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, and website • Project completion produced report • Monitoring program established and annual report published • At least 2,000 people trained in each province, of which at least 30% are women 3. GMS tourism For each of the two Assumptions corridors developed economic corridors (north– • Review missions and south corridor in the Lao biannual project • Communities willing and PDR and east–west steering committee able to operate and corridor in the Lao PDR meetings maintain small and Viet Nam) • Interviews with tourists, infrastructure • Infrastructure (access tour operators and • Movement of tourists along roads, signage, guides, hotel and economic corridors information centers, destination managers, increases viewing points) merchants, and • Countries are willing to installed, operated, and communities cooperate to develop maintained in 5 sites • Performance common approaches for • Tourism corridor monitoring and tourism corridors. management plan with evaluation reports section on gender and • Annual destination ethnic groups produced monitoring report • Guidebooks, • Project completion brochures, and website report produced • Monitoring and evaluation program established and annual report published • Combined manual on

v developing tourism corridors in the GMS produced • At least 2,000 people trained in each province, of which at least 30% are women 4. Human resources in Assumptions the tourism sector • At least 800 tourism • Post-training developed officials, 40% of them evaluations and • Tourism officials attend the women, have been reports, including training sessions and apply trained to plan and student feedback and the knowledge. manage sustainable evaluations • Trainers are willing to tourism projects. • Performance conduct training sessions • At least 400 trainers monitoring and and apply acquired and 180 master trainers evaluation reports knowledge. are trained, 40% of • Project completion which will be women. report

5. Efficient project • PCUs and PIUs fully • Post-training Governments can recruit implementation staffed and operate evaluations and qualified staff and consultants services are efficiently reports, including to perform the variety of tasks operational • Provincial gender and student feedback and envisioned under the Project. ethnic participation evaluations plans are implemented Activities with Milestones Inputs Output 1: Project Cost: 1.1 Heritage-based tourism master plans, zoning, and management plans (2009– $21.98 million 2010) 1.2 Small tourism-related infrastructure such as access roads, boat landings, Lao PDR pathways and trails, and drainage and waste management systems (2010–2012) $10.87 million 1.3 Capacity development and livelihood support programs for local communities, especially women, youths, and ethnic groups to develop and operate community- Viet Nam based tourism enterprises and revitalized cultural industries (2009–2011) $11.11 million 1.4 Gender and ethnic minorities development program (2010) 1.5 Database and geographical information system on cultural practices and Funding Sources: indigenous knowledge of the area (2010) 1.6 Public awareness program on natural and cultural resource conservation and Lao PDR Component: protection; respect for cultural heritage; trafficking of wildlife and antiquities, ADB $10.00 million efficient waste management practices, HIV/AIDS, and other tourism-related issues ADF grant (2009–2010) Government of the Lao 1.7 Marketing and promotion program and materials to promote sustainable tourism PDR $0.87 and cultural products (2011–2012) 1.8 Institutional strengthening and capacity building in the agencies in charge Viet Nam Component: of operating and maintaining project facilities (2011–2012) ADB $10.00 million 1.9 Manuals to guide the preparation and implementation of future GMS tourism ADF loan subprojects focused on wetlands, protected areas, urban sites, and ethnic Government of Viet minorities (2011–2013) Nam $1.11 million 1.10 Monitoring and evaluation program (2009–2013)

Output 2: 2.1 Development of community-based tourism tour products and services (2009– 2010) 2.2 Public awareness program for tourism-related activities (2009–2010)

Activities with Milestones Inputs 2.3 Identification and development of tourism-related supply chain initiatives (2009– 2010) 2.4 Capacity development in tourism-related SMEs and communities (2009–2011) 2.5 Construction of small-scale tourism-related infrastructure (2010–2012) 2.6 Gender and ethnic minority development program (2010) 2.7 Marketing and promotion program (2011–2012) 2.8 Joint manual to guide the preparation and implementation of pro-poor tourism initiatives in the GMS coordinated between the Lao PDR and Viet Nam (2011– 2013) 2.9 Monitoring and evaluation program (2009–2013)

Output 3: 3.1 Preparation of tourism development and management plans for individual sites and for each economic corridor (2009–2010) 3.2 Construction of tourism-related infrastructure along the corridors, including access roads, parking lots, ticket booths, information centers, walking trails, markets, interpretation and sanitary facilities (2010–2012) 3.3 Community awareness and livelihood support program (2009–2011) 3.4 Tourism management training for site managers and local tour-guide training program (2009–2011) 3.5 Marketing and promotion program (2011–2012) 3.6 Gender and ethnic minority development program (2010) 3.7 Public awareness program for HIV/AIDS, human trafficking, drug abuse and other tourism-related issues (2009–2010) 3.8 Joint manual on procedures and practices to develop GMS tourism corridors coordinated between the Lao PDR and Viet Nam (2011–2013) 3.9 Monitoring and evaluation program (2009–2013)

Output 4: 4.1 Review of the existing training needs assessment for staff in tourism SMEs and public tourism officials (2009–2011) 4.2 Revision or development of service standards for tourism and hospitality enterprises and related training standards based upon ASEAN models and the training needs assessment (2009–2011) 4.3 Development of gender- and ethnic-sensitive and -inclusive training kit and manuals, teacher training materials and case studies, best practices, and lessons (2009–2011) 4.4 Production of CD ROMs and web-based training materials 4.5 Development and maintenance of a web-based knowledge center, which will be accessible in all GMS countries (2009–2011) 4.6 Translation of training manuals into Lao, Vietnamese, and minority languages (2009–2011) 4.7 Support to the selected training institutions in each country (2009–2011) 4.8 Training of master trainers, trainers, and government officials (2010–2013) 4.9 Monitoring and evaluation program (2009–2013)

Output 5: 5.1 International and national consulting services with expertise in tourism sector development, heritage preservation and development, financial accounting, social and gender development, resettlement, environment, civil engineering and supervision, project performance management system development, ecotourism, supply chains, and human resource development (2009) 5.2 Support for overall project implementation and coordination (2009–2013) 5.3 Capacity development for the PCUs and PIUs (2009–2011) 5.4 External monitoring for resettlement (2010–2011) 5.5 Project auditing (2010–2013) 5.6 Intermittent monitoring and evaluation of the overall Project by an independent consultant or institution (2011–2013) ASEAN = Association of Southeast Asian Nations, CBT = community-based tourism, GMS = Greater Mekong Subregion, PCU = project coordination unit, PDR = people’s democratic republic, PIU = project implementation unit, SME = small and medium-sized enterprises.

I. PROJECTB DESCRIPTION

A. ProjectB Areas and Location

1. The project area is nine provinces in the Lao PDR (Bokeo, Champassak, Houaphanh, Luang Namtha, Oudomxay, Saravanh, Savannakhet, Vientiane, and Xayaboury) and five in Viet Nam (Bac Kan, Cao Bang, Quang Binh, Quang Tri, and Thua Tien Hue), which were selected for their tourism potential, poverty rates, and inclusion in a GMS-TSS priority zone.

B. ImpactB and Outcome

2. The impact of the proposed Project will be the development of a sustainable, culturally and environmentally sound, pro-poor tourism approach for the GMS and the preservation of natural and cultural heritage. It will contribute to implementing the GMS-TSS. The project outcome will be sustainable tourism development that creates livelihood opportunities for the poor.

C. OutputsB

3. The Project will have the following 5 outputs: (i) model sustainable tourism development projects protecting the environment and cultural heritage developed, (ii) pro-poor, community- based, supply-chain tourism projects operational, (iii) GMS tourism corridors developed, (iv) human resource capacity of public and private tourism stakeholders improved, and (v) efficient project management services. Four subprojects under output 1 were selected from a long list of 120 candidates included in the GMS-TSS based on selection criteria agreed with the participating countries. A sectoral approach has been adopted for the demonstration subprojects under outputs 2 and 3 that will be identified during project implementation following the selection criteria stated in Appendix 1.

1. Output 1: Model Sustainable Tourism Development Projects Protecting the Environment and Cultural Heritage Developed

4. This output will develop for replication throughout the GMS four model tourism subprojects that will contribute to the protection of important natural heritage sites, the improvement of environmental conditions in urban tourism centers, ethnic groups/minorities’ livelihoods, and the protection of their cultural heritage. Each subproject will include the preparation, establishment, development and/or implementation of (i) heritage-based tourism master plans and zoning and management plans; (ii) small tourism-related infrastructure such as access roads, boat landings, pathways and trails, and drainage and waste management systems; (iii) capacity development and livelihood support programs for local communities, especially including women, youths, and ethnic groups, to develop and operate community tourism enterprises and revitalize cultural industries in partnership with private tourism operators; 1 (iv) a gender and ethnic minority development program; (v) a database and geographic information system on cultural practices and indigenous knowledge in the area; (vi) a public awareness program targeting tourists, tourism operators, and local communities on natural and cultural resource conservation and protection, respect for cultural heritage, controlling the traffic in wildlife and antiquities, efficient waste management practices, HIV/AIDS, and other tourism issues; (vii) a marketing and promotion program and materials to promote sustainable tourism and cultural products in association with local private tourism companies; (viii) institutional strengthening and capacity building in the agencies in charge of operating and maintaining project facilities; (ix) manuals to guide the preparation and implementation of future GMS tourism subprojects focused on wetlands, protected areas, urban sites, and ethnic groups/minorities; and (x) a monitoring

1 The Project will promote the development of community-private sector partnership and the development of small and micro tourism enterprises.

2 and evaluation program. These subprojects will help strengthen the local economy by creating additional livelihood opportunities for local communities to sell agricultural and handicraft products; provide cultural and guide services; gain access to new and higher-paid employment in restaurants, shops, and transportation services; and establish new SMEs. The subprojects will provide a more sustainable basis for private sector participation in the provision of services to tourists and generate sustained markets for local labor and locally produced handicrafts, agricultural products, and materials.

5. Lao PDR: Biodiversity Protection in the Siphandone Wetland. The Siphandone Wetland is in Champassak Province and part of the biodiversity corridor through Lao PDR, Cambodia, and Thailand. It contains about four thousand islands and is home to more than 72,000 people. Poor communities living in and adjacent to the wetland depend on it for food security and income. Over the years, the growing population and high fish prices have brought intensifed fishing and hunting, threatening Siphandone’s biodiversity. The subproject will provide alternative income opportunities for local people such as employment in tourism information centers, hotels, and guesthouses; as guides; providing tourist transport; and selling handicrafts and other products to them. Additional income from these new opportunities is expected to stem current activities that contribute to the site’s environmental deterioration. The subproject includes (i) upgrading a 4 kilometer (km) access road that connects Route 13 to the boat landing at Nakasang village; (ii) improving existing pathways on Don Det and Don Kone islands; (iii) environmental improvements at Nakasang and on Don Det and Don Kone; (iv) constructing visitor information and interpretation facilities on the Nakasang village side of the wetland; and (v) constructing fully interpreted access trails at Nakasang and on Don Det, Don Kone, and other smaller islands.

6. Lao PDR: Vang Vieng Town Environmental Improvement. Vang Vieng town functions both as a tourist center and service point between Vientiane and Luang Prabang. The number of tourists visiting the town has grown annually by 15% to 20% and is expected to surpass 100,000 by 2008. Tourism businesses pollute the environment with solid wastes and wastewater discharged directly into the drainage system and the river, which is also used for tourism activities. The subproject will improve environmental conditions in Vang Vieng town, contribute to reducing downstream river pollution, and protect the water quality of the river for local use and tourism. It includes (i) expanding and improving the existing drainage system in the core area of Vang Vieng town; (ii) upgrading selected roads in the core area to ensure that stormwater drains into side-entry pits; and (iii) installing a bio-filter to remove a contaminants (e.g., hydrocarbons and sediments). The subproject will strengthen linkages between the tourism industry and local suppliers of labor, agricultural products, handicrafts, and other materials.

7. Viet Nam: Phong Nha Ke Bang National Park. Phong Nha Ke Bang National Park is a UNESCO Natural World Heritage Site located in Quang Binh Province, approximately 500 km south of Hanoi. Covering 85,754 hectares of rugged limestone mountains, the park straddles the Ho Chi Minh Trail and abuts the Hin Nam No National Protected Area in the Lao PDR. More than 75,000 people live in communities around the park, and about 2,100 people reside in remote villages within it. Since the area became protected, residents’ loss of access to the forest and its non-timber forest products has harmed their livelihoods. Tourism activities affect the sustainability of the site. The subproject will provide additional sources of income to local people by developing new tourism products that will create additional employment opportunities in transport, tourism information, and accomodation. It will also improve the capacity of park managers to manage increased tourism and contribute to the preservation of the natural environment. It includes (i) improvements to the Phong Nga and Tien Son caves to facilitate access for tourists and minimize disruption to the site, (ii) the development of a new nature circuit in the park, and (iii) improvements to existing procedures for solid waste disposal and management.

8. Viet Nam: Ethnic Minorities Cultural Heritage Development in Bac Kan. Located in the northern highlands of Viet Nam along Route 3, Bac Kan Province is 120 km north of Hanoi. About 85% of the residents of Bac Kan depend on agriculture for subsistence and livelihoods. Among the 300,000 people living in the province, 87% are ethnic minorities, comprising the Tay, Dao, Nung, H’mong, Hoa, and San Chay. Bac Kan is known for its rich ethnic traditions and natural landscapes such as Ba Be Lake and National Park and Nang Tien cave. Since 2003, tourism has grown at an annual average of 23%, with about 100,000 overnight tourists visiting the province in 2007. As ethnic minorities experience a rapid shift toward a market economy and urbanization brought by tourism growth, there is a risk of lost cultural identity and heritage, especially language and oral traditions and indigenous knowledge, music, rituals, and belief systems. Meanwhile, ethnic minorities do not benefit from tourism. The subproject will promote ethnic culture and traditions in a way that is not exploitative but attractive to tourists. It will provide business and employment opportunities to ethnic groups and help them benefit from tourism through the fair sharing of proceeds with private tourism operators, while improving their capacity to minimize potential social disruption. It includes (i) constructing a heritage interpretation and visitor information center near Ba Be Lake, (ii) developing tourist destinations and products in selected villages, (iii) developing and delivering training programs for local residents at the new center to help revitalize cultural industries, and (iv) preparing and implementing a private sector investment program for cultural heritage tour operation and, potentially, eco-lodges.

2. Output 2: Pro-Poor, Community-Based, Supply-Chain Tourism Projects Operational

9. Output 2 will involve and benefit poor communities in the tourism economy through 33 subprojects. 2 It includes the development of tourism products and tours designed and operated by local communities in partnership with the private sector, and supply-chain initiatives to link the production of agricultural goods and handicrafts by poor communities to the local, regional, and national tourism economy. Output 2 aims to protect ethnic cultures and minimize the adverse impacts of tourism, especially on vulnerable groups such as women, youths, and the elderly. The output aims to increase rural employment and the incomes of the poor by developing new tourism products and services in partnership with the private sector. The poor will benefit working as guides and providing food, accommodation, cultural performances, and local transportation to tourists. New opportunities will be developed to produce and sell local handicrafts, food, and other products to tourists.

10. A sectoral approach has been adopted for this output, based on a demonstration model developed for Aloui District, Thua Tien Hue Province, with other sites to be selected during project implementation. The output includes (i) the development of community-based tour products and services, (ii) a public awareness program for tourism, (iii) the identification and development of tourism-related supply-chain initiatives, (iv) capacity development in tourism- related SMEs and communities, (v) the construction of small tourism-related infrastructure, (vi) a gender and ethnic minorities development program, (vii) a marketing and promotion program, (viii) the promotion of community tourism networks and tourism stakeholder associations, (ix) a joint manual to guide the preparation and implementation of pro-poor tourism initiatives in the GMS (coordinated between the Lao PDR and Viet Nam), and (x) a monitoring and evaluation program.

3. Output 3: GMS Tourism Corridors Developed

11. The output will result in the development of GMS transnational tourism corridors. It will provide models for a subregional approach to developing tourism opportunities along the GMS

2 Three subprojects will be developed in 11 provinces: Bokeo, Houaphanh, Saravanh, Oudomxay, Sayabouli, and Vang Vieng District of Vientiane in the Lao PDR and Thua Tien Hue, Quang Binh, Quang Tri, Bac Kan and Cao Bang in Viet Nam.

4 transport corridors that contributes to their transformation into subregional economic corridors. The output will help participating countries coordinate with other GMS countries, 3 local communities, and the private sector to develop tourism sites and circuits, joint marketing plans, and common tourism signage along the main GMS transport corridors. About 10 subprojects to improve the infrastructure of tourism sites will be developed in the Lao PDR along the north–south economic corridor (NSEC), which links Yunnan Province in the PRC to the Lao PDR and Thailand, and in Viet Nam and the Lao PDR along the east–west economic corridor (EWEC), which links these two countries with Thailand. The Project will include activities to help manage the risks associated with the increased movement of people and tourists across borders.

12. This output aims to create economic opportunities for local communities located along the corridors; lengthen the time tourists spend in participating countries; create jobs, especially for women and ethnic groups/minorities; protect the integrity of natural and cultural heritage at the sites by installing appropriate infrastructure and management systems; promote private sector participation; and develop interpretative materials and displays to add value, understanding, and appreciation of the selected sites. The output includes (i) preparing tourism development and management plans for individual sites and each economic corridor; (ii) constructing tourism-related infrastructure along the corridors, including access roads, parking lots, ticket booths, information centers, walking trails, markets, and interpretation and sanitary facilities, with partnerships between local communities and the private sector for investment, operations and maintenance; (iii) a community awareness and livelihood-support program; (iv) tourism management training for site managers and a local tour-guide training program; (v) a marketing and promotion program; (vi) a gender and ethnic groups/minorities development program; (vii) a public awareness program for HIV/AIDS, human trafficking, drug abuse, and other tourism-related concerns; (viii) a joint manual on procedures and practices to develop GMS tourism corridors, coordinated between the Lao PDR and Viet Nam; and (ix) a monitoring and evaluation program.

4. Output 4: Human Resources in the Tourism Sector Developed

13. Output 4 will create a pool of master trainers to meet training needs in the areas of (i) small-scale tourism and hospitality operations and (ii) public sector tourism planning and management. Under the first training area, some master trainers will be selected to train trainers of staff in tourism SMEs. 4 Under the second training area, the Project will support master trainers’ training of provincial, district, and local public officials responsible for tourism management in pro- poor planning and management. Training will focus on the participating provinces. In each country, a training institution for each of the two training areas will be selected, receive support to improve its facilities, and partner with international institutions in training master trainers.

14. In each country, the output includes (i) a review of the existing training needs assessment for staff in tourism SMEs and public tourism officials; (ii) the revision or development of service standards for SME tourism and hospitality enterprises, as well as related training standards based on Association of Southeast Asean Nations (ASEAN) models and the training needs assessment; (iii) the development of gender- and ethnic-sensitive and -inclusive training kits and manuals, teacher training materials and case studies, best practices, and lessons learned; (iv) the production of CD ROMs and web-based training materials; (v) the development and maintenance of a web-based knowledge center accessible in all GMS countries; (vi) the translation of training manuals into Lao, Vietnamese, and other ethnic languages; (vii) support to training institutions selected in each country; (viii) the training of master trainers in English and of trainers and government officials in local languages; and (ix) a monitoring and evaluation program.

5. Output 5: Efficient Project Implementation Services are Operational

3 Other GMS countries can join by financing activities in their territories with their own resources. 4 Training of staff in tourism SMEs will not be financed by the Project.

15. Output 5 will ensure efficient project management services that are fully operational. In each country, this output includes (i) international and national consulting services with expertise in tourism development, heritage preservation and development, financial accounting, social and gender development, resettlement, environment, civil engineering and supervision, developing systems of project performance management, ecotourism, supply chains and human resource development; (ii) support for project implementation and coordination; (iii) capacity development for project coordination units (PCUs) and project implementation units (PIUs); (iv) external monitoring for resettlement; (v) project auditing; and (vii) intermittent monitoring and evaluation of the Project by an independent consultant or institution.

D. SpecialB Features

16. GMS Subregional Cooperation. The GMS-TSS recognizes that a cooperative, common approach to tourism development is needed if the subregion’s countries want to develop the sector in a sustainable way in an increasingly competitive market. The Project builds on that principle to support the development of a subregional tourism approach to achieve the objectives of the GMS-TSS. It will enhance subregional cooperation and economic integration by enhancing the attractions of key subregional tourism destinations, encouraging the movement of tourists along the GMS transport corridors, promoting common approaches to community-based ecotourism and value-chain activities, and improving the management of urban and natural protected areas of importance for tourism. The Project is expected to have an impact on all GMS countries through the development of demonstration tourism subprojects in the participating countries, which can be replicated across the subregion.

17. Improved tourism infrastructure along the GMS transport corridors, common tourism signage, and joint tourism marketing strategies for each corridor will help tour operators develop multi-country circuits along the roads that could integrate the subprojects included in the Project and the entire subregion. The Project will complement other GMS projects and initiatives supported by ADB, particularly the development of transport corridors (EWEC in the Lao PDR and Viet Nam and the NSEC in the Lao PDR), the Core Environment Program, and the Cross-Border Transport Agreement. MTCO will serve as the coordination point for the Project. All GMS countries are expected to participate in meetings of the subregional project steering committee (SPSC) to exchange experiences, contribute to preparing the tourism manuals, develop GMS tourism corridors, and agree on a subregional approach to sustainable tourism development. All project sites are located in one of the priority tourism zones identified in the GMS-TSS. Some areas of important natural and cultural heritage are shared by two or more GMS countries. GMS manuals on (i) urban tourism, (ii) tourism management in protected natural and sensitive areas, (iii) ethnic groups/minorities and tourism, (iv) pro-poor tourism, and (v) tourism corridors will be produced and widely publicized. A GMS tourism database for human resources will be developed.

18. Poverty Reduction. The Project has been classified as a targeted intervention. As the project area covers the poorest provinces in the two countries, 30% of expected project beneficiaries in Viet Nam and 44% in the Lao PDR are poor. As these areas are important tourist locations, great potential exists for the Project to reduce the high poverty incidence and contribute to inclusive economic development. The poor in the project areas will benefit significantly from project interventions through the generation of new employment opportunities and tourism SMEs; developing community ownership and self-reliance; reduced social and health risks through awareness programs; improved infrastructure, such as potable water, communications, roads, and access to markets; protection of natural and cultural resources; and a more sustainable environment. The Project’s pro-poor tourism-development activities include community-based approaches combined with supply-chain initiatives that aim to protect minority cultures, minimize the adverse impacts of tourism, and provide livelihood opportunities for vulnerable groups such as women, youths, ethnic groups/minorities, and the elderly. The output regarding human resources

6 development will have a pro-poor focus and include training on developing and managing small- scale tourism interventions in poor areas and targeted capacity development for women, the poor and ethnic groups/minorities.

19. Gender. The tourism industry is particularly important for women, as the percentage of women employed in restaurants, hotels, and other tourism services is higher than in the general workforce. 5 Women will benefit through increased employment and the educational and other socioeconomic opportunities generated by the tourism sector such as food production, handicrafts, ceremonial celebrations, and the operation and management of small tourism sites. At the same time, the Project has significant potential to promote gender equity by improving women’s decision making in tourism management. A gender action plan has been formulated to promote the equal participation of all stakeholders as project beneficiaries. Key activities include (i) establishing mechanisms to promote women’s representation in decision-making processes; (ii) integrating women’s needs into project subcomponents; (iii) including targets for female staff in project implementation; (iv) training communities, government officials, and other stakeholders on gender issues and risks related to tourism; (v) conducting awareness programs for communities and government officials on HIV/AIDS, trafficking, and other social risks; (vi) effectively involving women in project monitoring and evaluation, including gender- disaggregated data for these purposes; and (vii) reserving at least 40% of capacity development and training activities and 50% of the scholarships for master trainers for women. A summary gender analysis and action plan is in Appendix 2.

20. Community Participation. A participation strategy is incorporated into the project design to help communities plan and manage local tourism destinations through an inclusive model of community and supply-chain development. The pro-poor tourism-development output will enable community groups and individual households to set their own priorities for tourism development and to utilize and manage tourism sites as collective resources. The Project will (i) facilitate and provide capacity building on community planning, management, operation, and maintenance of local tourism development; (ii) conduct awareness campaigns on social risks; (iii) provide sufficient opportunities for all groups to participate in the Project; (iv) build capacity in poor communities for developing ownership and self-reliance; and (v) ensure the monitoring and evaluation of participatory processes and outputs. Project preparation included extensive consultation with beneficiaries using participatory approaches.

21. Ethnic Groups/Minorities. Ethnic groups/minorities in participating provinces will benefit from the preparation and implementation of demonstration projects aimed at developing a sustainable, culturally and environmentally sound, pro-poor approach to tourism in the GMS. The anticipated threats to ethnic groups/minorities under output 1 of the Project are very limited. The Bac Kan subproject will help conserve and revitalize ethnic culture and traditions in the province, especially in Ba Be District, where 85% of the population is minority. The subprojects under outputs 2 and 3 will include specific actions to enable ethnic minorities, especially ethnic women, to participate in capacity development for tourism-related micro-enterprises, ensure that they benefit from the Project, and mitigate any risks. Each output includes a separate budget to support the screening and mitigation of tourism impacts on ethnic minority groups and develop measures for more equitable distribution of benefits among all ethnic groups. A summary ethnic groups/minorities development framework for the Project is in Appendix 3.

22. Cost Recovery Mechanisms and Financial Sustainability. Cost recovery mechanisms are built into all subprojects to ensure their financial sustainability. The mechanisms, based on user or environmental charges and tourism entrance fees, will be used to cover the operation and maintenance (O&M) costs of each subproject or to finance social projects in the local communities in charge of the subproject. Surveys of foreign and domestic

5 UNDP. 1999. Gender and Tourism. New York.

7 tourists were conducted to assess their willingness to pay entrance and user fees at project sites. Surveys of commercial businesses and residents in Vang Vieng town were conducted to assess their receptiveness to environmental user fees for the environmental management infrastructure proposed. The Project will develop models for minority cultural heritage information centers and natural protected area management agencies of importance for tourism to generate sufficient revenue from tourists, reinvest a certain percentage of it in preserving the destination, and gradually reduce government subsidies, while benefiting local communities in the area. Entrance fees to Phong Nha Khe Bang, Bac Kan, and Siphandone will be increased so that the agencies in charge of the sites get sufficient funds to cover O&M costs.

II. COST ESTIMATES AND FINANCING PLAN

A. DetailedB Cost Estimates

23. The cost of the Project is estimated at $21.98 million equivalent. The cost for the Lao PDR component is $10.87 million, including taxes and duties of $598,000, and for the Viet Nam component $11.11 million equivalent, including taxes and duties of $589,000. Cost estimates for each country are presented in Appendix 4.

Table 1: Project Investment Plan ($ million) Part Amountsa A. Lao PDR 1. Base Costb a. Output 1 Sustainable Tourism Development 3.20 b. Output 2 Pro-Poor Tourism Development 2.32 c. Output 3 Tourism Corridors 1.30 d. Output 4 Human Resources Development 0.51 e. Output 5 Project Implementation 1.77 Subtotal (A1) 9.10 2. Contingenciesc 1.77 Subtotal (A) 10.87 B. Viet Nam 1. Base Costb a. Output 1 Sustainable Tourism Development 3.61 b. Output 2 Pro-Poor Tourism Development 2.13 c. Output 3 Tourism Corridors 1.21 d. Output 4 Human Resources Development 0.51 e. Output 5 Project Implementation 1.86 Subtotal (B1) 9.32 2. Contingenciesc 1.61 3. Financing Charges During Implementation d 0.18 Subtotal (B) 11.11 Total 21.98 Lao PDR = Lao People’s Democratic Republic. a Includes taxes and duties of $598,000 for the Lao PDR and $589,000 for Viet Nam. b In mid-2007 prices. c Physical contingencies are computed at 10% for civil works, field research and development, training, surveys, and studies. Price contingencies are computed at 4% on foreign exchange costs; on local currency costs they are computed at 6.5% in the Lao PDR and 8.5% in Viet Nam. They include provision for potential exchange rate fluctuation under the assumption of purchasing power parity. d Includes interest during implementation computed at 1% per annum for the Asian Development Fund loan to Viet Nam. Source: Asian Development Bank estimates.

B. FinancingB Plan

24. It is proposed that ADB provide a loan of SDR 6,479,000 ($10 million equivalent) from the Special Funds resources to Viet Nam, with a term of 32 years, including a grace period of 8 years, and with an interest charge of 1.0% per annum during the grace period and 1.5% per annum thereafter. It is also proposed that ADB provide a grant of $10 million from the Special Funds resources to the Lao PDR. The Government of Viet Nam will provide $1.11 million equivalent, and the Government of the Lao PDR will provide $870,000 equivalent, as counterpart funds to finance taxes and duties, the cost of land acquisition and resettlement, and part of the cost of works.

Table 2: Financing Plan ($ million) Source Total % A. Lao People’s Democratic Republic Asian Development Bank 10.00 92.00 Government 0.87 8.00 Subtotal (A) 10.87 100.00 B. Viet Nam Asian Development Bank 10.00 90.00 Government 1.11 10.00 Subtotal (B) 11.11 100.00 C. Project Total Asian Development Bank 20.00 90.99 Governments 1.98 9.01 Total 21.98 100.00 Source: Asian Development Bank estimates.

C. AllocationB of Loan/Grant Proceeds

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS Grant 0117-LAO: GMS Sustainable Tourism Development Project CATEGORY ADB FINANCING Number Amount Allocated US$ Percentage and Basis for Item Withdrawal from the Grant GA GFIS Category Subcategory Account 1 Works 3,426,000 1a 3201 Works-Part 1 2,863,000 84 percent of total expenditure 1b 3202 Works - Parts 2,3&4 563,000 90 percent of total expenditure 2 3601 Equipment 426,000 100 percent of total expenditure* 3 3801 Training and Workshops 2,020,000 100 percent of total expenditure* 4 3101 Consulting Services 1,667,000 100 percent of total expenditure* 5 3501 Environmental Management Plan 155,000 100 percent of total expenditure* 6 3901 Recurrent Costs 534,000 100 percent of total expenditure* 7 4901 Unallocated 1,772,000 Total 10,000,000 * Exclusive of local tax and duties

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS Loan 2457-VIE: GMS Sustainable Tourism Development Project CATEGORY ADB FINANCING Percentage and Basis for Number Amount Allocated Item Withdrawal from the Grant LA LFIS SDR US$ Account 1 01 Works 2,267,000 3,498,997 79 percent of total expenditure 2 02 Equipment and Vehicle 444,000 685,291 100 percent of total expenditure* 3 03 Training and Workshops 932,000 1,438,494 100 percent of total expenditure* 4 04 Consulting Services 1,117,000 1,724,031 100 percent of total expenditure* 5 05 Environmental Management Plan 85,000 131,193 100 percent of total expenditure* 6 06 Recurrent Costs 472,000 728,507 100 percent of total expenditure* 7 07 Interest Charge 117,000 180,583 100 percent of amount due 8 08 Unallocated 1,045,000 1,612,903 Total 6,479,000 10,000,000 * Exclusive of taxes and duties imposed within the territory of the Borrower.

III. IMPLEMENTATION ARRANGEMENTS

A. ExecutingB and Implementing Agencies

25. The project executing agencies (EAs) will be LNTA in the Lao PDR and MCST in Viet Nam. The SPSC, with representatives from LNTA and MCST, will be established to oversee project implementation subregion-wide. Directors general of LNTA and MCST, or more senior officials, will alternately chair the SPSC. Representatives from NTOs of the other GMS countries will be invited to discuss the lessons from the demonstration subprojects and the potential to replicate them. MTCO will act as the secretariat of the SPSC. National project steering committees (NPSC) will be established in each participating country to provide policy guidance, and oversee project implementation nationally. The committees will be chaired by a senior official of director general level in the EA, and their memberships will include representatives from the Ministry of Finance (MOF), Ministry of Planning and Investment, offices of GMS coordinators, and participating provinces. In Viet Nam, the NPSC will also include the State Bank of Viet Nam and in Lao PDR, the members will include the Prime Minister’s Office.

B. ProjectB Management Organization

26. In each participating country, a PCU has been established within the EA and headed by a project director. The project director will be assisted by a deputy director and five staff who will be responsible for project accounting; monitoring and evaluation; environment, natural and cultural heritage, gender, and other social issues. The PCUs will be responsible for (i) coordinating the Project; (ii) selecting and managing consultants, including for external monitoring of resettlement impacts; (iii) submitting all necessary data to the auditor on time and the audited financial statements of project accounts to ADB; (iv) carrying out project monitoring and evaluation; (v) consolidating project reports to be submitted to ADB and the Government; and (vi) coordinating with the other PCU, MTCO, and the NTOs of other GMS countries. In the Lao PDR, the PCU will be responsible for carrying out procurement. In Lao PDR, the PCU will also be responsible for carrying out Procurement. The PCUs will be supported by international and national consultants.

27. PIUs established in each participating province will be responsible for implementing, coordinating, monitoring, and reporting project activities at the provincial level under PCU guidance. In Viet Nam, the PIUs will be responsible for carrying out procurement. They will be headed by a provincial project director and include a project manager and five other staff who will be responsible

10 for project accounting; monitoring and evaluation; environment, natural and cultural heritage, gender, and other social issues. A provincial project steering committee will be established to represent agencies in charge of natural and cultural heritage site management, urban environment, public works, and transportation, as well as district authorities. Community tourism groups representing stakeholders in the local community will be established for each subproject. Details on the project management are in Appendix 5 and Job Descriptions of PCU and PIU Project Staff are Supplementary Appendix E.

IV. IMPLEMENTATION SCHEDULE

28. The Project will be implemented over a period of 5 years from 1 January 2009 to 31 December 2013. An implementation schedule is presented in Appendix 6.

V. PROCUREMENT

29. Works, goods, and services to be financed by ADB will be procured in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). The PCU in the Lao PDR and the PIUs in Viet Nam will be responsible for procuring works, goods, and services provincially. Each procurement package for works will not exceed $1.5 million. Procurement for works will follow the national competitive bidding (NCB) procedures of the participating countries that are acceptable to ADB. NCB procedures will be followed for materials and equipment packages estimated to cost between $100,000 and $500,000 equivalent. Equipment and materials that are locally available and cost less than $100,000 equivalent may be procured through shopping. Any procurement of works, goods, and services of not more than $10,000 will be done through direct contracting. The first two contracts for works in each province will be subject to ADB approval. Subsequently, the PCUs and PIUs will maintain specified documents 6 for review by ADB. A draft procurement plan and modes of procurement are provided in Appendix 7.

VI. CONSULTING SERVICES

30. To support the implementation of the Project, 250.5 person-months of consulting services (78.5 person-months international and 172 person-months national) will be required for the Lao PDR and 226.5 person-months (50.5 person-months international and 176 person- months national) for Viet Nam to assist project management, resettlement, and gender and environment matters, as well as to supervise the design and construction of tourism infrastructure. In addition, the consultants will deliver on-the-job training and capacity building programs for PIUs and PCUs. They will be engaged in accordance with the ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). In the Lao PDR, individual consultants will assist the PCU and PIUs in project management, and a firm will supervise the detailed design of infrastructure. In Viet Nam, a firm will be selected to assist the PCU and PIUs in project management and the detailed design of tourism-related infrastructure, and a different firm will be recruited to assist the PIUs in supervising civil works. The firms will be selected using the quality- and cost-based selection method, and the weighting will follow the standard quality–cost ratio of 80:20. Additional individual consultants will be recruited in each country for external monitoring of resettlement impacts and project external monitoring. All consultants will be located in the PCUs. Two training institutions in each participating country will be recruited to provide training under output 4 using the consultants qualification selection procedure. Procedures in Recruiting Consultants and Terms of Reference of Consulting Services and are in Appendix 8.

6 These include bid invitation letters, bid opening statements, bid evaluation reports or approval documents, and contracts.

11 VII. DISBURSEMENT PROCEDURES

31. The payment of eligible expenditures from the proceeds of the grant and the loan will be made either through direct payment or imprest account procedures in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). An imprest account will be established for the Project in each participating country. In the Lao PDR, the imprest account will be established by the Government at the Bank of Lao PDR. In Viet Nam, the imprest account will be established by the Government at a commercial bank designated by the State Bank of Viet Nam and acceptable to ADB. The initial advances to, and the ceiling of, each imprest account will be based on estimated expenditures to be funded from the imprest account for the first 6 months or 10% of the total ADB grant or loan amount, whichever is less. The imprest accounts will be established, managed, replenished, and liquidated in accordance with ADB’s Loan Disbursement Handbook and detailed arrangements agreed between each participating country’s government and ADB. The statement of expenditures procedure will be used to reimburse and liquidate eligible expenditures under contracts not exceeding $50,000. The PCUs and PIUs will each set up an account specifically for the Project. The accounts may be opened at a commercial bank acceptable to each participating country’s government and ADB. In Viet Nam, any advance payment and subsequent replenishments to the PIUs’ accounts will be made directly from the imprest account. Disbursement Modalities and funds flow mechanisms are in Appendix 9.

VIII. AUDITING REQUIREMENT

32. The PCUs and PIUs will maintain project accounts exclusively established for the Project. A separate accounting system for project expenditures will be established and maintained in accordance with sound accounting principles. The consultants will provide training on the use of the imprest accounts and operating support to PCUs and PIUs accounting staff. All project accounts will be audited annually as part of the regular audit by an independent auditor acceptable to ADB, using international accounting and auditing standards. A separate audit opinion will be issued on the use of the imprest account and statement of expenditure procedures. The consolidated audit reports will be submitted to ADB within 6 months of the close of each participating government's fiscal year. The audit opinion will include (i) an assessment of the adequacy of accounting and internal control systems regarding project expenditures and transactions to ensure the safe custody of project-financed assets; (ii) a determination as to whether the Government, the PCU, and participating provinces have maintained adequate documentation for all financial transactions, specifically including statement of expenditure and imprest account procedures; and (iii) confirmation of compliance with the project financial management system and ADB requirements for project management. Sample Audit Letter and Model Opinion are in Appendix 10.

IX. REPORTING REQUIREMENT

33. The PIUs will submit quarterly reports and data to their PCU within 15 days of the end of each quarter. Each PCU will (i) collect and consolidate all project progress reports, site reports, technical reports, and financial reports and (ii) prepare quarterly progress reports within 30 days of the end of each quarter and submit them to ADB. The quarterly reports will include (i) a narrative description of progress made during the reporting period; (ii) modifications, if any, to the implementation schedule; (iii) details of land use and resettlement; (iv) information on preparing and implementing initial environmental examinations (IEEs); (v) progress on the implementation of the gender action plan and the ethnic minority development framework; (vi) major project activities by the PCU, PIUs, and training institutions; (vii) financial and procurement-related information; (viii) problems experienced and remedial actions proposed; (ix) the work to be carried out during the upcoming reporting period; (x) progress on the grant or loan covenants, and (xi) a summary of expenditures during the quarter, year-to-date expenditures, and total expenditures. Each PCU will

12 submit to ADB, within 3 months of project completion, a project completion report that will cover the details of project implementation, achievement of outputs and outcome, compliance with covenants, implementation of environmental and social safeguards, and other information that ADB may request. Sample Progress Report is in Appendix 11.

X. PROJECT MONITORING AND EVALUATION

34. A comprehensive project performance monitoring system (PPMS) has been prepared. A set of PPMS indicators have been developed. The PPMS will be integrated into the information management system of the NTOs and the provincial tourism departments so that the monitoring of social and economic benefits can continue after project completion. The PIUs in each province will be responsible for ensuring that the PPMS is implemented and updated, in consultation with the local communities, to (i) examine the Project’s technical performance, (ii) evaluate the delivery of planned facilities, (iii) assess the achievement of project outputs and outcome, (iv) ensure compliance with social safeguards, and (v) measure project benefits. Annual PPMS reports will be prepared by each PIU, consolidated by the PCUs, and submitted to ADB. The integrated system for managing, monitoring, and evaluating project impacts, outcome, and outputs accords with ADB’s Project Performance Monitoring System Handbook. Project Performance Monitoring System and Project Performance Report are in Appendix 12.

35. Project outputs will be monitored in the regular course of the Project in terms of efficiency (quantities delivered, people trained, and meetings) and effectiveness (quality of the goods and services delivered). The PPMS will generate data on the immediate effects and the broader impacts of project investments on socioeconomic development, poverty reduction, and the degree to which women and vulnerable groups participate and benefit. A baseline survey will be carried out in selected communities in each province at the start of activities. Data collection will be organized by the PIUs through villages and communes and will be stored in a database maintained by the PIUs and PCUs. A monitoring and evaluation expert will provide guidelines and training on the design and maintenance of these databases. Monitoring data and indicators will be disaggregated, where possible, by sex, ethnicity, and income. In addition to the normal PPMS, an individual consultant will be recruited in each country for external benefit monitoring and evaluation, thereby independently assessing project effectiveness. The PCUs will appoint an independent external monitor acceptable to ADB for land acquisition and resettlement (LAR).

36. Project Review The NTOs and ADB will conduct joint project reviews at least twice a year and a comprehensive project review about 30 months after loan effectiveness. The comprehensive project review will evaluate the (i) the actual progress toward achieving the project outputs in each province, (ii) implementation procedures, (iii) feedback from PPMS activities, (iv) functioning and performance of the PCUs and PIUs, (v) performance of consultants, and (vi) financial performance and cost recovery of tourism subprojects.

XI. SAFEGUARD COMPLIANCE

37. Environmental Impacts. The Project is classified as environment category B. It is designed to improve residents’ quality of life and the physical environment. IEEs were prepared for each of the two subprojects under output 1 for each country. IEEs for the likely interventions under components 2 and 3 were prepared for each country. Because infrastructure interventions will be small, the likely environmental impacts will be temporary, minor, and localized. They can be minimized to acceptable levels with mitigation measures and monitoring programs identified in the IEEs. Environmental mitigation measures requiring action by the contractors will be incorporated into contracts for civil works. Environmental assessment and review frameworks (EARF) were prepared for each country to provide adequate guidance for

13 PCUs and PIUs in screening subprojects, determine appropriate mitigation for any negative impacts identified, and implement environmental management and monitoring during project implementation and beyond. For small-scale infrastructure interventions to be identified under components 2 and 3, a cluster of IEEs will be prepared for each participating province to document the screening results of all interventions. If any of the screening results indicate a need for further environmental analysis, individual IEEs will be prepared for each intervention that requires further analysis and submitted to ADB for review prior to awarding the civil works contract. A summary IEE for the Lao PDR is in Appendix 13. The summary IEE for Viet Nam, all remaining IEEs, and the EARFs are in Supplementary Appendix F.

38. Resettlement Impacts. Efforts have been made to minimize and, where possible, avoid LAR. However, minimal LAR with relatively small impacts is required: relocating a few households, temporarily relocating businesses, and using public land for the construction of small markets, parking lots, covered bus stops, river landings and stairs, cultural and interpretation centers, refreshment stands, walkways, footbridges, toilets with water supply, ticket booths, lodges, prayer pavilions, and signage. In accordance with ADB’s Involuntary Resettlement Policy (1995) and Handbook on Resettlement, resettlement frameworks for each participating country and short resettlement plans for the subprojects in the Siphandone Wetland (Lao PDR) and Phong Nga Khe Bang (Viet Nam) have been prepared based on an inventory of losses and socioeconomic surveys, including focus-group discussions with affected people and provincial authorities. One household will lose about 900 square meters of land to the subproject in Phong Nga Khe Bang National Park, and the subproject in the Siphadone Wetland will temporarily affect 28 stall owners and require three households to be relocated. Affected people will be compensated for their losses at full replacement cost at current market prices and provided with transition allowances and rehabilitation. Additional support will be extended to the poor and vulnerable and female-headed households. The resettlement frameworks will guide planning for any unforeseen LAR during project implementation. An international resettlement consultant for each country will build capacity in the PCUs and PIUs. The summary resettlement plan and framework is in Appendix 14.

