 43 3. Summary Ethnic Groups and Minorities Development Framework 46 4. Cost Estimates and Detailed Cost Estimates 60 5 Project Management, Job Descriptions of PCU/PIU staff 78 6. Implementation Schedule 96 7. Procurement Plan and Modes of Procurement 98 8. Terms of Reference of Consulting Services and Procedures in Recruiting Consultants (Firm and Individual) 106 9. Disbursement Modalities and Funds Flow Mechanism 157 10 Sample Audit Letter and Model Opinion 170 11. Sample Progress Report 174 12. Project Performance Monitoring System and Project Performance Report 180 13. Summary Initial Environmental Examination (Lao People’s Democratic Republic) 208 14. Summary Resettlement Plan and Framework (including Supp Appendix B) 250 SUPPLEMENTARY APPENDICES F. Summary Environmental Analysis (Viet Nam), IEEs, and EARFs 211 G. Detailed Project Description and Implementation 23 M. Country-Specific Ethnic Groups/Minorities Development Frameworks 51 ii LOAN PROCESSING HISTORY a. Approval of project preparatory technical 02 Dec 2005 assistance b. Feasibility study c. Fact-finding 6-15 Feb 2008 (LAO Grant) 18-29 Feb 2008 (VIE Loan) d. Management review meeting (MRM) 19 May 2008 e. Appraisal mission 26 May-6 June 2008 f. Staff review committee (SRC) 30 June 2008 g. Loan negotiations 11 Aug 2008 (LAO Grant) 11 Sep 2008 (VIE Loan) h. Board circulation 24 Sep 2008 i. Board consideration and approval 15 Oct 2008 j. Loan agreement signing 14 Nov 2008 (LAO Grant) 29 Dec 2008 (VIE Loan) k. Loan effectiveness, including conditions 30 Mar 2009 iii DESIGN AND MONITORING FRAMEWORK Design Summary Performance Targets Data Sources and/or Assumptions and Risk and/or Indicators Reporting Mechanisms Impact By 2016 in the GMS: Assumption • Receipts from • Reports and statistics • Adequate human resources A sustainable, culturally international tourism from government to implement environmental and environmentally increased from $23 agencies, development and cultural heritage sound, pro-poor tourism billion to $55 billion. partners, and protection laws, regulations, approach for the GMS • 52 million International nongovernment and guidelines in place developed tourist arrivals organizations Risks • 1.2 million new jobs in • Adverse economic or social the tourism sector upheavals such as war, political instability, or created natural disasters occur • 50% of world heritage Preservation of natural sites well preserved • Governments are unable to and cultural heritage and 30% of tourism mobilize public and private income from visitor site resources to implement entry fees is re- strategic GMS projects. invested in conservation and protection Outcome By 2013 in the project Assumptions areas: Sustainable tourism • Review missions and • Adequate planning development that • 60,000 people benefit biannual project mechanisms and regulation creates livelihood directly and 300,000 steering committee are in place and enforced. opportunities for the indirectly from tourism meetings poor development, of which • Tourists continue to at least 30% are • Project survey reports demand sustainable women and 37% are • Performance tourism products. poor monitoring and impact Risks • The number of evaluation reports international tourist • Uncontrolled tourism Official government arrivals at each project • causes congestion, reports and statistics site increases by 30% increased pollution, and the compared with 2008 • Reports of other deterioration of the levels bilateral and destinations. • Tourists’ average daily multilateral agencies • Over-commercialization of expenditure increases • Project completion cultural traditions degrade by 20% report cultural heritage and the identity of ethnic minorities. • International tourists’ average length of stay increases by 1 day at each project site Outputs By 2013, for each site: Assumptions 1. Model sustainable • Protection and access • Performance tourism development • Site managers able to infrastructure (access monitoring and projects protecting acquire necessary technical roads, markets, viewing evaluation reports the environment and points, walking trails and management • Monitoring of water cultural heritage and signage, capacities quality, pollution levels, developed in 4 sites: information and visitor • Government authorities and levels of solid and centers, access and willing to cooperate with Siphandone Wetland liquid waste parking, river piers, local communities living in (Lao PDR) generation, treatment, community lodges, and the project areas Vang Vieng town and disposal. sanitary facilities) environmental • Environmental installed, operated, and improvement (Lao awareness surveys for maintained PDR) communities and for • Site managers and residents and Phong Nha Ke Bang operators trained on businesses in core National Park (Viet sustainable tourism town areas Nam) practices • Project completion Ethnic minority • Tourism master plans iv cultural Heritage developed report development in Bac • GMS manuals on Kan (Viet Nam) nature-based, urban, and ethnic minority tourism in the GMS developed • Gender-sensitive public awareness programs implemented 2. Pro-poor, community- Manual on CBT and Assumptions based, supply-chain tourism value chain • Quarterly project tourism projects development in the GMS progress reports • Local authorities committed operational produced • Review missions and to pro-poor tourism biannual project development For each of the 11 steering committee • Planning and environmental participating provinces: meetings controls and enforcement • At least 1 CBT tour • Number of hits each measures in place circuit, 1 tourist site, new CBT tour or • Communities willing and and 1 supply-chain destination generates able to operate and subproject developed on internet web- maintain small tourism and operational searches infrastructure • Gender-sensitive • Interviews with tourists, • Governments recruit training program on tour operators and qualified staff and environment, culture, guides, hotel and consultants to perform and tourism for tour destination managers, management and operators and guides merchants, and coordination developed and communities implemented • Performance • Ethnic minority and monitoring and gender participation evaluation reports program produced • Annual pro-poor • Guidebooks, monitoring report brochures,
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