XII. MAJOR LOAN COVENANTS

39. Major covenants are as:.

40. Conditions applicable to the two participating countries are as follows:

(i) Counterpart Funding The Recipient/Borrower will provide counterpart funds for project implementation on time. Each of the EAs will make timely submission of annual budgetary appropriation requests to their respective MOF, and the respective MOF will ensure prompt disbursement of appropriated funds during each year of project implementation. (ii) Anti Corruption Measures Each of the participating countries' government will comply with ADB's Anticorruption Policy and the Policy relating to Enhancing ADB's Role in Combating Money Laundering and the Financing of Terrorism. In particular, each participating countries' government and each participating province (i) acknowledges ADB's right to investigate any alleged corrupt, fraudulent, collusive or coercive practices relating to the Project; (ii) agrees to cooperate fully with any investigation and to extend all necessary assistance, including providing access to all relevant books and records, (iii) agrees to refrain from engaging in money laundering activities or financing of terrorism, and allows ADB to investigate any violation or potential violation of these undertakings. (iii) Within 6 months of ADB grant and loan effectiveness, each of the EAs will establish a project website to disclose project-related information on procurement including

14 the list of participating bidders, name of the winning bidder, details on bidding procedures, amount of contract awarded, and the list of goods/services procured. (iv) Within 6 months of ADB grant and loan effectiveness, each of the EAs will design and approve a grievance redress mechanism, acceptable to ADB, and establish a task force at the PCUs to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including grievances caused by resettlement and environmental issues. The task force will (a) make public the existence of this grievance redress mechanism through a public awareness campaign; (b) review and address grievances of stakeholders in relation to the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (c) proactively and constructively respond to them. (v) Subprojects Selection Criteria Subprojects will be selected in accordance with the agreed selection criteria set out in Appendix 1. (v) Gender Each of the participating countries’ governments will ensure implementation of the agreed gender action plan, as set out in Appendix 2. In particular, each of the participating countries’ governments and each participating province will ensure that the project gender action plan and the specific actions and targets are included in the project and provincial rolling work plans. Activities identified in the plan will be implemented in a timely manner and have adequate resources allocated for preparation and implementation. Gender-related targets and indicators are included in the PPMS. By midterm, each province will develop a provincial gender plan for the tourism sector, incorporating project lessons. (vi) Involuntary Resettlement Each of the participating countries’ governments will ensure that they will not approve any subproject that involves significant involuntary resettlement according to ADB’s Involuntary Resettlement Policy. Each of the participating country governments will further ensure that all land and right-of-way required for the Project shall be made available in a timely manner and adequate compensations shall be paid to affected people prior to any works contract’s award. Any involuntary resettlement shall be carried out in accordance with each of the resettlement frameworks prepared by and agreed between the respective participating countries’ governments and ADB, and ADB’s Involuntary Resettlement Policy. A resettlement plan will be prepared for each subproject involving land acquisition or resettlement and will be submitted to ADB for review and approval prior to any related works contract’s award. The resettlement plan for the subproject in Siphandone, which has been prepared and agreed between the Government of the Lao PDR and ADB, and the resettlement plan for the subproject in Phong Nga Khe Bang National Park, which has been prepared and agreed between the Viet Nam government and ADB, shall be updated and submitted to ADB for review and approval following detailed design and prior to work contracts’ award. Any draft resettlement plans and draft updated resettlement plans shall be disclosed to affected people prior to submission to ADB for review and approval. (vii) Environment Each of the participating countries’ governments will comply with its respective environmental laws and regulations and ADB’s Environment Policy (2002). If there is any discrepancy between the respective government’s laws and regulations and ADB's Environment Policy, ADB’s Environment Policy requirements will apply. They will ensure that the design, construction, operation and implementation of each subproject will be carried out in accordance with the IEEs and the EARFs, prepared and approved by each of the participating countries’ governments. Any adverse environmental impacts arising from the construction, operation and implementation of the subprojects will be minimized by implementing the environmental mitigation and management measures, and

15 other recommendations specified in IEE. Each of the participating countries’ governments will ensure environmental requirements are incorporated in bidding documents and contracts for works. (viii) Indigenous Peoples Each of the participating countries’ governments will ensure that the Project will be implemented in accordance with its respective government’s applicable laws and regulations on indigenous peoples and ADB’s Policy on Indigenous Peoples (1998) and will carry out the specific measures on indigenous peoples stipulated in the agreed ethnic groups/minorities development frameworks (EGMDFs), attached as Appendix 3. Each of the participating countries’ governments will further ensure that indigenous peoples have equitable opportunities to participate in training, recruitment, income generation activities under the Project. The EGMDFs will be monitored as part of the overall system for the Project, and socioeconomic data will be disaggregated by sex and by ethnicity. Progress reports will provide periodic updates on the effect of the Project on ethnic groups. (ix) Project Performance Management System (PPMS) Each of the participating countries’ governments will ensure that the PPMS developed for the Project is integrated into the information management system of the EA and the provincial tourism departments. The PIUs will ensure that the PPMS is implemented and updated, in consultation with local communities, to (i) examine the Project's technical performance, (ii) evaluate the delivery of the planned facilities, (iii) assess the achievement of the Project's outputs and outcome, (iv) ensure compliance with social safeguards, and (v) measure the Project's benefits. Data shall be disaggregated by sex, ethnic group and income level where feasible. The PIUs will prepare the annual PPMS reports and submit to the PCU. PCU will consolidate and submit the report to ADB. (x) Subregional Project Steering Committee (SPSC). An SPSC shall be established by MOST and Lao National Tourism Administration (LNTA) to oversee overall project implementation at the subregional level. MOST and LNTA of Lao PDR shall, respectively, appoint its representatives to sit as members of SPSC. Senior officials of at least a director general level of LNTA and MOST shall alternately chair the SPSC. Representatives from the national tourism offices (NTOs) of other countries within the GMS will be invited as observers to discuss the lessons learned from the demonstration subprojects and potential to replicate them. The Mekong Tourism Coordination Office (MTCO) shall act as a secretariat of the SPSC. (LA, Schedule 5, para. 2) (xi) National Project Steering Committee (NPSC). NPSC shall be established to provide policy guidance, and oversee Project implementation at the national level. The NPSC shall be chaired by a senior official of a director general level of MOST and its members shall include representatives from Ministry of Planning and Investment (MPI), Ministry of Finance (MOF), State Bank of Viet Nam (SBV) and the Participating Provinces. (LA, Schedule 5, para. 3 (xii) Project Coordination Unit (PCU). A PCU has been established within the office of MCST. The PCU is headed by a project director (Project Director). The Project Director shall be assisted by a deputy director and at least five other staff, who will be responsible for Project accounting, monitoring and evaluation, environment, natural and cultural heritage, social and gender issue. The PCU shall be responsible for (i) coordinating the Project; (ii) selecting, engaging and managing the consultants; (iii) providing necessary data to the auditor and submitting the audited financial statement to ADB on time; (iv) monitoring and evaluating the Project; (v) consolidating Project reports to be submitted to the ADB and the Borrower, and (vi) coordinating with the PCU in Lao PDR, the

16 MTCO and the NTOs of other GMS countries. The PCU shall receive support from the international and national consultants. (LA, Schedule 5, para. 4) (xiii) Project Implementation Unit (PIU). A PIU has been established in each Participating Province to undertake the day-to-day implementation of the Project. Each PIU shall receive guidance from the PCU and shall be responsible for implementing, carrying out procurement activities, coordinating, monitoring, and reporting activities at the provincial level. Each PIU shall be headed by a provincial Project Director and shall have a project manager and five staff, who shall beresponsible for project accounting, monitoring and evaluation, environment, natural and cultural heritage, social and gender issues. (LA, Schedule 5, para. 5) (xiv) Provincial Project Steerinq Committee (PPSC). A PPSC shall be established in each Participating Province within three months of the Effective Date. The PPSC shall provide policy guidance to the PIU and shall oversee Project implementation at the provincial level. The PPSC shall consist of representatives from relevant agencies at provincial level that are in charge of natural and cultural heritage site management, urban environment, public works, transportation, borders, and district authorities. The PPSC shall be chaired by a senior member of the Provincial People's Committee and the PIU shall serve as the secretariat of the PPSC. (LA, Schedule 5, para. 6) (xv) Community Tourism Group (CTG). The Borrower shall cause MOST to ensure that community consultation takes place at every step of Project implementation. For this purpose, the Pills shall work with each of the participating communities to establish a CTG in each of the participating communities. The CTG may comprise of stakeholders' representatives, the relevant village leaders and mass organizations such as women's union and youth union. The purpose and the main responsibilities of CTG shall be (i) to raise issues of concern to the PIU, (ii) to ensure that the concerns are adequately reflected in the implementation program, (iii) to assist in the implementation of the community awareness program and (iv) to ensure that the community is involved in the community based monitoring and evaluation. The PIU shall invite the CTG to attend the regular PPSC meetings. (LA, Schedule 5, para. 7) (xvi) Human Resources Traininq. The Borrower shall ensure that priority for the training to be provided under Part 4 of the Project, as described in Schedule 1 to this Loan Agreement, shall be given to master trainers, trainers and public sector officials in tourism sector from the Participating Provinces. The Borrower shall further ensure that the selection of master trainers, trainers and public sector officials shall be carried out in accordance with the selection criteria, which has been agreed between the Borrower and ADB. (LA, Schedule 5, para. 10)

41. Conditions applicable to the Lao PDR are as follows: (i) Vang Vieng District Regulation Within 12 months of ADB grant effectiveness, the Government will ensure that the local government of Vang Vieng will issue district regulations, acceptable to ADB, on sanitation requiring, among others (a) connecting sewage rains and septic tanks to drains in high and medium density areas, and to drains or properly designed and constructed soakaways in low density areas; (b) providing a septic tank that meets prescribed standards in each household or business located in high and medium density areas; and (c) providing on-site treatment facilities in hotels, restaurants, hospitals, and industrial enterprises to treat their wastewater. (ii) Operation and Maintenance Within 36 months of ADB grant effectiveness, the Government will ensure that the local government of Vang Vieng will prepare and implement a mechanism to ensure that public assets such as roads, drainage

17 and solid waste management can generate sufficient revenues. The Government will further ensure that the revenues generated by the public asset will be used for O&M. (iii) Within 36 months of ADB grant effectiveness, the provincial tourism department of Champassak will increase the current entry fee charges to the Siphandone area to a level sufficient to cover the required O&M of the tourist site facilities. Such increase will be at least 50% of the current entry fee. At least 50% of the revenues generated from the entry fee will be used for the O&M of the facilities at the tourism site.

42. Conditions applicable to Viet Nam are as follows: (i) Operation and Maintenance Within 36 months after loan effectiveness, the park authorities of Phang Nha Khe Bang will have increased the entry fee charged to tourists visiting the area. The MTCS will ensure that at least 50% of the funds collected from the entry fee will be retained and used solely for the O&M of the facilities at the site. (ii) Within 3 months after the finalization of the construction of the cultural heritage center in Bac Kan, the tourism provincial authorities will have imposed an entry fee charged to tourists visiting the center. The MTCS will ensure that at least 50% of the funds collected from the entry fee will be retained and used solely for the O&M of the facilities at the site.

XIII. KEY PERSONS INVOLVED IN THE PROJECT

43. The list of key persons who will be involved in the implementation of the Project from the EA and ADB are as follows:

A.B ADB Staff

(i) ADB Headquarters, Manila

Director, SESS : Shireen Lateef Social Sector Specialist : Anupma Jain Financial Control Specialist : Hirau Yasumitsu Project Officer : Nida Calma

Address : Asian Development Bank No. 6 ADB Avenue Mandaluyong City Philippines

Fax Nos : (632) 636 2228 (632) 636 2444 Tel Nos : (632) 632 6904 (632) 632 6360 E-mail : [email protected]

(ii) Lao Resident Mission (LRM)

Country Director : Gil-Hong Kim Address : Lao Resident Mission Corner of Lanexang and Samsenthai road

18 P.O Box 9724, Vientiane Lao People's Democratic Republic

Tel No : (856.21) 250444 Fax No. (856 21) 250333

(iii) Viet Nam Resident Mission

Country Director : Ayumi Konishi

Address : Viet Nam Resident Mission Units 701-706, Sun Red River Building, 23 Phan Chu Trinh Street, Hoan Kiem District Hanoi, Viet Nam

Tel No : (84 4) 933 1374 Fax No. (84 4) 933 1373

B. Executing Agency

Lao PDR Lao National Tourism Administration

Director, LNTA : Mr. Sounh Manivong

Deputy Director/Project Manager, STDP : Mr. Thaviphet Oula

Address : Vientiane, Lao PDR

Tel No. : (856 21) 212 251, 252976, 217910 Fax No. : (856 21) 217910, 212769 Tel/Fax No. : (62 21) 7884 4812

E-mail : [email protected]

Viet Nam Ministry of Culture Sports and Tourism

National Director, PCU Mr. Tran Van Ngoi National Deputy Director, PCU Mr. Trung Tuan Phuong Project Officer, PCU Ms. Nguyen Thi Thu Huong

Address GMS Sustainable Tourism Project Building 4A, Kim Lien Hotel, No 7 Dao Duy Anh Str Dong Da District, Hanoi, Viet Nam

Tel No. (84 4) 35772686 Fax No. (84 4) 35772685

Email [email protected]

[email protected]

19 XIV. ANTICORRUPTION

44. ADB's Anticorruption Policy (1998, as amended to date) was explained to and discussed with the governments Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the grant and loan regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EAs and all contractors, suppliers, and other service providers as they relate to the Project.

45. The Project incorporates several other measures in addition to the standard ADB requirements to deter corruption and increase transparency. The Project will (i) build capacity in the EAs, PCUs, and PIUs to understand and comply with ADB and government procedures as outlined in the project administration manual and (ii) widely publicize in communities in the project area the existence of the integrity division in ADB’s Office of the Auditor General, as the initial point of contact for allegations of fraud, corruption, and abuse in ADB-financed projects. A project website will be developed to disclose information about project matters, including procurement. To encourage more stakeholder vigilance as well as ensure greater accountability, a task force will be set up in the PCUs to receive and resolve grievances or act upon stakeholders’ reports of irregularities. The task force will (i) review and address stakeholders’ grievances against the Project in relation to the Project itself, any service provider, or any person responsible for carrying out the Project and (ii) set the threshold criteria and procedures for handling such grievances, proactively responding to them, and providing the stakeholders with notice of the mechanism. The community tourist group will be a member of the procurement committee for subprojects handled by the PIUs to ensure transparency in the awarding of contracts at the provincial and community level. Finally, external monitoring consultants will be recruited to monitor resettlement impacts and project implementation.

20 Appendix 1 SUBPROJECTS’ SELECTION CRITERIA

1. The Sustainable Tourism Development Project (the Project) employs two sets of selection and evaluation criteria: (i) one set used during project preparation to select the current list of subprojects under the project outputs and (ii) another set to be used during project implementation to (a) prioritize the demonstration subprojects under outputs 2 and 3; (b) select training institutions for implementing output 4; and (c) chose the group of master trainers, trainers of trainers, and public officials to receive training in output 4.

A. Selection and Evaluation Criteria During Project Preparation

2. During project preparation, a set of selection criteria was applied to a long list of more than 120 candidate subprojects. In the Lao PDR, the criteria helped to prioritize the two subprojects selected under output 1, six provinces under output 2, and the Greater Mekong Subregion (GMS) north–south and east–west economic corridors under output 3. In Viet Nam, the criteria helped to prioritize two subprojects under output 1, five provinces under output 2, and the GMS east–west economic corridor under output 3. The criteria also helped to prioritize two training programs for both the Lao People’s Democratic Republic (Lao PDR) and Viet Nam under output 4.

B. Selection and Evaluation Criteria During Project Implementation

3. Pro-Poor, Community-Based, Supply-Chain Tourism Subproject Sites. The Project will select a complimentary combination of pro-poor interventions in each province, including at least (i) one standalone individual tourist attraction such as a waterfall, cave, or historic site; (ii) one tour circuit such as a trekking route or tour; and (iii) one value chain involving a cluster of villages producing goods and services such as agricultural goods or handicrafts. The estimated cost of infrastructure at each site shall be about $100,000 in the Lao PDR and $110,000– $150,000 in Viet Nam. The infrastructure may include, but is not limited to, markets, viewing points, walking trails and signage, information and visitor centers, access and parking, river piers, community lodges, sanitary facilities, and the development of natural sites within a pro- poor, community-based tourism-development framework.

4. The selection of sites will be determined by the following set of criteria: (i) The area should include a cluster of villages and communities in a district or province centered around a staging town as gateway and main dormitory. (ii) It shall be safe and secure from internal and external threats and dangers (e.g., group conflicts, unexploded ordnance, etc.). (iii) It should be accessible by an existing road within 5 km, which may require a small investment for minor upgrading to enhance access. (iv) It should include many people living below the poverty line, especially in small and/or minority communities. (v) It should have a mix of natural and cultural tourism attractions of strong interest to tourist markets. (vi) An existing flow of tourists should already exist, which can be enhanced with modest interventions and generate substantial additional income. (vii) Strong and proven market demand should exist for the type of product that will be developed. (viii) Tourist attractions should include many local community stakeholders whose tourist-hosting skills require strengthening. (ix) Agencies in charge should have capacity to implement and operate the Project. (x) Consent and agreement should be reached with participating communities to enter into a joint-management contract for operating and managing the site once it is developed.

Appendix 1 21 (xi) Strong support and commitment must come from key stakeholders (e.g., local communities, tourism and related agencies, private tour operators and carriers, and development partners and nongovernment organizations). (xii) Cost-recovery mechanisms for recurrent operating costs should be in place, or there should be a clear willingness to put them in place. (xiii) No significant land acquisition or resettlement should be required, in accordance with the land acquisition and resettlement framework for the Project. 1 (xiv) No relocation of small or minority villages should be required, in accordance with the country-specific ethnic minority development framework for the Project. (xv) No significant environmental impacts are associated with the intervention in accordance with the Project’s environmental assessment and review framework.

5. These criteria will be used for screening and is complemented by a number of other evaluating steps, especially local communities’ willingness to participate. Some of the steps are highlighted in the detailed project description and implementation manual in Supplementary Appendix G.

6. GMS Tourism Corridor Subproject Sites. Subprojects sites along the north–south economic corridor (NSEC) and east–west economic corridor (EWEC) may include, but are not limited to, markets, viewing points, walking trails and signage, information and visitor centers, access and parking, river piers, community lodges, sanitary facilities, and the development of natural sites. The sites will be selected according to of the following criteria: (i) Small-scale improvements (e.g., scenic viewpoints) shall be done along the NSEC and EWEC to enhance tourist attractions or shall be adjacent to both economic corridors (i.e., within 10 km of the main road along an existing access road). The total number of improvements along the NSEC and EWEC is undefined, but the cost for each small-scale infrastructure improvement shall not exceed $150,000 in the Lao PDR or $180,000 in Viet Nam. (ii) The area shall be safe and secure from internal and external threats and dangers (e.g., group conflicts, unexploded ordnance, etc.). (iii) Agencies in charge of the site should have the capacity to implement and operate the Project. (iv) Strong support and commitment should come from key stakeholders (e.g., local communities, tourism and related agencies, private tour operators and carriers, and development partners and nongovernment organizations). (v) Consent and agreement must be obtained from the ministry responsible for road operations and maintenance to develop roadside viewing points and construct common signage along the NSEC and EWEC. (vi) No significant land acquisition or resettlement should be required, in accordance with the land acquisition and resettlement framework for the Project. 2 (vii) No relocation of any small or minority village should be required for tourism development, in accordance with the ethnic minorities development framework for the Project. (viii) No significant environmental impacts associated with the intervention should be required, in accordance with the Project’s environmental assessment and review framework.

7. Selection of the Training Institution. Two training institutions will be selected in each country under output 4 by the consultant qualification selection procedure. One will train master

1 Fewer than 200 people will experience major impacts, which are defined as being physically displaced from housing or losing 10% or more of their income-generating assets. This is the threshold applied for the entire output, containing up to 2–3 sites per province (total of about 15 sites). 2 Major impacts are defined in footnote 2. The threshold is applied for the entire output, containing up to seven sites along the NSEC and one site along the EWEC in the Lao PDR and ten sites along the EWEC in Viet Nam.

22 Appendix 1 trainers and trainers of trainers in small-scale tourism and hospitality operation, while the other will train public officials in pro-poor tourism planning and management. A set of criteria has been developed and will be refined during implementation by the human resource development specialist. The training institution shall (i) be an existing vocational training and education institution in the Lao PDR or Viet Nam with at least 5 years of demonstrated experience in delivering training programs in tourism development; (ii) have sufficient classrooms, accommodation, staff, and teaching facilities to deliver the specified training and demonstrate its commitment to improving the quality of its training facilities and programs to accommodate the human resource development output for this Project; (iii) be one of the GMS tourism training and education institutions and/or be willing to accommodate interested trainees from other GMS countries; (iv) be accessible to all participating project provinces; (v) have a partnership with an international training institution, if necessary, which will help train the master trainers in English; and (vi) have demonstrated its ability to manage training courses in English.

8. Selection of Master Trainers, Trainers of Trainers, and Public Officials. Each training course under output 4 will train a group of master trainers that will then train a group of additional trainers or public officials in the tourism sector or related field. (i) The training on small-scale tourism and hospitality operation will focus on training 40 master trainers in each country. (ii) Scholarships for 40 master trainers (20 in the Lao PDR and 20 in Viet Nam) will be available, of which at least 50% shall be for qualified women and 30% for qualified men or women from provinces with high ethnic minority representation (e.g., Bac Kan and Cao Bang). (iii) The master trainers will train up to 200 trainers in each country from small and medium-sized enterprises (e.g., guesthouses or restaurants) in villages, districts, and provinces in the project area. At least 40% of these trainers shall be women, and about 30% of the trainers shall be qualified men and women from provinces or districts with high ethnic minority representation. (iv) The training of public officials in tourism or tourism-related sectors will focus on training 50 master trainers in each country, who will train up to 400 public officials from project provinces in each country. (v) Scholarships for 60 public official master trainers (30 in the Lao PDR and 30 in Viet Nam) will be available, of which 50% shall be for qualified women and 30% for qualified men or women from provinces with high ethnic minority representation (e.g., Bac Kan and Cao Bang). (vi) About 400 public officials in the Lao PDR and 400 public officials in Viet Nam will be selected to attend training courses in pro-poor tourism planning and management, with specific topics on environmentally sustainable tourism, culturally sensitive tourism, and gender-inclusive tourism. About 40% of all officials trained shall be women, and about 30% of all officials trained shall be from the provinces or districts with high ethnic minority representation.

Supplementary Appendix G 23 DETAILED PROJECT DESCRIPTION AND IMPLEMENTATION

9. The regional Sustainable Tourism Development Project (the Project) will contribute to the implementation of the GMS Tourism Sector Strategy and the provision of livelihood opportunities for GMS citizens. Tourism development is an effective tool in achieving inclusive development through pro-poor and community-based tourism initiatives and environmental sustainability through nature-based tourism initiatives. The Project outcome will be sustainable tourism development that creates livelihood opportunities for the poor. It will have five outputs: (i) model sustainable tourism development projects protecting the environment and cultural heritage developed; (ii) pro-poor community-based and supply-chain tourism projects are operational; (iii) GMS tourism corridors developed; (iv) human resources in the tourism sector developed; and (v) efficient project implementation services are operational. This supplementary appendix provides a detailed description of the project outputs for Lao PDR and Viet Nam. Annex 1 contains more detailed information on the approach and steps for implementing a pro-poor approach under output 2. A. Output 1: Model sustainable tourism development projects protecting the environment and cultural heritage developed 10. Tourism development can be used as a tool in protecting important natural and cultural sites and improving the environmental conditions of key urban tourism centers to increase overall sustainability and improve their competitiveness as destinations. Output 1 includes four demonstration subprojects—two in Lao PDR and two in Viet Nam: 1. Lao PDR: Biodiversity Protection at the Siphandone Wetland 11. The Siphandone Wetland is located in the southern part of Champasak province, and is part of the Tri-border Biodiversity Corridor that straddles Lao PDR, Cambodia, and Thailand. The Wetland contains about four thousand islands, with the largest and most visited among them being Don Kong, Don Det and Don Kone. It is home to more than 72,000 people. Poor communities living in and adjacent to the Wetland depend on it for food security and harvesting of natural resources for earning income. Over the years, growing populations and high prices for fish is increasing fishing and hunting activities in the Wetland and threatening Siphandone’s biodiversity. Under Output 1, this subproject will provide alternative income opportunities for the local population through the development of sustainable tourism activities. 12. The subproject includes: (i) preparation of a heritage-based tourism zoning plan and tourism structure and management plan for the wetlands area; (ii) upgrading of a 4 km access road that connects Route 13 to the boat landing at Nakasang Village; (iii) improvements to existing pathways on Don Det and Don Kone Islands; (iv) environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste management at the market and in the village; (v) construction of visitor information and interpretation facilities on the Nakasang Village side of the Wetlands; (vi) construction of fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands; (vii) capacity development and livelihood support programs for local communities, especially women, youth and ethnic groups, to become site managers that engage local communities in managing and interpreting the natural heritage values of the wetland; (viii) implementation of a gender and ethnic groups development program; (ix) a public awareness program for wetland conservation and protection, HIV and AIDS, and other tourism-related awareness activities; (x) a manual to guide the preparation and implementation of future GMS tourism subprojects aimed at protecting important natural sites; and (xi) monitoring and evaluation program.

24 Supplementary Appendix G 2. Viet Nam: Phong Nha Ke Bang Protected National Park 13. Phong Nha Ke Bang National Park is a UNESCO Natural World Heritage Site 1 located in Quang Binh Province—approximately 500 km south of Hanoi. Covering an area of 85,754 hectares of rugged limestone mountains, the National Park straddles the Ho Chi Minh Trail and neighbors the Hin Nam No National Protected Area in Lao PDR. More than 75,000 people live in the surrounding communities around the National Park and about 2,100 people reside in the remote villages within the Park. Since becoming a natural protected area, loss of access to the forest and non-timber forest products has affected the survival of the people in communities in and around the Park, which continues to threaten the biodiversity of the National Park. The Phong Nha Ke Bang is confronted with the following major challenges: (i) lack of local participation in the management and servicing of the national park, (ii) unsustainable development of tourist facilities in the park’s administration area, and (iii) unsustainable consumption of park biodiversity resources by residents residing in the Park and in the surrounding areas to meet food and income security. 14. The subproject addresses these challenges by developing a model for tourism development in natural protected areas in the GMS. The subproject includes: (i) formulation and implementation of a thematic tourism interpretation plan for the park within the overall framework of the Park’s management plan; 2 (ii) preparation and implementation of a program to improve access to tourist sites and develop tourism-related interpretative and protective infrastructure, including improvements to the Phong Nga and Tien Son (Fairy) caves and development of the proposed Phong Nha Ke Bang Nature Circuit (see para 5); (iii) improvements to existing solid waste disposal and management procedures; (iv) preparation and implementation of a marketing and promotion plan, including marketing and promotional materials; (v) development and implementation of training programs for local people in the development, operation and maintenance of tourist attractions and community-based tourism ventures; (vi) implementation of a gender and ethnic groups development program; (vii) development of a database and GIS system on cultural practices and indigenous knowledge of the area; (viii) a public awareness program for biodiversity conservation and protection, proper solid waste management, HIV and AIDS, and other tourism-related awareness activities; (ix) manual to guide the preparation and implementation of future GMS tourism subprojects aimed at protecting important natural sites in already designated protected areas; and (x) monitoring and evaluation program. 15. The proposed Phong Nha Ke Bang Nature Circuit starts at the Park’s Visitor Center and the main tourist staging area and ends at Route 15. The Circuit includes interest points along the existing main road though the Park’s Administrative Zone and covers: (i) improving tourist access and protective infrastructure at Karst scenic viewpoint, (ii) upgrading the Rao Thoung Trail and picnic area, (iii) upgrading the Ho Chi Minh Memorial Trail at Tra Ang Bridge, (iv) installing rest and sanitation facilities at the current parking area near the Sister’s Cave Memorial; (v) developing Resurgence viewpoint and river pier, (vi) preparing a Hatinh Langur viewing area and improving access to the Dark Cave, and (vii) developing Chai Lap boat landing and market area for locally-produced goods.

3. Lao PDR: Vang Vieng town Environmental Improvement 16. Vang Vieng Town functions as both a tourist center and as a tourist service point half way between Vientiane City and Luang Prabang. Tourism volumes are growing annually at 15% to 20%, and are expected to surpass 100,000 by 2008. The 72 lodging establishments (with over 1,000 rooms) and 90 restaurants are unable to accommodate the growing number of tourists, with additional establishments planned in 2008. The pressures of tourism development

1 It was designated a World Heritage Site in 2003 for its important biodiversity and geological values, including its significant karst and cave systems and the presence of a range of rare and endangered flora and fauna. 2 The management plan will be developed by park authorities with the support from GTZ, starting in 2008.

Supplementary Appendix G 25 on the environment are evident by the volume of grey water discharged directly into the drainage system and into the river. While black waste water is treated by septic tanks, grey water from kitchens, laundries and commercial activities (e.g., cleaning) and heavily silted storm water runoff needs to be treated. This subproject will improve the environmental conditions of Vang Vieng town, contribute to the reduction in downstream river pollution, and protect the water quality of the river for local use and tourism activities. 17. The subproject will include: (i) preparation of a tourism master plan for the district, with special emphasis placed on zoning its urban core: (ii) expansion and improvement of the existing drainage system in the core area of Vang Vieng town; (iii) upgrading of selected roads in the core area to ensure storm water drains to side entry pits; (iv) an additional bio-filter to remove a significant percentage of contaminants (e.g., hydrocarbons and sediments); (vi) a survey of existing connections, preparation and implementation of plans to increase property drainage connections to the new public drainage system; (vii) an awareness program for proper waste management practices, HIV and AIDS, and other tourism-related awareness activities; (viii) capacity strengthening of the Urban Development Administration Authority; (xi) a manual to guide the preparation and implementation of future GMS tourism subprojects aimed at improving environmental conditions of key urban tourism centers based on the Lao PDR experience; and (x) monitoring and evaluation program.

4. Viet Nam: Ethnic Minorities Cultural Heritage Development in Bac Kan 18. Located in the northern highlands of Viet Nam along Road No. 3, Bac Kan province is about 120 km north of Hanoi and is bordered by Cao Bang, Tuyen Quang, Thai Nguyen and Lang Son provinces. Only 5% of the 4,794 km2 land area is used for agriculture while the remaining 95% is still forested. About 85% of the residents in Bac Kan depend on agriculture for subsistence and livelihood, and total income per capita was less than $100 in 2002 (or about 265 kg of rice). 3 Around 300,000 people from different ethnic groups live in the 7 districts and 122 communes of Bac Kan. About 87% of the population is ethnic minority, comprising the Tay, Dao, Nung, H’mong, Hoa and San Chay ethnic groups. Bac Kan is known for its rich ethnic traditions and natural and biodiversity landscapes such as the Ba Be Lake, Ba Be National Park and Nang Tien cave. In 2007, 100,305 overnight tourists visited Bac Kan, of which 5,963 were international tourists and 94,342 were domestic visitors. Since 2003, international tourism has been growing at around 19.5% per annum, domestic tourism at 26.5% per annum, while the overall tourism volumes grew at 23.4% per annum. As ethnic minorities experience a rapid shift to market-based economies and urbanization, there is a risk of cultural heritage loss, especially language and oral traditions, indigenous knowledge, music, rituals, belief systems and cultural industries. Modernity, materialism and consumerism brought about by rapid growth in the region could also contribute to the erosion of one’s own ethnic identity in these communities. 19. The subproject aims to support Bac Kan to package and showcase their rich ethnic traditions through cultural heritage conservation and protection. Construction of a heritage interpretation and visitor information center in Bac Kan capital will celebrate the ethnic culture and traditions in a way that is not exploitative but attractive to tourists curious to know more about ethnic minorities in the northern mountainous region. Strong partnerships with the Museum of Ethnography in Hanoi and other centers across Viet Nam (e.g., Muong Ethnic Minority Cultural Space in Hoa Binh province) will be required to support the establishment of the center in Bac Kan. 20. The subproject includes: (i) programs for institutional strengthening and capacity building of local tourism and cultural heritage managers at the provincial and district level; (ii) preparation of cultural mapping, creation of a GIS system, and development of an ethnographic database for

3 ADB. 2004. Integrated Water Resources Management: Practical Experiences and Successful Lessons in Bac Kan Province, Viet Nam. Manila.

26 Supplementary Appendix G the province; (iii) revision of the tourism master plan for Bac Kan Province; (iv) construction of the Bac Kan Heritage Interpretation and Visitor Information Center; (v) development of tourist destinations and products in selected villages around Bac Kan for visitors and residents; (vi) development and delivery of training programs for local residents at the new Center to help revitalize cultural industries; (vii) delivery of a capacity development program for local communities in tourism-related livelihood development and cultural heritage management; (viii) preparation and implementation of a private sector investment program for cultural heritage tour operation and potential eco-lodges; (ix) preparation and implementation of a marketing program to promote sustainable tourism and cultural industry products of Bac Kan; (x) implementation of a gender and ethnic groups development program; (xi) a public awareness program for respecting cultural heritage, trafficking of wildlife and antiquities, HIV and AIDS, and other tourism-related awareness activities; (xii) manual to guide the preparation and implementation of future GMS tourism subprojects aimed at protecting important cultural heritage sites; and (xii) monitoring and evaluation program. B. Output 2: Pro-poor, community-based and supply-chain tourism projects operational 21. Pro-poor tourism development includes traditional community-based tourism development approaches combined with new supply-chain initiatives. Output 2 will result in a number of subprojects throughout Lao PDR and Viet Nam to demonstrate ways in which to involve and benefit more poor communities in the tourism economy; thereby, promoting inclusive development. The pro-poor tourism subprojects will expand the traditional pro-poor community-based tourism approach where individual or clusters of tour programs are developed and operated by communities, to a more inclusive subproject that will link the production of agricultural goods and handicrafts by poor communities into the national tourism economy. Output 2 also aims at protecting ethnic cultures and minimizing adverse impacts of tourism especially on vulnerable groups such as women, youth and the elderly. A sectoral approach has been adopted for this output, based on a demonstration model created for Aloui District, Thua Tien Hue Province, with selection of other sites to be done during project implementation (see Appendix 1 for selection criteria). 22. In Lao PDR, subprojects will be developed in the provinces of Bokeo, Houaphanh, Saravanh, Oudomxay and Sayabouli, and in Vang Vieng District (Vientiane Province). Bokeo, Oudomxay and Sayabouli provinces are located in the sphere of influence of Chiang Mai/Chiang Rai (Thailand) and Luang Prabang (Lao PDR). Vang Vieng District and Houaphanh province are located in the sphere of influence of Vientiane and Luang Prabang (Lao PDR), respectively. Saravanh province is located in the sphere of influence of Pakse, Champasak Province (Lao PDR) as well as Ubon Ratchathani (Thailand). 23. In Viet Nam, the benefits of growth in the major tourism centers of Hanoi, Hue and Da Nang have not been distributed widely outside of the main urban and resort-based tourist enclaves, and weak linkages to provincial economies and inability to develop and market tour programs have prevented poor communities in surrounding districts from seizing growth opportunities due to increased tourism and economic activity in the main cities. Subprojects will be developed in the provinces of Thua Tien Hue, Quang Binh, Quang Tri, Bac Kan and Cao Bang. These provinces have been selected to provide synergies between project output 2 and other project outputs, and to minimize project administration costs during implementation. Quang Tri province borders Lao PDR and is host to the East West Economic Corridor. Quang Binh includes Phong Nha Ke Bang where there is tremendous potential for community-based and supply-chain tourism development. Bac Kan and Cao Bang are grouped together as a tourism destination by the VNAT and a number of tour operators

Supplementary Appendix G 27 24. The output includes: (i) development of community-based tourism tour products and services; (ii) a public awareness program for tourism-related activities; (iii) identification and development of tourism-related supply chain opportunities; (iv) capacity development of tourism- related micro-enterprises and communities; (v) design and implementation of small-scale tourism-related infrastructure (include, but is not limited to, markets, viewing points, walking trails and signage, information and visitor centers, access and parking, river piers, community lodges, sanitary facilities, or development of natural sites within a pro-poor community-based tourism development framework); (vi) preparation and implementation of a gender and ethnic groups/minorities development program; (vii) preparation and implementation of a marketing and promotion program; (viii) promotion of community-based tourism networks and tourism stakeholder associations; (ix) a joint manual to guide the preparation and implementation of pro- poor tourism initiatives in the GMS (to be coordinated between Lao PDR and Viet Nam); and (x) monitoring and evaluation program. C. Output 3: GMS Tourism Corridors Developed 25. The potential for tourism development along the GMS economic corridors has remained untapped. Past road projects have not taken into consideration the potential for tourism development by including viewing areas or promoting station area development. As roads are completed and transportation becomes easier, faster and more efficient, cross border movement of goods and people are likely to increase. This brings great potential for constructing markets to sell locally produced goods, installing scenic viewpoints or information and visitor centers at border crossings and developing tourist attractions along the GMS economic corridors. While sustainable tourism development along these corridors brings economic opportunities to local communities, it also increases their risks and vulnerabilities to external influences—all of which may not be positive (e.g., HIV and AIDS and human trafficking). 26. Harnessing this potential requires developing a joint approach by the GMS countries that, once implemented, will successfully transform GMS economic corridors into GMS sustainable tourism corridors. The Project, with support from the Mekong Tourism Coordination Office in Bangkok Thailand, will develop this subregional approach aimed at creating a common marketing plan and a tourism circuit along the economic corridors. The output includes demonstration subprojects in Lao PDR and Viet Nam that will develop attractions at strategic locations along the GMS economic corridors, especially the North South Economic Corridor (NSEC) that links Yunnan Province in People’s Republic of China (PRC) to Lao PDR and Thailand, and the East West Economic Corridor (EWEC) that links Viet Nam to Lao PDR and northeast Thailand. 4 The Prime Minister of Viet Nam issued a decree on 5 February 2008, which identifies tourism as the most important sector in developing the economy along the EWEC. 27. The output will also include activities that will help manage the negative risks and vulnerabilities associated with greater movement of people and tourists across borders. A sectoral approach has been adopted for this output, with the final selection of sites to be done during project implementation (see Appendix 1 for selection criteria). 28. Along the NSEC, a number of potential tourism sites can be found in Lao PDR, specifically in Luang Namtha province (in Namtha and Vieng Phoukha Districts) and Bokeo province. While the specific sites have not been selected, the Government of Lao PDR has nominated a number of key tourism locations along or adjacent to NSEC: (i) an interpretation center and concession area in the Nam Ha National Protected Area at Chalensouk Village; (ii) a picnic area near the Nam Eng Cave; (iii) an interpretative trail at Vat Mahaphot and Associated Ancient Historic Sites; (iv) an interpretative trail at Bor Kung Nature Park; and (v) a scenic viewpoint at Nam Phae Village; and (vi) a visitor center at the southern end of the corridor in Lao PDR in Bokeo.

4 Travers, Robert. 2007. Tourism on Road 9 in Lao PDR and Viet Nam: Identifying Opportunities for the Poor. A Value Chain Appraisal. SNV Netherlands Development Organization, December 2007.

28 Supplementary Appendix G 29. The EWEC was selected as it transverse both Viet Nam and Lao PDR; thereby, providing opportunities for enhanced regional cooperation in the development of a tourism corridor. For instance, the output will support the development and installation of the thematic signage and roadside rest areas along the EWEC. Viet Nam, in cooperation with Lao PDR, Thailand and Myanmar, may lead the development of a common signage system along the EWEC to promote sites of interests. 30. The potential for tourism development is high along the EWEC in both Lao PDR, especially in Savannakhet province (Phine, Sephone and Champone Districts), and Viet Nam, specifically in Quang Tri province that links Dong Ha City to Cao Bao in Viet Nam to Dansavanh and Savannakhet in Lao PDR. A majority of the ethnic groups along the EWEC are midland ethnic groups that practice shifting subsistence agriculture. While the specific sites have not been selected, the Government of Lao PDR has suggested construction of a visitor center at the Friendship Bridge II border crossing between Savannakhet (Lao PDR) and Mukdahan (Thailand). The Government of Viet Nam has nominated a number of additional tourism locations along or adjacent to EWEC: (i) a visitor information center in Dong Ha City; (ii) roadside viewpoints or information signs near or at (a) the rock pile and Razorback mountain, (b) Dakrong bridge, (c) Ho Chi Minh trail, (d) Military tank near Lang Ve Village, (e) National cemetery along Route 9, (f) Lao Bao prison, and (g) places along the seacoast; (iii) development of the hot springs for recreation in Kalu ethnic village in Dakrong district; (iv) development of homestays at the Cat Ten ethnic village; and (v) improvements around the Khe Sanh Combat Base (Ta Con) Historic Site. These potential sites, including others along the EWEC will be evaluated against the selection criteria in Appendix 1. 31. This output aims to create economic opportunities for local communities located along the corridors, lengthen the time tourists spend in participating countries, reduce poverty, and create jobs, especially for women and ethnic groups; protect the integrity of the natural and cultural heritage at the sites by installing appropriate infrastructure and management systems; develop interpretative materials and displays to add value, understanding, and appreciation of the selected sites. The output includes: (i) preparation of a tourism development and management plans for individual sites and the corridors as a whole; (ii) design and construction of infrastructure including access roads, parking lots, ticket booths, information centers, walking trails, markets, interpretation and sanitary facilities; (iii) community preparation and delivery of livelihood support programs; (iv) tourism management training for site managers and local tour- guide training program; (v) development and implementation of a marketing and promotion program; (vi) implementation a gender and ethnic groups/minorities development program; (vii) a public awareness program for HIV and AIDS, human trafficking and drug abuse and other tourism-related awareness activities; (vii) a joint manual on procedures and practices for transforming the GMS economic corridors into GMS sustainable tourism corridors through a common subregional approach (to be coordinated between Lao PDR and Viet Nam); and (viii) monitoring and evaluation program. D. Output 4: Human resources in the tourism sector developed 32. Output 4 will create a pool of master trainers to meet training needs in the area of (i) small- scale tourism and hospitality operation, and (ii) public sector tourism planning and management. In Lao PDR, the output will focus on the 9 project provinces of Bokeo, Champasak, Vientiane, Houaphanh, Saravanh, Oudomxay, Xayaboury, Luang Namtha and Savannakhet. In Viet Nam, the output will focus on the 5 project provinces of Cao Bang, Bac Kan, Quang Binh, Quang Tri and Thua Tien Hue. In each country, a training institution for each training subproject will be selected through international competitive bidding according to ADB’s Guidelines on the Use of Consultants (April 2007 or as amended). Each institution will receive nominal support to improve its training facilities as the central training institute. Potential institutions include tourism training schools in Lao PDR such as the Pakpasak Vocational College in Vientiane City, and in Viet Nam

Supplementary Appendix G 29 such as those in Hanoi, Hue, Hai Phong and Vung Tau. These institutions may wish to partner with international institutions in the training of Master trainers. An estimated 160 master trainers (80 in each country) will receive a training scholarship over a period of five years for both training courses. Award of scholarships will be based on a set of selection criteria that has been developed in Appendix 1, and will be refined during implementation. 33. This output will include two demonstration subprojects (or training courses). Under the first training, a percentage of the total number of master trainers will be selected to further train trainers in Lao PDR and Viet Nam with support from the Project. These trainers will then train private operators and staff in small-scale hospitality enterprises (this training of private operators and staff will not be covered by Project funds). Under the second training, a percentage of the total number of master trainers will train public sector officials responsible for tourism management in pro-poor planning and management at the provincial, district and local levels.

1. A pool of master trainers in small-scale tourism and hospitality is created 34. The need to have quality service standards in small hotels, guest houses and other stand alone lodging accommodations as well as in restaurants and other tourist-oriented establishments such as souvenir shops located in the main tourism centers is regarded as critical to the competitiveness of more remote provinces and tourist centers where the poor are often located. Tourist-oriented establishments in the tourist priority zones have high tourism potential with many poor people. Output 4 will include a subproject for providing human resource development opportunities for small-scale tourism and hospitality operators. 35. In each country, the subproject includes: (i) review of the existing training needs assessment (TNA) for staff in small-scale hospitality establishments; (ii) revision or development of service standards for SME tourism and hospitality enterprises, and related training standards based on ASEAN models; (iii) development of gender and ethnic sensitive and inclusive training manuals in (a) Food and Beverage Service, (b) Cookery, (d) Housekeeping, (e) Bartending, and (f) Front Office Reception; (g) Security and Safety following international (or ASEAN) competency standards; (iv) teacher training kits or manuals; (v) production of CD ROMs and web-based training materials; (vi) development and maintenance of a web-based “Knowledge Center” which will be accessible to others, including other GMS countries; (vii) translation of training manuals in Lao or Vietnamese and other ethnic languages, as appropriate; (viii) support for minor improvements to the winning institution in each country that will undertake cascade training for industry trainers; and (ix) monitoring and evaluation program. In each country, the subproject will aim to train 40 master trainers (of which 20 will receive a scholarship), and 200 trainers.

2. A pool of master trainers for the training of public sector tourism officials is created 36. The GMS Tourism Sector Strategy 2006-2010 recorded a need for developing the capacity of middle-level public officials from the tourism authorities at the provincial and tourism site levels, including other government agencies working in the tourism sector. The sector lacks standardized training material, has limited capacity to train public sector officials, and lacks suitable training venues to undertake such trainings. In particular, training on pro-poor planning and management that is environmentally sustainable, culturally sensitive and gender inclusive is limited. Under Output 4, an additional subproject for human resource development will be prepared to demonstrate ways of addressing these challenges and filling these gaps. 37. In each country, the subproject includes: (i) review of the existing TNA on public sector tourism officials; (ii) revision or development of customized training programs based on the TNA; (iii) development of teacher training materials and case studies; (iv) creation of reading materials on best practices and lessons learned; (v) development of teacher training kits or manuals; (vi) production of CD ROMs and other digitized interactive training materials; (vii) translation of teaching materials into Lao or Vietnamese languages and other ethnic languages;

30 Supplementary Appendix G (viii) development and maintenance of a web-based “Knowledge Center” which will be accessible to others, including other GMS countries; and (ix) monitoring and evaluation program. The subproject will aim to train 50 master trainers in each country (of which 30 in each country will receive scholarships), and 400 officials in the tourism or tourism-related industry..

E. Output 5: Efficient project implementation services are operational 38. Output 5 will result in efficient project management services that are fully operational. In Lao PDR, the project coordination unit (PCU) will be located in the Lao National Tourism Authority and project implementation units (PIUs) at the provincial level in each of the project provinces. In Viet Nam, the PCU will be in the Viet Nam National Administration of Tourism in Hanoi.The PIUs will be established in each of the participating provinces and will be fully staffed to operate efficiently. 39. In each country, this output includes: (i) international and national consulting services with specializations in tourism sector development, heritage preservation and development, financial accounting, social and gender development, resettlement, environment, civil engineering and supervision, project performance management system development, ecotourism, supply chain development and human resource development; (ii) support for overall project implementation and coordination; (iii) capacity development for the PCUs and PIUs; (iv) external monitoring for resettlement; (v) project auditing; and (vii) intermittent monitoring and evaluation of the overall Project by an independent consultant or institution. Based on the experiences from the Mekong Tourism Development Project in Cambodia, Lao PDR and Viet Nam, a set of forms/templates have been developed to help guide implementation of the project. 40. In each country, the PCU and PIUs will coordinate closely in the planning of all project activities under each output and for each subproject. Project activities will be programmed into 6-month Action Plans for each subproject (see Annex 2 of this supplementary appendix for a suggested template). Each action plan will contain the detailed timing of activities corresponding to each subproject, including outputs with quantitative targets specific to each activity. During biannual activity planning, a detailed overview of expected qualitative outputs will be included in each individual activity proposal. The action plan will be planned and finalized at least 6 weeks prior to its anticipated implementation. 41. Simultaneously, details of individual activity objectives, methodology, schedules and cost estimates will be planned and included in individual Project Activity Proposals (see Annex 2 of this supplementary appendix). These proposals will also be prepared approximately 6-weeks prior to the start of each subproject action plan. 42. A majority of project activities will be implemented directly by the PIUs with technical assistance and monitoring provided by the PCU. When the PIU lacks the technical expertise to conduct individual activities, the PCU, or local expertise will be engaged to assist in activity implementation or produce specific outputs such as manuals, promotional materials, educational media, etc. The project will actively seek and encourage cooperation and assistance among the many international and national organizations working in the tourism sector to implement project activities. 43. Under each of the project outputs, a monitoring and evaluation program is highlighted. Outcomes of each individual activity will be documented in a project activity report (a suggested format in included in Annex 4 of this supplementary appendix). In each country, the PCU and PIUs will conduct regular socioeconomic and environmental monitoring of sustainable tourism products developed by the project. Data from the monitoring protocol, PIU quarterly reports (see Anne5 4 of this supplementary appendix) and project consultant reports (see Annex 6 of this supplementary appendix) will be used by the PCU to summarize and monitor project progress.

Supplementary Appendix G 31 The PCU will then compile quarterly reports (see Annex 7 of this supplementary appendix) based on this data for submission to ADB and the respective Government.

32 Supplementary Appendix G Annex 1

PRO-POOR TOURISM DEVELOPMENT APPROACH

This annex outlines the guiding steps that will be applied by the PCU, PIU’s, Project consultants, local communities and development partners when implementing pro-poor tourism initiatives under Project output 2.

Step 1. Prior to launching the Project at the national and provincial level, the EA, with the assistance of project consultants, will conduct training with the PCU, PIU’s and related stakeholders to orient them on the Project and ADB and Lao Government procedures regarding Project implementation.

Step 2. The EA will hold a public information forum to launch the Project at the national level. The forum will be attended by select members of the NSC, PCU, PIU’s, project consultants, development partners and prospective private-sector partners to publicize the project’s intended outcomes as elaborated in the Project Design and Monitoring Framework.

Step 3. This forum will be replicated in each of the project’s target provinces. The provincial forums will include district and village leaders to ensure that a strong foundation is established regarding local stakeholder participation, understanding of the Project’s working procedures, Project responsibilities and expected benefits for the PIU’s, local authorities, poor communities and private-sector entities.

Step 4. Working closely with the provincial government and communities, the PIU’s will prioritize areas for pro-poor tourism interventions using the selection criteria (Appendix 4) and select one value chain intervention, one tour circuit that is operated and managed in a public-private- community partnership, and one tourist site that can be operated by a community under a concession agreement with the local authorities.

Step 5. The PCU and project consultants will hold a pro-poor tourism assessment training for PIU staff to prepare them for field assessments and market research that will later be used to further justify individual site interventions. At this stage in Project implementation, the PCU with the assistance of project consultants will formulate a draft Implementation Plan of the Project that sets out all activities and project-related initiatives for a five-year period, divided into 6- monthly Action Plans of the Project that include detailed project activities and activity output targets. The IPP will be finalized once pro-poor sites and interventions have been selected.

Step 6. Following the identification of potential pro-poor tourism interventions, newly trained PIU staff, with assistance from the PCU and project consultants will conduct field surveys to assess the logistic feasibility of developing tour circuits, destinations or a value chains and begin market research to ascertain what types of products and tours are in demand. This level of evaluation involves mapping community-based tourism resources, village-level capacity assessments, measuring communities capability to produce goods and services that can be fed into tourism supply chains, confirming the availability of public land for the construction of markets and tourism-related infrastructure, and participatory discussions with men and women village leaders about the potential positive and negative effects of tourism. The communities interest in the project will be confirmed and their role in the project design, implementation and operation clearly identified and driven by the community itself. If possible, small groups of tourists and select tour operators should be taken on trial tours or site inspections to gain their perspective on the feasibility of developing tour circuits or tourist sites. Market research should target both international and domestic markets, and attention should be given to developing survey tools in a range of languages. When making initial contact with a community during the assessment

Supplementary Appendix G 33 stage care should be taken not to unrealistically raise expectations about whether or not the Project will later work there.

Step 7. After an analysis of data from initial field and market surveys, re-checking conformity to established selection criteria (one of which is community motivation and consent) and alignment with national and provincial tourism development plans the PIU’s with assistance from the PCU and project consultants will compile a report that ranks the proposed new tour circuits, destinations and value chains interventions and propose a set of interventions that will be developed during the course of the project.

Step 8. For tour circuits that will be developed as public-private-community ventures, the PIU will conduct community-level tourism awareness seminars, study tours that allow community members to experience being a tourist, guide and hospitality training and assist villages to establish Community Tourism Groups so they can make participatory and informed decisions about the direction of tourism development in their community and how they will manage relationships with private-sector tour operators. The Project through the PIU’s will assist communities to prepare detailed designs and operations and maintenance plans for tourism- related infrastructure and will implement policies to source labor and construction materials from target areas whenever possible. The PCU and project consultants will produce a set of guidelines and sample public-private-community agreements to help guide the PIU’s work with local stakeholders on the formulation of tailor-made agreements for each intervention on this type and develop a set of criteria for screening private sector tour operators that wish to partner with communities.

Step 9. To ensure that benefits from tourism reach the poorest and most vulnerable members of society including women, youth, and the elderly, the Project, through the PIU’s, will assist local communities through training, workshops and creations of guidelines and regulations to ensure there is a wide distribution of tourism’s benefits and opportunities. Trainings and workshops at this stage may include: establishment or strengthening of village funds that draw a source of revenue from tourism-related operations in the village and can be accessed by the entire community; establishment of rotational service rosters to provide goods and services to tour groups or traders that purchase agricultural goods or handicrafts from a village; elder – youth mentoring to transfer local knowledge; tourism, environment and cultural heritage protection awareness seminars for youth in schools and their communities; creation and implementation of gender and ethnic group participation plans that establish gender and ethnic focal points in both PIU’s and target villages and; training men and women how to monitor the impacts of tourism in their communities and report monitoring data to public sector authorities.

Step 10. When developing tourist sites such as caves, waterfalls and historic sites that will be operated by local communities under concession arrangements with local authorities, the Project will assist communities to create site development and management plans, design and construct tourism infrastructure, training, capacity building and marketing and promotion assistance. The PCU and project consultants will produce a set of guidelines and sample community concession agreements that propose sample revenue sharing agreements, site operation and maintenance plans and delegation of roles and responsibilities to help guide the PIU’s work with local stakeholders for each intervention of this type and replicate it elsewhere. The Project will also assist the community and local managers to establish site monitoring protocols that are aligned with the Projects PPMS. The Community Tourism Groups will be elected within the community and will be involved in all decisions regarding the project and tourism development in the community.

Step 11. The establishment of inbound tour operators at the provincial level has been shown to be very effective in increasing visitation to both tourist sites operated under a community

34 Supplementary Appendix G concession as well as public-private-community operated tour circuits because of the marketing and promotion assistance this type of venture provides. Investment in nature resorts in remote areas also draws tourists to generally poorer areas and creates demand for tour circuits, development of tourist sites and agricultural goods and other items that local people can produce. The Project will therefore hold investment promotion seminars and work with local authorities to develop streamlined investment application materials, investment prospectus, and guidelines for investors.

Step 12. Using information gathered during survey and development of pro-poor tourism interventions, the Project, mainly through the PCU will develop marketing and promotion materials that include guidebooks, brochures, websites and print media advertisements and conduct familiarization tours for the media and tour operators to promote new products and destinations. Project consultants and local experts that will be initially contracted to create marketing and promotion materials will work with staff from the PCU and PIU’s so they can be trained to perform these tasks later.

Step 13. To publicize and promote new tour circuits, destinations, investment opportunities and local products such as handicrafts the Project will stage an annual promotional forum and participate in trade shows and exhibits. To further educate local community members in the tourism industry, the product will support local participation in these events.

Step 14. Disseminating lessons learned and transferring knowledge about pro-poor tourism development to replicate successful interventions elsewhere in the GMS will be done by producing manuals in English and local languages that compile stakeholders input from Project staff, consultants, related public and private sector organization and development partners.

Project monitoring will be done continuously throughout project implementation. The PCU will establish baseline conditions at the Project’s outset and then the PCU, PIU’s, participating communities and external sources will compile regular monitoring reports based on indicators and procedures outlined in the Project’s PPMS. Monitoring data will be used to make adjustments to bi-annual work plans and to promote successful initiatives to policy makers, pubic and private investors and local communities.

Supplementary Appendix G 35 10

Annex 2: GMS Sustainable Tourism Development Project G Appendix Supplementary 6-monthly Action Plan of the Project Planning Template Location Budget Activity/Task Implementing Outputs Quantitative Target Line Personnel/Partner Units No. Target % Achieved

1. AnnexB 3: GMS Sustainable Tourism Development Project Project Activity Proposal

Title of Activity:

Date(s):

Objective/Justification:

Location:

Implementing personnel/partner:

Invited participants:

Methodology:

Budget:

Subcontract:

Remarks:

Attachments: a. detailed budget forecast b. list of invited participants c. project activity schedule d. related technical materials e. others (list)

Recommendations/actions:

Prepared by: ______Approved by: ______

Supplementary Appendix G 37

2. AnnexB 4: GMS Sustainable Tourism Development Project Project Activity Report

Title of Activity:

Date(s):

Location:

Implementing personnel/partner:

Methodology:

Outcome:

Lesson learned:

Actual budget expenditures:

Subcontract:

Remarks:

Attachments: a. detailed statement of expenditures b. list of participants c. actual implementation schedule d. related technical materials e. others (list)

Recommendations/actions:

Prepared by: ______Approved by: ______

12 Supplementary Appendix G

3. AnnexB 5: GMS Sustainable Tourism Development Project PIU Quarterly Report Form

1. Name of PIU:

2. Reporting period:

3. List of activities undertaken during this reporting period: a. training

b. infrastructure

c. others

4. Outcome of activities undertaken during this reporting period: a. training

b. infrastructure

c. others

5. Amount of funds liquidated during the period: a. project funds

b. matching Government funds

6. PIU financial position: a. status of provincial imprest account

b. total expenditure (from SOE) for the reporting period

c. projected budgetary expenditure for next quarter

Supplementary Appendix G 39

7. Subcontracts and partnerships:

8. Difficulties encountered and lessons learned:

9. Requests and recommendations for next quarter:

10. List of attachments: a. Quarterly statement of expenditure (SOE) b. Copy of subcontracts & cooperative agreements c. List of PIU personnel d. Project activity reports, budgets and schedules e. Others (list)

11. Other issues

Prepared by: ______Approved by: ______

12 Supplementary Appendix G

4. AnnexB 6: GMS Sustainable Tourism Development Project PIU Quarterly Report Form Project Consultant/Expert Report

1. Prepared by (name and title):

2. Reporting period:

3. Summary

4. Major activities and accomplishments during this reporting period:

a. Training

b. Infrastructure

c. Others

5. Project related travel undertaken during this reporting period

6. Difficulties encountered and lessons learned:

7. Requests and recommendations:

8. Other issues:

9. List of attachments:

Submitted by: ______Received by: ______

Supplementary Appendix G 41

5. AnnexB 7: GMS Sustainable Tourism Development Project PIU Quarterly Report Form PCU Quarterly Progress Report

1. Introduction 1.1. Summary of Project Progress: 1.2. Grant/Loan Data: 1.3. Project Scope: 1.4. Estimated Project Cost: a) Project Cost (Foreign and Local): b) Expenditure Projection:

2. Project Organization and Management 2.1. Implementation Arrangements: 2.2. Establishment of PCU and PIUs: 2.3. Organization and Staffing of PCU and PIU’s:

3. Assessment of Implementation Progress 3.1. Assessment of progress made during the reporting period (by project output) a) Output 1: b) Output 2: c) Output 3: d) Output 4: e) Output 5: 3.2. Problems encountered and remedial actions taken or proposed to be taken: 3.3. Proposed program of activities during the next quarter: 3.4. Implementation schedule: 3.5. Percentage of implementation progress:

4. Recruitment and Performance of Consultants 4.1. Summary of status of recruitment of consultants: 4.2. Details of consultants’ inputs and general performance:

5. Procurement of civil works, equipment and materials 5.1. List contract packages, indicating the following: a) procurement procedures to be used ( IS or LCB): b) value of contracts (estimate): c) specifications: 5.2. Status of preparation of prequalification bid/documents: 5.3. Schedule of advertising of prequalification, bid invitations: 5.4. Prequalification/bid evaluation: 5.5. Status of contract awards:

6. Implementation of Physical Works 6.1. Physical progress of each civil work contract: 6.2. Estimated completion of each civil work: 6.3. Performance and efficiency of contractor and quality of work:

7. Operation and Maintenance of Project Facilities 7.1. Status of development of O&M manuals:

12 Supplementary Appendix G

7.2. On-the-job training for O&M: 7.3. Equipment for O&M: 7.4. Budget for O&M:

8. Training Programs 8.1. Summary of training activities: 8.2. Training courses undertaken during the quarter, with costs, etc: 8.3. Training courses schedules for next quarter:

9. Community Participation

10. Administration and Finance 10.1. Budget allocations and counterpart funding arrangements (attached schedule of counterpart funds allocated and disbursed during he period, with projections for the next quarter: 10.2. Project disbursements: 10.3. Financial position (including loan savings, cost overruns/underruns): 10.4. Status of imprest fund account:

11. Monitoring and Evaluation (M&E) 11.1. Status of establishment of M&E system in each province: 11.2. Status of establishment of baseline conditions: 11.3. Status of data collection, analysis collection (disaggregated by sex, ethnicity and income where possible): 11.4. Reports submission:

12. Compliance with Covenants/Government Assurances 12.1. Major loan covenants and status of compliance: 12.2. Government assurances and status of progress:

Appendixes (attached charts, tables or schedules, photos)

Appendix 2 43 SUMMARY GENDER ANALYSIS AND ACTION PLAN

1. A gender action plan has been prepared to highlight the different needs of men and women in the tourism sector and to help ensure that men and women have equal opportunity to participate in and benefit from the Sustainable Tourism Development Project (the Project). The plan is based on a gender analysis that was prepared for the Project and is designed according to the Policy on Gender and Development (1998) of the Asian Development Bank (ADB). It also builds on experiences in the previous ADB-funded Mekong Tourism Development Project, the Vietnam Gender Assessment 2006, and the Gender Assessment and Strategic Action Plan of the Tourism Sector in the Lao People’s Democratic Republic (Lao PDR). Key activities include (i) mechanisms to promote women’s representation in decision-making processes; (ii) ensuring that women’s needs are integrated into project subcomponents; (iii) establishing targets for female staff in project implementation; (iv) training communities, government officials, and other stakeholders on gender issues and risks related to tourism; (v) designing and implementing awareness programs for communities and government officials related to HIV/AIDS, sexually transmitted diseases, trafficking, and other social risks; (vi) ensuring the effective involvement of women in project monitoring and evaluation, including gender-disaggregated data for these purposes; and (vii) ensuring that at least 40% of capacity development and training activities and 50% of the scholarships for master trainers are reserved for women. Gender analyses for the Lao PDR and Viet Nam are in Supplementary Appendix L, on social and poverty assessment and strategies.

A. Key Issues: Gender in the Tourism Sector

2. In the tourism sector, women are mostly employed by hotels and guesthouses, food service providers, bars, travel agencies, and tour companies. They are also self-employed in preparing and selling food and providing accommodation. Handicrafts are important in the rural economy, with production and sales dominated by women, especially in textiles. In the formal sector, women are generally underrepresented in management but predominate in customer service and sanitation. Exceptions are usually found in smaller, family-run businesses, which tend to have less rigid gender stereotyping.

3. While women are increasingly able to take advantage of opportunities in tourism, they remain constrained by limited opportunities in business development and leadership. Ethnic minorities in the two countries, especially women, particularly lag in economic opportunities. In Viet Nam, 87% of ethnic minority women in rural areas are self-employed in agriculture. Minority women face more constraints in access to capital, as they are less likely to own land or be literate, and many poor women lack knowledge of business development, marketing, enterprise selection techniques, and simple accounting.

4. Self-employment through tourism offers women, particularly those from ethnic groups, greater independence and control. Tourism thus has the potential to boost local development by reducing poverty, expanding women’s educational and employment opportunities, increasing their self-confidence, and ensuring more active involvement of marginalized groups through increased demands for their skills in handicrafts, food preparation, and cultural performances.

5. Tourism development may increase exposure to HIV/AIDS and other diseases, trafficking, and substance abuse resulting from higher number of tourists and cross-border movements, especially along the north–south and east–west economic corridors. The potential negative social impacts of tourism on such groups as women, children, the disabled, and minority communities are currently among the least addressed by the tourism sector. The Project will incorporate and specifically address these concerns to ensure a more socially responsible pattern of tourism development that positively affects both men and women.

44 Appendix 2 B. Gender Action Plan and Implementation Arrangements Table A6: Gender Action Plan

Project Output Actions Proposed Output 1: Model sustainable • PCU/PIU introduce the Project to district and village representatives, both tourism development male and female. projects protecting the • Identify female-headed households and vulnerable groups (e.g., the disabled environment and cultural and ethnic minorities) and ensure that they will have equal access to heritage developed participation in the Project.

Encourage women’s participation in project meetings through, for example, Lao PDR: Biodiversity • sex-disaggregated focus groups and meetings held at times conducive to protection at the Siphandone Wetland women’s attendance. • Collect data disaggregated by sex, ethnicity, and income level. Lao PDR: Vang Vieng town • Deliver awareness programs about tourism-related employment opportunities environmental improvement to men and women, in either joint or disaggregated focus groups. Viet Nam: Phong Nha Ke • Ensure that 40% of all capacity building and training activities are reserved Bang National Park for women and that capacity-development and livelihood-support programs cater to the needs of both men and women. Viet Nam: Ethnic minorities cultural heritage • Ensure that men and women have equal access to employment opportunities development in Bac Kan created by the model projects. • Ensure that equal wages are paid to men and women laborers for civil works. • Include a section on gender development in tourism master plans for model natural, cultural, or urban sites. • Include a section on gender development in the GMS manual on nature- based tourism in the GMS. • Implement gender-sensitive public awareness programs. • Include separate budget lines for screening potential gender impacts and developing enhancement measures, a public awareness program, and M&E disaggregated by sex, ethnicity, and income. Output 2: Pro-poor, • PCU and/or PIU introduce the Project to district and village representatives, community-based, supply- both male and female. chain tourism projects • Identify households headed by women and vulnerable groups (e.g., the operational disabled and ethnic minorities) and ensure that they have equal access to participation in the Project. • Consult with stakeholders, male and female, on their participation in the planning process and implementation, specifically considering that women’s participation is balanced with their other tasks so as not to overburden them. • Develop a gender-sensitive training program on environment, culture, and tourism for tour operators and guides. • Develop and implement gender-sensitive community-mobilization and planning methodologies, including gender-sensitive monitoring of activities. • Establish specific mechanisms to promote women’s representation in decision-making processes. • Deliver awareness programs about tourism-related employment opportunities to men and women, in either joint or disaggregated focus groups. • Ensure that gender perspectives and issues are central to all subproject activities, including community mobilization, subproject planning and design, and M&E. • Organize separate meetings with women’s groups to identify specific programs for women in tourism. • Ensure the availability of information to women by holding all public consultations at convenient times and locations, taking into consideration women’s involvement in fieldwork, household chores, and other activities. • Promote products and services produced by women and ethnic minorities to tourism service providers and tourists. In each province, at least one pro-poor product or service involving women and ethnic minorities is developed and profitable. • Ensure that illiteracy is considered in all training and community meetings to

Appendix 2 45

Project Output Actions Proposed ensure that illiterate women and men are not excluded from participating in and benefiting from project interventions. • Structure field visits and learning exchanges to accommodate the specific needs of women. • Organize training for women, especially those from ethnic groups in project areas, on planning and designing tourism activities. • Ensure that skills training and workshops are open to both men and women, and disaggregate participation records by sex and ethnicity. Target 50% participation by women. • Ensure that equal wages are paid to men and women laborers for civil works. • Include separate budget lines for screening potential gender impacts and developing enhancement measures, a public awareness program, and M&E disaggregated by sex, ethnicity, and income. Output 3: GMS tourism • PCU and/or PIU introduce the Project to district and village representatives, corridors developed both male and female. • Identify households headed by women and vulnerable groups (e.g., the disabled and ethnic minorities) and ensure that they have equal access to participation in the Project. • Consult with stakeholders, male and female, on their participation in the planning process and implementation, specifically considering that women’s participation is balanced with their other tasks so as not to overburden them. • Establish procedures to ensure that gender perspectives and issues are central to all subproject activities, including community mobilization, subproject planning and design, and M&E. • Organize separate meetings with women groups to identify specific programs for women in tourism and business development. • Organize training and implement programs for women, especially from ethnic groups, on planning, designing, and implementing tourism activities. • Ensure the availability of information to women by hold all public consultations at convenient times and locations, taking into consideration women’s involvement in fieldwork, household chores, and other activities. • Ensure that illiteracy is considered in all trainings and community meetings to ensure that illiterate women and men are not excluded from participating in and benefiting from project interventions. • Structure field visits and learning exchanges to accommodate the specific needs of women. • Ensure that at least 30% of employees at the new sites are women. • Ensure that equal wages are paid to men and women laborers for civil works. • Produce a tourism corridor economic management plan with a section on gender. • Include separate budget lines for screening potential gender impacts and developing enhancement measures, a public awareness program, and M&E disaggregated by sex, ethnicity, and income. Lao PDR = Lao People’s Democratic Republic, M&E = monitoring and evaluation, PCU = project coordination unit, PIU = project implementation unit. Source: Asian Development Bank.

46 Appendix 3 SUMMARY ETHNIC GROUPS AND MINORITIES DEVELOPMENT FRAMEWORK

1. An ethnic groups/minorities development framework (EGMDF) has been prepared for the regional Sustainable Tourism Development Project (the Project) in the Lao People’s Democratic Republic (Lao PDR) and Viet Nam. The purpose of the EGMDF is to (i) guide the assessment of potential impacts on ethnic minorities during the feasibility study for each subproject; (ii) assist the preparation of specific actions or the development of an ethnic minority development plan to address these impacts; and (iii) help improve the distribution of tourism benefits among different groups of beneficiaries, especially the smaller ethnic groups. The EGMDF is based on (i) provincial and household surveys; (ii) four sample subprojects for output 1; (iii) consultations with ethnic minorities, government officials, and other key stakeholders; (iv) the previous gender equity and ethnic diversity action plan for the Greater Mekong Subregion Mekong Tourism Development Project (Lao PDR); 1 and (v) secondary sources and past Asian Development Bank (ADB) projects. Supplementary Appendix M contains individual country ethnic groups/minorities development frameworks.

A. Ethnic Groups/Minorities and Tourism Development

2. Lao PDR. The Lao PDR has a population of 5.6 million, with 49 recognized ethnic groups and more than 200 ethnic subgroups. Ethnic groups fall into four broad ethno-linguistic categories: Lao-Tai, Mon Khmer, Hmong-Iu Mien, and China-Tibet. Smaller ethnic groups live mainly in the northern uplands of the Lao PDR near the borders with Thailand, Myanmar, People’s Republic of China, and Viet Nam. They make up one-third of the population but constitute more than half of the country’s poor. About 32% of the total population lives below the poverty line—52.5% in the northern region, 34.9% in the central, and 38.4% in the southern.

3. Viet Nam. Viet Nam had a population of 85.3 million in 2007, of which ethnic minorities account for 14%. There are 54 officially recognized ethnic groups. About 53 ethnic minorities and 100 subgroups live in the northern and central mountains and the lowland river deltas of Viet Nam. In 2004, about 39% of all those living in poverty were from ethnic minorities. About 61% of all ethnic minority people are poor (86% in 1993), compared with only 14% of the majority Kinh and Chinese (56% in 1993). 2 Ethnic minorities are generally poorer and more disadvantaged than the Kinh and Chinese and have limited access to education and health care services.

4. Tourism potential is often the greatest in areas where smaller ethnic groups reside. Tourism development brings a number of direct and indirect opportunities for ethnic minorities including (i) income generation and poverty alleviation, (ii) locally led planning and development, (iii) revitalized cultural industries and practices, (iv) better transport and communication, (v) increased disposable income for better education and health services, and (vi) better communication with authorities.

5. Tourism development also has the potential to threaten local cultures and norms. Ethnic groups/minorities often face constraints that prevent them from accessing the opportunities brought about by tourism growth, such as remote villages and limited mobility, market access, education, and familiarity with majority languages. Women from small ethnic groups face additional risks and increased demand on their time from tourism development (e.g., increasing the risk of girls dropping out of school). Efforts to conserve and share ethnic culture with tourists

1 ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Lao People’s Democratic Republic for the GMS: Mekong Tourism Development Project. Manila (Loan 1970-Lao PDR, for $14,200,000, approved on 12 December). 2 Vietnamese Academy of Social Sciences. 2007. Vietnam Poverty Update Report 2006: Poverty and Poverty Reduction in Vietnam 1993–2004. Hanoi.

Appendix 3 47 and younger generations carry the risk of depicting minorities as exotic or backwards. The Project addresses these constraints and risks in its design.

B. Legal Framework and Principles

6. Country-specific ethnic groups/minorities development frameworks for the Project are based on Lao and Vietnamese regulations and ADB’s Policy on Indigenous Peoples (1998). ADB’s policy aims to protect ethnic minorities from the adverse impacts of development and to ensure that all ethnic groups benefit from development projects and programs.

C. Implementation Arrangements

7. The EGMDF ensures that all ethnic groups/minorities share proportionately in project benefits and experience limited adverse effects. The implementation arrangements and estimated costs of the EGMDF are integrated into the overall arrangements and budget of the Project. During project implementation, demonstration subprojects will be prepared to include a socioeconomic and demographic profile of target communities by ethnicity. Using ADB’s checklist on indigenous peoples, the potential effects of subprojects will be assessed for all ethnic groups. Potential impacts will be identified and measures to mitigate them will be incorporated into the detailed design for each subproject. It is anticipated that ethnic minorities in the proposed project areas will benefit from the demonstration projects, which aim to use a sustainable, culturally and environmentally sound, pro-poor tourism approach.

Table A7.1: Anticipated Impacts and Proposed Actions on Ethnic Minorities in the Lao People’s Democratic Republic and Viet Nam

Anticipated Anticipated Project Positive Effect Negative Proposed Actions to Mitigate Impacts Output Effect Output 1: Model sustainable tourism development projects protecting the environment and cultural heritage developed ● Biodiversity ● Minor/none: ● None ● Include ethnic groups in community planning for income protection at Few ethnic generation and asset management in tourism. the minorities in the ● Separate budget lines included for (i) screening potential Siphandone community impacts on ethnic groups, mitigating impacts, managing risks, Wetland (Lao and developing enhancement measures; (ii) a public PDR) awareness program, and (iii) M&E activities disaggregated by sex, ethnicity, and income where possible. ● Consult with small ethnic communities during subproject preparation and before the start of construction. ● Visitor information and interpretation facilities in Nakasang village feature cultural and livelihood information on ethnic groups from the wetland and follow local architectural design. ● Capacity-development and livelihood-support programs cater to the needs of the local ethnic groups (e.g., handicrafts). ● Include a section on potential impacts on ethnic groups in the GMS manual under the subproject. ● Vang Vieng ● Minor/none: ● None ● Include ethnic groups in community planning for income town Few ethnic generation and asset management in tourism. environmental minorities live in ● Include a separate budget for (i) a public awareness improvement the town program and (ii) M&E disaggregated by sex, ethnicity, and (Lao PDR) income where possible. ● Consult with ethnic minority communities during subproject preparation and before the start of construction. ● Use different communication strategies (e.g., text, pictures, or media) for raising awareness on waste management, HIV/AIDS, and other tourism-related awareness activities. ● Include temporary workers (e.g., solid waste collectors) when strengthen capacity in the urban development authority. ● Include a section on potential impacts on ethnic groups in the GMS manual under the subproject.

48 Appendix 3

Anticipated Anticipated Project Positive Effect Negative Proposed Actions to Mitigate Impacts Output Effect ● Phong Nha ● Minor: Few ● None ● Include ethnic groups in community planning for income Ke Bang ethnic minorities generation and asset management through tourism. For National Park reside along the example, there is potential for increased benefits for one of (Viet Nam) proposed circuit the minority villages inside the park (if selected). Residents or in Chai Lap could be trained to make incense sticks and supply Sister’s Cave Memorial. ● Include separate budget lines for (i) screening potential impacts on ethnic groups, mitigating impacts, managing risks, and developing enhancement measures; (ii) a public awareness program; and (iii) M&E disaggregated by sex, ethnicity, and income. ● Document and develop a database on resources and culture, including a GIS and a book. ● Consult with ethnic minority communities during subproject preparation and before the start of construction. ● Follow local architectural design for the visitor information and interpretation facilities in Phong Nha Ke Bang, which feature cultural and livelihood information on ethnic groups from the area. ● Ensure that capacity-development and livelihood-support programs cater to the needs of local ethnic groups (e.g., food preparation). ● Ensure that kiosks and stalls are affordable for all ethnic groups (the current concession fee is D4 million per year for 4 years). ● Include a section on potential impacts on ethnic minorities in the GMS manual. ● Ethnic ● Significant: ● Minor: While ● Include ethnic groups in community planning for income minority The Bac Kan close to 85% generation and asset management in tourism. cultural heritage of the ● Include a separate budget for (i) a public awareness heritage interpretation population in program and (ii) M&E disaggregated by sex, ethnicity, and development in and visitor Ba Be district income where possible. Bac Kan (Viet center will bring is ethnic ● Consult with ethnic communities during subproject Nam) benefits to the minority, the preparation and again before subproject start. community in Ba Bac Kan ● Use different communication strategies for raising Be District. Center will be awareness of HIV/AIDS and other tourism-related issues (e.g., constructed in text, pictures, or media). the center of ● Produce Dos-and-Don’ts publication for tourism town. management. ● Work with the Museum on Ethnology in Hanoi to establish the Bac Kan heritage interpretation and visitor center. ● Develop a program to train ethnic minorities in traditional arts and cultural industries. ● Design and produce displays on ethnic minority culture. ● Include a section on potential impacts on ethnic minorities in the GMS manual. Output 2: Pro-poor, community-based, and supply-chain tourism projects operational ● Pro-poor, ● Significant: ● Minor: ● Include ethnic group/minorities in community planning for community- Subprojects will Monitor income generation and asset management through tourism. based, supply- be in selected integration ● Include separate budget lines for (i) screening potential chain tourism poor villages in within the impacts on ethnic groups, mitigating them, managing risks, projects the proposed community in and developing enhancement measures; (ii) a public operational provinces. There favor of pro- awareness program; and (iii) M&E disaggregated by sex, is a strong poor tourism ethnicity, and income where possible. correlation development ● Incorporate ADB’s indigenous peoples checklist as part of between poverty ● Minor: Risk subproject preparation. and ethnicity, as of being made ● Consult with ethnic communities during subproject ethnic groups a “human zoo” preparation and again before subproject start. make up more by tourists and ● Open associated skills training and workshops to all ethnic than 50% of the tour groups and disaggregate participation records by sex, Lao PDR’s poor companies ethnicity, and other appropriate information. The percentage

Appendix 3 49

Anticipated Anticipated Project Positive Effect Negative Proposed Actions to Mitigate Impacts Output Effect population; of participants that are from ethnic minorities should be about 61% of all proportional to the ethnicity of the local population. ethnic minorities ● Help villagers from ethnic minorities to enter into equitable are poor in Viet supply agreements. Nam. ● Grant local management contracts to local ethnic minority communities for the management of the site. ● Identify specific actions that will enable ethnic minorities, especially ethnic women, to participate in capacity development for tourism-related micro-enterprises. ● Ensure that tourism infrastructure reflects the cultural aesthetics and traditional architecture of ethnic minorities. ● Include a section on potential impacts on ethnic minorities in the GMS manual. Output 3: GMS tourism corridors developed ● GMS tourism ● Significant: ● Minor: ● Include ethnic minorities in community planning for income corridors Subprojects will Monitor generation and asset management through tourism. developed selected along integration in ● Include separate budget lines for (i) screening potential the north–south the community impacts on ethnic groups, mitigating them, managing risks, and east–west in favor of pro- and developing enhancement measures; (ii) a public economic poor tourism awareness program; and (iii) M&E disaggregated by sex, corridors, where development ethnicity, and income where possible. most villages are ● Minor: Fear ● Incorporate ADB’s indigenous peoples checklist as part of composed of of being subproject preparation. ethnic minorities. treated as a ● Produce a Dos-and-Don’ts publication for tourism “human zoo” management. by tourists and ● Consult with ethnic communities during subproject tour preparation and before the start of construction. companies. ● Grant local management contracts to local minority communities for the management of the site. ● Open associated skills training and workshops to all ethnic groups and disaggregate participation records by sex, ethnicity, and other appropriate information. The percentage of participants that are from ethnic minorities should be proportional to the ethnicity of the local population. ● Identity specific actions that enable ethnic minorities, especially women, to participate in capacity development for tourism-related micro-enterprises. ● Ensure that tourism infrastructure reflects the cultural aesthetics and traditional architecture of ethnic groups. ● Respect the privacy of minority villages when developing scenic views. ● Include a section on potential impacts on ethnic minorities along the Lao PDR–Viet Nam border in the GMS manual. Output 4: Human resources in the tourism sector developed ● A pool of ● Significant: ● Minor: ● Review the training needs assessment with a focus on the master trainers Opportunities to Individuals specific needs of tourism officials from provinces with in small-scale receive 30% of from the disproportionately higher percentage of small ethnic tourism and scholarships for smaller ethnic minorities. hospitality is master training groups do not ● Teaching materials will be gender and ethnically sensitive created. courses, attend meet the and inclusive. training-of- requirements. ● A separate budget is included for M&E of activities. Data trainer courses, shall be disaggregated by sex, ethnicity and income. and training at ● At least 30% of the training-of-trainers participants come the site level from provinces with high percentages of small minorities, especially those participating in demonstration subprojects under outputs 2 and 3.

50 Appendix 3

Anticipated Anticipated Project Positive Effect Negative Proposed Actions to Mitigate Impacts Output Effect ● A pool of ● Significant: ● Minor: ● Review the training needs assessment with a focus on the master trainers Opportunities to Individuals specific needs of tourism officials from provinces with a for the training receive 30% of from the relatively high percentage of ethnic minorities. of public scholarships to smaller ethnic ● Give preference (30% quota) to qualified individuals from tourism participate in groups do not small ethnic minorities in the awarding of the 50 master officials is master training meet the training scholarships (15 in Lao PDR and 45 in Viet Nam). created courses, attend requirements ● Ensure that teaching materials are gender and ethnically training-of- to participate. sensitive and inclusive. trainer courses, ● Include a separate budget for M&E, with data and receive disaggregated by sex, ethnicity, and income. training at the ● Recruit 30% of 400 public officials in the tourism sector in site level the Lao PDR and Viet Nam from provinces with high percentages of ethnic minorities, especially those participating in subprojects under outputs 2 and 3. Output 5: Efficient project implementation services are operational ● Efficient ● Significant: ● None ● Include a social and gender focal person as a member of project PIUs with ethnic the PCU in Lao PDR and in each PIU in Lao PDR and Viet implementation representation Nam. services are will be ● Include an M&E focal person as a member of the PCU. operational in established. ● Recruit two international and two national social and gender the Lao PDR ● Significant: development specialists (4 person-months and 18 person- and Viet Nam Capacity months) to support the governments in project development of implementation in the Lao PDR and Viet Nam. the PCU and ● Recruit one international resettlement specialist in the Lao PIUs PDR (2 person-months) and in Viet Nam (1.5 person-months) ● Significant: to help the EAs protect the land-use rights of ethnic Better minorities. information on ● Make ethnic representation in the PIUs and the community tourism benefits tourism groups proportional to the ethnicity of the local and risks for population. ethnic minorities ● Representatives of the Ministry of Information and Culture, Lao Front for National Reconstruction, or Lao Women’s Union in the Lao PDR will be invited as needed to participate in the subregional steering committee, project steering committee, and provincial project steering committee. ● Representatives from the Ministry of Labor, Invalids and Social Affairs; National Institute of Linguistics; Committee for Ethnic Minorities; or Viet Nam Women’s Union in Viet Nam will be invited, as needed, to participate in the subregional steering committee, project steering committee, and provincial project steering committee. ● Disaggregate data by sex, ethnicity, and income where possible. ● All progress reports shall include a section that reports on the impact, good and bad, the Project has on ethnic minorities. ADB = Asian Development Bank, EA = executing agency, GIS = geographic information system, GMS = Greater Mekong Subregion, M&E = monitoring and evaluation, PCU = project coordination unit, PDR = people’s democratic republic, PIU = project implementation unit. Source: ADB estimates.

Supplementary Appendix M1 51

Ethnic Groups Development Framework

Lao PDR: Sustainable Tourism Development Project

June 2008

Prepared by: Lao National Tourism Administration

The Ethnic Groups Development Framework is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

52 Supplementary Appendix M1 LAO PDR: ETHNIC GROUPS DEVELOPMENT FRAMEWORK

44. An ethnic groups development framework (EGDF) is prepared for the regional Sustainable Tourism Development Project (the Project) in the Lao People’s Democratic Republic (Lao PDR). The purpose of the EGDF is to (i) guide the assessment of potential impacts on ethnic groups during the feasibility study for each subproject; (ii) assist in preparing specific actions or an ethnic groups development plan to address these impacts; and (iii) help improve the distribution of tourism benefits among different groups of beneficiaries, especially the smaller ethnic groups. The EGDF is based on (i) reconnaissance surveys and district-level information data sheets; (ii) two sample models for sustainable tourism development projects that aim to protect the natural and urban heritage sites of importance to tourism (Siphandone Wetland in Champassak province, and urban environmental improvements in Vang Vieng town); (iii) consultations with ethnic groups, government officials, local mass organizations and other key stakeholders; and (iv) the previous Gender Equity and Ethnic Diversity Action Plan for the GMS Mekong Tourism Development Project. The EGDF is in accordance with current Lao PDR regulations and complies with the Asian Development Bank’s (ADB) indigenous peoples policy (1998).

A. Ethnic Groups and Tourism in the Lao PDR and Project Area

45. The Lao PDR has a total population of about 5.6 million people, with 49 officially recognized ethnic groups comprising of more than 200 ethnic subgroups. Ethnic groups can be grouped into four broad ethno-linguistic categories—Lao-Tai, Mon Khmer, Hmong-Iu Mien and Chine-Tibet. Most of the smaller ethnic groups live mainly in the northern uplands of Lao PDR near the borders with Thailand, Myanmar, People’s Republic of China, and Viet Nam.

46. Although the smaller ethnic groups make up only one-third of the population, they constitute more than half of the country’s poor. Currently, about 32% of the total population lives below the poverty line, with 52.5% poverty incidence in the Northern Region, a 34.9% incidence in the Central Region and a 38.4% incidence in the Southern Region. Ethnic groups from the ethno- linguistic categories of Hmong-Iu Mien and Chine-Tibet tend to be poorer than the other groups due to (i) geographical remoteness; (ii) lack of farming knowledge and skills; (iii) traditional cultivation practices (i.e., shifting cultivation); (iv) limited access to cash and credit; (iv) environmental problems; and (iv) poor physical and social infrastructure. Those conditions also limit the development of ethnic women: (i) they have higher levels of illiteracy, (ii) they lack access to training for improved agricultural techniques, (iii) they participate less in non-agricultural work, and (iv) their mobility and interactions with others are limited. The Hmong and Yao people tend to be the poorest of all ethnic groups, followed by the Khmou and the Tai people

47. Table SAM1.1 shows an overview of the socioeconomic conditions by ethnic categorization in the Lao PDR. Table SAM1.2 gives the distribution of ethnic groups in proposed project provinces and towns against provincial and district poverty data.

Supplementary Appendix M1 53 Table SAM1.1: Select Socioeconomic Characteristics of Ethnic Groups in Lao PDR

Ethnic Main Ethnic Poverty Under- Net Rural Areas Categorization Ethnic Population Headcount weight primary Value of Percentage Groups (%) (%) children enroll- agricultural of ethnic (Under5) ment assets inhabitants rates (kip/capita) (%) Lao Tai Lao, Tai, 66.7% 25% 34% 76% 4.5 million 96% (formerly Lao Lue and Loum) Phou Tay Mon-Khmer Khmou, 20.6% 54% 43% 49% Less than 2 89% (formerly Lao Larnet, million Theun) Katang, Makong, Brao, Ta Oy and Katu Hmong-Iu Mien Hmong, 8.4% 46% 37% 47% 3.8 million 88% (formerly Lao Yao and Soum) Huoay Chine-Tibet Akha, 3.3% 40% 41% 35% Slightly over 96% (formerly Lao Lahu and 2 million Soum) Sila Other n/a 1.0% n/a n/a n/a n/a n/a n/a=not available Source: TA 4879-REG Consultant Team Estimates; World Bank. 2006. Lao PDR: Poverty Assessment Report. From Valleys to Hilltops—15 Years of Poverty Reduction; Gender Resource Information and Development Center. 2005. Lao PDR Gender Profile.

Table SAM1.2: Project Profile of Proposed Provinces and Towns

No. Proposed Proposed Proposed Poverty Provincial Datab Ethnic Groupsa Project District Project Total Percent Province Town Population Female (%) 1. Champassak Khong Nakasang 75.0% 607,370 50.5% 92% Lao-Tai Village, Don (Wetland)a Det Island, and Don 35.6% Kone Island (provincial)d 2. Vientiane Vang Vieng Vang Vieng 32.0% 388,895 49.2% 90% Lao-Tai province Town (district) 24.3% (provincial)d 3. Bokeo Huoixay TBD 37.4% 145,263 50.4% About 80% Lao-Tai (provincial)d 4. Houaphanh TBD TBD 74.6% 280,938 49.6% About 90% Lao-Tai (provincial)d 5. Saravanh TBD TBD 39.6% 324,327 51.0% Between 60-90% (provincial)d Lao Tai 6. Oudomxay TBD TBD 73.2% 265,179 50.2% Majority Mon- (provincial)d Khmer 7. Xayaboury TBD TBD 21.2 338,669 49.5% Majority Lao-Tai (provincial)d

8. Luang Namtha Chalensouk 57.5% 407,039 45.0% Majority Khmu Namthac Village (provincial)d community, Vieng TBD 95.7% including Khmu Phoukha (district)e Kraen, Khmu Samtao and Khmu Youn groups.

54 Supplementary Appendix M1

No. Proposed Proposed Proposed Poverty Provincial Datab Ethnic Groupsa Project District Project Total Percent Province Town Population Female (%) 9. Savannakhet Phine TBD 75.9% 825,902 50.7% Majority Lao-Tai (district)e and Mon-Khmer. Xepone TBD 37.1% (provincial)d Champone TBD n/a a Based on PPTA 4879-REG socioeconomic survey with a sample of 138 respondents (unless indicated otherwise). The national poverty average is 38.6% as per NGPES. b Results from the Population and Housing Census, 2005. c Namtha and Vieng Phoukha Districts in Luang Namtha province have been suggested for GMS sustainable tourism corridors. Vieng Phoukha is host to the Nam Eng Cave, Vat Mahaphot and Associated Ancient Historic Sites, Bor Kung Nature Park and Nam Phae Village. d Lao PDR. 2001. I-PRSP. Data for 1997-98. e NGPES. 2003. Percentages correspond to percentage of poor villages Source: ADB estimates.

48. While tourism potential is often the greatest in areas where smaller ethnic groups reside, it also has the potential to impact local cultures and norms negatively and positively. Ethnic groups often face constraints that prevent them from ceasing the opportunities brought about by tourism growth such as remote locations of their villages, limited mobility and market access, low education levels, and less familiarity with Lao language. While tourism growth among ethnic communities provides an important opportunity for poverty alleviation, it can also increase increase one’s workload such as in the case of homestays. Table SAM1.3 provides a summary of common opportunities and risks for ethnic groups in tourism development.

49. Women from ethnic groups face additional risks—direct and indirect—due to tourism development. For instance, tourism development might bring new opportunities but at the cost of girls dropping out school to engage in the sector. Ethnic women are also more vulnerable to engaging in unsafe migration practices and have an increased risk to HIV and AIDS due to low education and literacy and limited information on prevention.

Table SAM1.3: Opportunities and Risks of Tourism Development for Ethnic Groups

OPPORTUNITIES DIRECT INDIRECT Income generation/poverty alleviationa Better transport/communicationa Local-led planning and development Education and health improvementsa Revitalize cultural industry/practices Better communication with authorities RISKS DIRECT INDIRECT Objectification of minorities as exotic or Further exclusion from public planning backwards people Dilution of culture from outside contacta

a Indicates issues specifically identified by gender awareness workshop participants. Source: Lao National Tourism Authority. Gender Equity and Ethnic Diversity Action Plan for the GMS Mekong Tourism Development Project. Vientiane.

B. Legal Framework and Principles

50. The EGDF for the Project is based on Lao PDR laws and ADB’s indigenous peoples policy (footnote 2). ADB’s policy aims to protect ethnic groups from the adverse impacts of development, and to ensure that all ethnic groups benefit from development projects and

Supplementary Appendix M1 55 programs. ADB’s Operations Manual F3/BP (2004) and Operational Procedures F3/OP (2004) outline ADB procedures and operational guidelines.

51. The overarching goal of Government policies is to reduce poverty and to “free” Lao PDR from the status of least-developed country by 2020. The Government has used the approach to mainstream ethnicity into the Constitution and key policies. Recent laws and decisions reflect the Government’s increasing awareness of the need to incorporate ethnic issues in the development process in all sectors: (i) the 6th National Socio-Economic Development Plan 2006- 2010 confirms the commitment of the Government to poverty eradication within a framework of rapid and sustainable economic growth. Gender equality and equity for all ethnic groups are underlying principles of this Plan; (ii) the Lao PDR Constitution 2001 (amended 2003) highlights the right of ethnic groups to protect, preserve, and promote their customs and heritage; and prohibits acts of division and discrimination (Article 8). Decree No. 192/PM and Regulations No. (iii) 2432/STEA on Compensation and Resettlement (2005) also recognizes the rights of ethnic groups with regard to involuntary resettlement (Article 10).

52. The Resolution of the Party Central Organization Concerning Ethnic Minority Affairs in the New Era (1992) mandates that all government agencies create a targeted plan for the development of rural, mountainous areas. It focuses on gradually improving the economic development opportunities and living conditions of ethnic groups, while promoting their distinct identities and cultural heritages. The Department of Ethnic and Social Affairs of the Lao Front for National Construction (LFNC) is responsible for coordinating ethnic issues and developing and implementing policies for ethnic groups in mountainous regions.

C. Anticipated impacts on Ethnic Groups and Proposed Actions for Ethnic Groups

53. The EGDF ensures that all ethnic groups share proportionately in the project benefits and experience limited adverse effects from the Project. During project implementation, the preparation of demonstration subprojects will review the socioeconomic and demographic profiles of the target communities with respect to ethnicity. Using ADB’s checklist on indigenous peoples, the potential effects of the Project on all ethnic groups for each demonstration subproject will be assessed. Potential impacts (significant or not significant) will be identified and measures to mitigate these impacts will be incorporated into the design of each subproject. A separate budget item has been assigned under each Output to support the implementation of specific actions for mitigating impacts or enhancing benefits for ethnic groups. This will be required for each subproject in accordance to Lao Government regulations, ADB’s indigenous peoples policy, OM F3/BP, and OP F3/OP. Ethnic groups who are affected by land acquisition and resettlement are eligible for the same entitlements and levels of compensation, regardless of ethnicity. General entitlements and specific measures for vulnerable groups are included in the Project’s land acquisition and compensation framework for Lao PDR and the short land acquisition and compensation plan for the Siphandone Wetland in Champassak.

54. It is anticipated that ethnic groups in the proposed provinces and areas will benefit from the development and implementation of demonstration projects aimed at developing a sustainable, culturally and environmentally sound pro-poor tourism approach in the GMS. Table A7.4 summarizes the anticipated impacts and proposed actions for ethnic groups under the Project. While subprojects under Output 1 and Output 4 have been identified, a sectoral approach has been adopted for Outputs 2 and 3. The selection of subproject sites will be done in accordance to selection criteria (Appendix 4) during project implementation. This approach is reflected in the actions proposed in Table SAM1.4.

Table SAM1.4: Anticipated Impacts and Proposed Actions on Ethnic Groups

Project Output Anticipated Anticipated Proposed actions to mitigate impacts positive effect negative effect

56 Supplementary Appendix M1

Project Output Anticipated Anticipated Proposed actions to mitigate impacts positive effect negative effect Output 1: Model sustainable tourism development projects protecting the environment and cultural heritage developed ● Biodiversity ● Minor/none: ● None. ● Ethnic groups will be included in community planning protection at the Few minority for income generation and asset management through Siphandone Wetland ethnic groups in tourism. the community. ● Separate budget lines are included for (i) screening of the potential impacts on ethnic groups, mitigating impacts, managing risks, and developing enhancement measures; (ii) a public awareness program, and (iii) M&E activities disaggregated by sex, ethnicity and income. ● Consult with ethnic communities during subproject preparation, and again, before subproject start. ● The new visitor information and interpretation facilities in Nakasang village shall feature cultural and livelihood information on the ethnic groups from the Wetlands. ● Capacity development and livelihood support programs will cater to the needs of the local ethnic groups (e.g., handicrafts). ● Include a section on potential impacts on ethnic groups in the GMS manual. ● Vang Vieng town ● Minor/none: ● None. ● Ethnic groups will be included in community planning Environmental Few minority for income generation and asset management through Improvement ethnic groups live tourism. in the town. ● A separate budget is included for (i) a public awareness program, and (ii) M&E activities. ● Consult with ethnic communities during subproject preparation, and again, before subproject start. ● Use different communication strategies for awareness-raising in proper waste management practices, HIV and AIDS, and other tourism-related awareness activities (e.g., text, pictures or media). ● Capacity strengthen of the UDAA should also include temporary workers (e.g., solid waste collectors) ● Include a section on potential impacts on ethnic groups in the GMS manual. Output 2: Pro-poor, community-based and supply-chain tourism projects operational ● Pro—poor, ● Significant: ● Minor: ● Ethnic groups will be included in community planning community-based Selection of Monitor for income generation and asset management through and supply-chain subprojects will integration within tourism. tourism projects be in poor the community in ● Separate budget lines are included for (i) screening of operational villages within favor of pro-poor the potential impacts on ethnic groups, mitigating the proposed tourism impacts, managing risks, and developing enhancement provinces. Ethnic development. measures; (ii) a public awareness program, and (iii) groups make up ● Minor: Risk of M&E activities. more than 50% becoming a ● Incorporate ADB’s IP checklist as part of the overall of Lao’s poor “human zoo” by subproject preparation procedures population. tourists and tour ● Consult with ethnic communities during subproject companies. preparation, and again, before subproject start.

Supplementary Appendix M1 57

Project Output Anticipated Anticipated Proposed actions to mitigate impacts positive effect negative effect ● Associated skills trainings and workshops will be open to all ethnic groups, and participation records will be disaggregated by sex, ethnicity and other appropriate information. The percent of participants that are from small ethnic groups should be proportional to the ethnicity of the local population. ● Assist villagers from minority ethnic groups enter into equitable supply agreements before they engage in tourism-related supply chain opportunities. ● Grant local management contracts to local ethnic minority communities for the management of the site. ● Identity specific actions that will enable ethnic groups, especially ethnic women, to participate in capacity development for tourism-related local micro-enterprises during subproject design and implementation. ● Ensure small-scale tourism infrastructure reflects the cultural aesthetics and traditional architectural design of different ethnic groups. ● Include a section on potential impacts on ethnic groups in the GMS manual.

Output 3: GMS Tourism Corridors Developed ● GMS Tourism ● Significant: ● Minor: Monitor ● Ethnic groups will be included in community planning Corridors Developed Selection of integration within for income generation and asset management through subprojects will the community in tourism. be along the favor of pro-poor ● Separate budget lines are included for (i) screening of North-South and tourism the potential impacts on ethnic groups, mitigating East-West development. impacts, managing risks, and developing enhancement Economic ● Minor: Fear of measures; (ii) a public awareness program, and (iii) Corridors. A being treated as M&E activities. majority of a “human zoo” by ● Incorporate ADB’s IP checklist as part of the overall villages are tourists and tour subproject preparation procedures composed of companies. ● Produce a “Do’s and Don’ts” type of publication for minority ethnic management tourism management ● Consult with ethnic communities groups. during subproject preparation, and again, before subproject start. ● Associated skills trainings and workshops will be open to all ethnic groups, and participation records will be disaggregated by sex, ethnicity and other appropriate information. The percent of participants that are from small ethnic groups should be proportional to the ethnicity of the local population. ● Identity specific actions that will enable ethnic groups, especially ethnic women, to participate in capacity development for tourism-related local micro-enterprises during subproject design and implementation. ● Ensure small-scale tourism infrastructure reflects the cultural aesthetics and traditional architectural design of different ethnic groups. ● Development of scenic views shall respect the privacy of ethnic villages. ● Include a section on potential impacts on ethnic groups in the GMS manual. Output 4: Human resources in the tourism sector developed

58 Supplementary Appendix M1

Project Output Anticipated Anticipated Proposed actions to mitigate impacts positive effect negative effect ● A pool of master ● Significant: ● Minor: ● TNA will focus on the specific needs of tourism trainers in small- Opportunities to Individuals from officials from provinces with disproportionately higher scale tourism and receive 30% of the smaller percentage of minority ethnic groups. hospitality is created scholarships to ethnic groups do ● Preference shall be given to qualified individuals from participate in not meet the the smaller ethnic groups for the award of the 50 master training requirements. scholarship for Master Trainers. courses, attend ● Teaching materials will be gender and ethnically TOT courses, sensitive and inclusive. and receive the ● A separate budget is included for M&E of activities. training at the Data shall be disaggregated by sex, ethnicity and site level. income where appropriate. ● At least 30% of the training of trainers will come from provinces with high percentages of minority ethnic groups, especially those participating in demonstration subprojects under Outputs 2 and 3. ● A pool of master ● Significant: ● Minor: ● TNA will focus on the specific needs of tourism trainers for the Opportunities to Individuals from officials from provinces with disproportionately higher training of public receive 30% of the smaller percentage of minority ethnic groups. sector tourism scholarships to ethnic groups do ● Teaching materials will be gender and ethnically officials is created participate in not meet the sensitive and inclusive. master training requirements to ● A separate budget is included for M&E of activities. courses, attend participate. Data shall be disaggregated by sex, ethnicity and TOT courses, income where appropriate. and receive the ● Preference shall be given to qualified individuals from training at the the smaller ethnic groups for the award of the 15 site level. scholarship for Master Trainers. ● 30% of training of trainers will be recruited from provinces with high percentages of minority ethnic groups, especially those participating in subprojects under Outputs 2 and 3.

Output 5: Efficient project implementation services are operational ● Efficient project ● Significant: ● None. ● A social/gender focal person and an M&E focal implementation PIUs, with ethnic person will be members of the PCU and PIU. services are representation, ● An international and a national social and gender operational will be development specialist (4 person-months and 18 established. person-months, respectively) will support the ● Significant: government in project implementation. Capacity ● A resettlement specialist (2 person-months) will assist development of the EA protect the land/user rights of ethnic groups the PCU and during land acquisition and resettlement. PIUs. ● Ethnic representation of the PIUs will be proportional ● Significant: to the local provincial population. Better ● Representative(s) from the Ministry of Information and information on Culture, the Lao Front for National Reconstruction or tourism benefits Lao Women’s Union in Lao PDR will be invited, as and risks for needed to attend/ participate in the subregional steering ethnic groups. committee, the project steering committee and the provincial project steering committee (as required). ● Disaggregate data by sex, ethnicity and income. ● All progress reports, internal or external, shall include a section which reports on the impact the project is having on ethnic groups—positive and/or negative.

Source: ADB estimates

Supplementary Appendix M1 59

D. Institutional Arrangements

55. Implementation arrangements and estimated costs of the EGDF are integrated into the overall arrangements and total budget of the Project. Representatives from the LFNC and the Lao Women’s Union will play a critical role in facilitating participation by all ethnic groups in project activities and will be invited to participate in steering committee meetings, as required. An international social and gender development specialist (4 person-months), and a national social and gender development specialist (18 person-months) will support the EA to implement the EGDF. The specialists will work closely with other specialists. The EGDF will be monitored as part of the overall system for the Project, and socioeconomic data will be disaggregated by sex and by ethnicity. Progress reports will provide periodic updates on the effect of project components on ethnic groups. The midterm review mission will consider past updates and make adjustments, as required. E.

60 Appendix 4 COST ESTIMATES

Table A5.1: Cost Estimates for the Lao People’s Democratic Republic ($’000)

Output Total A. Project Base Costs Output 1. Sustainable Tourism Development a. Siphandone Wetland Natural Project 1,910.0 b. Vang Vieng Urban Development 1,290.0 Subtotal (A1) 3,200.0 2. Pro Poor Tourism Development a. Bokeo Province 386.0 b. Houaphanh Province 386.0 c. Oudomsay Province 386.0 d. Saravanh Province 386.0 e. Vientiane Province 386.0 f. Xayabouly Province 386.0 Subtotal (A2) 2,316.0 3. Tourism Corridors a. North–South Corridor 930.0 b. East–West Corridor 370.0 Subtotal (A3) 1,300.0 4. Human Resources Development a. Training Master Hospitality Trainers 260.0 b. Training Public Sector Tourism Officials 250.0 Subtotal (A4) 510.0 5. Project Implementation a. Consulting Services 1,142.0 b. Support to PCU/PIUs 520.0 c. Capacity Building 60.0 d. External Monitoring for Resettlement 15.0 e. External Financial Auditing of PCU/PIUs 20.0 f. External Monitoring and Evaluation 15.0 Subtotal (A5) 1,772.0 Subtotal (A) a 9,098.0 B. Contingencies 1. Physical Contingency b 910.0 2. Price Contingency c 862.0 Subtotal (B) 1,772.0 Total 10,870.0 PCU = project coordination unit, PIU = project implementation unit. a Includes taxes and duties of $598,000. b Physical contingencies computed at 10%. c Price contingencies computed at 4% on foreign exchange cost and 6.5% on local currency costs includes provision for potential exchange rate fluctuation under assumption of a purchasing power parity exchange rate. Source: Asian Development Bank estimates.

Appendix 4 61

Table A5.3: Financing Plan ($’000)

Cost ADB Governments

a % of Cost a % of Cost Amount Amount b Amount Item Category Category Lao People’s Democratic Republic A. Investment Costs 1. Civil Works: Output 1 3,420.0 2,863.0 84.0 557.0 16.0 Outputs 2, 3, and 4 626.0 563.0 90.0 63.0 10.0 2. Equipment 426.0 426.0 100.0 0.0 0.0 3. Environment and Social Mitigation 4. Land Acquisition 250.0 0.0 0.0 250.0 100.0 5. Environmental Management Plans 155.0 155.0 100.0 0.0 0.0 6. Consultants 1,667.0 1,667.0 100.0 0.0 0.0 7. Training and Workshops 2,020.0 2,020.0 100.0 0.0 0.0 Subtotal A 8,564.0 7,694.0 90.0 870.0 10.0 B. Recurrent Costs 534.0 534.0 100.0 0.0 0.0 C. Contingencies 1,772.0 1,772.0 100.0 0.0 0.0 Total Project Costs 10,870.0 10,000.0 92.0 870.0 8.0

Viet Nam A. Investment Costs 1. Civil Works: 4,440.0 3,499.0 79.0 941.0 21.0 2. Equipment and Vehicle 685.0 685.0 100.0 0.0 0.0 3. Environment and Social Mitigation 4. Land Acquisition 170.0 0.0 0.0 170.0 100.0 5. Environmental Management Plans 131.0 131.0 100.0 0.0 0.0 6. Consultants 1,725.0 1,725.0 100.0 0.0 0.0 7. Training and Workshops 1,438.0 1,438.0 100.0 0.0 0.0 Subtotal A 8,589.0 7,478.0 87.0 1,111.0 13.0 B. Recurrent Costs 728.0 728.0 100.0 0.0 0.0 C. Contingencies 1,613.0 1,613.0 100.0 0.0 0.0 Financing Charges During D. Implementation 181.0 181.0 100.0 0.0 0.0 Total Project Costs c 11,111.0 10,000.0 90.0 1,111.0 10.0

ADB = Asian Development Bank. a Amount of ADB grant and loan proceeds allocated to the cost category. b The amounts disbursed by ADB for eligible expenditures under a cost category will be subject to the ceiling set by the allocation of grant and loan proceeds for such cost category. c Total costs inclusive of taxes and duties of $598,000 for the Lao People’s Democratic Republic and $589,000 for Viet Nam. Source: ADB estimates.

62 Supplementary Appendix C

DETAILED COST ESTIMATES FOR LAO PDR

Table C1.1: Output 1: Sustainable Tourism Development - Siphandone Wetlands Ecotourism Development, Lao PDR

Tourism Master Planning Social an environmental data collection 1 Item 56,000.00 0 0 0 0 56 0 56 10 6 71 40 16 62 Creation of precise GIS maps of site 1Item 10,000.00 0 0 0010 0 10 10 1 80 8 2 11 Community consultation on zoning regulations 1Item 5,000.00 0 0 005 0 5101 704 2 6 Design and drafting of structure and zoning plan 1Item 10,000.00 0 0 0010 0 10 10 1 70 7 3 11 Information and education program about plan 1Item 5,000.00 0 0 005 0 5101 704 2 6 Sub-Total 0 0 0 0 86 0 86 9 62 24 95

Transport access infrastructure upgrade Up-grade existing road shoulder drains 3.6 km road Grade, shape and test roll existing pavement 6 m wide 25,200 m2 0.50 0 0 13 0 0 0 13 10 1 70 9 4 14 Remove soft spots (10% of surface 0.5 deep) 0.5 m shoulders 1,255 m3 5.00 0 0 6 0006101704 2 7 Base 200 mm (av depth) with drainage 25,200 m2 7.20 0 0 181 0 0 0 181 10 18 70 127 54 200 Base 100 mm 21,600 m2 5.50 0 0 119 0 0 0 119 10 12 70 83 36 131 Bitumus prime & 2 coat seal with 14 & 10 mm clean gravel 21,600 m2 2.50 0 0 54 0 0 0 54 10 5 70 38 16 59 Shoulder Drains Both Sides 7,200 m 2.30 0 0 17 0 0 0 17 10 2 70 12 5 18 Stormwater Culverts with Head walls300dia (allow 1 culvert every km) 4 No 780.00 0 0 3 0003100702 1 3 Supplementary Appendix C Appendix Supplementary Up-grade existing road with stormwater and kerb drainage 400 m of road Grade, shape and test roll existing pavement 8 m wide 3,200 m2 0.50 0 0 2 0002100701 0 2 Remove soft spots and rehabilitate (10% of surface 0.5 deep) with kerb & gutter, 160 m3 5.00 0 0 1 0001100701 0 1 Sub-Base 200mm side inlet pits and 3,200 m2 7.20 0 0 23 0 0 0 23 10 2 70 16 7 25 Base 100 mm stormwater piped 3,200 m2 5.50 0 0 18 0 0 0 18 10 2 70 12 5 19 Bitumus seal drainage both sides 3,200 m 2.30 0 0 7 0007101705 2 8 Stormwater Drains refer to environment improvements 0 No 0.00 0 0 0 0000100700 0 0 End ramp to Mekong river and beach 1:8 fall 240 m2 27.00 0 0 6 0006101705 2 7 0 0 450 0 0 0 450 45 315 135 495

Parking Lot 24 cars Clear & strip 2 buses 2000 m2 0.50 0 0 1 0001100701 0 1

Remove soft spots and rehabilitate (10% of surface 0.5 deep) Bus turning 100 m3 5.00 0 0 1 0001100700 0 1 63 Sub-Base 200mm circle 12.5m radius 2,000 m2 7.20 0 0 14 0 0 0 14 10 1 70 10 4 16 Base 100 mm 2000 m2 5.50 0 0 11 0 0 0 11 10 1 70 8 3 12 Bitumus seal 2000 m 2.30 0 0 5 0005100703 1 5 Shoulder Drains 250 No 2.30 0 0 1 0001100700 0 1 0 0 32 0 0 0 32 3 22 10 35

(000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) C Appendix Supplementary Market 40 craft stalls Clear & strip 4m x 4m 2,000 m2 0.50 0 0 10001100 701 0 1 Excavate & fill to formation surface 10 food stalls 2,000 m2 1.30 0 0 30003100 702 1 3 Concrete slab to craft & food Stalls 4m x 4m 800 m2 27.00 0 0 22 0 0 0 22 10 2 70 15 6 24 Steel support, timber framing & roofing Hardstand @ front 800 m2 100.00 0 0 80 0 0 0 80 10 8 70 56 24 88 Supply power to site 3m x 130m 1Item 10,000.00 0 0 10 0 0 0 10 10 1 70 7 3 11 Supply power food stall 10 Item 300.00 0 0 30003100 702 1 3 Supply water to food stalls only 10 Item 250.00 0 0 30003100 702 1 3 Supply sanitary drainage point to food stalls 10 Item 350.00 0 0 40004100 702 1 4 Toilets: 25 m2 400.00 0 0 10 0 0 0 10 10 1 70 7 3 11 Landscaping 1Item 5,000.00 0 0 50005101 704 2 6 0 0 139 0 0 0 139 14 97 42 153

Track improvements to Don Det and Don Kone islands 3m trails 10 km Grade, shape existing pavement 3m 30000 m2 0.50 0 0 15 0 0 0 15 10 2 70 11 5 17 Base 150mm (av depth) 30000 m2 4.50 0 0 135 0 0 0 135 10 14 70 95 41 149 Shoulder Drains Both Sides 20000 m 0.50 0 0 10 0 0 0 10 10 1 70 7 3 11 Stormwater Culverts with Head walls300dia (allow 1 culvert every 500m) 20 No 350.00 0 0 70007101 705 2 8 0 0 167 0 0 0 167 17 117 50 184

Parking Lot Don Det Clear & strip 24 cars 800 m2 0.50 0 0 0 0000100700 0 0 Remove soft spots and rehabilitate (10% of surface 0.5 deep) 2 buses 40 m3 5.00 0 0 0 0000100700 0 0 Sub-Base 200mm Bus turning 800 m2 7.20 0 0 6 0006101704 2 6 Shoulder Drains circle 12.5m radius 120 No 2.30 0 0 0 0000100700 0 0 0070007 1 5 2 7

Environmental Improvements Ban Nakasang Stormwater Discharge Supply, install and test main leachate drainage line D300 d:300mm 800 m 54.75 0 0 44 0 0 0 44 10 4 70 31 13 48 Supply, install and test diversion stormwater drain d:600mm 400 m 71.15 0 0 28 0 0 0 28 10 3 70 20 9 31 Side Entry Inlets and Silt Traps 10 No 408.75 0 0 4 0004100703 1 4 Gross Pollution Traps 2 No 1,350.00 0 0 3 0003100702 1 3 Manholes 6 No 650.00 0 0 4 0004100703 1 4 0 0 83 0 0 0 83 8 58 25 91

Promenade Walkway Grade, shape existing pavement 70 m 105.00 m2 1.00 0 0 0 0000100700 0 0 Base 75 mm (av depth) 1.5m wide 105.00 m2 3.00 0 0 0 0000100700 0 0 Pavement masonary pavers 105.00 m2 12.00 0 0 1 0001100701 0 1 Edging 140.00 m 3.00 0 0 0 0000100700 0 0 Lighting along pathway 10.00 No 250.00 0 0 3 0003100702 1 3 Stairs to Mekong river 2 Item 2,000.00 0 0 4 0004100703 1 4 0090009 1 6 3 9

Interpretation Centre Clear & strip Centre 410 m2 1.00 0 0 0 0 0 0 0100 700 0 0 Excavate, fill and compact to formation surface 200 m2 225 m2 2.50 0 0 1 0 0 0 1100 700 0 1 Concrete slab and foundations to buildings Toilets 225 m2 55.00 0 0 12 0 0 0 12 10 1 70 9 4 14 Steel support, timber framing walls & roofing to centre 25 m2 200 m2 450.00 0 0 90 0 0 0 90 10 9 70 63 27 99 Fitout centre 200 m2 200.00 0 0 40 0 0 0 40 10 4 70 28 12 44 Interpretation ans promotional materials for centre 1Item 50,000.00 0 0 50 0 0 0 50 10 5 70 35 15 55 Supply power to site 1Item 10,000.00 0 0 10 0 0 0 10 10 1 70 7 3 11 Supply water 1Item 2,500.00 0 0 3 0 0 0 3100 702 1 3 Supply sanitary drainage 1 Item 3,000.00 0 0 3 0 0 0 3100 702 1 3 Supply communications to site 1Item 2,500.00 0 0 30003100 702 1 3 Toilets with septic tank & disposal trenches 25 m2 800.00 0 0 20 0 0 0 20 10 2 40 8 12 22 Equipment 1Item 20,000.00 0 0 0 20 0 0 20 10 2 70 14 6 22 Landscaping 1Item 5,000.00 0 0 5 0 0 0 5101 402 3 6 0 0 236 20 0 0 256 26 172 84 282

Hang Korn railway pavilion Clear & strip Roof 250 m2 1.00 0 0 0 0 0 0 0100 700 0 0

Excavate, fill and compact to formation surface 150 m@ 150 m2 2.50 0 0 0 0 0 0 0100 700 0 0 C Appendix Supplementary Concrete slab and foundations to buildings 150 m2 55.00 0 0 8 0 0 0 8101 706 2 9 Steel support, timber framing walls & roofing to centre 150 m2 150.00 0 0 23 0 0 0 23 10 2 70 16 7 25 Interpretation in centre 1Item 5,000.00 0 0 5 0 0 0 5101 704 2 6 0 0 36 0 0 0 36 4 25 11 40

Walking Trail upgrade existing Grade, shape existing pavement 2 km long 3000 m2 0.50 0 0 20002100 701 0 2 Base 150mm (av depth) 1.5 m 3000 m2 4.50 0 0 14 0 0 0 14 10 1 70 9 4 15 Shoulder Drains Both Sides 4000 m 0.50 0 0 20002100 701 1 2 Stormwater Culverts with Head walls300dia (allow 1 culvert every 500m) 20 No 350.00 0 0 70007101 705 2 8 Handrail 100 m 12.50 0 0 1 0001100701 0 1 Steps 2 Item 850.00 0 0 2 0002100701 1 2 Elevated viewing tower 1 Item 15,000.00 0 0 15 0 0 0 15 10 2 70 11 5 17 65 0 0 42 0 0 0 42 4 29 13 46

Operational Equipment Rescue and Patrol Boat 1 No 9,000.00 0 0 0 9009 10 1 80 7 2 10 Rescue Cart on Islands 1 No 7,000.00 0 0 0 7007101 806 1 8 Sub-Total 0001600162 133 18

Unit Land Civil Civil Equip Cons. W'shop Totals Tax Taxes & Foreign Foreign Local Totals Acq Small Large Services s/Surve (exc tax) Description Capacity or Size Qty Unit Rate /Res'lmt ys % Duties % Exchange Currency (inc tax) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) Supplementary Appendix C Appendix Supplementary Capacity Building for local communities tourism awareness seminars 1Item 5,000.00 0 0 0 005 5101 0 0 5 6 detailed survey and documentation of ecotourism products 1Item 5,000.00 0 0 0 005 5101 704 2 6 hospitality management trainings 1Item 10,000.00 0 0 0 001010 10 1 70 7 3 11 tourism service trainings (food, transport, homestay) 1Item 15,000.00 0 0 0 001515 10 2 70 11 5 17 guide training 1Item 10,000.00 0 0 0 001010 10 1 0 0 10 11 handicraft design and marketing trainings 1Item 15,000.00 0 0 0 001515 10 2 70 11 5 17 fisheries management and aquaculture trainings 1Item 20,000.00 0 0 0 002020 10 2 70 14 6 22 agricultural extension work 1Item 20,000.00 0 0 0 002020 10 2 70 14 6 22 public-private sector investment workshops 1Item 10,000.00 0 0 0 001010 10 1 70 7 3 11 micro and small business operators training 1Item 5,000.00 0 0 0 005 5101 704 2 6 Public Aawareness Program 1Item 12,000.00 0 0 0 001212 10 1 0 12 13 train and establish village-bated monitoring teams 1Item 10,000.00 0 0 0 001010 10 1 70 7 3 11 0 0 0 0 0 137 137 14 77 60 151

Develop marketing and promotion plan draft marketing and promotion plan for the site 1Item 8,000.00 0 0 0008 8101 504 4 9 design and construct promotional signage in town and on the way to site 4No500.000 0 0002 2100 802 0 2 design and publish printed, VDO and other promotional media 1Item 10,000.00 0 0 00010 10 10 1 80 8 2 11 fam tours for tour operators and media 1Item 5,000.00 0 0 0005 5101 704 2 6 attend national and internationa travel fairs to promote the site 1Item 10,000.00 0 0 00010 10 10 1 70 7 3 11 Sub-Total 0 0 0 0 0 35 35 4 24 11 39

Gender and Development Gender and tourism awareness seminars at the province and village 1 item 3,000.00 0 0 0 0 0 3 3100 702 1 3 Tourism awareness youth activities 1 item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Gender focal point training 1Item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Safe migration and anti trafficking awareness seminars 1 Item 4,000.00 0 0 0 0 0 4 4100 703 1 4 Gender assessment of tourism industry 1Item 2,000.00 0 0 0 0 0 2 2100 701 1 2 Development gender and tourism strategy and action plan 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Sub-Total 00 00020202 137 22

Ethnic Minorities and Development Develop ethnic minority participation strategy 1 Item 5,000.00 0 0 00055101 704 2 6 Workshop to raise awareness on ethnic minority issues and tourism 1Item 5,000.00 0 0 0 0 0 5 5101 503 3 6 Collection data on ethnic culture and traditions 1Item 6,000.00 0 0 0 0 0 6 6101 704 2 7 Design and produce displays on ethnic minority products 1Item 8,000.00 0 0 0 0 0 8 8101 706 2 9 Training to revive traditional arts and cultural industries 1Item 10,000.00 0 0 0 0 0 10 10 10 1 50 5 5 11 Sub-Total 0 0 0 0 0 34 34 3 21 13 37

Monitoring Plan develop and refine monitoring system 1Item 5,000.00 0 0 0 0 0 5 5101 0 0 5 6 conduct annual data collection and reporting 1Item 15,000.00 0 0 0 0 0 15 15 10 2 70 11 5 17 publication of annual reports (5) 1Item 5,000.00 0 0 0 0 0 5 5101 0 0 5 6 0 0 0 0 0 25 25 3 11 15 28

Environmental Management Environmental monitoring 1Item 20,000.00 0 0 00020 20 10 2 67 13 7 22 Sub-Total 00 00020202 137 22 Total Cost at Date February 2008 116 0 1,223 50 86 271 1,747 163 1,128 619 1,910

Table C1.2: Output 1: Sustainable Tourism Development - Vang Vieng Urban Tourist Environment Protection and Management, Lao PDR

Land Acquisition & Resettlement Compensation of land 200 m3 8.05 2 0 0 000 200 0 0 2 2 Sub-Total 2 0 0000 2 0 0 2 2

Tourism and Urban Master Plan Data collection surveys and analysis 1Item 20,000.00 0 0 0 0 0 20 20 10 2 50 10 10 22 Preparation of tourism and urban development strategies and plans 1Item 10,000.00 0 0 0 0 0 10 10 10 1 50 5 5 11 Workshops 3 Item 5,000.00 0 0 0 0 0 15 15 10 2 50 8 8 17 Sub-Total 0000045455 232350

Drainage Improvements Drain Road 1 down Cross-Road 1 to Drain No.4 Excavation Drainage down 575 m3 2.50 0 0 1 000 1100701 0 2 Sand Bedding 200mm cross-road 1 22 m3 15.00 0 0 0 000 0100700 0 0 Supply, install and test diversion stormwater drain(1000 dia) 110 m 143.00 0 0 16 0 0 0 16 10 2 70 11 5 17 Backfill to Drain Granular Material Structural 280 m3 18.00 0 0 5 000 5101704 2 6 Bitumus seal repair Cross-road 2 220 m2 4.50 0 0 1 000 100 801 0 1 Culvert connection at Road 1 1 Item 3,000.00 0 0 3 000 3100702 1 3 Culvert connection at Drain 4 1 Item 3,000.00 0 0 3 000 3100702 1 3 Sub-Total 0 0 30 0 0 0 30 3 21 9 32

Drain No. 5 Clearing and cleaning of existing channels 2000 m2 3.00 0 0 6 000 6101704 2 7 excavation 900 m3 2.50 0 0 2 000 2100702 1 2 Fill 200 m3 15.00 0 0 3 000 3100702 1 3

Sand Bedding 275 m3 15.00 0 0 4 000 4100703 1 5 C Appendix Supplementary Grouted Stonework for Drain 42 m3 450.00 0 0 19 0 0 0 19 10 2 70 13 6 21 Maintanence Road 1500mm wide 0 150mm Sub-base 175 m2 4.50 0 0 1 000 1100701 0 1 Grade and Roll Road Surface 690 m2 2.50 0 0 2 000 2100701 1 2 Eathern Side-drain 275 lm 2.20 0 0 1 000 1100700 0 1 Gully Pits and connect to main drain 4 Item 500.00 0 0 2 000 2100701 1 2 Culverts 1000 dia with Headwall and Wings at Road1 1 Item 3,500.00 0 0 4 000 4100702 1 4 2 x 800 dia with Headwall and Wings 2 Item 4,000.00 0 0 8 000 8101706 2 9 Seeding and grassing 350 m2 2.20 0 0 1 000 1100701 0 1 Sub-Total 0 0 52000525 361557 67

Road Improvements C Appendix Supplementary Road No.1 Extend Drainage excavation 1150 m3 2.50 0 0 3 000 3100702 1 3 Granular Sub-base and Structural Fill to Base Level 560 m3 15.00 0 0 8 000 8101706 3 9 Drainage 0 0 Sand Bedding 200mm 230 m3 15.00 0 0 3 000 3100702 1 4 Drain Channel 1150 lm 174.00 0 0 200 0 0 0 200 10 20 70 140 60 220 Kerb 1150 lm 12.00 0 0 14 0 0 0 14 10 1 70 10 4 15 Footpath Concrete 1725 m2 25.00 0 0 43 0 0 0 43 10 4 70 30 13 47 Gully Pits 30 Item 450.00 0 0 14 0 0 0 14 10 1 50 7 7 15 Road Repair and Make Good to Drainage 0 Base 150 mm (av depth) 5175 m2 4.50 0 0 23 0 0 0 23 10 2 80 19 5 26 Prime Coat 5175 l 1.30 0 0 7 000 7101705 2 7 Bitumen 80/100 penetration grade 11900 l 1.20 0 0 14 0 0 0 14 10 1 70 10 4 16 Chippings 14mm nominal 80 m3 35.00 0 0 3 000 3100702 1 3 Chippings 10mm nominal 70 m3 26.00 0 0 2 000 2100701 1 2 Sub-Total 0 0 334 0 0 0 334 33 234 101 368

Road Entry to Towncenter 75 m long Grade, shape and test roll existing pavement 7 m wide 525 m2 2.50 0 0 1 000 1100801 0 1 Remove soft spots and rehabilitate (10% of surface 0.5 deep) 26 m3 15.00 0 0 0 000 0100700 0 0 excavation 160 m3 2.50 0 0 0 000 0100700 0 0 Granular Sub-base and Structural Fill to Base Level 50 m3 15.00 0 0 1 000 1100701 0 1 Base 150 mm (av depth) 525 m2 4.50 0 0 2 000 2100702 1 3 Prime Coat 525 l 1.30 0 0 1 000 100 801 0 1 Bitumen 80/100 penetration grade 1210 l 1.20 0 0 1 000 1100701 0 2 Chippings 14mm nominal 8 m3 35.00 0 0 0 000 0100700 0 0 Chippings 10mm nominal 6 m3 26.00 0 0 0 000 0100700 0 0 Drainage to Drain 6 Sand Bedding 200mm 30 m3 15.00 0 0 0 000 0100700 0 0 Drain RCC pipe dia 1000mm 150 m 143.00 0 0 21 0 0 0 21 10 2 70 15 6 24 Kerb 150 lm 12.00 0 0 2 000 2100701 1 2 Footpath Concrete 225 m2 25.00 0 0 6 000 6101704 2 6 Gully Pits 6 Item 450.00 0 0 3 000 3100501 1 3 Sub-Total 0 0 40 0 0 0 40 4 28 12 44 Road No. 2 Grade, shape and test roll existing pavement 1680 m2 2.50 0 0 4 000 4100803 1 5 Remove soft spots and rehabilitate (10% of surface 0.5 deep) 84 m3 15.00 0 0 1 000 1100701 0 1 excavation 512 m3 2.50 0 0 1 000 1100701 0 1 Granular Sub-base and Structural Fill to Base Level 170 m3 15.00 0 0 3 000 3100702 1 3 Base 150 mm (av depth) 1680 m2 4.50 0 0 8 000 8101705 2 8 Prime Coat 1680 l 1.30 0 0 2 000 2100802 0 2 Bitumen 80/100 penetration grade 3864 l 1.20 0 0 5 000 5100703 1 5 Chippings 14mm nominal 26 m3 35.00 0 0 1 000 1100701 0 1 Chippings 10mm nominal 18 m3 26.00 0 0 0 000 0100700 0 1 Drainage to Drain 3 Sand Bedding 200mm 88 m3 15.00 0 0 1 000 1100701 0 1 Drain RCC pipe dia 1000mm 480 m 143.00 0 0 69 0 0 0 69 10 7 70 48 21 76 Kerb 480 lm 12.00 0 0 6 000 6101704 2 6 Footpath Concrete 720 m2 25.00 0 0 18 0 0 0 18 10 2 70 13 5 20 Gully Pits 20 Item 450.00 0 0 9 0 0 0 9 10 1 50 5 5 10 Sub-Total 00128 0 0 0 128 13 88 39 141

Unit Land Acq Civil Civil Equip Consul W'sho Total Tax Taxes & Foreign Foreign Local Totals Description Capacity or Size Qty Unit Rate /Res'lmt Small Large ting ps/Sur (exc tax) % Duties % Exchange Currency (inc tax) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) Solid Waste Management Gross Pollution Trap for drains 1, 2,3 and 6 combined Construction of Trap excavation 300 m3 2.50 0 0 1 000 1100701 0 1 Sand Bedding 200mm 27 m3 15.00 0 0 0 000 0100700 0 0 Steel reinforcement 1 Tonne 2,710.00 0 0 3 000 3100702 1 3 Formwork 300 m2 27.00 0 0 8 000 8101706 2 9 Provide and Place Concrete Class 25 32 m3 165.00 0 0 5 000 5101704 2 6 Fixtures and Fittings Supplied 1 Item 80,000.00 0 0 80 0 0 0 80 10 8 70 56 24 88 Maintanence Road 3000mm wide 70 meters long 150mm Sub-base 210 m2 4.50 0 0 1 000 1100701 0 1 Grade and Roll Road Surface 210 m2 2.50 0 0 1 000 1100700 0 1 Eathern Side-drain 140 lm 2.20 0 0 0 000 0100700 0 0 Gully Pits and connect to main drain 2 Item 500.00 0 0 1 000 1100701 0 1 Sub-Total 0 0 100 0 0 0 100 10 70 30 110

Gross Pollution Traps to Drains 4 and 5 Excavation 159 Item 17.50 0 0 3 000 3100702 1 3 Sand Bedding 200mm 25 Item 15.00 0 0 0 000 0100700 0 0 Steel reinforcement 1 Item 2,700.00 0 0 3 000 3100702 1 3 Formwork 350 m2 27.00 0 0 9 0 0 0 9 10 1 70 7 3 10 Provide and Place Concrete Class 25 22 m3 165.00 0 0 4 000 4100703 1 4 Fixtures and Fittings Supplied 2 Item 40,000.00 0 0 80 0 0 0 80 10 8 70 56 24 88 Repair to Road 2 Item 3,000.00 0 0 6 000 6101704 2 7 Sub-Total 0 0 105 0 0 0 105 10 73 31 115

Operational Equipment Truck 1 Item 56,000.00 0 0 0 56 0 0 56 10 6 80 45 11 62 Water/Sludge Tank + pumping equipment 1 No 16,000.00 0 0 0 16 0 0 16 10 2 80 13 3 18 Sub-Total 000 72 0 0 72 7 58 14 79 C Appendix Supplementary

Septic Tank Connection Support Program Survey existing connections and Document 1 Item 35,000.00 0 0 0 003535 10 4 70 25 11 39 Equipment 1 Item 8,000.00 0 0 0 800 8101 806 2 9 Computer Management Equipment for Records 1 Item 10,000.00 0 0 0 10 0 0 10 10 1 80 8 2 11 Septic Tank Installation Support Program 50 Item 1,200.00 0 0 60 00060 10 6 70 42 18 66 Sub-Total 0 0 60 18 0 35 113 11 81 32 124

Hiegine and Sanitation Awareness Program Public Awareness Campaign 1 Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Publications 1 Item 10,000.00 0 0 0 0 0 10 10 10 1 70 7 3 11

Commercial Operators/Local Community Trainings 1 Item 6,000.00 0 0 0 006 6101 704 2 7 69 Sub-Total 0000021212 15623

Training UDAA Staff Training Workshops 1 Item 16,000.00 0 0 0001616 10 2 70 11 5 18 Equipment 1 Item 10,000.00 0 0 0 1001020 10 2 80 16 4 22 Monitor Septic Tanks and Solid Waste 1 Item 8,000.00 0 0 0008 8101 706 2 9 Sub-Total 0 0 0 10 0 34 44 4 33 11 48

Unit Land Acq Civil Civil Equip Consul W'sho Total Tax Taxes & Foreign Foreign Local Totals C Appendix Supplementary Description Capacity or Size Qty Unit Rate /Res'lmt Small Large ting ps/Sur (exc tax) % Duties % Exchange Currency (inc tax) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) Gender and Development Gender and tourism awareness seminars at the province and village 1 item 3,000.00 0 0 0 0 0 3 3100 702 1 3 Tourism awareness youth activities 1 item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Gender focal point training 1Item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Safe migration and anti trafficking awareness seminars 1 Item 4,000.00 0 0 0 0 0 4 4100 703 1 4 Gender assessment of tourism industry 1Item 2,000.00 0 0 0 0 0 2 2100 701 1 2 Development gender and tourism strategy and action plan 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Sub-Total 0000020202 13722

Ethnic Minorities and Development Develop ethnic minority participation strategy 1 Item 5,000.00 0 0 0005 5101 704 2 6 Workshop to raise awareness on ethnic minority issues and tourism 1Item 5,000.00 0 0 0 0 0 5 5101 503 3 6 Collection data on ethnic culture and traditions 1Item 6,000.00 0 0 0 0 0 6 6101 704 2 7 Design and produce displays on ethnic minority products 1Item 8,000.00 0 0 0 0 0 8 8101 706 2 9 Training to revive traditional arts and cultural industries 1Item 10,000.00 0 0 0 0 0 10 10 10 1 50 5 5 11 Sub-Total 0000034343 211337

Monitoring Program Develop and refine monitoring system 1Item 5,000.00 0 0 0 005 5101 704 2 6 Conduct annual data collection and reporting 1Item 3,000.00 0 0 0 005 5100 502 2 5 Publication and dissemination of annual reports (5) 1Item 5,000.00 0 0 0 005 5101 704 2 6 Sub-Total 0000015151 9516

Environmental Management Environmental monitoring 1Item 20,000.00 0 0 0 0020 20 10 2 50 10 10 22 Sub-Total 0000020202 101022 Total Cost at Date August 2006 2 0 848 100 0 224 1,173 117 811 362 1,290

Table C1.3: Output 3: Pro-poor Tourism Development - Lao PDR Standard Estimate Based on A Luoi Model

Consu Capacity Land Civil Civil Equip W'sho Totals Tax Taxes & Fore Foreign Local Totals Description Qty Unit Unit Rate lting or Size Acq Small Large ps/Sur (exc tax) % Duties % Exchange Currency (inc tax) (000's) (000's) (000's) (000's) (000's) (000's) Land Acquisition & Resettlement Cost of land acquisition and resettlement per province 1 Item 20,000.00 20 0 0 0 0 0 20 10 2 0 0 20 22 Sub-Total 20 0 0 0 0 0 20 2 0 20 22

Provincial Pro-Poor Tourism Plan Data collection and analysis 1 Item 4,000.00 0 0 0 0 0 4 4 10 0 80 3 1 4 Stakeholder workshops 1 Item 4,000.00 0 0 0 0 0 4 4 10 0 80 3 1 4 Preparation of strategies and action plans 1 Item 2,000.00 0 0 0 0 0 2 2 10 0 80 2 0 2 Information and education program about plan 1 Item 2,000.00 0 0 0 0 0 2 2 10 0 80 2 0 2 Sub-Total 0000012121 10213

Communit y Based Tourism Tour Product Develo pment Pro gram Sustainable tourism awareness seminars 1 ite m 6,000.00 0 0 0 0 0 4 4100 502 2 4 Production of sustainable tourism awareness publications 1 ite m 10,000.00 0 0 0 0 0 4 4100 803 1 4 Provincial tourism planning workshops 1 ite m 4,000.00 0 0 0 0 0 3 3100 702 1 3 Survey and tour product assessments 1Item 4,000.00 0 0 0 0 0 3 3100 702 1 3 Tour guide trainin gs 1 Ite m 10,000.00 0 0 0 0 0 4 4100 502 2 4 Trial tours 1Item 5,000.00 0 0 0 0 0 4 4100 803 1 4 Workshops to develop guidelines for CBT revenue sharing 1Item 2,000.00 0 0 0 0 0 2 2100 501 1 2 Workshops to establish community stakeholders groups 1Item 5,000.00 0 0 0 0 0 3 3100 502 2 3 Workshops to establish tourism management board 1Item 5,000.00 0 0 0 0 0 3 3100 502 2 3 Annual community-level tourism impact monitoring workshops 1Item 5,000.00 0 0 0 0 0 3 3100 502 2 3 produce manuals on cultural and nature conservation 1 ite m 5,000.00 0 0 0 0 0 4 4100 703 1 4 tourism market segment and demand study 1 ite m 4,000.00 0 0 0 0 0 4 4100 703 1 4 Establish district level inbound tour operator offices 1Item 5,000.00 0 0 0003 3100 802 1 3 Sub-Total 0 0 0 0 0 44 44 4 28 16 48

Identification and Development of Tourism Industry Related Supply Chains

Survey and map the links between communities and tourist enterprises 1Item 8,000.00 0 0 0 0 0 3 3100 702 1 3 Develo p supply chains for products to the tourism industr y 1Item 10,000.00 0 0 0 0 0 4 4100 703 1 4 Skills trainin g in value addin g to local products 1 Ite m 10,000.00 0 0 0 0 0 5 5101 503 3 6 C Appendix Supplementary Assist villagers to enter into equitable supply agreements 1Item 2,000.00 0 0 0 0 0 2 2100 501 1 2 Sub-Total 0000014141 8 615

Capacity Buildin g for Tourism-related Local Micro-enter prises Local micro-enterprise operators training 1Item 4,000.00 0 0 0 0 0 4 4100 502 2 4 Workshop and training on product diversification 1 ite m 10,000.00 0 0 0 0 0 5 5101 503 3 6 Partnership with international organizations to add micro-credit 1Item 5,000.00 0 0 0 0 0 3 3100 802 1 3 Participatory review process for existing tourism plans 1Item 3,000.00 0 0 0 0 0 3 3100 702 1 3 produce promotional materials for craft and local product displays 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Village extension work on increasing production of raw materials 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Quality assurance training 1Item 5,000.00 0 0 0 0 0 5 5101 503 3 6 Hospitality trainings 1Item 4,000.00 0 0 0 0 0 4 4100 502 2 4 Sub-Total 0 0 0 0 0 34 34 3 21 14 37 2,319 2,319 71 Small Scale Tourism Related Infrastructure Information centers and inter pretation 1 Ite m 26,000.00 0 26 0 0 0 0 26 10 3 70 18 8 29 Community lodges 1 ite m 15,200.00 0 15 0 0 0 0 15 10 2 70 11 5 17 Viewing points 1Item 5,000.00 0 5 0 0 0 0 5101 704 2 6 Walking trails and signage 1Item 8,000.00 0 8 0 0 0 0 8101 706 2 9 Sanitary facilities 1Item 5,000.00 0 5 0 0 0 0 5101 704 2 6 River piers 1Item 10,000.00 0 10 0 0 0 0 10 10 1 70 7 3 11 Access and parkin g 1Item 5,000.00 0 5 0 0 0 0 5101 704 2 6 Market areas 1Item 10,000.00 0 10 0 0 0 0 10 10 1 70 7 3 11 Sub-Total 1Item84,200.00 0 84 0 0 0 0 84 10 8 70 59 25 93

Land Civil Civil Equip Consu W'sho Capacity Totals Tax Taxes & Fore Foreign Local Totals Description Qty Unit Unit Rate Acq Small Large lting ps/Sur or Size (exc tax) % Duties % Exchange Currency (inc tax) (000's) (000's) (000's) (000's) (000's) (000's)

Gender and Development C Appendix Supplementary Gender and tourism awareness seminars at the province and village 1 item 3,000.00 0 0 0 0 0 3 3100 702 1 3 Tourism awareness youth activities 1 item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Gender focal point training 1Item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Safe migration and anti trafficking awareness seminars 1 Item 4,000.00 0 0 0 0 0 4 4100 703 1 4 Gender assessment of tourism industry 1Item 2,000.00 0 0 0 0 0 2 2100 701 1 2 Development gender and tourism strategy and action plan 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Sub-Total 0 0 0 0 0 20 20 2 13 7 22

Ethnic Minorities and Development Develop ethnic minority participation strategy 1 Item 5,000.00 0 0 0 005 5101 704 2 6 Workshop to raise awareness on ethnic minority issues and tourism 1Item 5,000.00 0 0 0 0 0 5 5101 503 3 6 Collection data on ethnic culture and traditions 1Item 3,000.00 0 0 0 0 0 3 3100 702 1 3 Design and produce displays on ethnic minority products 1Item 8,000.00 0 0 0 0 0 8 8101 706 2 9 Training to revive traditional arts and cultural industries 1Item 10,000.00 0 0 0 0 0 10 10 10 1 50 5 5 11 Sub-Total 0000031313 191234

Develop marketing and promotion plan Training in marketing community-based tourism products 1Item 3,000.00 0 0 0 0 0 3 3100 502 2 3 Identification of specific markets for community-based tourism 1Item 2,000.00 0 0 0 0 0 2 2100 701 1 2 Review of current national CBT products and ventures 1Item 1,000.00 0 0 0 0 0 1 1100 701 0 1 Review of current national tourism marketing plans and update 1Item 1,000.00 0 0 0 0 0 1 1100 701 0 1 Participation in regional tourism trade fairs 1Item 5,000.00 0 0 0 0 0 5 5101 804 1 6 Production of promotional gifts 1 item 2,000.00 0 0 0 0 0 2 2100 701 1 2 Catalogue local products 1Item 2,000.00 0 0 0 0 0 2 2100 701 1 2 Hold annual CBT and local product trade fair 1Item 7,000.00 0 0 0 0 0 7 7101 705 2 8 Production of promotional materials - maps, brochures, guides 1Item 15,000.00 0 0 0 0 0 15 15 10 2 70 11 5 17 Develop and maintain a promotional website 1Item 5,000.00 0 0 0 0 0 5 5101 804 1 6 Sub-Total 0000043434 311347

Promotion of Community-based Tourism Network and Tourism Stakeholder Associations Establish national and provincial sustainable tourism networks 1Item 7,000.00 0 0 0 0 0 7 7101 705 2 8 National study tours to model CBT tour programs 1Item 3,000.00 0 0 0 0 0 3 3100 702 1 3 National study tours to model local product supply chain models 1 item 3,000.00 0 0 0 0 0 3 3100 702 1 3 Workshops on cooperation between public and private sector 1 item 3,000.00 0 0 0 0 0 3 3100 702 1 3 Participation in international CBT or ecotourism meetings 1 item 7,000.00 0 0 0 0 0 7 7101 806 1 8 Sub-Total 0 0 0 0 0 23 23 2 17 6 25

Monitoring Plan develop and refine monitoring system 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 conduct data collection and reporting 1Item 6,000.00 0 0 0 0 0 6 6101 704 2 7 publication of annual reports (5) 1Item 5,000.00 0 0 0 0 0 5 5101 704 2 6 Sub-Total 0 0 0 0 0 16 16 2 11 5 18

Environmental Management Plan Environmental Baseline Study and Monitor Parameters 1Item 10,200.00 0 0 00010 10 10 1 67 7 3 11 Sub-Total 0 0 0 0 0 10 10 10 1 7 3 11

Total Base Cost at Date February 2008 20 84 0 0 0 247 351 35 222 129 387

Laos Pro-poor Interventions SAMPLE *6 120 505 0 0 0 1,483 2,108 211 1,334 774 2,319

Table C1.4: Output 4: Tourism Corridors - Facilitation of Tourism on Economic Corridors on the North-South and East West Economic Corridors Lao PDR

Unit Land Acq Civil Civil Equip Cons. W'shops/ Tax Taxes & Foreign Foreign Local Totals Totals Description Capacity or Size Qty Unit Rate /Res'lmt Small Large Services Surveys % Duties % Exchange Currency (inc tax) (exc tax) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's)

Land Acquisition & Compensation 3 Item 20,000.00 60 0 0 00060000 0 6060 Sub-Total 60 0 0 0 0 0 60 0 0 60 60

Plan of Tourism Management Social and environmental data collection 2Item 15,000.00 0 0 0 0030 30 10 3 50 15 15 33 Community consultation 2Item 5,000.00 0 0 0001010 10 1 70 7 3 11 Design and drafting of plan 2Item 7,000.00 0 0 0001414 10 1 70 10 4 15 Information and education program about plan 2Item 5,000.00 0 0 0001010 10 1 70 7 3 11 0 0 0 0 0 34 34 3 24 10 37

Physical Developments 7 Item 102,275 0 0 716 30 0 0 746 10 75 70 522 224 821 Sub-Total 0 0 716 30 0 0 746 75 522 224 821

Capacity Building for local communities tourism awareness seminars 2Item 4,000.00 0 0 0 0 0 8 8101 706 2 9 detailed survey and documentation of ecotourism products 2Item 4,000.00 0 0 0 0 0 8 8101 706 2 9 guide training 2Item 8,000.00 0 0 0 0 0 16 16 10 2 0 0 16 18 handicraft design and marketing trainings 2Item 12,000.00 0 0 0 0 0 24 24 10 2 70 17 7 26 micro and small business operators training 2Item 6,000.00 0 0 0 0 0 12 12 10 1 70 8 4 13 public awareness on safer migration/HIVAIDS 2Item 5,000.00 0 0 0 0 0 10 10 10 1 70 7 3 11 Sub-Total 0 0 0 0 0 78 78 8 43 35 86

Develop marketing and promotion plan draft marketing and promotion plan for the site 7Item 5,000.00 0 0 0 0035 35 10 4 50 18 18 39 design and construct promotional signage in town and on the way to site 7 No 500.00 0 0 0 004 4100 803 1 4 design and publish printed, VDO and other promotional media 2Item 8,000.00 0 0 0 0016 16 10 2 80 13 3 18 fam tours for tour operators and media 2Item 4,000.00 0 0 0 008 8101 706 2 9 attend national and internationa travel fairs to promote the site 1Item 8,000.00 0 0 0 008 8101 706 2 9 Sub-Total 0 0 0 0 0 71 71 7 44 26 78

Gender and Development Gender and tourism awareness seminars at the province and village 2 item 3,000.00 0 0 0 0 0 6 6101 704 2 7 Tourism awareness youth activities 2 item 3,000.00 0 0 0 0 0 6 6101 503 3 7 Gender focal point training 2Item 3,000.00 0 0 0 0 0 6 6101 503 3 7 C Appendix Supplementary Safe migration and anti trafficking awareness seminars 2 Item 4,000.00 0 0 0 0 0 8 8101 706 2 9 Gender assessment of tourism industry 2Item 2,000.00 0 0 0 0 0 4 4100 703 1 4 Development gender and tourism strategy and action plan 2Item 5,000.00 0 0 0 0 0 10 10 10 1 70 7 3 11 Sub-Total 0 0 0 0 0 40 40 4 26 14 44

Ethnic Minorities and Development Develop ethnic minority participation strategy 2 Item 5,000.00 0 0 0001010 10 1 70 7 3 11 Workshop to raise awareness on ethnic minority issues and tourism 2Item 5,000.00 0 0 0 0 0 10 10 10 1 50 5 5 11 Collection data on ethnic culture and traditions 2Item 6,000.00 0 0 0 0 0 12 12 10 1 70 8 4 13 Design and produce displays on ethnic minority products 2Item 8,000.00 0 0 0 0 0 16 16 10 2 70 11 5 18 Training to revive traditional arts and cultural industries 2Item 10,000.00 0 0 0 0 0 20 20 10 2 50 10 10 22 Sub-Total 0 0 0 0 0 68 68 7 42 26 75

Monitoring Plan 73 develop and refine monitoring protocol 2Item 5,000.00 0 0 0 0 0 10 10 10 1 70 7 3 11 conduct annual data collection and reporting 2Item 15,000.00 0 0 0 0 0 30 30 10 3 70 21 9 33 publication of annual reports (5) 2Item 5,000.00 0 0 0 0 0 10 10 10 1 70 7 3 11 0 0 0 0 0 50 50 5 35 15 55 Environmental Management Environmental baseline study and monitor parameters 2Item 20,000.00 0 0 0 0041 41 10 4 50 20 20 45 Sub-Total 0 0 0 0 0 41 41 4 20 20 45 Total Cost at Date February 2008 60 0 716 30 381 1,187 113 756 431 1,300

C Appendix Supplementary

Table C1.5: Output 4: Human Resources Development - Creating a Pool of Master Trainers for Hospitality and Training of Public Sector Tourism Officials, Lao PDR

Unit Land Acq Civil Civil Equip Cons. Workshop/ Totals Tax Taxes & Foreign Foreign Local Totals Description Details/Asumptions Qty Unit Rate /Res'lmt Small Large Services Surveys (exc tax) % Duties % Exchange Currency (inc tax) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) (000's) 1. Training Master Hospitality Trainers 1.1 Master Training Institution Master Trining Institution to be selected by competitive tender 1Item Training needs assessment HRD Consultant 1 month 13,000.00 0 00013013 10 1 80 11 3 14 Develop service standards training manuals SME and community based tourism enterprises to ASEAN standards 1 month 6,000.00 0 000066101 805 1 7 Develop gender sensitive training manuals To ASEAN competency standards 1 month 6,000.00 0 000066101 705 2 7 Produce CD rom and web based knowledge Develop web site 1Item 5,000.00 0 000055101 704 2 6 Maintenance and development of web site To be maintained and developed over 5 years 5 annum 1,000.00 0 00005510170426 Monitoring and evaluation system Design system for monitor and evaluation and provide training 1.5 month 4,000.00 0 000066101 705 2 7 Training of master trainers 15 courses per annum over 5 years 75 Item 1,000.00 0 00007575 10 8 80 66 17 83 Sub-Total Subtotal 0 0 0 0 13 103 116 12 100 28 128

1.2 Training Facility Support to Master Training Institution

Provision for renovation of training facilities Renovation works 1 Item 10,000.00 0 10000010 10 1 80 8 2 11 Provision for training equipment Furnishing, fittings and equipment 1 Item 50,000.00 0 0050 0 0 50 10 5 80 40 10 55 Master Trainers Salaries and on costs 5 trainers for 6 months per annum over 5 years 150 month 200.00 0 00030030 10 3 70 21 9 33 Scholarship support to trainee trainers 10 trainers per annum for 5 years 50 annum 500.00 0 0 0 0 25 0 25 10 3 70 18 8 28 Monitoring Plan Annually over 5 year period 5 annum 1,200.00 0 0 0 0 0 6 6 10 1 70 4 2 7 Sub-Total Subtotal 0 10 0 50 55 6 121 12 91 30 133 Sub-Total Subtotal Hospitality Training 0 10 0 50 68 109 237 24 190 58 261 2. Training Public Sector Tourism Officials 2.1 Master Training Institution Master Trining Institution to be selected by competitive tender Training needs assessment (TNA) HRD specialist 2 month 13,000.00 0 00026026 10 3 80 21 5 29 Develop training programs based on TNA HRD Specialist 1Item 13,000.00 0 00013013 10 1 80 10 3 14 Develop teacher training materials Develop training material packages 3Item 8,000.00 0 00002424 10 2 80 19 5 26 Create reading materials on best practice/ lessons Develop reading material packages 3Item 4,000.00 0 00001212 10 1 80 10 2 13 Develop teacher training materials Develop teacher training material packages 3Item 4,000.00 0 00001212 10 1 80 10 2 13 Produce CD rom and web based knowledge Develop web site 1Item 5,000.00 0 0 0 0 0 5 5101 804 1 6 Training of master trainers 5 Master Trainees for 2 months over 3 years 30 month 900.00 0 00002727 10 3 80 22 5 30 Undertake Trainings 10 trainings per year for 5 years 47 Item 2,000.00 0 0 0 0 0 94 94 10 9 80 75 19 103 Monitoring Plan Design system for monitor and evaluation and provide training 1.5 month 9,000.00 0 00001414 10 1 80 11 3 15 Sub-Total for Cambodia Subtotal Public Sector Officials Training 0 0 0 0 39 188 227 23 181 45 249 Total Cost at Date August 2006 Total HRD 0 10 0 50 107 297 464 46 372 104 510

Table C1.6: Output 5: Project Implementation Support- Lao PDR

Field Person Months Quantity Land Acq Civil Civil Equip Sub-Total $ Worksho Total exc Taxes & Foreign Foreign Local Total Air Travel Location Foreign Local Total Unit /Res'lmt Small Large Cons. Travel/D p/Survey Tax Duties % Exchan (inc tax) No. Int'l Rate Dom. Total Rate Services om PD s ge Trips per Travel/ Dom. Description F/L No Others trip month Per US$ US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000 % % US$000 US$000 US$000 Trips US$000 US$000 US$000 1 CONSULTING SERVICES 1.1 Individual Consultants Team Leader/Tourism Sector Specialist F 1 Vientiane 30.0 30.0 p-mth 8,200 0 0 0 0 246 24 0 270 0 0 100 270 0 270 5 1,800 500 24 Financial Accounting Specialist F 1 Vientiane 1.0 1.0 p-mth 5,000 0 0 0 0 5 2 0 7 0 0 100 7 0 7 1 1,800 500 2 Heritage Tourism Specialist F 1 Vientiane 4.0 4.0 p-mth 5,000 0 0 0 0 20 4 0 24 0 0 100 24 0 24 1 1,800 500 4 Social and Gender Specialist F 1 Vientiane 4.0 4.0 p-mth 5,000 0 0 0 0 20 4 0 24 0 0 100 24 0 24 1 1,800 500 4 Ecotourism Planner F 1 Vientiane 14.0 14.0 p-mth 5,500 0 0 0 0 77 14 0 91 0 0 100 91 0 91 4 1,800 500 14 HRD Specialist F 1 Vientiane 4.0 4.0 p-mth 5,000 0 0 0 0 20 6 0 26 0 0 100 26 0 26 2 1,800 500 6 Supply Chain & SME Specialist F 1 Vientiane 5.0 5.0 p-mth 5,000 0 0 0 0 25 6 0 31 0 0 100 31 0 31 2 1,800 500 6 Monitoring and Evaluation Specialist F 1 Vientiane 2.0 2.0 p-mth 5,000 0 0 0 0 10 3 0 13 0 0 100 13 0 13 1 1,800 500 3 Heritage Tourism Specialist L 1 Vientiane 9.0 9.0 p-mth 1,600 0 0 0 0 14 5 0 19 0 0 0 0 19 19 0 500 5 Social and Gender Specialist L 1 Vientiane 18.0 18.0 p-mth 1600 0 0 0 0 29 9 0 38 0 0 0 0 38 38 0 500 9 Ecotourism Planner L 1 Vientiane 26.0 26.0 p-mth 1600 0 0 0 0 42 13 0 55 0 0 0 0 55 55 0 500 13 HRD Specialist L 1 Vientiane 12.0 12.0 p-mth 1600 0 0 0 0 19 6 0 25 0 0 0 0 25 25 0 500 6 Supply Chain & SME Specialist L 1 Vientiane 15.0 15.0 p-mth 1600 0 0 0 0 24 8 0 32 0 0 0 0 32 32 0 500 8 Monitoring and Evaluation Specialist L 1 Vientiane 10.0 10.0 p-mth 1600 0 0 0 0 16 5 0 21 0 0 0 0 21 21 0 500 5 Tourism Sector Specialist L 1 Vientiane 30.0 30.0 p-mth 2,000 0 0 0 0 60 15 0 75 0 0 0 0 75 75 0 500 15 Subtotal 1.1 64.0 120.0 184.0 0 0 0 0 627 123 0 750 0 486 264 750 17 123 1.2 Design and Construction Supervision 500 0 Civil Engineer F 1 Vientiane 10.0 10.0 p-mth 15,000 0 0 0 0 150 5 0 155 0 0 100 155 0 155 3 500 5 Environment Specialist F 1 Vientiane 3.0 3.0 p-mth 10,000 0 0 0 0 30 2 0 32 0 0 100 32 0 32 1 500 2 Resettlement Specialist F 1 Vientiane 1.5 1.5 p-mth10,000 0 0 0 0 15 1 0 16 0 0 100 16 0 16 1 500 1 Environment Specialist L 1 Vientiane 12.0 12.0 p-mth 2,500 0 0 0 0 30 6 0 36 0 0 100 36 0 36 0 500 6 Civil Engineer L 1 Vientiane 40.0 40.0 p-mth 3,000 0 0 0 0 120 20 0 140 0 0 100 140 0 140 0 500 20 Subtotal 1.2 14.5 52.0 66.5 0 0 0 0 345 33 0 378 0 378 0 378 5 33 TOTAL SUPPORT CONSULTING SERVICES 78.5 172.0 250.5 0 0 0 0 972 156 0 1,128 0 0 864 264 1,128 22 156

2. SUPPORT TO PCU/PIUs 2.1 PCU 2.1.1 Professional Staff: National Project Director L 1 Vientiane 40 40 p-mth 220 0 0 0 0 9 0 0 9 0 0 100 9 0 9 National Project Manager L 1 Vientiane 40 40 p-mth 200 0 0 0 0 8 0 0 8 0 0 100 8 0 8 Financial Controller L 1 Vientiane 40 40 p-mth 200 0 0 0 0 8 0 0 8 0 0 100 8 0 8

Marketing and Promotions L 1 Vientiane 10 10 p-mth 70 0 0 0 0 1 0 0 1 0 0 100 1 0 1 C Appendix Supplementary Tourism Development Training L 1 Vientiane 10 10 p-mth 70 0 0 0 0 1 0 0 1 0 0 100 1 0 1 Natural and Cultural Heritage L 1 Vientiane 10 10 p-mth 70 0 0 0 0 1 0 0 1 0 0 100 1 0 1 Social Development L 1 Vientiane 10 10 p-mth 70 0 0 0 0 1 0 0 1 0 0 100 1 0 1 Environmental L 1 Vientiane 10 10 p-mth 70 0 0 0 0 1 0 0 1 0 0 100 1 0 1 Construction/Architect/Landscape Designer L 1 Vientiane 10 10 p-mth 70 0 0 0 0 1 0 0 1 0 0 100 1 0 1 Subtotal 2.1.1 0 180 180 0 0 0 0 29 0 0 29 0 29 0 29 2.1.2 Support Staff: Office Manager L 1 Vientiane 50 50 p-mth 300 0 0 0 0 15 0 0 15 0 0 100 15 0 15 Accountant L 1 Vientiane 50 50 p-mth 250 0 0 0 0 13 0 0 13 0 0 100 13 0 13 Monitoring and Evaluation Officer L 1 Vientiane 50 50 p-mth 250 0 0 0 0 13 0 0 13 0 0 0 13 13 Secretary L 1 Vientiane 50 50 p-mth 220 0 0 0 0 11 0 0 11 0 0 100 11 0 11 Office Assistant/Coordinator L 1 Vientiane 50 50 p-mth 220 0 0 0 0 11 0 0 11 0 0 100 11 0 11 Subtotal 2.1.2 0 250 250 0 0 0 0 62 0 0 62 0 50 13 62 2.1.3 Other PCU Expenses (a) Vehicles, Equipment & Furniture 75 Vehicles (Assumes Hilux Pickup) 1 No 21,000 0 0 0 21 0 0 0 21 3 15 85 18 6 24 Furniture 1 Sum 3,000 0 0 0 3 0 0 0 3 0 10 60 2 2 3 Computers, Printers and Software 3 No 2,000 0 0 0 6 0 0 0 6 1 15 85 5 2 7 Photocopier and other equipment 1 Sum 4,000 0 0 0 4 0 0 0 4 1 15 85 3 1 5 Subtotal (a) 0 0 0 340 0 0 345 281139

2.2. Support to Vang Vieng PIU 2.2.1 PIU Pofessional Staff PIU Director L 1 Vang Vieng 30 30 p-mth 80 0 0 0 0 2 0 0 2 0 0 0022 PIU Manager/Monitoring Focul Point L 1 Vang Vieng 24 24 p-mth 75 0 0 0 0 2 0 0 2 0 0 0 0 2 2 Sanitation/Environmental Engineer L 1 Vang Vieng 24 24 p-mth 70 0 0 0 0 2 0 0 2 0 0 0 0 2 2 Accountant L 1 Vang Vieng 24 24 p-mth 65 0 0 0 0 2 0 0 2 0 0 0 0 2 2 Education Officer (P/T) L 1 Vang Vieng 1616.25p-mth70 0 0 0 0 1 0 0 1 0 0 0 0 1 1 Subtotal 2.2.1 0 118 118 0 0 0 0 9 0 0 9 0 0 9 9 2.2.2 Support Staff Secretary L 1 Vang Vieng 0 30 30 p-mth 60 0 0 0 0 0 4 0 4 0 0 0 0 4 4 Subtotal 2.2.2 0 30 30 0 0 0 0 0 4 0 4 0 0 4 4 .2.2.3 Other PIU Expenses (a) Vehicles, Equipment & Furniture Office Modifications and Furniture 1 No 2,000 0 0 0 2 0 0 0 2 0 10 40 1 1 2 Computers, Printers and Software 1 No 2,000 0 0 0 2 0 0 0 2 0 15 85 2 1 2 Photocopier and Plan Printer 1 No 2,500 0 0 0 3 0 0 0 3 0 15 85 2 1 3 Other Office & Field Equipment 1 No 800 0 0 0 1 0 0 0 1 0 15 85 1 0 1 Subtotal (a) 000700071 538 (b) Running Costs (1 PIU) Domestic Air Travel 0No0 0 0 0 0 0 0 0 0 0 10850 0 0 Per Diems 40 day 15 0 0 0 0 0 1 0 1 0 10 0 0 1 1 Vehicle Rental 2 mth 1,000 0 0 0 0 0 2 0 2 0 10 60 1 1 2 Telephones/fax, utilities 36mth100 0 0 0 0 0 4 0 4 0 10 60 2 2 4 Office Supplies 36 mth 150 0 0 0 0 0 5 0 5 1 10 60 3 3 6 Printing Documents and Brochures 1 No 3000 0 0 0 0 0 3 0 3 0 10 40 1 2 3 Subtotal (b) 00000150151 8816 Total 2.2.3 0 0 0 7 0 150 222 131124 Total Support to Vang Vieng PIU 0 0 0 7 9 190 342 132437 2.3 Support to Provincial Tourism PIUs 2.3.1 PIU Professional Staff (9 PIUs) PIU Director L 8 Prov Capital 0 30 240 p-mth 80 0 0 0 0 19 0 0 19 0 0 100 19 0 19 PIU Manager L 8 Prov Capital 0 30 240 p-mth 58 0 0 0 0 14 0 0 14 0 0 100 14 0 14 Tourism Development & Training Officer L 8 Prov Capital 0 15 120 p-mth 50 0 0 0 0 6 0 0 6 0 0 100 6 0 6 Social Specialist L 8 Prov Capital 0 15 120 p-mth 50 0 0 0 0 6 0 0 6 0 0 100 6 0 6 Marketing and Promotions Officer L 8 Prov Capital 0 15 120 p-mth 50 0 0 0 0 6 0 0 6 0 0 100 6 0 6 Environmmetal Officer L 8 Prov Capital 0 15 120 p-mth 50 0 0 0 0 6 0 0 6 0 0 100 6 0 6 Architect/Construction Supervisor L 8 Prov Capital 0 15 120 p-mth 50 0 0 0 0 6 0 0 6 0 0 100 6 0 6 Natural and Cultural Heritage Officer (Champasak L 1 Prov Capital 0 15 15 p-mth 50 0 0 0 0 1 0 0 1 0 0 100 1 0 1 Subtotal 2.3.1 0 150 1,095 0 0 0 0 64 0 0 64 0 64 0 64 2.3.2 SuppportStaff (8 PIUs) Accountant/Secretary L 8 Prov Capital 0 40 320 p-mth 50 0 0 0 0 16 0 16 0 0 100 16 0 16 Subtotal 2.3.2 0 40 320 0 0 0 0 16 0 0 16 0 16 0 16

3. CAPACITY BUILDING OF PCU/PIUs Hire of Training Venues Provided by government Training Materials 5 Sum 100 0 0 0 0 0 0 1 1 0 10 60 0 0 1 Trainees expenses (per diems and transport) 855Sum 63 0 0 0 0 0 0 54 54 5 10 80 43 16 59 TOTAL SUPPORT FOR CAPACITY BUILDING OF PCU/PIUs 0 0 0 0 0 0 54 54 5 43 16 60

4. EXTERNAL MONITORING FOR RESETTLEMENT 1 Item 15,000 0 0 0 0 15 0 0 15 0 03051115

5. EXTERNAL FINANCIAL AUDITING OF PCU and PIUs 4 yrs 5,000 0 0 0 0 20 0 0 20 0 05010 10 20

6. EXTERNAL MONITORING AND EVALUATION 2 mth 7000 0 0 0 0 14 0 0 14 0 0 100 14 0 14 TOTAL ESTIMATED PR0JECT IMPLEMENTATION COST 0 0 0 196 1,200 275 54 1,725 45 1,309 461 1,770

Supplementary Appendix C Appendix Supplementary 77

78 Appendix 5 PROJECT MANAGEMENT 1. The supervision, coordination, management, and implementation of the Sustainable Tourism Development Project (the Project) will be undertaken through (i) a subregional project steering committee (SPSC), (ii) a national project steering committee (NPSC), a project coordination unit (PCU), a provincial project steering committee (PPSC), five provincial implementation units (PIUs), and community tourism groups (CTGs) in participating communities.

2. Subregional Project Steering Committee. The SPSC, established to oversee project implementation subregionally, shall consist of the representatives from the Lao National Tourism Administration (LNTA) and the Ministry of Culture, Sports and Tourism (MCST) of Viet Nam. Directors general of LNTA and MCST or higher officials will alternately chair the SPSC. Representatives from the national tourism offices (NTOs) of other Greater Mekong Subregion (GMS) countries will be invited as observers to discuss the lessons learned from the demonstration subprojects and potential to replicate them. The Mekong Tourism Coordinating Office will act as the secretariat of the SPSC. The main functions of the SPSC will be to (i) exchange lessons learned in implementing the project and the development of sustainable tourism models in the GMS; (ii) coordinate development interventions along the GMS economic corridors; and (iii) oversee the creation, publication, and dissemination of manuals on best practice models of developing sustainable tourism in the GMS, produced jointly by the participating countries. The SPSC will be chaired in rotation by the two participating countries. It will meet at least twice a year, when possible, in conjunction with the GMS Tourism Working Group (TWG) meetings. At each meeting, the host country will plan a half-day thematic workshop that focuses on an issue of importance to sustainable tourism in the GMS. Topics may include tourism development in cross-border protected areas, tourism and gender, tourism development along GMS economic corridors, or pro-poor tourism. All GMS countries may be invited to participate in the workshops.

Figure A9.1: Organization of the Project Subregional Project Steering National Project Executing Agency; Committee; NTO, MoF, MPI and Steering NTO—based ADB Committee; PCUs (1 in the MTCO NTO, MOF and Lao PDR and 1 in Secretariat MPI Viet Nam)

Provincial Project Steering Committees (5)

PIUs (9 in the Lao PDR 5 in Viet Nam) Development Partners and NGOs

Local Communities, Tourism, Heritage, and Urban Managers

Institutional relationship Management relationship Technical relationship

ADB = Asian Development Bank, Lao PDR = Lao People’s Democratic Republic, MOF = Ministry of Finance, .MPI = Ministry of Planning and Investment, MTCO = Mekong Tourism Coordinating Office, NGO = nongovernment organization, NTO = national tourism organization, PCU = project coordination unit, PIU = project implementation unit. Source: Asian Development Bank.

Appendix 5 79 3. National Project Steering Committees. NPSCs will be established in each participating country to provide policy guidance and oversee project implementation nationally. In the Lao People’s Democratic Republic (PDR), the NPSC will be chaired a director general of LNTA and its members will include representatives from the Ministry of Finance (MOF), Ministry of Planning and Investment (MPI), the Prime Minister’s Office, offices of the GMS coordinators, and participating provinces. In Viet Nam, the NPSC will be chaired by a director general of MTSC, and its members will include representatives from MOF, MPI, State Bank of Viet Nam, and participating provinces. The NPSC will (i) address any planning and coordination issues arising out of the progress reports, (ii) facilitate permissions to assist with the timely release of funds to the PIUs and PCU, (iii) facilitate the selection of national staff for the Project, and (iv) ensure the timely approval of work permits and visas for international staff working on the Project. It will meet at least four times per year to review the quarterly progress and monitoring reports prepared by the PCU and ensure that information on project progress is disseminated to relevant government agencies.

4. Project Coordination Unit. In each participating country, the Executing Agency will establish a project coordination unit (PCU). The PCU will be in the Executing Agency and headed by a project director. The project director will be assisted by a deputy director and five staff who will be responsible for project accounting; monitoring and evaluation; and environment, 1 natural and cultural heritage, gender, and other social issues. F The terms of reference for the project director, deputy director, and PCU staff are in Supplementary Appendix E.

5. The PCU will be responsible for (i) serving as a secretariat for the NPSC; (ii) coordinating all subprojects within the country; (iii) ensuring timely and accurate reporting from each of the subprojects; and consolidating reports from all PIUs on technical, financial, social, environmental, and resettlement issues for presentation to the SPSC, NPSC, and Asian Development Bank (ADB); (iv) coordinating pro-poor, community-based tourism-development initiatives in the provinces; (v) coordinating with other government agencies to schedule and organize biannual NPSC meetings; (vi) developing best practice manuals on the development of pro-poor, sustainable, cultural and natural tourism development along economic corridors in the GMS; (vii) oversee the human resource development component; and (viii) ensure that legal and institutional-strengthening measures are undertaken in each subproject, including compliance with loan covenants and assurances.

6. The main tasks to be undertaken by the PCU include (i) initiating project preparation activities, including setting up financial and management systems and procedures, preparing PCU office equipment procurement, and engaging consultants; (ii) working closely with the PIUs to program and budget the Project’s implementation and help the PIUs formulate biannual project work plans and budgets; (iii) maintaining accurate records of the different subproject accounts, which will be reported to ADB in a timely and accurate manner; (iv) advising the PIUs on revenue-enhancing activities related to the recovery of costs of constructing, operating, and maintaining project facilities and equipment; (v) recruiting and supervising consultants to ensure the effective implementation of the Project; (vi) recruiting an auditor and submitting audit reports; (vii) recruiting a monitoring agency for land acquisition and resettlement; (viii) coordinating all monitoring and evaluation activities; and (ix) ensuring that information about the projects outcomes, outputs, and activities are communicated to senior political leaders, government ministries and departments, and development partners. The PCU should also advise and assist the PIUs on developing methods to effectively communicate information about the project to local communities and provincial officials.

1 Other supporting staff, including a secretary, accountant, and driver, will work in the PCU.

80 Appendix 5 7. Additional duties of the PCU include ensuring that all requisite government approvals are in place to allow implementation and that they are renewed in a timely fashion where required; providing project administration and technical support to the PIUs; undertaking specified monitoring, evaluation, and reporting activities; ensuring the smooth and timely disbursement of funds and related accounting and financial reporting to the PCU, including records and review of withdrawal applications from PIUs, the preparation of consolidated project accounts, the recruitment and supervision of an independent auditor, and timely follow up on its reports; and advising the PIUs on how to ensure that the project is in compliance with assurances and covenants.

Figure A9.2: Project Coordination Unit National Project Steering Committee Consultants: National Project Director 1. Team Leader/Tourism Sector Specialist (I)

2. Ecotourism Planner (I and L) 3. Civil Engineer (I and L) Deputy Project Director 4. Finance and. Accounting Specialist (I and L) 5. Supply Chain and SME Specialist (I and L) PCU Staff: 6. Heritage Tourism Specialis • Financial Controller/Chief (I and L) Accountant 7. HRD Specialist (I and L) • Accountant 8. Gender+Social • Secretary Specialist (I and L) • Driver/Messenger 9. Monitoring and Evaluation Officers Responsible for: Specialist (I and L) • Social and Gender • Environment 10. Resettlement Specialist (I) 11. Environmental Specialist • Tourism Training and (I and L) Development • Monitoring and Evaluation

Institutional relationship Management relationship Technical relationship I = international, L = local, PCU = project coordination unit, SME = small and medium-sized enterprise. Source: Asian Development Bank.

8. Project Implementation Units. PIUs will be established in the provincial tourism units of each participating province to undertake the day-to-day implementation of the Project. The PIUs will be responsible for implementing, coordinating, monitoring, and reporting project activities at the provincial level under PCU guidance. In Viet Nam, they will be responsible for procurement.

56. The PIUs shall be headed by a PIU director drawn from the provincial tourism department; comprise professional staff recruited from the tourism, environment, and social departments of the province; and be supported where necessary by externally hired project staff. The provincial tourism department will appoint a PIU management and monitoring focal point and a tourism development and training officer, and may either provide directly or engage an environment officer, marketing and promotion specialist, heritage specialist, social specialist, and accountant or secretary. These counterpart staff will work in the PIU part-time for between 20 and 30 hours per week, depending on the scale of project interventions in the province.

57. The PIUs will be responsible for (i) working with the project consultants on the appraisal of feasibility studies and conceptual and detailed design; (ii) procuring goods and civil works contracts, including the preparation of bid documents and bid evaluation; (iii) coordinating the consultants on supervisory and construction activities in their provinces and ensuring that the infrastructure components of the subproject are implemented according to the certified design;

Appendix 5 81 (iv) approving payments to contractors and maintaining disbursement records; (v) ensuring that subprojects for sustainable, pro-poor tourism development along economic corridors are properly implemented; (vi) ensuring compliance with loan covenants at the site in each province, including the updating of initial environmental examinations and the implementation of environmental management plans to meet government and ADB requirements; (vii) the day-to- day supervision the of construction of the subproject elements on site; (viii) coordinating the process of establishing appropriate cost-recovery mechanisms; (ix) keeping CTGs and the PPSC informed of project initiatives; (x) holding regular meetings to discuss key issues and concerns and following up on the recommendations and resolutions of the PPSC and CTGs; (xi) coordinating institutional-strengthening and capacity-building activities locally; (xii) preparing monitoring-and-evaluation reports for transmission to the PCU; and (xiii) preparing and submitting to the PCU quarterly progress reports.

Figure A9.3: Provincial Level Project Organization

Provincial Project PIU Director Steering Committee Community Tourism Groups

PIU Manager/Monitoring Focal Point

PIU staffing:a

• Social Specialist • Tourism Training and Development Officer • Heritage Specialist • Environment Specialist • Market and Promotion Specialist • Accountant/Secretary

a If provincial tourism departments do not have adequate numbers of technical staff, local expertise from other departments or the private sector may be employed to assist the PIU.

Institutional relationship Management relationship Technical relationship

PIU = project implementation unit. Source: Asian Development Bank.

58. Provincial Project Steering Committee. PPSCs—representing concerned agencies covering natural and cultural heritage site management, urban environment management, public works and construction, road transportation, border authorities, and other relevant provincial authorities—will be formed to ensure that all the interests and concerns of the related agencies are reflected in the Project’s outcomes. The PPSCs will be chaired by a senior member of the provincial people’s committee, with the PIU serving as the secretariat at PPSC meetings. The PPSC will be formed during the first 3 months of project implementation, and the PIU director will organize at least four meetings of the PPSC each year, under the guidance of the provincial people’s committee, at which work plans, project progress, and issues of concern will be discussed and resolved.

59. The PPSC will be responsible for ensuring that (i) the concerns of the other agencies are adequately reflected in the Project’s implementation plan, (ii) project implementation is effectively coordinated between the concerned agencies in the province, (iii) the concerned agencies in the province extend full cooperation to the PIU, (iv) the Project is implemented in

82 Appendix 5 compliance with local regulations and provincial policies, (v) counterpart funds are budgeted and disbursed, and (vi) resettlement plans and compensation schemes are followed, as well as (vii) reviewing progress in the implementation of the Project.

60. Community Tourism Groups. To ensure that a high level of community consultation takes place at every step of implementation, the PIUs will work with participating communities to establish CTGs within villages’ traditional administrative structures and involve mass organizations such as women’s and youths’ unions and traditional village leadership in guiding project implementation. The CTGs will be responsible at the site level for (i) raising issues of concern to participating communities with the PIU, (ii) ensuring that the concerns of the community are adequately reflected in the implementation program, (iii) assisting in the implementation of the community awareness program, and (iv) ensuring that the community is involved in community-based monitoring and evaluation. A representative of each CTG will be invited to regular PPSC meetings by the PIU director.

JOB DESCRIPTIONS OF PCU AND PIU PROJECT STAFF

The day-to-day supervision, implementation and monitoring of the project by national project staff will mainly be performed by a Project Coordination Unit (PCU) established by and housed at the national tourism offices of Loa PDR (the Lao National Tourism Administration) and in Viet Nam (the Ministry of Culture, Sport and Tourism). A permanent PCU-National Project Director’s Office will be established within these offices that will also host the international and local consultants. The specific arrangements and job descriptions for the PCU and PIU staff are specified below for Lao PDR and Viet Nam.

Lao PDR In Lao PDR, one Project Coordination Unit will be established by the Lao National Tourism Administration (LNTA) to be located in the LNTA offices in Vientiane where the PCU staff and consultants will be based. Project Implementation Units (PIU’s) will be established at 8 Provincial Tourism Offices and at Vang Vieng in the case of the urban environment improvement subproject where provincial project staff responsible for the project will be based. An overview of job descriptions and the main duties of the PCU and PIU-based national project staff are provided below.

Area of Job Title Job Description and Time Operation Commitment Main Duties

Project National The PCU-Director’s Office based National Project Director (NPD) will be Full-time (40 Coordination Project responsible to the National Project Steering Group (NPSG) for the overall hrs/wk for 60 Unit (PCU) Director supervision and implementation of the Project and will ensure that the NPSG, months) Subregional Project Steering Group (SPSG) and ADB is kept informed of Project developments, issues and progress. The NPD will work closely with the consultants and counterpart staff in the PCU, and PIUs to ensure that the project is executed to standard, on budget and on time. The NPD will be responsible for overseeing recruitment of international and national consultants, ensuring

budgets and work plans are approved and executed on time and on target, and E Appendix Supplementary directly oversee the Human Resource Development Subproject and Project Performance Monitoring System. The NPD will be a senior manager with at least 10 years project management experience in the government and have appropriate qualifications to at least the master’s degree level. Competence in spoken and written English is essential. The NPD will make frequent trips to the provinces to monitor project implementation.

National The PCU-field office based National Project Manager (NPM) will be responsible Project to the National Project Director with the support of the consultants for the Manager effective coordination and implementation of the project. The NPM’s main duties

84 Area of Job Title Job Description and Time Operation Commitment Main Duties Su involve assisting the PIU’s prepare and implement detailed work plans and pp budget for the Project including a five-year Implementation Plan of the Project lementar and rolling six month Action Plans of the Project (APP’S), as well as related monitoring, administration of the project and reporting to the NPD. The NPM will be a senior manager with at least 8 years of previous project management and y

administration experience with appropriate qualifications to master degree level. A

Competence in spoken and written English is essential. pp endix E endix Financial The PCU-Director’s Office based Financial Controller/Chief Accountant (FC) will Controller/Chi be responsible to the NPD for monitoring all financial aspects of the project ef Accountant including preparation of financial projections against the work plans, establishing the necessary accounts at the PCU/PIU level as required by ADB, establishing the required accounting, withdrawal approval and audit systems and procedures, ensuring the flow of funds to the PIUs, provide training and coaching to PIU’s as needed, monitoring cash flow to ensure that sufficient funds are available to meet project requirements, and preparing regular financial reports for transmission to the EA and the ADB. In addition to having previous experience in financial controllership, previous experience working on ADB or internationally funded projects is preferred and a high level of competence in spoken and written English is essential.

Tourism The Tourism Development and Training Specialist (TDTS) based at the PCU- Development field office will work closely with the international and domestic consultants in the and Training planning, implementation and monitoring of all tourism-related project activities Specialist at the cultural, natural, pro-poor, Human Resource Development and East West Economic Corridor subprojects. The TDTS will assist the NPM facilitate government permission to approve work plans and implement project activities, act as a liaison between the PCU, PIU, project consultants, local communities and private sector tour operators, deliver training, advise on the design and location of infrastructure, and ensure all project initiatives and private sector investment is conducted in line with national tourism laws and policies. Persons selected for this position are under the supervision of the NPD and will have at least 5 years experience in the tourism sector, preferably working on internationally supported projects. The person will report to the NPM, whom is responsible for preparing quarterly reports that are sent up to the NPD. Based on agreements with the National Project Director, the TDTS will be seconded from either a national or provincial tourism authority. Working knowledge of English is preferred.

Area of Job Title Job Description and Time Operation Commitment Main Duties

Environment The PCU will engage an Environmental Specialist (ES) to facilitate the Specialist assessment and mitigation measures for environmental impacts for the tourism related infrastructure projects that will be built by the project. The ES will be based at the PCU-field office and make frequent field trips to the project sites and provide advice in achieving sustainable tourism outcomes and minimize negative environmental impacts. The person should have excellent communication skills and the ability to work with poor communities, stakeholder agencies and partner NGO’s. In particular the ES should have a strong practical knowledge and can work with local communities to address any local environmental impacts. This will involve working with other specialists to facilitate community awareness and education programs. The ES will have at least 2 years experience in community building projects and environmental management processes. Working knowledge of English is preferred. The ability to use word processing and internet software is required and the ability to use desktop publishing software is preferred.

Architect/Land The PCU will engage an Architect/Landscape Designer (ALD) to prepare scape designs and construction estimates or small-scale pro-poor tourism related Designer/Con infrastructure projects that will be built by the pro-poor subprojects. The ALD is struction confirmed at the Ministerial level, and will have at least 5 years experience in Supervision designing and supervising construction of tourism-related infrastructure. The ALD will make frequent field trips to assess proposed construction sites, estimate the cost of labor and construction, and work closely with the Social and Environmental Specialists to ensure small infrastructure projects do not violate ADB or government social and environmental guidelines. A strong knowledge and ability to use computer assisted design (CAD) programs is required.

Marketing and A Marketing and Promotion Specialist (MPS) will be based in the PCU to work Promotion closely with the project team on the conception, development and dissemination E Appendix Supplementary Specialist of marketing and promotion materials to support initiatives undertaken by the project. The MPS will assist the PCU/PIU obtain permission for the creation of printed and electronic media, assist in the planning and implementation of trade fairs and tourism-related forums, and assist the project team to conduct ongoing market research that includes visitor and tour operator surveys, interviews with key informants and discussion groups. The MPS will have at least 5 years experience in marketing and promotion activities and a strong knowledge of English or other foreign languages. The ability to use word processing and internet software is required and the ability to use desktop publishing software is

86 Area of Job Title Job Description and Time Operation Commitment Main Duties Su preferred. pp lementar Office The PCU-Based office manager will over see the day-to-day operations of the Manager/ PCU, including supervision of equipment and materials in the PCU, Monitoring disbursement of petty cash, record keeping, filing systems, the preparation of y

and correspondence for the project management team, making travel arrangements, A

Evaluation taking minutes at meetings and supporting the overall efficient function of the pp Officer PCU office facility; and for monitoring and evaluation activities at the PCU level, E endix including coordination of data collection activities, overall responsibility for analysis and reporting and coordination with and support to the PCUs.

Natural & Natural and Cultural Heritage Specialists (NCHS) will be based at each PCU and Cultural work closely with the international and domestic consultants in the planning, Heritage implementation and monitoring of all project activities that are conducted in, or Specialist have an impact on natural and cultural heritage sites under the various subprojects. The NCHS will facilitate government permission in the implementation of project activities, work with PIU staff, project consultants, local communities and private sector tour operators, deliver training, advise on the design and location of infrastructure construction and ensure all project initiatives and private sector investment is conducted in line with international treaties, national laws and policies related to the conservation and protection of natural and cultural heritage. Persons nominated for this position will have at least 5 years experience in the heritage management sector, preferably working on internationally supported projects. The person will report to the PCU Director. Based on agreements with the National Project Director, the NCHS will be seconded from either a natural or cultural heritage management authority.

Social The Social Specialist (SS) based at the PCU-field office will work closely with the Specialist international and domestic consultants in the planning, implementation, monitoring and evaluation of all project activities related to poverty reduction at the community level, enhancing the participation of poor and vulnerable groups in decision-making, and enabling them to gain control of and manage economic and cultural assets. The SS will facilitate government permission in the implementation of project activities, and act as a liaison between the PCU, PIU, project consultants, local communities, and civil society or private sector partners. He/She will facilitate training in participatory, planning, implementation, monitoring, and evaluation, poverty identification, socio-cultural factors in development, and ethnological perspectives in working with cultural minorities. The SS will advise on the design and location of infrastructure, and ensure all

Area of Job Title Job Description and Time Operation Commitment Main Duties project initiatives are conducted in line with international agreements. The SS is under the supervision of the NPD and will work closely with the NPM and PIU’s on project implementation. At least 7 years experience in social development and working with ethnic groups is required, preferably while engaged on internationally supported projects. Based on agreements with the National Project Director, the SS will be seconded from a government agency responsible for cultural and social issues. Working knowledge of English is preferred.

Monitoring The M&E Specialist will be responsible for monitoring and evaluation activities at and the PCU and PIU level, including coordination of data collection, analysis and Evaluation reporting. The M&E Specialist will be based at the PCU-field office and work Specialist closely with the international and national consultants on the training the PCU and PIU staff to implement the project’s PPMS and ensure that this information is regularly conveyed to the NPD and NPSC.

PCU Support Staff

Accountant The PCU will place one accountant in the PCU-field office to monitor and track all financial disbursements to the PIU’s and ensure that accurate, up-to-date information regarding the project’s finances is available to the project’s financial controller, National Project Director and National Project Manager upon demand. Previous experience working on ADB or internationally funded projects is preferred and a strong knowledge of English and the ability to use accounting, word processing and internet software is required. The accountant will assist the financial controller, National Project Director and PIU’s prepare ADB withdrawal applications, create financial projections as required by ADB, monitor the project’s imprest and sub-accounts and facilitate regular internal and external audits of the projects financial position. upeetr pedxE E Appendix Supplementary Secretary The PCU-based secretary will provide secretarial support to the National Project Director and PCU staff, which will include the preparation of correspondence, meeting logistics, photocopy and transcription. The secretary will monitor the condition of project equipment and materials and regularly report any maintenance issues to the National Project Director. The ability to prepare written and verbal correspondence in the English and Vietnamese language is required. A strong knowledge and ability to use word processing, accounting and internet software is required. The PCU secretary may come from the public or private sector and reports to the National Project Director.

88 Area of Job Title Job Description and Time Operation Commitment Main Duties Su

Office The office assistant will provide logistical support to the PCU as needed. This pp

assistant person must possess a valid driver’s license and be able to safely operate the lementar project vehicles.

A Project pp Implementati E endix on Units

PIU Director Subproject Supervisors in each PIU are confirmed at the Ministerial level, and 10 hrs/wk will have at least 10 years experience in the respective disciplines, preferably and as working on internationally supported projects. PIU Directors will coordinate with needed related government agencies and international organizations in the implementation of subprojects, and supervise and approve all project activities and project expenditures that take place at the subproject implementation level.

They will have a working knowledge of English and have the ability to prepare quarterly reports in the English language that will be submitted to the PCU.

PIU Project In each PIU a project manager (PM) will be nominated by the PIU Director to Manager/Moni assist in project implementation and monitor implementation of all aspects of the toring Focal project. The PIU Project Manager will serve as the PIU Director’s deputy and will Point be confirmed by the National Project Director at the PCU. PM’s will be responsible for preparing project activity proposal, financial plans and activity reports that will be regularly submitted to the PCU and for overseeing M&E activities at the provincial level. Natural & The Natural and Cultural Heritage Specialist (NCHS) based at the PIU will work Cultural closely with the international and domestic consultants in the planning, Heritage implementation and monitoring of all project activities that are conducted in, or Officer have an impact on natural and cultural heritage sites under the various subprojects. The NCHS will facilitate government permission in the implementation of project activities, act as a liaison between the PCU, PIU, project consultants, local communities and private sector tour operators, deliver training, advise on the design and location of infrastructure construction and ensure all project initiatives and private sector investment is conducted in line with international treaties, national laws and policies related to the conservation and protection of natural and cultural heritage. Persons nominated for this position are confirmed at the Ministerial level, and will have at least 5 years

Area of Job Title Job Description and Time Operation Commitment Main Duties experience in the heritage management sector, preferably working on internationally supported projects. The person will report to the PIU Subproject Supervisor, whom is responsible for preparing quarterly reports that are sent up to the PCU. Based on agreements with the National Project Director, the NCHS will be seconded from either a natural or cultural heritage management authority. Working knowledge of English and an understanding of land use planning, protected area management and GIS applications are preferred.

Social Officer The Socio Specialist (SC) based at the PIU will work closely with the international and domestic consultants in the planning, implementation, monitoring and evaluation of all project activities related to poverty reduction at the community level, enhancing the participation of poor and vulnerable groups in decision-making, and enabling them to gain control of and manage economic and cultural assets. The SC will facilitate government permission in the implementation of project activities, and act as a liaison between the PCU, PIU, project consultants, local communities, and civil society or private sector partners. He/She will facilitate training in participatory, planning, implementation, monitoring, and evaluation, poverty identification, socio-cultural factors in development, and ethnological perspectives in working with cultural minorities. The SC will advise on the design and location of infrastructure, and ensure all project initiatives are conducted in line with international agreements. Persons nominated for this position are confirmed at the Ministerial level, and will have at least 7 years experience in social development and cultural minority programs, preferably working on internationally supported projects. The person will report to the Subproject Supervisor, who is responsible for preparing quarterly reports that are sent up to the PCU. Based on agreements with the National Project Director, the SCS will be seconded from a social or cultural development unit. Working knowledge of English is preferred.

E Appendix Supplementary Environmental The Environmental Specialist (ES) based at the PMU will work closely with the Officer other international and domestic consultants in the planning, implementation and monitoring of all project activities that are conducted in, or have an impact on natural and cultural heritage sites under the various subprojects. The ES will provide policy guidance, advice and support to the PMU and PCU’s on the best environmental practices for responding to environmental issues involved with implementation of the projects on a sustainable basis. The ES will provide assistance and advice on institutional strengthening and capacity building at the PMU and PCU levels in regards to environmental practices. The position will

also involve collaboration with the domestic environmentalist consultants in

90 Area of Job Title Job Description and Time Operation Commitment Main Duties Su executing baseline surveys, environmental monitoring plans and programs,

pp initial environmental impact examinations (IEE) as may be required. lementar Collaboration with the other PMU Support specialists will be necessary to ensure an integrated approach is taken to economic, environmental and social issues. In addition, the ES will provide assistance and advice for coordinating y

other executing agencies and development partners in the implementation of the A

projects. The ES will provide advice on establishing environmental monitoring pp processes and evaluation programs for projects to be undertaken by the PIU’s, E endix and give advice on monitoring implementation of the works for any non compliance issues and bringing any such issues to the attention of the PCU’s

and PIU’s. The ES will undertake reviews of progress on environmental mitigation practices and prepare a report on a yearly basis to the PIU and PCU’s. Persons nominated for this position are confirmed at the Ministerial level, and will have at least 5 years experience in the environmental management sector, preferably working on internationally supported projects. The person will report to the PIU Subproject Supervisor, whom is responsible for preparing quarterly reports that are sent up to the PCU. The ES may come from the public or private sector with qualifications in natural resource/science/environmental management. Working knowledge of English and an understanding of land use planning, development approval processes, environmental impact and

monitoring processes are preferred.

Marketing and A Marketing and Promotion Specialist (MPS) will be based in each PIU to work Promotion closely with the project team on the conception, development and dissemination Officer of marketing and promotion materials to support initiatives undertaken by the project. The MPS will assist the PIU obtain permission for the creation of printed and electronic media, assist in the planning and implementation of trade fairs and tourism-related forums, and assist the project team to conduct ongoing market research that includes visitor and tour operator surveys, interviews with key informants and discussion groups. The MPS will have at least 5 years experience in marketing and promotion activities and a strong knowledge of English or other foreign languages. The ability to use word processing and internet software is required and the ability to use desktop publishing software is preferred.

Construction The PIU-based Construction Supervisor will responsible to the PIU Supervisor Supervisor/Arc (with the support of the PCU-based engineering consultants) for coordinating hitect/ and supervising the construction work being implemented by the PIUs. The

Landscape duties will include preparation in conjunction with the PIU supervisors and

Area of Job Title Job Description and Time Operation Commitment Main Duties Designer contractors of construction programs, regular site inspection and supervision of construction works under the PIU, monitoring, identifying and addressing issues that may delay construction works, and monitoring, evaluating and preparing reports on construction progress to the PIU Supervisor and the PCU-based engineering consultants. The position requires at least 10 years experience in the supervision and management of infrastructure-related construction projects in rural areas. Working knowledge of English is desirable.

Accountant/Se The PIU-based Accountant/Secretary will monitor and track the use of project cretary funds at the PIU level and ensure that accurate, up-to-date information regarding use of project funds is available to the PCU upon demand. This position will also provide secretarial support to the PIU Supervisor, which will include the preparation of correspondence, meeting logistics, photocopy and transcription and monitor the condition of project equipment. The ability to prepare written and verbal correspondence in the English and national language is required. A strong knowledge and ability to use word processing, accounting and internet software is also required. The Accountant/Secretary may come from the public or private sector and reports to the PIU supervisor. Previous experience working on ADB or internationally funded projects is preferred.

Vang Vieng Subproject The PIU Director in each PIU are confirmed at the Ministerial level, and will have 10 hrs/wk Urban Supervisor at least 10 years experience in the respective disciplines, preferably working on and as Environment (Vang Vieng internationally supported projects. PIU Directors will coordinate with related needed Improvement PIU Director) government agencies and international organizations in the implementation of PIU, Vientiane the urban environment improvement subprojects, and supervise and approve all Province, Lao project activities and project expenditures that take place at the subproject PDR implementation level. They will have a working knowledge of English and have the ability to prepare quarterly reports in the English language that will be

submitted to the PCU. E Appendix Supplementary

Sanitation and The Sanitation and Environment Engineers in the PIU are confirmed at the

92 Area of Job Title Job Description and Time Operation Commitment Main Duties Su Environment Ministerial level, and will have at least 7 years experience in the respective pp Engineer (for disciplines with experience in working on public sector projects. The position will lementar Vang Vieng be responsible to the PIU-based Project Manager for supervising the design and PIU) construction of all sanitation and environment-related civil works connected with the urban environment improvement subproject in the country. The position will y

work closely with the PCU-based International and National Civil Engineering A

consultants related to the design, documentation, approvals, pre-qualification of pp contractors, construction programming, and supervision of the subproject, as E endix well as supervising the work of the PIU in the implementation of the civil works. An Engineering Degree from recognized University or Collage and membership

to peak engineering body in country and a sound working knowledge of English will be useful as will the ability to contribute to the preparation of quarterly reports to the PIU-based Project Manager.

Education The Education Officers (EOs) based at the PIU will work closely with the Officer (for international and domestic consultants and the PIU staff in the planning, Vang Vieng) implementation and monitoring of awareness and training programs designed to enhance user understanding and willingness to pay in support of the environmental improvement subproject, as well as develop, implement and monitor institutional capacity training programs for the ongoing operations and maintenance of the subproject. The EO will act as a liaison between the PIU and the consultants and organize and deliver training. Persons nominated for this position are confirmed at the Ministerial level, and will have at least 5 years experience, preferably working on internationally supported projects. The person will report to the PIU Project. Based on agreements with the National Project Director, the EO will be seconded from either a national or provincial authority. Working knowledge of English is required.

Provincial PIU Director A Project Implementation Unit Director will be selected by the Provincial Peoples 30 hrs/wk Tourism Committee to oversee the overall implementation of subprojects in each of the 5 and as Project provinces included in the project. PIU Directors will have at least 10 years needed for Implementatio experience in a senior management position and preferably have experience 60 months n Units working with internationally supported projects. PIU Directors will coordinate with related government agencies and international organizations in the implementation of subprojects, and supervise and approve all project activities and project expenditures at the PIU level. They will have a working knowledge of English and have the ability to approve ADB withdrawal applications, small subcontracts, and authorize quarterly reports in Vietnamese and English language that will be submitted to the PCU.

Area of Job Title Job Description and Time Operation Commitment Main Duties

PIU In each PIU a manager will be selected by the PIU Director to assist in project Manager/Moni implementation and monitor all aspects of the project at the PIU level. The PIU toring Focal Project Manager will serve as the PIU Director’s deputy and will be confirmed by Point the National Project Director at the PCU. PIU Managers will be responsible for preparing project activity proposals, financial plans and activity reports that will be regularly submitted to the PCU. The PIU manager will also serve as the provincial monitoring focal point and oversee project monitoring activities at the provincial, district and village level.

Natural & Natural and Cultural Heritage Specialists (NCHS) will be based at each PIU and Cultural work closely with the international and domestic consultants in the planning, Heritage implementation and monitoring of all project activities that are conducted in, or Officer have an impact on natural and cultural heritage sites under the various subprojects. The NCHS will facilitate government permission in the implementation of project activities, work with PIU staff, project consultants, local communities and private sector tour operators, deliver training, advise on the design and location of infrastructure construction and ensure all project initiatives and private sector investment is conducted in line with international treaties, national laws and policies related to the conservation and protection of natural and cultural heritage. Persons nominated for this position will have at least 5 years experience in the heritage management sector, preferably working on internationally supported projects. The person will report to the PIU Subproject Supervisor, whom is responsible for preparing quarterly reports that are sent up to the PCU. Based on agreements with the National Project Director, the NCHS will be seconded from either a natural or cultural heritage management authority. upeetr pedxE E Appendix Supplementary Social Officer A Social Specialist (SS) will be based at each PIU to work closely with the international and domestic consultants in the planning, implementation, monitoring and evaluation of all project activities related to poverty reduction at the community level, enhancing the participation of poor and vulnerable groups in decision-making, and enabling them to gain control of and manage economic and cultural assets. The SS will facilitate government permission in the implementation of project activities, work closely with the PIU staff, project consultants, local communities, and civil society or private sector partners. He/She will facilitate training in participatory, planning, implementation, monitoring, and evaluation, poverty identification, socio-cultural factors in

94 Area of Job Title Job Description and Time Operation Commitment Main Duties Su development, and ethnological perspectives in working with cultural minorities. pp The SS will advise on the design and location of infrastructure, and ensure all lementar project initiatives are conducted in line with international agreements. Persons nominated for this position will have at least 7 years experience in social development and cultural minority programs, preferably working on y

internationally supported projects. The person will report to the PIU Director, A

who is responsible for preparing quarterly reports that are sent up to the PCU. pp Based on agreements with the National Project Director, the SS will be E endix seconded from an agency responsible for social or cultural issues. Working knowledge of English is preferred.

Environmental An Environmental Officer (EO) will be based at each PIU to work closely with Officer (EO) international and domestic consultants in the planning, implementation and monitoring of all project activities that are conducted in, or have an impact on natural and cultural heritage sites under the various subprojects. The EO will provide policy guidance, advice and support to the PIU on the best environmental practices for responding to environmental issues involved with implementation of the project. The position will involve collaboration with the domestic environmental consultants in executing baseline surveys, environmental monitoring plans and programs, initial environmental examinations (IEE) as may be required. Collaboration with the other PIU specialists will be necessary to ensure an integrated approach is taken to economic, environmental and social issues. In addition, the EO will provide assistance and advice for coordinating other government agencies and development partners in the implementation of the subprojects. The EO will implement environmental monitoring processes and evaluation programs for projects undertaken by the PIU’s, and give advice on monitoring implementation of the works for any non compliance issues and bringing any such issues to the attention of the PCU and PIU’s. Persons nominated for this position will have at least 5 years experience in the environmental management sector, preferably working on internationally supported projects. The person will report to the PIU Director, whom is responsible for preparing quarterly reports that are sent up to the PCU. The EO may come from the public or private sector that deals with natural resource/science/environmental management. Working knowledge of English and an understanding of land use planning, development approval processes, environmental impact and monitoring processes are preferred.

Tourism A Tourism Development and Training Officer (TDTO) will be based at each PIU Development office and work closely with PCU-based TDTS and international and domestic

Area of Job Title Job Description and Time Operation Commitment Main Duties and Training consultants on the planning, implementation and monitoring of all tourism- Officer related training and development activities on the cultural, natural, pro-poor, Human Resource Development and East West Economic Corridor subprojects. The TDTO assist in the delivery of training and capacity building programs for local communities and private sector tour operators, advise on the design and location of infrastructure, and assist in the production of manuals and reports to the PCU. Persons selected for this position are under the supervision of the PIU Director and will have at least 5 years experience in the tourism sector, preferably working on internationally supported projects. Working knowledge of English is preferred.

include the preparation of correspondence, meeting logistics, photocopy and E Appendix Supplementary transcription and monitor the condition of project equipment. The ability to prepare written and verbal correspondence in Vietnamese and English is required. A strong knowledge and ability to use word processing, accounting and internet software is also required. The Accountant/Secretary may come from the public or private sector and reports to the PIU Director. Previous experience working on ADB or internationally funded projects is preferred.

IMPLEMENTATION SCHEDULE A

2009 2010 2011 2012 2013 pp Task Description 6 endix Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1234567891011121314151617181920

A. Output 1. Model Sustainable Tourism Development Projects Protecting the Environment and Cultural Heritaged Developed Design and implement community participation and awareness programs Planning and documentation, preparation of tourism master plans Infrastructure design Prepare detailed IEE, EIA, and EMPs Prepare and implement resettlement plans Design and implement gender/ethnic minority participation programs Capacity building for local communities Construction and supervision Institutional strengthening and capacity building for O&M Design and implement marketing program Monitoring and evaluation Produce best practice manuals on tourism development at GMS heritage sites

B. Output 2. Pro-Poor, Community-Based, Supply-Chain Tourism Projects Operational Institutional strengthening, capacity building and awareness programs Design and implement community tour-product development programs Identify and develop tourism supply chains Design and construct small tourism-related infrastructure Prepare and implement gender and ethnic minority participation program Marketing and promotion plans and programs Develop community tourism networks and stakeholder associations Create, publish, and distribute GMS pro-poor tourism development manual Monitoring and evaluation

C. Output 3. GMS Tourism Corridors Developed Design and implement community participation and awareness programs

Planning and documentation, preparation of tourism master plans Infrastructure design Prepare detailed IEE, EIA, and EMP's Prepare and implement resettlement plans Design and implement gender/ethnic minority participation programs Capacity building for local communities Construction and supervision Institutional strengthening and capacity building for O&M Design and implement marketing program Create, publish, and distribute GMS Economic corridors development manual Monitoring and evaluation

D. Output 4. Human Resources in the Tourism Sector Developed Training needs assessment Review curriculum and training materials Recruit and train master trainers Improvements to cascade training institution Training at cascade institution and sites Monitoring and evaluation

E. Output 5. Efficient Project Implementation Services are Operational Mobilize PCU and PIU staff Identify, recruit, and mobilize consultants Procure equipment and vehicles Prepare detailed project implementation plan Establish data management and MIS system Review national tourism and gender action plans Prepare project performance monitoring system and training

Establish accounting systems E Appendix Supplementary Prepare civil works contract/bidding procedures and forms Monitoring and evaluation EMP = environmental management plan, GMS = Greater Mekong Subregion, IEE = initial environment examination, MIS = management information system, O&M = operations and maintenance, PCU = project coordination unit, PIU = project implementation unit. Source: Asian Development Bank.

97 98 Appendix 7

PROCUREMENT PLAN

Table A7: Indicative Procurement Plan

A. General

Project Information

Country Socialist Republic of Viet Nam Lao People’s Democratic Republic (Lao PDR) Name of Borrower/Recipient Socialist Republic of Viet Nam Lao PDR Project Name GMS Sustainable Tourism GMS Sustainable Tourism Development Project Development Project Loan/Grant Reference To be determined (tbd) To be determined (tbd) Date of Effectiveness Tbd tbd Amount $ (total from all $10,111,000 $10,870,000 financiers): Of which Committed, $ Tbd tbd Executing Agency Ministry of Culture, Sports and Lao National Tourism Tourism Administration Approval Date of Original Tbd tbd Procurement Plan Approval of Most Recent Tbd tbd Procurement Plan Publication for Local Tbd tbd Advertisementa Period Covered by this Plan 2009–2013 2009–2013 a General procurement notice, invitations to pre-qualify and to bid, calls for expressions of interest.

B. Procurement Thresholds, Goods and Related Services, Works and Supply and Install

Threshold Procurement Method

National Competitive Bidding Works Less than $1,500,000 National Competitive Bidding Goods Less than $500,000 Shopping Works Less than $50,000 Shopping Goods Less than $50,000 Direct Contracting Less than $10,000

C. Consultanting Services

Threshold Recruitment Methods

Quality- and Cost-Based Selection More than $200,000 Consultants Qualifications Selection Less than $200,000 Least Cost Selection Less than $100,000 Individual ─ ─ = not available

Appendix 7

D. Proposed Detailed Contract Packages

Number Aggregated Expected Prior Cost Estimate Mode of Responsible Description of Total Date of Review per Contract Procurement Agency Contracts Cost Estimate Advertisement (Y/N)

A. Civil Works Lao PDR 1. Siphandone 1 1,243.000 1,243,000 NCB Works first qtr 2010 Y PCU 2. Vang Vieng Drainage 1 848.000 848,000 NCB Works first qtr 2010 Y PCU 3.Tourism Corridors 1 1,219,000 1,219,000 NCB Works first qtr 2010 Y PCU 4. Various (Pro poor) 30 10,000 – 50,000 810,000 Shopping 2009–2010 Na PCU Works 5. HRD 2 1,000–5,000 5,000 Direct first qtr 2010 Y PCU Contracting Viet Nam 1. Phong Nga Kebang 1 997,000 997,000 NCB Works first qtr 2010 Y PIU 2. Bac Kan Cultural Centre 1 1,052.00 1,052,000 NCB Works first qtr 2010 Y PIU 3. Tourism Corridors 1 864,000 864,000 NCB Works first qtr 2010 Y PIU 4. Various (pro-poor)a 20 10,000–50,000 835,000 Shopping 2009–2010 Na PIU Works 5. HRD 2 1,000–5,000 5,000 Direct first qtr 2010 Y PCU Contracting B. Equipment Lao PDR 1. Siphandone 1 5,000-25,000 50,000 Shopping third qtr 2010 N PIU Goods 2. Vang Vieng Drainage 1 5,000-60,000 100,000 NCB Goods third qtr 2010 N PCU 3.Tourism Corridors 6 1,000-5,000 30,000 Shopping third qtr 2010 N PIU Goods 4. Various (pro-poor) 15 1,000-5,000 33,000 NCB Goods 2009–2010 N PIU 5. Vehicles (PCU/PIUs) 1 10,000-15,000 119,000 Shopping first qtr 2009 Y Goods 6. HRD Equipment 4 1,000–25,000 55,000 Shopping 2009–2010 Y PCU Goods Viet Nam 7 Appendix 1.Phong Nga Kebang 3 5,000–60,000 482,000 NCB Goods third qtr 2010 N PIU 2. Bac Kan Cultural Centre 2 5,000–50,000 65,000 Shopping third qtr 2010 N PIU Goods 3. Tourism Corridors 5 1,000–5,000 22,000 Shopping third qtr 2010 N PIU Goods 99

100 Number Aggregated Expected Prior Cost Estimate Mode of Responsible Description of Total Date of Review per Contract Procurement Agency Contracts Cost Estimate Advertisement (Y/N) Appendix 7 Appendix 4. Various (Pro-poor)a 8 1,000–5,000 33,000 NCB Goods 2009–2010 N PIU

5. Vehicles/other (PCU/PIUs) 1 10,000–27,000 27,000 Shopping first qtr 2009 Y PCU Goods 6. HRD Equipment 3 1,000–25,000 55,000 Shopping 2009–2010 Y PCU Goods C. Consulting Services Lao PDR 1. Design and Construction Supervision 1 378,000 378,000 QCBS second qtr 2009 Y PCU 2. Tourism/Management Consultants 18b 8,000–200,000 792,000 Individuals 2009–2011 Y PCU 3. HRD Output 4 2 230,000–280,000 450,000 CQS 2009–2010 Y PCU 4. External monitoring and 3 8,000–40,000 68,000 Individuals 2009–2013 Y PCU Resettlement/auditing/M&E Viet Nam 1. Tourism Management and Design Firm 1 951,000 951,000 QCBS second qtr 2009 Y PCU 2. Construction Supervision Firm 1 76,000 76,000 LCS 2009–2011 Y PCU 3. HRD Output 4 2 180,000–270,000 450,000 CQS 2009–2013 Y PCU 4. External Monitoring and 3 8,000–40,000 68,000 Individuals 2009–2013 Y PCU Resettlement/Auditing/M&E

Total Contract Packages 134 12,149,000 CQS = consultants qualifications selection, HRD = human resource development, M&E = monitoring and evaluation, NCB = national competitive bidding, LCS = least-cost selection, PCU = project coordination unit, PIU = project implementation unit, QCBS = quality- and cost-based selection, qtr = quarter. a Only the first contract for each province will be reviewed. b Also includes the contracts for monitoring resettlement auditing and external project monitoring and evaluation. Source: Asian Development Bank.

Appendix 7 101

Modes of Procurement

A. National Competitive Bidding

NCB may be considered only if ADB is satisfied that

i) foreign contractors and suppliers are not likely to be interested in bidding; ii) local production or construction facilities are available, offer prices below the international market, and are adequate for prompt delivery; iii) domestic procurement procedures are satisfactory to ADB; and iv) where the borrower requested the use of NCB.

Moreover, NCB may be considered for contracts that

i) are of small value; ii) consist of a series of small-value works; iii) are located in several areas that may be far apart in the borrowing DMC; and iv) will be executed at different times.

the threshold for NCB for this Project is between $50,001 to $1.500,000 for works contracts, or between $50,001 and $1.0 million for supply of goods.

B. Shopping

Shopping is a simplified procedure, used for procuring low-value, readily available off- the-shelf goods, or simple civil works of low value. The threshold for Shopping is set between $10,001 and $50,000 for both works or supply of goods.

C. Direct Contracting

For the procurement of items below $10,000, the EA may purchase the items directly from the supplier. In such cases, ADB should be satisfied that the price paid is reasonable.

Evaluating Procedures

Evaluation of bids and contract awards must be fair, and evaluation criteria must be made known to all bidders. Factors to be considered when evaluating NCB procedures of an EA are briefly described below:

Treatment of Foreign Bidders

Suppliers and contractors from all member countries are entitled to participate in local procurement and may not be denied participation due to nationality. Contractors and suppliers may apply for prequalification (where used) and to bid for contracts under NCB bidding procedures. ADB requires the borrowing DMC to permit such participation, but foreign bidders must adhere to local procedures acceptable to ADB, including using the local language and paying in local currency, if required by the bidding documents. Under local procurement procedures, the delivered cost of materials including import duties and other taxes may be used when comparing bids. ADB's domestic preference policy shall not be applied

102 Appendix 7

International Advertising

Procurement of NCB contracts is advertised in adb.org via posting of the Procurement Plan.

Using Standard Bidding Documents for NCB

Borrowers are to be encouraged to use ADB-approved standard bidding documents for NCB, ideally based on the standard bidding documents for ICB. This will help ensure high quality and consistency in the documents and will hasten ADB's review. The documents should reflect local procurement requirements but must not contravene the basic principles underlying the Procurement Guidelines. Standard bidding documents are available at http://www.adb.org/Procurement/prequalification-bid-documents.asp.

ADB Review of Procurement Documents

For each project, the first draft English language version of the procurement documents should be submitted for ADB review and approval regardless of the estimated contract amount. ADB-approved procurement documents should be used as a model for all procurement financed by ADB for the project, and need not be subjected to further review unless specified in the procurement plan, or required under special arrangements. The first two contracts for works in each province will be subject to ADB approval. Subsequently, the PCUs and PIUs will maintain specified documents for review by ADB.

Approval of Contract Award

For NCB, ADB will review the bid evaluation report (BER) and award of contract on a post-review basis. The review arrangements are specified in the procurement plan. Similarly, for Shopping, ADB will normally review the award of contract on a post-review basis.

The EA must submit copies of the BER and signed contract in English to the concerned sector division or resident mission for post review as soon as possible following contract award (unless prior review is specified in the procurement plan). The EA should be advised that ADB reserves the right to refuse financing for the contract if it is found during post review that the procurement has not been conducted in accordance with the Procurement Guidelines,or other provisions specified in the financing agreement.

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104 Appendix 7

Evaluating NCB Procedures in the Developing Member Countries

While NCB procedures do not need to be identical with the ADB's ICB procedures, the basic objectives of the latter such as economy, efficiency, transparency, and equal and fair opportunity for all eligible bidders must be met. The following checklist helps evaluate the procedures.

A. Eligibility

All qualified local bidders are eligible. For foreign bidders see above main text.

B. Advertising

NCB contracts estimated to cost $500,000 or more for goods and related services and $1,000,000 or more for civil works will be advertised in the Business Opportunities section of adb.org concurrently with the general procurement notice. Advertising in the local language in local web site or newspapers is acceptable.

C. Bidding Period

This could be shorter than for ICB; 4 weeks is acceptable.

D. Prequalification

Prequalification is discouraged for contracts bid following NCB. Where used, an individual prequalification exercise is acceptable for each contract as is the use of a registration system (or approved standing list) of contractors based on criteria such as experience, financial capacity, and technical capacity. However, foreign bidders from eligible member countries must be allowed to obtain such registration and to bid without unreasonable cost or additional requirements.

E. Bidding

Bids can be made in the local language, restricted to local banks for bid and performance security (where used), and limited to local currency for bidding and payment. Specifications are to be unambiguous; international standards are not required. A copy of the bidding documents must be made available in English to ADB for review.

The use of standard bidding documents is encouraged. Once ADB accepts the documents they must be used for all subsequent ADB-funded NCB procurement for the applicable project.

Public bid opening and recording of bids is mandatory.

Two-stage bidding procedures are acceptable for eliminating nonresponsive bidders before opening price proposals.

Bracketing and lottery systems are not acceptable to ADB.

The use of multiple-delivery places for bids and bid opening is unacceptable.

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Bids should not be invited on the basis of a percentage premium or discount over the estimated cost.

Bids should not be rejected only on the basis of a comparison with the EA’s estimate.

Extension of bid validity may be sought only under exceptional circumstances.

Factors, evaluation methodology, and evaluation criteria must be explicitly stated in bidding documents and applied consistently; and the contract award must be to the bidder who submitted the lowest evaluated substantially responsive bid.

Price negotiations with bidders before signing contracts is not acceptable, except when all bids received are substantially higher than the estimate and ADB gives prior approval to negotiate with the bidder who submitted the lowest evaluated substantially responsive bid for a price reduction, before resorting to rebidding.

F. Domestic Preference

ADB's domestic preference policy or any other domestic preference policies are not applicable under NCB. When foreign bidders participate, comparison will be on the delivered price including import duties and taxes.

G. Restrictions

Restrictions on the sources of transportation and insurance are acceptable.

H. Contract

Price adjustments for inflation, and settlement of disputes by local courts or local arbitration, are acceptable.

I. General

Staff should consult COSO on any unusual features and OGC on any specific legal issues.

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RECRUITING CONSULTING FIRMS

Borrowers must comply with ADB’s requirements and follow ADB’s procedures. The policies and main procedures are set out in the Guidelines on the Use of Consultants by Asian Development Bank and Its

Borrowers (GuidelinesH . When recruiting consultants with ADB funds, borrowers are expected to promptly recruit consultants who will provide high-quality services. The normal means of selection is through competitive bidding among qualified firms.

Procurement Plan

EAs are required, prior to loan negotiations, to prepare an outline for the project and a detailed plan covering the first 18 months of procurement activity. The procurement plan will be annexed to the minutes of loan negotiations. Within 1 year after the date of loan effectiveness, the EA should submit a revised procurement plan to ADB for approval that captures all ongoing procurement and that planned for the following 18 months. The procurement plan should be updated annually for the duration of the project. The procurement plan should detail, as a minimum, a brief description of the consulting packages, selection method, types of technical proposal, budget for each package, outline TOR when possible, the positions to be held by national versus international experts, a definition of prior review and/or post review, and recruitment schedules.

Selection Methods

EAs use six methods to select consulting firms:

• quality- and cost-based selection (QCBS), which is ADB’s preferred selection method; • quality-based selection (QBS); • fixed-budget selection (FBS); • least-cost selection (LCS); • consultants’ qualifications selection; and • single-source selection , which is used in exceptional cases when not using a competitive selection method is justified.

The proposed selection method for this Project as mentioned in the procurement plan are: QCBS, CQS and LCS The procedures to be followed for loan/grant-funded consulting services using these are outlined below.

Types of Technical Proposals

EAs use three types of technical proposals to select consulting firms

• Full technical proposals are one of the default types for contract budgets over $1,000,000. They may also be used for smaller contracts if considered necessary and sound justification is presented in the procurement plan. • Simplified technical proposals are the default type when the contract budget is more than $600,000 and equal to or less than $1,000,000. With adequate justification in the procurement plan and the RRP they may also be used when the contract budget is more than $1,000,000. • Biodata technical proposals are the default type when the contract budget is $600,000 or less but may be used for contracts of higher amounts if adequate justification is provided in the procurement plan and the RRP.

Advertising the Consulting Assignments

The user division posts a notice describing each consulting assignment in the Business Opportunities section of ADB’s website before short-listing. The minimum posting time for each assignment is 30 days.

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The website includes a link to a standard expression of interest (EOI) form for loans that firms can download, fill out, and send directly to the EA.

The EA may, in addition, advertise in local newspapers and international trade publications. In order to do this, a standard template on consultant recruitment notice is provided by ADB to the EA at the time of appraisal. This template contains an address (preferably including an email address) at the EA to which interested firms can write to obtain a standard EOI form.

Consultants Expressing Interest

25. To ensure that all data required to assess firms for the short list are obtained at the required level of detail, EAs are required to request EOIs in standard EOI form. As a guide, a sample standard EOI form is available on ADB’s website, http://www.adb.org/Consulting/toolkit-template.asp. The standard EOI form may be submitted in hard or soft (electronic) copy.

Preparing the Long List

The EA normally includes all the qualified consultants that expressed interest on a long list. The EA may also ask the user division officer for additional qualified consulting firms from the CMS. The EA decides whether to include any of these consultants on the longlist and may also add other experienced consultants to the list.

The EA then evaluates those consultants on the long list. This may be done through a consultant selection committee (CSC) set up by the borrower and including staff of the EA, or by a CSC set up within the EA, depending on the procedure and regulations in the country concerned.

Evaluating EOIs and Preparing the Short List

Four criteria are typically evaluated:

• Eligibility of the consulting entity • Management competence (20%) • Technical competence (60%) • Geographic competence (20%)

The above weightings are indicative, actual weightings may be tailored to the scope of the assignment

To ensure a wide geographic spread for projects requiring international consulting input, the short list should contain firms from a broad range of ADB member countries. Short lists should not include more than two firms from any one country, and adequate justification should be given if two firms are proposed. In addition, there should be at least one firm from a developing member country (DMC), unless no qualified DMC firm has expressed interest or one cannot be identified from the CMS.

Preparing the RFP

The EA next prepares the RFP documents in ADB’s format. Templates for this are available on the ADB website. The information in the RFP includes the

• names of the short-listed consultants; • selection method the EA will use; • detailed TOR; • estimates of the total international and national person-months and the costs; and the required expertise, data, facilities, services, and reports; • type of technical proposal requested and instructions on how to prepare that type of proposal;

108 Appendix 8

• evaluation criteria for the technical proposals; • EA’s budget for the assignment, including any provisional sums or contingencies; • deadline for the EA to receive the proposals; and • addresses of the EA and ADB to which the consultants must send copies of the proposals.

The RFP also explains the following:

• The successful consultant must disqualify itself, its affiliates, and its associates from participating in the project in any other capacity • The EA may exclude a consultant if it is found to have a conflict of interest or if the EA determines that a consultant engaged in corrupt, fraudulent, collusive, or coercive practices. • Firms that have expressed interest as a part of a joint venture or association will be short- listed as such, and all firms that indicated their participation are expected to be represented in the proposal. Additional firms may be included in the joint venture or association when the proposal is submitted

The RFP also includes instructions on submitting financial proposals and other procedures that are specific to the selection method the EA will use. They include a data sheet, which, among other information, states the EA’s budget for the assignment. For QCBS, this is either a maximum budget or an estimated budget . A maximum budget is shown when costs are certain and it is unlikely that financial proposals will exceed this budget. An estimated budget is shown when cost estimates are not certain and it is possible that financial proposals may exceed it When preparing the RFP, the EA should ascertain that all costs that may be included in the consultants’ contract are included in the estimated contract budget published in the data sheet. These should include (besides consulting fees) per diems, travel costs, the costs of any vehicles or equipment specifically associated with the consultancy, and any special items (for example the cost of recruiting nongovernment organizations or providing training). Any fixed costs such as provisional sums or contingencies should be clearly identified.

For QCBS in which the data sheet indicates a maximum budget and for FBS, the RFP will clearly state that financial proposals must be within this budget; otherwise the financial proposal will be considered nonresponsive and will not be awarded any points during the financial evaluation. For QCBS in which the data sheet indicates an estimated budget, firms will not be penalized if the financial proposal exceeds the budget.

Reviewing the EA’s Short-listing Documents and Request for Proposals (Submission 1)

If the EA is required to submit its short-listing documents to ADB for approval, the EA submits its documents in ADB’s standard format, updated from the most recent version available on ADB’s website or provided by the ADB user division officer. ADB reviews the EA’s short-listing criteria and short list, to make sure that the criteria are reasonable and rational relative to the scope of work, the TOR, and the budget available and that all the firms are technically qualified and have a reasonable geographic spread.

ADB also reviews the RFP, paying particular attention to

• TOR and background information provided to ensure that they are in line with the project scope and consultant duties spelled out in the RRP and loan agreement; • EA’s budget for the assignment to ensure a realistic level of remuneration, per diem rates, and out-of-pocket expenditures; relevant and adequate provisional sums; and adequate contingencies; • selection method, the type of technical proposal, and whether these are in line with the recommendations in the procurement plan; • validity and appropriateness of the criteria for evaluating the technical proposals, • changes made to the draft contract if any (which must be clearly identified by the EA and user division); and

Appendix 8 109

• proposed timing for consultant recruitment illustrated in the CRAM frame.

Requesting Proposals

The EA then sends RFPs to the consultants on the short list. The consultants acknowledge receiving the RFPs and any notices from the EA of extensions to the deadline for receiving proposals. The consultants also advise whether they intend to submit proposals. If there are any queries from the consultants, the EA must provide all the short-listed consultants with the same information without disclosing the source of the query.

Evaluating the Technical Proposals

After receiving the consultants’ proposals, the EA rejects any it receives after the stated deadline. The EA then establishes a CSC, which evaluates the technical proposals using the evaluation criteria approved by ADB. The CSC prepares minutes of its evaluation meeting and a report on its evaluation, describing the strengths and weaknesses of each proposal.

Reviewing the EA’s Technical Evaluation Documents (Submission 2)

If the EA’s procurement plan requires it to submit its technical evaluation documents to ADB for approval, the EA submits its documents in ADB’s standard format available on the ADB website or provided by the user division officer. The documents include

• a summary evaluation sheet highlighting any proposal that scored less than 750 points out of 1,000, • a personnel evaluation sheet for each proposal, • comments on the strengths and weaknesses of each proposal, and • minutes of the evaluation meeting(s).

Reviewing the EA’s Financial Evaluation and Overall Ranking Documents

If the EA’s procurement plan requires it to submit its financial evaluation and final ranking documents to ADB for approval, the EA submits its documents in ADB’s standard format downloaded from ADB website

Negotiating the Contract

The EA then writes to the first-ranked consultant and advises that it wishes to negotiate a contract. The EA normally conducts the negotiations face-to-face. The consultant must pay all its representative’s costs to attend the negotiations. The letter

• invites the consultant to send a representative to the EA’s offices, who will be prepared to discuss the consultant’s proposal and has the authority to finalize and sign a contract; • proposes a schedule and agenda; • asks the consultant to confirm the availability of all the team members nominated in its technical proposal; and • summarizes any issues identified during the evaluation that require clarification, any deficiencies to be corrected, any team members to be replaced, or any other corrective action to be taken. • If there is likely to be a delay in negotiations, the letter may also request the consultant to extend the validity of its bid for a reasonable time until negotiations can be held.

The negotiations cover the TOR, the consultant’s methodology and work plan, the team members and personnel schedule, the counterpart facilities the EA will provide, the financial terms, and the other terms and conditions in the contract. The procedure for negotiating the financial terms depends on the selection method (see PAI 2.02, Part A). The EA prepares minutes of the important points of agreement.

110 Appendix 8

If the EA and the consultant cannot reach agreement, the EA may ask ADB’s agreement to terminate the negotiations and start negotiations with the next-ranked consultant, in turn, until it reaches an agreement.

Reviewing the EA’s Draft Contract

If the EA’s procurement plan requires it to submit its draft negotiated contract and the minutes of the contract negotiations to ADB for approval, the EA submits them in ADB’s standard format,

Finalizing the Contract

After receiving ADB’s approval, the EA signs the contract, obtains the consultant’s signature, and submits a copy to ADB for its records. The EA also submits some information for ADB to publish on its website. This consists of

• names of the short-listed consultants who submitted proposals; • scores of their technical proposals; • prices in their financial proposals (for QCBS); • overall ranking (for QCBS); • name of the consultant selected; and • cost, duration, and summary scope of the contract.

Terminating a Contract

When an EA proposes to terminate a contract with a consultant, it sends a recommendation to ADB. The user division consults COSO and OGC, decides whether termination is warranted, and advises the EA of the decision. When the division approves termination, the EA sends a written notice to the consultant, in accordance with the provisions in the contract.

Monitoring the Consultant Recruitment Process

The EA and the user division use CRAM frames for loans/grants to monitor the activities in recruiting the consultant and to avoid delays. Indicative CRAM frames based on forecast scheduling of recruitment for consulting packages are included as an annex to the procurement plan. Appendix 3 is an example of a CRAM frame and a flow chart of the CRAM process.

Monitoring the Recruitment Activities and Updating the CRAM Frame

ADB sends a copy of the CRAM frame for the assignment to the EA. The EA’s CSC short-listing meeting then discusses and confirms the CRAM schedule. If the EA is required to submit its CSC meeting documents to ADB for approval, the EA includes the CRAM frame.

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112 Appendix 8

Appendix 8 113

114 Appendix 8

MODEL OF NARRATIVE EVALUATION CRITERIA FOR SIMPLIFIED TECHNICAL PROPOSAL (ALL SELECTION METHODS)

I. APPROACH AND METHODOLOGY - 300 points - fixed (10 pages maximum)

A. Methodology and Work Plan - 200 points (fixed)

Criteria: The degree to which the presented approach matches the requirements of the TOR. To include written methodology, organization chart, and work program (bar chart).

Factors to consider: Assessment of the inter-relationship of methodology write- up and work program. A consistent relationship is to be given maximum points. Work program to be assessed on completeness and logical sequence of events.

B. Personnel Schedule - 50 points (fixed)

Criteria: Relationship between required person-months and proposed work program. Should be in the format of Form TECH-7 of the RFP.

Factors to consider: Requirements close to TOR estimated inputs are to be given maximum points (50%). For each expert’s input the appropriateness of time allocated to the tasks to be performed is to be assessed (50%). Check the balance between field and home office time and assess appropriateness of proposed number of trips to the field.

C. Proposal Presentation - 50 points (fixed)

Criteria: Clarity of the entire proposal and whether the proposal complies with the following page restrictions stated in the ADB’s Letter of Invitation (LOI):

(i) Approach and Methodology, Work Plan and Personnel Schedule, to be limited to a maximum of 10 pages;

(ii) Biodata of each expert in the Consultant’s team to be limited to a maximum of 5 pages.

Factors to consider: If all the items requested in the LOI are covered in a clear and easily understandable form and if the proposal is assembled in a professional manner, maximum points are to be given (20%). Assess if the proposal conforms with the LOI page restrictions. Maximum points to be given to complying proposals (80%). Proposals which exceed the page restrictions and contain other information, such as project experience sheets, background information about the firm, appendices, etc. should be marked down (5 points per page in excess of the limit).

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II. PERSONNEL - 700 points – fixed (5 pages maximum per biodata)

International Consultants

Criteria: Separate assessment of each expert listed on page 2 of 2 of the Summary Evaluation Sheet. Each expert is to be evaluated against the tasks assigned in accordance with three main criteria:

(i) general experience such as academic qualifications and the number of years of working related experience; (10%-20%)

(ii) project related experience based on the number of relevant projects implemented; (60%-70%)

(iii) overseas experience and/or country experience; (10%-20%) and

National Consultants

Criteria:

(i) general experience such as academic qualifications and the number of years of working related experience; (10%-20%)

(ii) project related experience based on the number of relevant projects implemented; (60%-70%)

(iii) experience in working with international consulting firm or international organization/international agency; (10%-20%)

Factors to consider

For QBS: If more than one expert is nominated for a position the overall rating is calculated as the summation of the individual rating of each person prorated on the basis of person-month input. If there is no indication of person-month input, experts are considered as alternative experts rather than joint experts. When alternative experts are nominated for the same position, the score of the least qualified expert shall be used.

For QCBS: Only one CV may be submitted for each position.

116 Appendix 8

MODEL OF NARRATIVE EVALUATION CRITERIA FOR BIODATA TECHNICAL PROPOSAL (ALL SELECTION METHODS)

I. PERSONNEL SCHEDULE AND WORK PLAN - 100 points (fixed)

Criteria: Clear relationship between required person-months personnel individual inputs and proposed work program.

Factors to consider: The Personnel Schedule in the format of Form TECH-7 is to be assessed on phasing of activities of the work program and allocation and timing of experts’ individual inputs.

II. PERSONNEL - 900 points (fixed)

International Consultants

Criteria: Separate assessment of each expert listed on page 2 of 2 of the Summary Evaluation Sheet. Each expert is to be evaluated against the tasks assigned in accordance with three main criteria:

(i) general experience such as academic qualifications and the number of years of working related experience; (10%-20%)

(ii) project related experience based on the number of relevant projects implemented; (60%-70%)

(iii) overseas experience and/or country experience; (10%-20%) and

National Consultants

(iv) general experience such as academic qualifications and the number of years of working related experience; (10%-20%)

(ii) project related experience based on the number of relevant projects implemented; (60%-70%)

(iii) experience in working with international consulting firm or international organization/international agency; (10%-20%)

Factors to consider

For QCBS: Only one CV may be submitted for each position.

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RECRUITING INDIVIDUAL CONSULTANTS FOR LOAN/GRANT PROJECT ASSIGNMENTS

Borrowers normally recruit and supervise the consultants for ADB-financed loan/grant projects. Borrowers have some flexibility to use government procedures to select individual consultants, but their procedures must be approved by ADB and must meet ADB’s requirements.

Individual consultants are more appropriate than firms when the assignment is straightforward and does not require a team of experts and extra support from the consultant’s home office. The EA’s main requirements are the consultants’ qualifications and experience.

Borrowers may engage individual consultants directly or through an organization such as a consulting firm, an academic institution, a government agency, or an international agency.

ADB encourages assignments for national consultants from the project country when qualified national consultants are available.

For international consulting assignments, borrowers should short-list consultants from different geographic regions in order to ensure access to the best expertise available and to spread the opportunities to work on consulting assignments among ADB’s member countries.

ADB’s anticorruption policy requires borrowers and consultants under ADB-financed contracts to observe the highest ethical standards. If ADB determines that representatives of a borrower, a beneficiary, or a consultant engaged in corrupt, fraudulent, collusive, or coercive practices during consultant selection or the execution of a contract, ADB may take any of the steps set out in the

GuidelinesH ,

Procedures

The procedures EAs should use to recruit individual consultants under ADB-financed loan/grant projects, are shown below

Selecting and Approving the Short List

Several weeks before an individual consulting assignment is scheduled to start, the EA prepares a short list of at least three qualified candidates. The EA normally includes no more than one candidate from any ADB member country. At the EA’s request, the user division will provide the names and qualifications of suitable candidates from the DICON. The EA may also advertise for suitable candidates.

The EA ranks the candidates, and then normally submits their names and qualifications and the draft contract it will use for the engagement to ADB for approval.

Negotiating and Approving the Contract

After ADB approves the ranked short list and draft contract, the EA negotiates with the first-ranked candidate. If the negotiations fail, the EA obtains ADB’s approval to negotiate in turn with the next-ranked candidate until agreement is reached. The EA then normally sends a copy of the draft negotiated contract to ADB for approval.

Finalizing the Contract

After ADB approves the draft negotiated contract, the EA concludes the negotiations, signs the contract, and submits a copy to ADB for its records. After receiving the signed contract, the user division checks that it is substantially the same as the draft already approved and gives copies to COSO, CTL, and OGC. The division must send copies of all communications regarding consultants to COSO.

118 Appendix 8

Terminating Contracts

When an EA proposes to terminate a contract with an individual consultant, it sends a recommendation to ADB. The user division consults COSO and OGC, decides whether termination is warranted, and advises the EA of the decision. When the division approves termination, the EA sends a written notice to the consultant, in accordance with the provisions in the contract.

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120 Appendix 8

TERMS OF REFERENCE FOR CONSULTING SERVICES

1. Consulting services will be required to assist the Project’s Project Coordination Unit (PCU) in Lao PDR and in Viet Nam, and the 14 provincial Project Implementation Units (PIU) (9 in Lao PDR and 5 in Viet Nam) to implement the Project. In both Lao PDR and Viet Nam, four (4) packages of consulting services will be required.

In Lao PDR, the packages comprise: (i) recruitment of individual international and national consultants by the PCU to provide technical support to the PCU and PIUs in the implementation of the Project; (ii) recruitment of a single firm to provide design and construction supervision services for the sustainable tourism development and tourism corridors outputs (except in the case of the Vang Vieng urban environment improvement subproject) of the Project using national civil engineering consultants; (iii) recruitment of external Project monitoring services to be provided through individual contracting; and (iv) recruitment of external monitoring for resettlement consultant through individual contracting. These services will be procured by the PCU based in Vientiane.

In Viet Nam, the packages of consulting services comprise: (i) recruitment of a single firm to provide international and national tourism development and civil engineering design services; (ii) recruitment of a single form to provide construction supervision engineering services using national civil engineering consultants; (iii) recruitment of external Project monitoring services to be provided through individual contracting; and (iv) recruitment of external monitoring for resettlement consultant through individual contracting. The first, third and fourth packages will be recruited by a Committee headed by MCST with the participation of the five provinces involved in the Project. The second package of construction supervision engineering services shall be procured directly by the individual provinces.

A. CONSULTING SERVICE AND SCOPE OF ACTIVITIES

2. In the first package of services in both Lao PDR and Viet Nam will involve consulting services designed to ensure that the project management and reporting systems, accounting management systems, capacity building programs and monitoring and evaluation programs in the PCUs and PIUs are suitably developed and maintained throughout the project implementation. However, unlike the case of Lao PDR, in Viet Nam, the first package of consulting services will also include design services. The second package of consulting services in Lao PDR will provide design and construction supervision services to the PIUs except for the Vang Vieng subproject; while in Viet Nam, the second package will provide only construction supervision services to the PIUs in the participating province. The third and fourth packages in both Lao PDR and Viet Nam will ensure that effective external monitoring and evaluation for resettlement and of the Project overall takes place.

B. GENERAL TASKS AND RESPONSIBILITIES

Package 1: Tourism management Consulting Services

3. The consultants will be responsible for effectively leading and taking the initiative to implement and manage the project including responsibility for the design (in the case of Viet Nam), undertaking of necessary surveys, supervising construction (in the case of the pro-poor output in Lao PDR), undertaking capacity building, Project monitoring and other aspects of the GMS Sustainable Tourism Development Project. Furthermore, the consultants will provide both direct and indirect assistance to the PIUs and PCU to ensure the effective coordination and

Appendix 8 121 implementation of the whole project. Without limiting the scope of the consultants’ support role, the individual consultants responsibilities in the case of Lao PDR, and a single firm in the case of Viet Nam include:

(i) providing advice and guidance to the PCU and PIUs on ADB’s procedures and guidelines for project implementation and management in general; (ii) assisting the PIU’s and PCU in reviewing, reporting and endorsing subprojects and prepare them for submission to the Government and ADB; (iii) assisting the PIU’s and PCU to establish and maintain a database on all subprojects under preparation, in the approval process and under implementation. This important database is for facilitating contract and performance monitoring and to establish key cost indicators for cost comparisons in order to ensure cost effectiveness in contracting. Moreover, the data will provide up-to-date monitoring and evaluation of all aspects of the proposed project; (iv) assisting in mobilization and management of project resources including financial resources, consultants and any other resource made available to the proposed project; (v) initiating and assisting the PCU in establishing a project monitoring and management system that will enable the PCU to identify potential problem areas and to take pro- active action in order to mitigate and avoid delays in the design, contracting implementation and completion of sub-projects; and (vi) assisting the PIUs and PCU, where required, in drafting contracts, loan withdrawal applications, reports, and other relevant documents and a submitting them to the Government and ADB. The consultants will also provide assistance to the PCU and PIU’s in contract negotiations, supervision and overall management.

The detailed terms of reference for the international and national consultants under the first package in Lao PDR and Viet Nam are set out in Attachment 1.

Package 2: Design and Construction Supervision Services

4. The firm providing design and construction supervision in Lao PDR will be responsible for leading and taking the initiative to implement and manage, design, and supervise construction for the sustainable tourism development and tourism corridors outputs of the Project. Furthermore, the firm will provide both direct and indirect assistance to the PIUs and PCU to ensure the effective coordination and implementation of the design and construction supervision of the related outputs of the Project. Without limiting the scope of the support role, the tasks and responsibilities of the design and construction supervision consulting engineering firm include:

(i) providing advice and guidance to the PCU and PIUs in the area of design and construction supervision connected with the related outputs of the Project; (ii) undertaking the detailed design, specifications and documentation of all project civil works components in the related Project outputs; (iii) assisting in the preparation of terms of reference, specifications and contract documents for procuring construction services; (iv) assisting in the selection of contractors; and (v) supervising the construction of the various contract packages for the related outputs of the Project including provision of monthly construction progress reports; and (vi) undertaking commissioning testing and certification prior to acceptance of the completed works.

122 Appendix 8

5. In the case of Viet Nam, where the second package involves only construction supervision, the above responsibilities will be limited to the construction supervision elements only.

Package 3: External Project Monitoring and Evaluation

6. Project monitoring and evaluation shall take place immediately prior to the mid term review scheduled in month 30 of the Project and at the end of the Project, and immediately prior to the final Project review. The services of a Project Monitoring and Evaluation Consultant shall be recruited on an individual basis by the PCU. The responsibilities of the Project Monitoring and Evaluation Consultant shall include:

(i) establishing agreed quantitative and qualitative Project monitoring and evaluation baselines and targets with the PCU for the mid and end Project positions; (ii) assessing through field observation and review of various progress reports and in- depth interviews with stakeholders, Project personnel in the PCU and the PIUs, progress towards the agreed baselines and targets at the mid-term and end of the Project; (iii) preparing and presenting a mid-term report on Project performance according to the agreed quantitative and qualitative Project monitoring and evaluation baselines and targets and providing recommendations on ways to improve the performance of the Project implementation; and (iv) preparing and presenting an end-Project report on Project performance according to the agreed quantitative and qualitative Project monitoring and evaluation baselines and targets giving special attention to the lessons learned and recommendations for ensuring the long-term sustainability of the investments arising from the Project;

Package 4: External Monitoring for Resettlement

7. To ensure that any resettlement issues connected with the implementation of the Project comply with national regulations and ADB guidelines as well as with the procedures and guidelines set out in the Resettlement Framework and Plan, external monitoring for resettlement will be required in accordance with the guidelines, procedures, responsibilities and timing set out in part B of Section X of The Resettlement Framework in Supplementary Appendix B. The External Monitoring for Resettlement Consultant shall be recruited on an individual basis by the PCU. Detailed terms of reference for external monitoring for resettlement are set out in Attachment 2.

C. PLANNING AND REPORTING

8 Action Plans. Upon the project’s inception, the Team Leader and related national and international consultants, in close coordination with the PCU, shall prepare the project’s first Action Plan of the Project (APP) that integrates each of the project subcomponents and plans for each of the project’s PIU’s. The APP will include a detailed description of activities that are to be carried out over a six-month period in each PIU and the PCU. The APP will include quantitative and qualitative targets to be accomplished and a detailed schedule of actions and activities to be performed. The APP will also detail the specific responsibilities for carrying out the tasks and key assumptions underlying the timely and effective carrying out of tasks and activities. Each APP will have the character of a signed commitment between the different PIUs, PCU and the Government agencies concerned. The APP will be a revolving document. The first

Appendix 8 123 will outline tasks and activities to be carried out, in the first six months. Subsequent APPs, in addition to the schedule of activities, will also include performance assessments and measures taken to remedy any shortcoming to ensure that the proposed project stays on target, and to make certain that management actions are taken to remedy any and all issues facing individual project subcomponents. The first signed six month APP is due not later than three months after the consultants’ arrival.

61. Detailed Implementation Plan of the Project (IPP). A detailed Project Implementation Plan, covering the full five year period of project implementation and outlining all the schedules, results to be generated, systems and procedures to be applied in implementing the proposed project, information management and the monitoring and evaluation of both deliverable and impacts on society, will be prepared. The Project Implementation Plan will be prepared concurrently with the preparation of APP, but will be due for delivery not later than six months after the consultants’ arrival.

62. Regular Reporting: The preparation and submission of the APP every six-months, one for each PIU and the PCU will constitute the regular reporting for the project and its implementation and evaluation.

63. The project Team Leader will produce the following reports in the English language: (i) Quarterly progress reports to be prepared within two weeks of the end of each quarter and submitted to the Government and ADB; and (ii) Project completion report within three months of physical completion of Project

64. Other international and domestic consultants, upon arrival on the project and following consultation with the Team Leader, PCU and PIU’s, will produce a detailed work plan for the duration of each consultant’s contract. The work plan is due no later than three weeks after the consultants begin work on the project. Consultants will submit to the Team Leader and PCU individual English Language Project Activity Reports in the approved project format as well as a Final Report prior to completion of individual assignments.

65. Final Project Report: A Final Project Report will be prepared and submitted to the Government, ADB and all participants in the project implementation team, 5 years after commencement of the proposed project. The detailed content and topic coverage will be determined by the PCU in consultation with the Government agencies concerned and the ADB at least one-half-year ahead of the submission date.

D. OTHER GENERAL REQUIREMENTS

66. The consultants will:

(i) Be available for the duration of the proposed project, providing the full 189 person months time in Lao PDR and 204 person-months time in Viet Nam for the first package and 66.6 person months for the design and construction supervision package in Lao PDR; and 36 person-months for the construction supervision package in Viet Nam. The consultants are expected to commence their services as soon as possible, but preferably not later than 1 January 2008; and (ii) Be attached to and based within the PCU’s Project Field Office, located in Hue Province in Central Viet Nam from where the consultants will carry out their

124 Appendix 8

duties. The consultants will have frequent interactions with the PIU’s and PCU and will assist and carry out on-the-job training as a routine part of their activities.

67. It is expected that the consultants will have as many as possible of the following credentials:

(i) Relevant general management or technical education and background; (ii) A through understanding of the systems, procedures guiding the implementation, management and administration of loan projects supported by the ADB; (iii) Practical working experience in the management and administration of projects supported by the ADB at the field level and project management and administration; (iv) A thorough working experience of the management and administration of externally assisted projects in Lao PDR and Viet Nam; (v) Have a demonstrated ability to work closely and effectively together with counterpart staff of executing agencies and public sector organizations in GMS countries; and (vi) Have extensive in-country experience in undertaking design and construction supervision contracts.

68. All project documentation will be in the English language, with translation into local languages as required. In particular all training manuals, etc. will be both in English and local languages; for on-the-job training, the use of the English language is preferred.

E. SCHEDULE OF CONSULTING REQUIREMENTS

69. The schedule of consulting person months is provided in Table 1 below. In Lao PDR, the Project will require a total of 251 person months of consulting services (79.0 person-months of international and 172 person-months of local services).

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Table SAD.1: Required Consulting services in Person Months 2009-2013

Lao PDR Viet Nam International Local Total International Local Total Package 1:Tourism Development and Design Consultants Team Leader/Tourism Sector Specialists 30.0 30.0 20.0 20.0 Financial Accounting Specialists 1.0 1.0 2.0 2.0 Heritage Tourism Specialists 4.0 9.0 13.0 2.0 9.0 11.0 Social and Gender Specialists 4.0 18.0 22.0 4.0 18.0 22.0 Ecotourism Planners 14.0 26.0 40.0 4.0 40.0 44.0 HRD Specialists 4.0 12.0 16.0 2.0 12.0 14.0 Supply Chain & SME Specialists 5.0 15.0 20.0 2.0 14.5 16.5 Monitoring and Evaluation Specialists 2.0 10.0 12.0 2.0 10.0 12.0 Tourism Sector Specialists 30.0 30.0 Civil Engineer - Design Specialist 8.0 4.0 12.0 Environmental Specialists 3.0 12.0 15.0 Resettlement Specialist 1.5 1.5 Subtotal 64.0 120.0 184.0 50.5 119.50 17.0 Package 2: Design and Construction Supervision Civil Engineer/Construction Supervisor 36.0 36.0 Civil Engineer 10.0 10.0 Environment Specialist 3.0 3.0 Resettlement Specialist 2.0 2.0 Environment Specialist 12.0 12.0 Civil Engineer 40.0 40.0 Subtotal 15.0 52.0 67.0 36.0 36.0 Total 79.0 172.0 251.0 50.5 155.5 206.0 Source: Implmentation Cost Schedule

70. In Viet Nam, a total of 206 person-months of consulting services (50.5 person-months of international and 155.5 person-months of domestic services) will be required.

71. The detailed terms of reference of the individual consultants in the two packages of consulting services in Lao PDR and Viet Nam is provided in Attachment 1. Except where indicated otherwise in Attachment 1, the number of person months indicated will be provided in both Lao PDR and Viet Nam. The indicative timing of the required consulting inputs is presented in Figure 1

F. GOVERNMENT INPUTS

72. The Lao National Tourism Administration and the Viet Nam Ministry of Culture, Sports and Tourism (MCST) and the participating provincial governments will provide suitable counterpart staff to work in the PCU and PIU’s as indicated in Attachment B attached to this TOR. The Governments will also make available to the consultants support facilities physically located in the National Executing Agency (PCU) and PIU’s, including all relevant and available reports, documents, maps, and photographs etc. The actual disposition and number of counterpart staff will be determined together with the consultants at the time of contract negotiation.

73. Office space, transport for field trips, communications facilities (telephone, fax, and internet), computers, stationery and other relevant materials will be provided to the consultants as part of the consulting services contract. G. SCHEDULE OF PROJECT ACTIVITIES

74. The Schedule for the deployment of the international and local consultants for Lao PDR and Viet Nam during the course of the Project is provided in Figure 1 below.

Figure SAD.1: Estimated Timing of Consulting Services for the GMS Sustainable Tourism Project 126 Project Year

Consulting Services 1 2 3 4 5 8 Appendix Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 International Consultants: Team Leader/Tourism Sector Specialist Ecotourism Planner Financial Accounting Specialist Environmental Specialist Civil Engineer Heritage Tourism Specialist Social and Gender Development Specialist HRD Specialist Supply Chain & SME Development Specialist Monitoring Specialist Resettlement Specialist National Consultants: Tourism Sector Specialist Environmental Specialist Financial Accounting Specialist Monitoring Specialist Civil Engineer Heritage Tourism Specialist Social and Gender Development Specialist Ecotourism Planner Supply Chain Dev. Specialist

Appendix 8 127

Attachment 1

DETAILED TERMS OF REFERENCE FOR CONSULTANTS

A. PACKAGE 1 FOR LAO PDR AND VIET NAM:

1. TEAM LEADER/TOURISM SECTOR SPECIALISTS (30 PERSON-MONTHS LAO PDR AND 20 PERSON- MONTHS FOR VIET NAM)

75. The Team Leader will be responsible for the overall supervision of the international and national consultants that will support the implementation of the Project. The Team Leader will work closely with the PCU National Project Director and National Project Manager in managing the implementation of the Project and its subprojects through the PIU framework in the project. The expert will be located at the PCU Project Office with frequent trips to subproject sites in the provinces. Specific tasks include:

(i) supervising the design and installation of standard project management and administration systems, procedures and controls at the outset of the project implementation phase; (ii) ensuring that overall project management systems and all administrative and contractual arrangements for the subprojects comply with ADB guidelines and procedures; (iii) supervising the design and implementation of appropriate training programs in the use of the project management and administration systems, procedures and controls; (iv) ensuring that technical issues in each subproject are addressed competently; (v) supervising the work of the consulting team as it relates to the contracting, institutional strengthening and capacity building elements of the Project in the executing agencies and the implementing agencies, and monitoring and evaluation aspects of the Project; (vi) lead the preparation of the five-year, one-year and six monthly project activity plans and monitor activity implementation; (vii) develop in association with the PCU and PIUs procedures acceptable to ADB for small-scale contracting under the pro-poor tourism development component of the Project; (viii) supervise the development and implementation of project financial monitoring and reporting activities; (ix) seek to arrange cooperative partnerships with other development partners, NGOs, local communities and the private sector in the implementation of the subprojects; (x) participate in national and subregional fora to report results, share project implementation experiences and compare lessons learnt; (xi) undertaking specific technical management inputs where these may be required; and (xii) undertaking such other tasks as may be necessary from time to time to ensure smooth implementation of the Project.

76. Required Qualifications and Experience: The Team Leader will be a tourism sector specialist with experience in developing tourism policies, plans, institutions and regulations. The Team Leader will have at least 10 years experience in managing international projects preferably in the country or the subregion, and be familiar with Bank guidelines and procedures.

128 Appendix 8

The person will be highly sensitive to the national and local cultural setting and have excellent communication skills. The Team leader must have the ability to speak, read and write the English language on a professional level, while the ability to speak the national language would be an asset. The Team Leader will have at least a Master Degree or higher qualification in an appropriate field.

2. INTERNATIONAL ECOTOURISM PLANERS (14 PERSON-MONTHS FOR LAO PDR AND 4 PERSON- MONTHS FOR VIET NAM)

77. The consultant will be responsible for advising on the planning, implementation and monitoring of ecotourism activities that will be undertaken by the project. The consultant must be willing to provide in-depth hands on assistance to the PIU’s while coordinating closely with the Team Leader, PCU and domestic consultants in all aspects of activity implementation. The consultant must be able to walk 6-8 hours through rough and forested terrain, and be willing and able to spend up to one week in remote ethnic minority communities while on field surveys and conducting product feasibility studies. The consultant is required to assist, when necessary, in the implementation of project training and capacity building activities as requested by the PIU’s. The expert will be located at PCU Project Office, including frequent field trips to subproject sites. Specific tasks include:

(i) Conduct field surveys, baseline studies, market analysis and product feasibility studies to determine the suitability of ecotourism programs within the project area; (ii) Based on the above studies, assist provincial PIU’s work with tour operators and communities to establish sustainable eco/cultural tourism activities that support cultural and natural heritage conservation and include women and ethnic minorities groups in their operation and management; (iii) Assist in the planning of community-based training and related participatory capacity building initiatives at the national, provincial, district and village level; (iv) Advise on the content of a marketing plan for eco and cultural tourism programs that will be developed under this project; (v) Working closely with the Supply Chain Development Specialists, identify areas where the project can intervene to enhance pro-poor supply chains and plan and implement appropriate activities to do so; (vi) Develop training and awareness programs on environment, culture, and pro-poor tourism for tour operators, guides and tourism-related businesses; (vii) Assist the PIU’s and private sector partners to develop pro-poor tour products such as excursions, handicrafts, and agricultural goods and identify appropriate infrastructure developments to support the pro-poor tourism initiatives; (viii) Coordinate the project’s bi-annual work plan with other pro-poor tourism related activities that are undertaken by development partners, local NGO’s and the private sector in subproject areas; (ix) Advise on the development and production of marketing and promotion materials for pro-poor tour products and local goods; (x) Assist the PCU and Team Leader prepare quarterly reports to the Government and ADB; (xi) Advise on the content and design of ecotourism related information and promotional materials; (xii) Advise and assist with the development of training manuals and awareness programs on environmental conservation, cultural protection, and sustainable tourism principles for tourism operators and guides;

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(xiii) Document baseline conditions at the 4-6 ecotourism circuits that will be developed under the project in each subproject site/province and design a protocol to monitor the extent by which communities that are involved in the project are benefiting from interventions introduced by the project; and (xiv) Conduct other activities as requested by the PIU’s and PCU.

78. Specific outputs to be produced under the consultant’s contract include:

(i) Based on surveys, and feasibility studies, identify and produce a written assessment of 4–6 ecotourism products that will be developed under the project in each subproject site/province; (ii) Produce a step-by-step ecotourism development handbook for selected ecotourism products, which will be used by the PIU’s and private-sector operators in the implementation of this project; (iii) Produce a report with detailed recommendations and suggested design on all small-scale ecotourism-related infrastructure that will be constructed under the subprojects; (iv) Working with the social and environmental specialists, design a protocol to monitor the socio-economic, environmental and cultural impacts of ecotourism in subproject areas; and (v) Produce a manual on how to use ecotourism for the conservation of the environment, culture and poverty reduction for tour operators and guides.

79. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 10 years professional experience is required, preferably working on ecotourism related projects in the country or in the GMS region. The consultant must have the ability to speak, read and write the English language on a professional level, and preferably speak the national language.

3. NATIONAL ECOTOURISM PLANNERS (26 PERSON-MONTHS FOR LAO PDR AND 40 PERSON- MONTHS FOR VIET NAM)

80. The consultant will be responsible for working closely with the International Ecotourism Planner, Pro-poor tourism Specialist and Team Leader on the planning, implementation and monitoring of ecotourism activities that will be undertaken by the project. The consultant must be willing to provide in-depth hands on assistance to the PIU’s while coordinating closely with the Project Team on all aspects of activity implementation. The consultant must be able to walk 6-8 hours through rough and forested terrain, and be willing and able to spend up to one week in remote ethnic minority communities while on field surveys and conducting product feasibility studies. The consultant is required to assist, when necessary, in the implementation of project training and capacity building activities as requested by the PIU’s. The expert will be located at PCU Project Office, including frequent field trips to subproject sites. Specific tasks include:

(i) Assist the PIU’s implement institutional strengthening and community participation programs at national, provincial and local levels; (ii) Assist the PIU’s on the establishment of sustainable community eco/cultural tourism activities, specially targeted towards women and ethnic minorities where appropriate;

130 Appendix 8

(iii) Based on the input of the Supply Chain Development Specialists, implement interventions to enhance pro-poor supply chains and increase benefits to the poor; (iv) Using the national language and ethnic minority languages where appropriate, implement training and awareness programs on environment, culture, and pro- poor tourism for tour operators, guides and tourism-related business operators; (v) Assist the PIU’s and private sector partners to develop pro-poor tour products such as excursions, handicrafts, and agricultural goods and identify appropriate infrastructure developments to support the pro-poor tourism initiatives. Assist the PIU’s monitor construction activities; (vi) Advise on the development and production of marketing and promotion materials for pro-poor tourism products and local goods that are targeted at the domestic market; (vii) Oversee the collection of baseline data in regard to ecotourism circuits and pro- poor supply chain analysis, and ensure that this information is compiled into reports in the national language that can understood by the PIU’s and disseminated to the PCU and community leaders; (viii) In collaboration with the project implementation team, establish baseline conditions in the select project areas and develop and implement a pro-poor tourism monitoring protocol for the project; (ix) Provide training for PIU staff in data collection, analysis and reporting under the pro-poor monitoring protocol; and (x) Assist the PCU and Team Leader prepare quarterly reports to Government and ADB.

81. Specific outputs to be produced under the consultant’s contract include:

(i) Based on surveys, and feasibility studies, identify and produce a written assessment, in the national language, of 4-6 ecotourism products that will be developed under the project in each subproject site/province; (ii) Produce a step-by-step ecotourism development handbook, in the national language, for selected ecotourism products, which will be used by the PIU’s and private-sector operators in the implementation of this project; (iii) Produce a report with detailed recommendations and suggested design on all small-scale ecotourism-related infrastructure that will be constructed under the project; (iv) Working with the social and environmental specialists, design a protocol to monitor the socio-economic, environmental and cultural impacts of ecotourism in subproject areas and produce a report on baseline conditions at the project’s onset; and (v) Produce a manual, in the national language, on how to use ecotourism for the conservation of the environment, culture and poverty reduction for tour operators and guides.

82. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 5 years professional experience is required, preferably working on ecotourism-related, pro-poor or protected area management projects. The consultant must have an in-depth knowledge of national tourism, environmental and cultural protection and poverty alleviation policies, and the ability to speak, read and write the English language on a

Appendix 8 131 professional level. It is preferable that the consultant speaks at least one ethnic minority language in addition to fluency in the country language.

4. INTERNATIONAL MONITORING & EVALUATION SPECIALISTS (2 PERSON-MONTHS EACH FOR LAO PDR AND VIET NAM)

83. The consultant will be responsible for working closely with the International Ecotourism Planner, Pro-poor tourism Specialist and Team Leader on establishing an impact monitoring system to measure the results of activities that will be undertaken by the project. The consultant must be willing to provide in-depth hands on assistance to the PCU while coordinating closely with the Project Team and PIU’s. The expert will be located at the project PCU. Specific tasks include:

(i) Design of an impact monitoring protocol that can track the poverty reduction, environmental, cultural and social benefits or adverse effects that the project produces. This includes develop the overall M&E plan for the Project, including defining key research areas, developing indicators, identifying means of verification and data collection tools/forms, assign responsibilities for data collection, determine the approximate timeframe for data collection, develop budget estimates for each activity, ensure that there are ways for monitoring and evaluation results to feed into management channels to improve the program, link the M&E information to decision-making forums and develop regular reporting flows; (ii) In collaboration with the project implementation team, establish baseline conditions in the select project areas and develop and implement a pro-poor tourism monitoring protocol for the project; and (iii) Provide training for PCU and PIU staff in data collection, analysis and reporting under the pro-poor monitoring protocol.

84. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PCU plan and carry forth work programs under the project. A minimum of 8 years professional experience is required, preferably working on M&E of ecotourism-related, pro-poor projects. Experience in developing and implementing M&E-systems is essential and the consultant should also have an in-depth knowledge of national tourism, environmental and cultural protection and poverty alleviation policies, and the establishment of monitoring and evaluation systems. The ability to speak, read and write the English language on a professional level is required.

5. NATIONAL MONITORING & EVALUATION SPECIALISTS (12 PERSON-MONTHS FOR LAO PDR AND 10 PERSON-MONTHS FOR VIET NAM)

85. The consultant will be responsible for working closely with the International Monitoring Specialist, Ecotourism Planner, Pro-poor tourism Specialist and Team Leader on establishing and implementing an impact monitoring system to measure the results of activities that will be undertaken by the project. The consultant must be willing to provide in-depth hands on assistance to the PCU and provincial PIU’s while coordinating closely with the Project Team. The expert will be located at the Project PCU with frequent trips to the PIU’s. Specific tasks include:

132 Appendix 8

(i) Assist the International Monitoring Specialist design and implement an impact monitoring protocol that can track the poverty reduction, environmental, cultural and social benefits or adverse effects that the project produces; (ii) In collaboration with the project implementation team, establish baseline conditions in the select project areas and develop and implement a pro-poor tourism monitoring protocol for the project; (iii) Provide training for PCU and PIU staff in data collection, analysis and reporting under the pro-poor monitoring protocol; and (iv) Oversee periodic data collection, analysis, and communication of results to the PCU and public and private sector agencies

86. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PCU plan and carry forth work programs under the project. A minimum of 8 years professional experience is required, preferably working on M&E of ecotourism-related, pro-poor projects. Experience in developing and implementing M&E-systems is essential and the consultant should also have an in-depth knowledge of national tourism, environmental and cultural protection and poverty alleviation policies, and the establishment of monitoring and evaluation systems. The ability to speak, read and write the English language as well as the national language on a professional level is required.

6. INTERNATIONAL FINANCIAL ACCOUNTING SPECIALISTS (1 PERSON-MONTH FOR LAO PDR AND 2 PERSON-MONTHS FOR VIET NAM)

Location: Project PCU and PIU’s, including field trips to subproject sites 87. The consultant will be responsible for evaluating and enhancing institutional capacity and financial systems of the established PCU and PIUs. The consultant will advise on the improvement and application of accounting and financial policies, guidelines, and procedures complying with ADB project requirement, establishment of necessary accounting infrastructure and systems, training programs to project financial and accounting personnel so that the PCU, and PIUs are technically, managerially, and financially capable to efficiently and effectively implement the project. The consultant must be willing to provide in-depth hands-on assistance to the PIUs while coordinating closely with the Team Leader, PCU, domestic consultants and counterpart staff in all aspects of the implementation of the project in the country. The consultant should also look at financial institutional capacity building beyond the project concerning long term sustainability following project completion. The consultant is required to assist, when necessary, in the implementation of project training and capacity building activities as requested by the PIU’s and PCU. The consultant is responsible to and under the direct supervision of the project team leader. The expert will be located at the Project PCU and PIU’s, including field trips to subproject sites. Specific tasks include:

(i) Review existing administrative and management systems and procedures in relation to financial management, cash flow, procurement, and contracting management, internal and external control of financial performance, accounting rules/reporting and infrastructure of the PCU and PIUs; (ii) Conduct SWOT analysis with these agencies to identify key areas for tailor-made interventions and necessary financial and human resources for institutional strengthening; (iii) Make recommendations upon the SWOT findings to the government and ADB on the minimum changes to be made in financial governance with special emphasis on accountability and transparency, including financial management, considered necessary to assure efficient and effective delivery of the project from start-up;

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(iv) Advise on establishing an effective financial performance monitoring system with focus on capabilities of the PCU and PIUs to adjust inputs and outputs responding to uncertainties and constantly measure the impact and use of inputs and outputs; (v) Develop guidelines, manual, implementation and documentation procedures of financial management, disbursements from ADB, procurement and sub- contracting, accounting and reporting, as well as internal and external control and monitoring, auditing; (vi) Develop position descriptions that clearly define duties, responsibilities, and lines of supervisions and limits of authority for all of the PCU and PIUs officers, managers and staff in relation to financial management; (vii) Advise the PCU and PIUs on the establishment of analytical project cash book and reporting, invoice-processing procedures which could generate financial reports on project components. Work with them to propose standard reporting formats and timetables and advise on the preparation of key financial statements, in particular the cash flow statements; (viii) Advise on the establishment and enhancement of computerized financial management and reporting systems to assure an efficient financial recording that reflects the project’s physical progress; (ix) Advise on project annual and periodic budgeting, applications for ADB’s advances and replenishments. The consultant should provide support to PIUs for sub-project budgetary planning according to periodical Action Plan of the Project (APP) and the Implementation Plan of the Project (IPP); (x) Identify potential accounting, reporting and auditing issues and suggest workable options of accounting and auditing arrangements in the course of the project implementation; (xi) Conduct periodical financial projections of operating revenues and O&M costs for the sub-projects under the project’s Sustainable Tourism Development Component, economic corridors and border facilitation in order to advise on O&M cost recovery during normal operations following project completion. Capacity building should also be provided to the staff of PIUs, which could potentially be converted to managing bodies of the sites after project completion; (xii) Assess and document the institutional development and the transition process from a “project” to an “institution” at the end of the project; (xiii) Design training programs for PCUs financial controller, chief accountant and all other accounting staff at PIUs on identified challenging areas as above; and (xiv) Provide any other consulting services that are reasonably requested by the project team leader on behalf of the PCU and ADB.

88. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s and PCU on financial management and carry forth work programs under the project. A minimum of 10 years professional experience in accounting and financial management is required, preferably those who have worked on ADB or World Bank projects in the GMS region. The consultant should have a graduate degree in Accounting, Finance or managerial economics. The consultant must have the ability to speak, read and write the English language on a professional level, and preferably speak at least one national GMS language.

134 Appendix 8

7. INTERNATIONAL RESETTLEMENT SPECIALIST (1.5 PERSON-MONTHS FOR VIET NAM ONLY)

89. Based on the resettlement framework and resettlement plans detailed designs, the expert will assist in preparing updated resettlement plans and assist MCST in the implementation of these plans. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The consultant will undertake the following resettlement tasks, in accordance with ADB’s Policy on Involuntary Resettlement (1995) guided by Operations Manual on Involuntary Resettlement (OM/F2, 2006); and other relevant policies and guidelines of ADB, i.e., Gender (1998), Indigenous Peoples (1998), Accountability (2003), and Public Communications (2005):

(i) Review and assess the (a) capacity of the responsible institutions at central and project levels to plan and implement the resettlement plan and (b) trainings and capacity buildings provided during the PPTA. Design and implement necessary training and capacity-building interventions; (ii) Review and assess the consultation and disclosure programs undertaken during RP preparation and prepare a consultation and disclosure program during RP updating and implementation to ensure continuous and active involvement of APs, women and community-based organizations, and other stakeholders in the timely and transparent provision of information to APs and development of consultation, disclosure, compensation, relocation, and rehabilitation strategies; (iii) Ensure endorsement of the updated RP by the executing agency and disclosure of the updated RP to project affected persons prior to submission to ADB for review and approval. Carry out resettlement implementation in accordance with the updated RP agreed by the Government and ADB; (iv) Provide capacity building to the National Social and Gender Development Specialist and the PIU Social Specialists in Resettlement planning, implementation, monitoring and evaluation; (v) Prepare resettlement training materials.

90. Required Qualifications and Experience: The assignment requires a qualified resettlement specialist with at least 10 years experience, preferably in the Mekong Sub-region or Southeast Asia. Experience in developing and delivering training programs is essential. The ability to speak, read, and write any of the majority languages of the GMS is an asset. Excellent English speaking, reading, and writing skills, including research and project report writing. Computer skills for research and research packages for social analysis are also highly desirable.

8. INTERNATIONAL ENVIRONMENT SPECIALIST (3 PERSON-MONTHS FOR VIET NAM ONLY)

91. The International Environment Specialist will be responsible to the Team Leader for supervising the implementation of all aspects of the subprojects dealing with environmental assessment, evaluation, monitoring and reporting. The consultant will provide technical and training support to the PCU and PIU staff and work closely with the national and local environmental agencies, communities and NGOs at the site level. The consultant will be responsible for supervising the work of the National Environment Specialist. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites The consultant will provide policy guidance, advice and support to the PCU and PIU’s on:

(i) best environmental practices for responding to environmental issues involved with implementation of the projects on a sustainable basis;

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(ii) assistance and advice on institutional strengthening and capacity building at the PCU and PIU levels in regards to environmental practices; (iii) collaboration with the Domestic Environmentalists in executing baseline surveys, environmental monitoring plans and programs, initial environmental impact examinations (IEE) as may be required; (iv) collaboration with the other PIU Support specialists to ensure and integrated approach is taken to economic, environmental and social issues; (v) assistance and advice with coordinating other executing agencies and development partners in the implementation of the projects; (vi) advice on establishing environmental monitoring processes and evaluation programs for projects to be undertaken by the PIUs; (vii) advice on monitoring implementation of the works for any non compliance issues and bringing any such issues to the attention of the PCU and PIU’s; and (viii) undertaking reviews of progress on environmental mitigation practices and prepare a report on a yearly basis to the PCU

92. Required Qualifications and Experience: The assignment requires an environmental specialist with qualifications in natural resource/science/environmental management with at least 8 years previous experience in undertaking project management, environmental impact assessments, environmental monitoring plans and environmental studies. Previous experience in the GMS countries is desirable.

9. NATIONAL ENVIRONMENT SPECIALIST (12 PERSON-MONTHS FOR VIET NAM ONLY)

93. The National Environment Specialist will work under the supervision of the International Environment Specialist on all aspects of the subprojects dealing with environmental assessment, evaluation, monitoring and reporting. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites The consultant will be responsible to the Team Leader for his/her work and provide policy guidance, advice and support to the PCU and PIU’s on:

(i) environmental practices for responding to environmental issues involved with implementation of the projects on a sustainable basis; (ii) assistance with advice on institutional strengthening and capacity building at the PCU and PIU levels in regards to environmental practices; (iii) collaboration with the International Environmentalist and Domestic Environmentalists in executing baseline monitoring plans and programs, initial environmental impact examinations (IEE) as may be required; (iv) collaboration with the other Project Management Support specialists to ensure and integrated approach is taken to economic, environmental and social issues; (v) assistance with coordinating other executing agencies and development partners in the implementation of the projects; (vi) establishing environmental monitoring processes and evaluation programs for projects to be undertaken by the PIU’s; (vii) advice on monitor implementation of the works for any non compliance issues and bringing any such issues to the attention of the PCU and PIU’s; and (viii) undertaking reviews of progress on environmental mitigation practices and prepare a report on a yearly basis to the PCU.

94. Required Qualifications and Experience: The assignment requires an environmental specialist with qualifications in natural resource/science/environmental management with at

136 Appendix 8 least 2 years previous experience in undertaking project management, environmental impact assessments, environmental monitoring plans and environmental studies. Previous experience in the GMS countries is desirable and good English and national language skills essential.

10. INTERNATIONAL CIVIL ENGINEER (8 PERSON-MONTHS FOR VIET NAM ONLY)

Duties: The civil engineering consultant will be responsible to the Team Leader for guiding, training and directing the work of the PIUs in undertaking the detailed design, documentation, contracting and supervision of all civil engineering works connected with the implementation of the subprojects in the country. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites The specific duties include:

(i) guide in identifying the scope and assist procurement of site surveys needed to prepare detailed designs; (ii) develop systematic approach to identify subproject engineering requirements, develop design standards and preliminary cost estimates; (iii) commission domestic consultant engineers or provincial departments of construction to prepare detailed engineering documentation, specification and bills of quantities; (iv) check all necessary approvals from provincial and local authorities have been obtained; (v) supervise the work of the national civil engineer; (vi) guide counterpart domestic engineer to pre-qualify contractors, prepare bid documents and define requirements for a conforming tender with criteria for evaluation of bids based on price and performance; (vii) audit bids evaluation against established criteria and award contracts; (viii) establish construction quality, environmental and audit procedures and ensure contractor has meet all financial and insurance obligations as required by the bid document; (ix) ensure construction procedures are followed, regular site meetings are programmed and view test results and quality audits; and (x) overview determination of ‘Practical Completion’, establishment of ‘Defects Liability Period’ and issue of ‘Final Certificate’.

95. Required Qualifications and Experience: An Engineering Degree from recognized University or Collage and charted membership to engineering body that allows the applicant to operate independently in country of origin. A minimum of seven (7) years experience operating as principal engineer on similar projects of scale and complexity.

11. DOMESTIC CIVIL ENGINEER: (4 PERSON-MONTHS FOR VIET NAM ONLY)

Duties: The national civil engineering consultant will be responsible to the International Civil Engineer undertaking and supervising the design and construction of all civil engineering works connected with the subprojects in the country. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The specific duties include:

(i) identifies and scopes procurement of site surveys needed to prepare detailed designs, collects and collates results; (ii) works through a systematic approach and identifies subproject engineering requirements, records develop design standards and establishes preliminary cost estimates;

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(iii) commissions domestic consultant engineers or provincial departments of construction to prepare detailed engineering documentation, specification and bills of quantities; (iv) checks all necessary approvals from provincial and local authorities have been obtained; (v) establishes a pre-qualify contractors list, prepares bid document with requirements for a conforming tender and criteria for evaluation; (vi) evaluation of bids against established criteria and tender report with recommended contractor; (vii) awards contract and develops a construction quality manual with environmental and audit procedures; (viii) obtains from contractor has meet all documentation including construction program, plus financial and insurance obligations as required by the bid document; (ix) establishes construction procedure and timing for regular site meetings with agreed agenda including works completed, costs and variations, view test results and undertake quality audits; and (x) determination of ‘Practical Completion’, establishment of ‘Defects Liability Period’ with defects list and issue of ‘Final Certificate’.

96. Required Qualifications and Experience: An Engineering Degree from recognized University or Collage and membership to peak engineering body in country. A minimum of five (5) years experience operating as project engineer on similar projects of scale and complexity. The engineer will be fluent in the national language and should be proficient in technical English.

12. INTERNATIONAL HERITAGE TOURISM SPECIALISTS (4 PERSON-MONTHS FOR LAO PDR AND 2 PERSON-MONTHS FOR VIET NAM)

97. The consultant will be responsible evaluating the detailed tourism management and protection infrastructure development plans for select cultural and natural heritage sites under the project’s Sustainable Tourism Development Component. The consultant will advise on the planning of infrastructure construction, training, visitor management, monitoring of site works and the creation of geographic information systems and heritage based zoning plans. The consultant must be willing to provide in-depth hands on assistance to the PIU’s while coordinating closely with the Team Leader, PCU and domestic consultants in all aspects of the implementation of the Sustainable Tourism Development Component. The consultant is required to assist, when necessary, in the implementation of project training and capacity building activities as requested by the PCU. The expert is located at the Project Office and PIU’s including frequent field trips to subproject sites Specific tasks include:

(i) Review and update existing tourism management plans at cultural and natural heritage sites under the project’s Sustainable Tourism Development Component; (ii) Working closely with the PIU’s and heritage site managers, develop heritage based zoning plans for select sites; (iii) Review plans and programs for the development of protection infrastructure and enhancement of site management capabilities at selected cultural and natural heritage sites and make recommendations on construction guidelines and the implementation of capacity building programs; (iv) Develop guidelines, implementation and documentation procedures for the creation of geographic information systems that document tangible and intangible heritage and local knowledge at select cultural and natural heritage sites;

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(v) Review and update institutional development programs for the management of the proposed sites under Sustainable Tourism Development Component; (vi) Design training programs to revitalize traditional music and cultural industries at select sites; (vii) Coordinate with the project’s social specialists in the development of gender and ethnic minority participation programs; (viii) Develop a cultural and natural heritage impact monitoring protocol for select sites in participating countries, including recommendations on operations and maintenance of the sites using funds obtained by on-site revenue collection mechanisms such as entrance fees and concessions; (ix) Conduct training for site managers on aspects of heritage site operations and maintenance and implementation of the monitoring protocol; and (x) Assist in the design and publish a manual to guide the preparation and implementation of pro-poor tourism initiatives in each country.

98. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 10 years professional experience is required, preferably working on cultural and/or natural heritage management projects in the GMS countries. The consultant must have the ability to speak, read and write the English language on a professional level, and preferably speak at least one GMS language. An understanding in the application of geographic information systems for heritage management and the ability to use GIS software packages such as Arc View or MapInfo is a plus.

13. NATIONAL HERITAGE TOURISM SPECIALISTS (9 PERSON-MONTHS EACH FOR LAO PDR AND VIET NAM)

99. The consultant will be responsible to the International Heritage Tourism Specialist in assisting with evaluating the detailed tourism management and protection infrastructure development plans for selected cultural and natural heritage sites under the project’s Sustainable Tourism Development Component. The consultant is required to assist, when necessary, in the implementation of project training and capacity building activities as requested by the PIU’s. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites Specific tasks include:

(i) Assist in reviewing and updating existing tourism management plans at cultural and natural heritage sites under the project’s Sustainable Tourism Development Component; (ii) Work closely with the PIU’s, PCU, and heritage site managers to assist them to develop heritage based zoning plans for select sites; (iii) Review plans and programs for the development of protection infrastructure and enhancement of site management capabilities at selected cultural and natural heritage sites and make recommendations on construction guidelines and the implementation of capacity building programs; (iv) Assist in developing guidelines, implementation and documentation procedures for the creation of geographic information systems that document tangible and intangible heritage and local knowledge at select cultural and natural heritage sites; (v) Assist in reviewing and updating institutional development programs for the management of the proposed sites under Sustainable Tourism Development Component;

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(vi) Assist in designing training programs to revitalize traditional music and cultural industries at select sites; (vii) Assist in developing a cultural and natural heritage impact monitoring protocol, including recommendations on operations and maintenance of the sites using funds obtained by on-site revenue collection mechanisms such as entrance fees and concessions; (viii) Assist in conducting training for site managers on aspects of heritage site operations and maintenance and implementation of the monitoring protocol; and (ix) Assist in the design and publication of a manual to guide the preparation and implementation of pro-poor tourism initiatives.

100. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 5 years professional experience is required, preferably working on cultural and/or natural heritage management projects in Viet Nam. The consultant must have the ability to speak, read and write the English language and the national language on a professional level. An understanding in the application of geographic information systems for heritage management and the ability to use GIS software packages such as Arc View or MapInfo is a plus.

14. INTERNATIONAL SOCIAL AND GENDER DEVELOPMENT SPECIALISTS ( 4 PERSON-MONTHS EACH FOR LAO PDR AND VIET NAM)

101. In the broad context of community capacity building, and decision making in relation particularly to potential and actual tourism opportunities, the International Social Community Facilitation and Gender Development Consultant will develop, in collaboration with the Domestic SCFGD consultant, approaches to facilitating community-level participatory planning, implementation, monitoring, and evaluation in the villages/communes of each site, and more generally ensuring that transparency, accountability, and efficiency norms are part of community action programs. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The specific duties are:

(i) Develop in consultation with the Domestic SCGDF Consultants a framework for integrating community empowerment and capacity building strategies into community planning and development processes that also acquaint local populations with tourism opportunities available through the project, along with livelihood and other benefits which the people might tap if they are effectively organized; (ii) Oversee the setting up of a Tourism Community Group in each sub-component site, and ensure that the Group membership includes women, farmers/fishers, young adults, business entrepreneurs, poor groups, ethnic minorities and other key stakeholders in the community; (iii) Develop with the domestic consultants a scheme to organize a series of village planning and training sessions, under the aegis of the Tourism Community Group, starting with a situation analysis, in which tourism opportunities and constraints are considered; prioritizing agreed-upon actions and implementing; and designating a fair proportion of slots in training programs to be reserved for women, ethnic minorities and other excluded groups; (iv) Work out with the domestic consultants a system for enabling community or community groups to establish a set of criteria for assessing progress and ultimately, measuring the success or otherwise of the group actions agreed upon;

140 Appendix 8

this should be done in collaboration with the International Monitoring and Evaluation Specialist/Consultant and the International Tourism Specialist/Consultant; (v) Collaborate with the Monitoring and Evaluation Specialists in establishing baseline criteria for assessing the impact of tourism-related interventions on the community, especially on the poor/poorest and most vulnerable: women, children, adolescents, young adults, older persons, ethnic minorities, disabled, recently resettled and others, which they will need to identify; (vi) Discuss with the Domestic Consultants discussion approaches, learning games, and audiovisual guides for capacity building that cater to illiterate as well as literate participants; (vii) Coordinate the efforts of the Domestic Consultants to train local leaders how to encourage active and democratic participation of local residents through a facilitative process, developing the agenda for meetings, taking and disseminating minutes, and more generally, fostering transparency in decision- making, developing accountability through community information dissemination mechanisms, and promoting efficiency through training in elementary accounting, fund management, and general administration; (viii) Develop with the National Consultants programs that help community residents to implement plans and decisions, and monitor their own progress; (ix) Engage in advocacy with national, district and provincial officials on the importance of community participation and capacity development in planning, decision-making, action, and monitoring/evaluation, and the inclusion of women, ethnic minorities, and other disadvantaged groups; assist in developing institutional structures and processes that promote community-based planning and action; (x) Help to forge partnerships with mass organizations (women, youth, farmers), NGOs, and resource persons who can contribute to the capacity building process in participatory rather than “top-down” ways, and with donor group interested in fostering these processes in other parts of the country; (xi) Create with the Domestic Consultants a system for documenting the community building processes; (xii) Organize a consultative meeting with the Domestic Consultants once a year to review the tasks at hand, share ideas, assess progress, and recommend corrective or new measures where called for; (xiii) Oversee implementation of the gender action plan and the ethic minority development framework and plan; and (xiv) Develop and implement capacity building programs for the PIU Social Specialists.

102. Required Qualifications and Experience: At least 10 years of experience in community-based development and action programs, especially in women’s development and gender, ethnic minorities, and poverty reduction programs, most of this experience in the country, the Mekong sub-region, or Southeast Asia. Master’s or Doctorate degree in social work, community development, social development, community psychology, sociology, or anthropology. Excellent command of English – spoken, reading, writing, including report writing. Knowledge of one or more Mekong subregion languages an asset and is the ability to work in poor-community settings is essential. 15. NATIONAL SOCIAL AND GENDER DEVELOPMENT SPECIALISTS ( 18 PERSON-MONTHS EACH FOR LAO PDR AND VIET NAM)

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103. In the broad context of community organizing, capacity building, and decision making in relation particularly to potential and actual tourism opportunities, the National Social and Gender Development Specialist will facilitate community-level participatory planning, implementation, monitoring, and evaluating in the villages/communes of each site. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The specific duties are:

(i) In consultation with commune, village, and district leaders acquaint local populations with tourism opportunities that might be available through the project, along with other livelihood benefits which the people may tap if they are effectively organized; (ii) Set up a Tourism Community Group whose membership should include women, farmers/fishers, young adults, business entrepreneurs, ethnic minorities and other key stakeholders in the community. The commune/village chief may be the head of the Group, a key member, or adviser, depending on the local situation; (iii) Organize a series of village planning and training sessions, under the aegis of the Tourism Community Group, starting with a situation analysis, in which tourism opportunities and constraints are considered; prioritize agreed-upon actions and implement; designate a fair proportion of slots in training programs to be reserved for women, ethnic minorities and other excluded groups; (iv) Work out with the community or community groups a set of criteria for assessing progress and ultimately, measuring the success or otherwise of the group actions agreed upon; this should be done in collaboration with the Domestic Monitoring and Evaluation Specialist/Consultant and the Domestic Tourism Specialist/Consultant; (v) Collaborate with the Domestic and International Resettlement and Monitoring and Evaluation Specialists in establishing baseline criteria for assessing the impact of tourism-related interventions on the community, especially on the poor/poorest and most vulnerable: women, children, adolescents, young adults, older persons, ethnic minorities, disabled, recently resettled and others, which they will need consciously to identify; (vi) Develop discussion schemes, learning games, and audiovisual guides for capacity building that cater to illiterate as well as literate participants; (vii) Train local leaders how to encourage active and democratic participation of villagers through a facilitative process, develop the agenda for meetings, taking and disseminating minutes, and more generally, foster transparency in decision- making, develop accountability through community information dissemination mechanisms, and promote efficiency through training in elementary accounting, fund management, and general administration; (viii) Enable community residents to implement plans and decisions, and monitor their progress; (ix) Engage in advocacy with district and provincial officials on the importance of community participation and capacity development in planning, decision-making, action, and monitoring/evaluation, and the inclusion of women, ethnic minorities, and other disadvantaged groups; (x) Forge partnerships with mass organizations (women, youth, farmers), NGOs, and resource persons who can contribute to the capacity building process in participatory rather than “top-down” ways; (xi) Document the community building processes, assess with the community the lessons learned, and provide a report on them every quarter to the appropriate official handling the Sustainable Pro-Poor Tourism;

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(xii) Participate in a consultative meeting on Community Facilitation and Gender convened by the International Consultant with the other two Domestic Consultants once a year to review the tasks at hand, share ideas, assess progress, and recommend corrective or new measures where called for; (xiii) Oversee and assist in the implementation of the gender action plan and the ethic minority development framework and plan; and (xiv) Develop and implement capacity building programs for the PIU Social Specialists.

104. Required Qualifications and Experience: At least 8 years of experience in community- based development and action programs, especially involving women’s development and gender, ethnic minorities, and poverty reduction programs, most of it in the country or the Mekong sub-region. First-level university degree in social work, community development, social development, community psychology, sociology, anthropology, or the equivalent; Master’s degree an asset. Excellent speaking, reading, and written command of in-country language; knowledge of other local or minority languages an asset; good communication skills. Good command of English – speaking, reading, written. Ability to live and work in poor community settings

16. INTERNATIONAL SUPPLY CHAIN & SME DEVELOPMENT SPECIALISTS (5 PERSON-MONTHS FOR LAO PDR AND 2 PERSON-MONTHS FOR VIET NAM)

105. The consultant will be responsible for designing studies and data collection instruments that will be used to perform detailed analysis of supply-chains in the provinces included in the pro-poor tourism subproject. These studies will quantify the positive and negative economic benefits of tourism in target provinces and identify areas where the subproject can intervene to increase the benefits of tourism to the poor. Results of the studies and assessments undertaken by the Ecotourism Planner will be used by the project implementation team to effectively program subproject resources with an aim to involve a wider range of villages in the tourism economy by providing outlets for value added goods that they are capable of producing. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. Specific tasks that will be undertaken by the consultant include:

(i) Conduct a study of supply chain linkages in two sample provinces to examine the extent of which local communities are supplying food, flowers, beverages, furniture, handicrafts, casual labor, skilled and semi-skilled labor to the accommodation sector, and the extent to which employment in the sector is providing local jobs and alleviating poverty; (ii) In two sample provinces, undertake an analysis of inputs into the pro-poor aspects of village-based excursions including home-stays, provision of food, lodging, transportation and handicrafts by villagers or the payment of fees directly to villages. Identify and report on areas where communities could gain greater benefits from these ventures; (iii) Conduct an analysis of the handicraft sector in two sample provinces to identify the source, pricing and quality of raw materials used in local craft production, sources of labor, margins on sample products, supply and demand analysis for select handicrafts that are being produced by villages outside existing tourism supply chains. Investigate the role of traders, wholesalers and retailers at the district and provincial level and how they figure into the local craft industry; (iv) Provide training to the domestic supply chain consultant and PIU’s to supervise the implementation of the above and data collection and analysis. In collaboration with the domestic consultant and PCU, conduct orientation

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seminars for the PIU and contract staff that will be engaged to collect data and disseminate the results of the studies; (v) In close consultation with the PIU’s, Team Leader and Pro-poor Tourism Specialist identify and make recommendations on the design, location and operation of small-scale infrastructure such as handicraft markets, access roads, electricity or machinery that will assist local communities gain greater benefits from the opportunities presented by involvement in the tourism economy; (vi) Conduct a training needs assessment regarding handicraft design, production methods, marketing and promotion for participating countries; (vii) Establish baseline production and benefit indicators in the two sample provinces and design a protocol to monitor the extent by which communities that are involved in the project are benefiting from the pro-poor supply chain intervention; and (viii) Train a national team to conduct the above studies in the project’s remaining target provinces/areas.

106. Specific outputs to be produced under the consultant’s contract include:

(i) A report on the results of the pro-poor supply chain studies for each designated sector in the two sample provinces; (ii) Produce a report detailing the methodology by which the PIU’s can go about helping a greater number of poor producers to gain economic benefits from the tourism economy; (iii) Produce a report with detailed recommendations and suggested design for small- scale infrastructure that will that will assist local communities gain greater benefits from tourism; (iv) Working with the pro-poor and social specialists, establish baseline production and benefit indicators in the two sample provinces and design a monitoring protocol to measure the extent by which communities that are involved in the project benefit from pro-poor supply chain interventions; and (v) Produce a manual on community-based tourism and value chain development in the GMS.

107. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 10 years professional experience is required, preferably working on small business development and/or pro-poor tourism related projects in the GMS region. The consultant must have the ability to speak, read and write the English language on a professional level, and preferably speak the national language.

17. DOMESTIC SUPPLY CHAIN & SME DEVELOPMENT SPECIALISTS (15 PERSON-MONTHS EACH FOR LAO PDR AND 14.5 PERSON-MONTHS FOR VIET NAM)

108. The consultant will be responsible for assisting the International Supply Chain Development Specialist to design studies and data collection instruments that will be used to perform detailed analysis of supply-chains in the provinces included in the pro-poor tourism subproject. These studies will quantify the positive and negative economic benefits of tourism in target provinces and identify areas where the subproject can intervene to increase the benefits of tourism to the poor. Results of the studies and assessments undertaken by the Ecotourism Planner will be used by the project implementation team to effectively program subproject resources with an aim to involve a wider range of villages in the tourism economy by providing

144 Appendix 8 outlets for value added goods that they are capable of producing. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. Specific tasks that will be undertaken by the consultant include:

(i) Oversee the field implementation of studies that assess supply chain linkages in two sample provinces, to examine the extent of which local communities are supplying food, flowers, beverages, furniture, handicrafts, casual labor, skilled and semi-skilled labor in the accommodation sector, and the extent to which employment in the sector is providing local jobs and alleviating poverty. Conduct interviews with key informants, focus groups and individuals to gather and report both quantitative and qualitative data; (ii) In two sample provinces, working in close collaboration with the International Supply Chain Development Specialist, undertake an analysis of inputs into the pro-poor aspects of village-based excursions including home-stays, provision of food, lodging, transportation and handicrafts by villagers or the payment of fees directly to villages. Identify and report on areas where communities could gain greater benefits from these ventures; (iii) Conduct an analysis of the handicraft sector in two sample provinces to identify the source, pricing and quality of raw materials used in local craft production, sources of labor, margins on sample products, supply and demand analysis for select handicrafts that are being produced by villages outside existing tourism supply chains. Investigate the role of traders, wholesalers and retailers at the district and provincial level and how they figure into the local craft industry; (iv) Provide training to the Pro-Poor subproject’s PIU staff on the methodology that will be used to collect data for the above studies; (v) In close consultation with the International Supply Chain Development Specialist, PCU, Team Leader and Pro-poor Tourism Specialist identify and make recommendations on the design, location and operation of small-scale infrastructure such as handicraft markets, access roads, electricity or machinery that will assist local communities gain greater benefits from the opportunities presented by involvement in the tourism economy; (vi) Conduct a training needs assessment regarding handicraft design, production methods, marketing and promotion for the sites included in the pro-poor subproject; and (vii) Establish baseline production and benefit indicators in the two sample provinces and design a protocol to monitor the extent by which communities that are involved in the project are benefiting from the pro-poor supply chain intervention.

109. Specific outputs to be produced under the consultant’s contract include:

(i) A report in the national language on the results of the pro-poor supply chain studies for each designated sector in the two sample provinces; (ii) Produce a report in the national language detailing the methodology by which the PIU’s can go about helping a greater number of poor producers to gain economic benefits from the tourism economy; (iii) Produce a report in the national language with detailed recommendations and suggested design on small-scale infrastructure that will that will assist local communities gain greater benefits from tourism; (iv) Working with the pro-poor and social specialists, establish baseline production and benefit indicators in the two sample provinces and design a monitoring

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protocol to measure the extent by which communities that are involved in the project benefit from pro-poor supply chain interventions; (v) Produce written inputs for the manual on community-based tourism and value chain development in the GMS, and translate and publish the manual in the national language.

110. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 5 years professional experience is required, preferably working on pro-poor tourism related projects or enterprise development projects. The consultant must have an in-depth knowledge of national tourism and poverty alleviation policies and some knowledge of the commercial sector and economics. The consultant must possess the ability to speak, read and write the English language on a professional level, and preferably speak at least one ethnic minority language in addition to fluency in the national language.

18. INTERNATIONAL TOURISM HUMAN RESOURCES DEVELOPMENT SPECIALISTS (4 PERON-MONTHS FOR LAO PDR AND 2 PERSON-MONTHS FOR VIET NAM)

111. The consultant will be responsible for designing the two components of the HRD output of the Project directed at developing a pool of trainers to train public sector tourism officials and natural and cultural heritage site managers; and small and medium tourism enterprise staff in the provinces in support of pro-poor tourism initiatives. The expert will be located at the Project Office with trips to various tourism training and education institutions in-country. The specific tasks of the consultant include:

(i) Review the current strategies, plans and programs for tourism HRD giving special attention to the needs of public sector officials at the provincial, district and site level and to small-scale tourism enterprises outside the main urban centers in the country; (ii) Review the current donor support programs in tourism HRD in the country to ensure that the Project is complementary to these; (iii) Review and evaluate current standards and certification systems n the HRD area including the ASEAN standards for ecotourism and smaller scale tourism establishments and recommend how these should be applied in the HRD output of the Project; (iv) Review existing and where necessary undertake additional training needs assessment for (i) trainers of public sector tourism and site management officials, (ii) public sector officials and site managers in the 5 projects participating in the Project, and (iii) for vocational trainers in the small and medium tourism enterprise sector outside the capital cities; (v) Prepare detailed selection criteria for the selection of master training tourism training and education institutions, master training candidates and provision of scholarships; (vi) Preparing an overall work plan for meeting the training needs of the three target groups including outline curriculum, identification of trainings to be undertaken, type of master trainers required, specification of scholarship program and budget; (vii) Preparing specifications for the selection of two tourism training and education institutions in the country (each with an international partner) to implement the two components of the HRD output under the Project; (viii) Assisting in qualifying and evaluating proposals from interested tourism training and education institutions and their foreign partners;

146 Appendix 8

(ix) Supervising the Initial set up of the selected tourism training and education institutions; and (x) Designing and implementing a monitoring and evaluation system to determine the effectiveness of the delivery of the two components of the HRD output.

112. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the HRD output if the Project. A minimum of 10 years professional experience is required, preferably working in public sector and small tourism business capacity building in tourism related projects in the GMS region. The consultant must have the ability to speak, read and write the English language on a professional level, and preferably speak in the national language.

19. NATIONAL TOURISM HUMAN RESOURCES DEVELOPMENT SPECIALISTS ( 12 PERSON-MONTHS)

113. The consultant will be responsible for assisting in designing the two components of the HRD output, work with and supervise the two selected tourism training and education institutions and their foreign partner institutions to undertake the work necessary to deliver the HRD output directed at promoting pro-poor tourism initiatives, and monitor and evaluate the performance. The expert will be located at the Project Office with trips to various tourism training and education institutions in-country. The specific tasks of the consultant include:

(i) Assist in reviewing and evaluating the current strategies, plans and programs for tourism HRD giving special attention to the needs of public sector officials at the provincial, district and site level and to small-scale tourism enterprises outside the main urban centers; (ii) Assist in reviewing the current donor support programs in tourism HRD to ensure that the Project is complementary to these; (iii) Assist in reviewing and evaluating current standards and certification systems n the HRD area including the ASEAN standards for ecotourism and smaller scale tourism establishments and recommend how these should be applied in the HRD output of the Project; (iv) Undertake if necessary additional training needs assessment for (i) trainers of public sector tourism and site management officials, (ii) public sector officials and site managers in the 5 projects participating in the Project, and (iii) for vocational trainers in the small and medium tourism enterprise sector outside the capital cities; (v) Assist in the preparation of detailed selection criteria for the selection of master training tourism training and education institutions, master training candidates and provision of scholarships; (vi) Assist the International Tourism HRD Specialist to undertake a training needs assessment for (i) trainers of public sector tourism and site management officials, (ii) public sector officials and site managers in the 5 projects participating in the Project, and (iii) for vocational trainers in the small and medium tourism enterprise sector outside the capital cities; (vii) Assist in the preparation of an overall work plan for meeting the training needs of the three target groups including outline curriculum, identification of trainings to be undertaken, type of master trainers required, specification of scholarship program and budget;

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(viii) Assist in preparing specifications for the selection of two tourism training and education institutions (each with an international partner) to implement the two components of the HRD output under the Project in the country; (ix) Assisting in qualifying and evaluating proposals from interested tourism training and education institutions and their foreign partners; (x) Assisting in the initial set up and program arrangements of the selected tourism training and education institutions; and (xi) Assisting in the design of the monitoring and evaluation system to determine the effectiveness of the delivery of the two components of the HRD output, and implementing the system over the course of the Project.

114. Required Qualifications and Experience: The consultant will have relevant technical experience and background to advise and assist the PIU’s plan and carry forth work programs under the HRD output if the Project. A minimum of 5 years professional experience is required, preferably working in public sector and small tourism business capacity building in tourism related projects in the country. The consultant must have the ability to speak, read and write the English language on a professional level, in addition to fluency in the national language.

20. NATIONAL TOURISM SPECIALIST ( 30 PERSON-MONTHS FOR LAO PDR ONLY)

115. The consultant will be responsible to the Team Leader/Tourism Sector Specialist for assisting in providing tourism development, operations and marketing inputs into the sustainable tourism development, pro-poor, and tourism corridors outputs of the project in Lao PDR. In addition to providing tourism sector input, the consultant is required to assist, when necessary, in the implementation of project training and capacity building activities as requested by the PIU’s. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. Specific tasks include:

(i) Assist in collecting data through surveys and other sources, as well as analyzing and interpreting tourism data in relation to the preparation of tourism plans and programs; (ii) Assist in reviewing and updating existing tourism management plans or developing new plans for the subprojects in the sustainable tourism development, pro-poor, and tourism corridors outputs of the Project in Lao PDR; (iii) Assist in reviewing plans and programs for the establishment of the subproject operation units for the subprojects and in implementing the tourism elements in these including tour product development, marketing and promotion, CBT operations and sales, etc.; (iv) Assist in preparing marketing and promotion plans for the marketing of the subprojects; (v) Lead the implementation of marketing and promotion activities; (vi) Assist in reviewing and updating institutional development programs for the management of the proposed sites under Sustainable Tourism Development Component; and (vii) Assist in conducting training for site managers on aspects of site tourism operations and maintenance and monitoring.

116. Required Qualifications and Experience: The consultant will have relevant technical experience and background in the tourism sector to advise and assist the PIU’s plan and carry forth work programs under the project. A minimum of 5 years professional experience is required, preferably working on tourism development, marketing and management projects in

148 Appendix 8

Lao PDR. The consultant must have the ability to speak, read and write the English language and the Lao language on a professional level.

B. PACKAGE 2 FOR LAO PDR AND VIET NAM:

1. INTERNATIONAL CIVIL ENGINEER (10 PERSON-MONTHS FOR LAO PDR ONLY)

117. The civil engineering consultant will be responsible for providing design and construction supervision guiding, training and directing the work of the PIUs in undertaking the detailed design, documentation, contracting and supervision of all civil engineering works connected with the implementation of the sustainable tourism development, and tourism corridors outputs of the Project in Lao PDR. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The specific duties include:

(i) guide in identifying the scope and assist procurement of site surveys needed to prepare detailed designs; (ii) develop systematic approach to identify subproject engineering requirements, develop design standards and preliminary cost estimates; (iii) work with the local engineer to prepare detailed engineering documentation, specification and bills of quantities for civil works and equipment; (iv) check all necessary approvals from provincial and local authorities have been obtained; (v) supervise the work of the national civil engineer; (vi) guide counterpart domestic engineer to pre-qualify contractors, prepare bid documents and define requirements for a conforming tender with criteria for evaluation of bids based on price and performance; (vii) audit bids evaluation against established criteria and award contracts; (viii) establish construction quality, environmental and audit procedures and ensure contractor has meet all financial and insurance obligations as required by the bid document; (ix) ensure construction procedures are followed, regular site meetings are programmed and view test results and quality audits; and (x) overview determination of ‘Practical Completion’, establishment of ‘Defects Liability Period’ and issue of ‘Final Certificate’.

118. Required Qualifications and Experience: An Engineering Degree from recognized University or Collage and charted membership to engineering body that allows the applicant to operate independently in country of origin. A minimum of seven (7) years experience operating as principal engineer on similar projects of scale and complexity.

2. DOMESTIC CIVIL ENGINEER (40 PERSON-MONTHS FOR LAO PDR ONLY)

119. The national civil engineering consultant will be responsible to the International Civil Engineer undertaking and supervising the design and construction of all civil engineering works connected with the subprojects in the country. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The specific duties include:

(i) identifies and scopes procurement of site surveys needed to prepare detailed designs, collects and collates results;

Appendix 8 149

(ii) works through a systematic approach and identifies subproject engineering requirements, records develop design standards and establishes preliminary cost estimates; (iii) commissions domestic consultant engineers or provincial departments of construction to prepare detailed engineering documentation, specification and bills of quantities; (iv) checks all necessary approvals from provincial and local authorities have been obtained; (v) establishes a pre-qualify contractors list, prepares bid document with requirements for a conforming tender and criteria for evaluation; (vi) evaluation of bids against established criteria and tender report with recommended contractor; (vii) awards contract and develops a construction quality manual with environmental and audit procedures; (viii) obtains from contractor has meet all documentation including construction program, plus financial and insurance obligations as required by the bid document; (ix) establishes construction procedure and timing for regular site meetings with agreed agenda including works completed, costs and variations, view test results and undertake quality audits; and (x) determination of ‘Practical Completion’, establishment of ‘Defects Liability Period’ with defects list and issue of ‘Final Certificate’.

120. Required Qualifications and Experience: An Engineering Degree from recognized University or Collage and membership to peak engineering body in country. A minimum of five (5) years experience operating as project engineer on similar projects of scale and complexity. The engineer will be fluent in the national language and should be proficient in technical English.

3. DOMESTIC CIVIL ENGINEER-CONSTRUCTION SUPERVISION (36 PERSON-MONTHS FOR VIET NAM ONLY)

121. The national civil engineering consultant will be responsible to the International Civil Engineer undertaking and supervising the design and construction of all civil engineering works connected with the subprojects in the country. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The specific duties include:

(i) reviewing detailed engineering documentation, specification and bills of quantities; (ii) checking that all necessary approvals for construction from provincial and local authorities have been obtained; (iii) assisting in establishing a pre-qualifying contractors list and preparation of the bid document with requirements for a conforming tender and criteria for evaluation; (iv) assisting in evaluating the bids against established criteria and tender report with recommended contractor; (v) assisting in the development of a construction quality manual with environmental and audit procedures; (vi) obtaining from the contractor all necessary documentation including construction program, plus financial and insurance obligations as required by the bid document;

150 Appendix 8

(vii) establishing construction procedures and timing for regular site meetings with agreed agenda including works completed, costs and variations, view test results and undertake quality audits; (viii) undertaking regular supervision of all aspects and phases of construction; and (ix) determines ‘Practical Completion’, establishment of ‘Defects Liability Period’ with defects list and issue of ‘Final Certificate’.

122. Required Qualifications and Experience: An Engineering Degree from recognized University or Collage and membership to peak engineering body in country. A minimum of five (5) years experience operating as project engineer on similar projects of scale and complexity. The engineer will be fluent in the national language and should be proficient in technical English.

4. INTERNATIONAL ENVIRONMENT SPECIALIST ( 3 PERSON-MONTHS FOR LAO PDR ONLY)

123. The International Environment Specialist will be responsible to the Team Leader for supervising the implementation of all aspects of the subprojects dealing with environmental assessment, evaluation, monitoring and reporting. The consultant will provide technical and training support to the PCU and PIU staff and work closely with the national and local environmental agencies, communities and NGOs at the site level. The consultant will be responsible for supervising the work of the National Environment Specialist. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The consultant will provide policy guidance, advice and support to the PCU and PIU’s on:

(i) best environmental practices for responding to environmental issues involved with implementation of the projects on a sustainable basis; (ii) assistance and advice on institutional strengthening and capacity building at the PCU and PIU levels in regards to environmental practices; (iii) collaboration with the Domestic Environmentalists in executing baseline surveys, environmental monitoring plans and programs, initial environmental impact examinations (IEE) as may be required; (iv) collaboration with the other PIU Support specialists to ensure and integrated approach is taken to economic, environmental and social issues;. (v) assistance and advice with coordinating other executing agencies and development partners in the implementation of the projects; (vi) advice on establishing environmental monitoring processes and evaluation programs for projects to be undertaken by the PIUs; (vii) advice on monitoring implementation of the works for any non compliance issues and bringing any such issues to the attention of the PCU and PIU’s; and (viii) undertaking reviews of progress on environmental mitigation practices and prepare a report on a yearly basis to the PCU

124. Required Qualifications and Experience: The assignment requires an environmental specialist with qualifications in natural resource/science/environmental management with at least 8 years previous experience in undertaking project management, environmental impact assessments, environmental monitoring plans and environmental studies. Previous experience in the GMS countries is desirable. 5. NATIONAL ENVIRONMENT SPECIALIST ( 12 PERSON-MONTHS FOR LAO PDR ONLY)

125. The National Environment Specialist will work under the supervision of the International Environment Specialist on all aspects of the subprojects dealing with environmental assessment, evaluation, monitoring and reporting. The expert will be located at the Project Office and PIU’s

Appendix 8 151 including frequent field trips to subproject sites. The consultant will be responsible to the Team Leader for his/her work and provide policy guidance, advice and support to the PCU and PIU’s on:

126. Required Qualifications and Experience: The assignment requires an environmental specialist with qualifications in natural resource/science/environmental management with at least 2 years previous experience in undertaking project management, environmental impact assessments, environmental monitoring plans and environmental studies. Previous experience in the GMS countries is desirable and good English and national language skills essential.

6. INTERNATIONAL RESETTLEMENT SPECIALIST (2 PERSON-MONTHS FOR LAO PDR ONLY) 127. Based on the resettlement framework and resettlement plans the detailed designs, the expert will assist in preparing updated resettlement plans and assist LNTA in the implementation of these plans. The expert will be located at the Project Office and PIU’s including frequent field trips to subproject sites. The consultant will undertake the following resettlement tasks, in accordance with ADB’s Policy on Involuntary Resettlement (1995) guided by Operations Manual on Involuntary Resettlement (OM/F2, 2006); and other relevant policies and guidelines of ADB, i.e., Gender (1998), Indigenous Peoples (1998), Accountability (2003), and Public Communications (2005): (i) Review and assess the (a) capacity of the responsible institutions at central and project levels to plan and implement the resettlement plan and (b) trainings and capacity buildings provided during the PPTA. Design and implement necessary training and capacity-building interventions; (ii) Review and assess the consultation and disclosure programs undertaken during RP preparation and prepare a consultation and disclosure program during RP updating and implementation to ensure continuous and active involvement of APs, women and community-based organizations, and other stakeholders in the timely and transparent provision of information to APs and development of consultation, disclosure, compensation, relocation, and rehabilitation strategies; (iii) Ensure endorsement of the updated RP by the executing agency and disclosure of the updated RP to project affected persons prior to submission to ADB for

152 Appendix 8

review and approval. Carry out resettlement implementation in accordance with the updated RP agreed by the Government and ADB; (iv) Provide capacity building to the National Social and Gender Development Specialist and the PIU Social Specialists in Resettlement planning, implementation, monitoring and evaluation; and (v) Prepare resettlement training materials.

128. Required Qualifications and Experience: The assignment requires a qualified resettlement specialist with at least 10 years experience, preferably in the Mekong Sub-region or Southeast Asia. Experience in developing and delivering training programs is essential. The ability to speak, read, and write any of the majority languages of the GMS is an asset. Excellent English speaking, reading, and writing skills, including research and project report writing. Computer skills for research and research packages for social analysis are also highly desirable.

Appendix 8 153

Attachment 2 Draft TOR for External Monitoring Agency

1. Introduction

1. The Government of Viet Nam, with funding assistance from the Asian Development Bank (ADB), is implementing the Sustainable Tourism Development Project (STDP). While significant social and economic benefits are anticipated from the Project, its implementation may require land acquisition and the involuntary resettlement of local residents. Consistent with ADB’s social safeguards policies and relevant laws and decrees of Viet Nam, a Resettlement Plan (RP) and a Resettlement Framework (RF) has been adopted for the Project. These documents have been designed to bridge any gaps between existing local laws and ADB’s social safeguards policies in order to help ensure that the affected households are able to rehabilitate themselves to at least their pre-Project condition.

2. To help ensure that the approved RP and RF is implemented as planned, monitoring of resettlement will be carried out, internally by the Project Coordination Unit (PCU) and Project Implementation Units (PIU), and externally by an outside independent External Monitoring Consultant. The consultant will have access to all the offices involved in the implementation of the Project and all project documentation. The consultant will begin monitoring one (1) month after the commencement of RP implementation. The consultant will be engaged on an intermittent basis over a period of 2.5 years, from March 2008 to the first quarter of 2010.

2. Objectives

4. The main objective of external monitoring is to provide an independent periodic review and assessment of (i) achievement of resettlement objectives; (ii) changes in living standards and livelihoods; (iii) restoration of the economic and social base of the affected people; (iv) effectiveness and sustainability of entitlements; and (v) the need for further mitigation measures. The resettlement impacts of the Project are expected to be minimal, and will be avoided if possible. The scope of work for the consultant may be adjusted depending on the final resettlement impacts of the Project.

3. Scope of Work

3.1 Compliance Monitoring during RP Implementation

5. Relative to compliance monitoring during resettlement implementation, the main activities of the consultant will revolve around the following:

a. Review existing baseline data and gather additional socio-economic information, as necessary, on sample AP households;

b. Monitor implementation of the RP;

c. Identify any discrepancy between policy requirements and actual implementation of resettlement;

d. Monitor the resolution of complaints and grievances of APs; and

154 Appendix 8

e. Provide recommendations for improving resettlement implementation.

3.2 Compliance Monitoring Methodology

6. The methods to be employed by the consultant in its monitoring work are summarized hereunder, thus:

a. Review of Detailed Measurement Survey (DMS): As soon as the detailed design is finalized and staked on the ground, DMS will be undertaken. The data will be entered into a database and will include the following: (i) socio-economic status of affected households, (ii) nature and extent of their losses, and (iii) entitlements for compensation and other assistance. These data will be made available to the consultant for it to be able to establish a baseline for monitoring and evaluation. During the conduct of the DMS, if needed, the consultant will also monitor the DMS process to determine and assess if it is carried out in a participatory and transparent manner.

b. Socio-Economic Survey (SES): Review of socio-economic information data gathered during the census and SES of affected households. A post resettlement survey will also be undertaken by the consultant 6-12 months following completion of resettlement activities. Special attention will be paid to the inclusion of women, ethnic groups, the very poor, the landless and other vulnerable groups, with set questions for women and other target groups. Data will be disaggregated by gender, vulnerability and ethnicity.

c. Verification of Replacement cost survey: The consultant will also verify whether compensation paid at replacement cost. A study to determine whether or not the rates used in compensation for land and other non-land assets are at replacement cost will be undertaken.

7. The consultant will maintain a computerized database on resettlement. It will contain specific information on each affected household.

3.3 Compliance Monitoring Report

8. The consultant will submit an external monitoring report to the MSCT, as well as directly to ADB. The report will summarize its findings which will include: (i) progress of RP updating and implementation, citing any deviations from plans; (ii) identification of problems and solutions for appropriate action by the Executing Agency in the most expeditious manner; (iii) identification of specific ethnic minority and gender issues, if any; and, (iv) status of resolution of issues and problems identified in previous reports.

9. The external monitoring reports will be discussed in a meeting between the consultant, MSCT and the PPCs, to be scheduled following receipt of its reports. Appropriate actions to address problems will be taken.

Appendix 8 155

Table 1 Monitoring and Evaluation Indicators Indicators Variables Mechanism for Assessment Timing of Assessment

RP • Resettlement staffing • Review of internal monitoring • Every monitoring Implementation • Compensation Disbursements reports mission • Land and assets acquired • Review Contractor plans and • Preparation of replacement land actions • Loan funds disbursement • Interviews with and • Government funds disbursement observation of implementing • Public information and consultation agencies at each level • AP asset replacement • Random sample of interviews with APs Restoration of • Compensation at replacement cost • Interviews with APs – • Every monitoring Living Standards • Compensation with no depreciation stratified sample for those mission and Livelihoods or fees/taxes relocating, and those being • Adequacy and suitability of allocated land, indigenous replacement land peoples and women • Adequacy of moving costs • Review of internal monitoring • Adequate timing for asset reports acquisition/replacement • Review of revised • Tenure security of APs compensation costs and materials costs • Interviews with Provincial Lands Departments for land records • Changes in AP income levels, and • Replicate SES of a sample • At the sources of income of APs commencement of • Changes in AP access to services • Comparison with original resettlement and utilities SES and with later results implementation • AP participation in community • Village level focus group and project organizations discussions, including completion • AP participation in associated social women and indigenous action programs related to the peoples project • Interviews with vulnerable • Vulnerable groups rehabilitation APs AP Satisfaction • AP awareness of resettlement • Review records of grievance • Every monitoring procedures and entitlements lodging and redress mission • AP awareness and use of grievance • Random sample of system interviews with APs • AP satisfaction with the resettlement • Community meetings process • Focus Groups discussions with various categories of APs Effectiveness of • Accuracy of DMS for AP and asset • Review records of • Every monitoring Resettlement loss recoding and planning grievances and redress mission Planning • Adequacy of budget for • Random sample of implementation interviews with APs • Adequacy of implementation • Interviews with implementing schedule to undertake required agencies at each level tasks • Occurrence of unforeseen problems Resettlement • Re-occupation of cleared land • Village chief meetings • Every monitoring Impacts • Migration to the project area • Random AP interviews mission • Observation

4. Post Implementation Evaluation Study

156 Appendix 8

10. Between 6 to 12 months following completion of resettlement, the consultant will conduct an evaluation study of severely affected households, if applicable, to determine whether or not the objectives of resettlement have been achieved. The methodology for the evaluation study will be based mainly on a comparison of the socio-economic status of severely affected households prior to and following displacement. If the findings of the study would indicate that the objectives of the RP and RF have not been achieved, the consultant will propose appropriate additional measures to help the severely affected households rehabilitate themselves to at least their pre-project situation.

5. Outputs

11. The consultant will prepare the following reports to be submitted to MSCT and ADB:

a. A brief inception report to be submitted within one month of beginning of the assignment.

b. Compliance Monitoring Report to be submitted after monitoring.

c. Post-resettlement Evaluation Report. The output of the evaluation study will be in the form of a brief report.

Appendix 9 157

DISBURSEMENT MODALITIES

Four Major Types Procedures for withdrawal of loan proceeds are standardized to facilitate disbursements under most loans. Disbursement procedures consist of four major types, described briefly as the:

• direct payment procedure where ADB, at the borrower’s request, pays a designated beneficiary directly (see chapter 7 of the Loan Disbursement Handbook {LDH} for details);

• commitment procedure where ADB, at the borrower’s request, provides an irrevocable undertaking to reimburse a commercial bank for payments made or to be made to a supplier against an LC financed from the loan account (see chapter 8 of LDH for details);

• reimbursement procedure where ADB pays from the loan account to the borrower’s account or, in some cases, to the project account for eligible expenditures which have been incurred and paid for by the project out of its budget allocation or its own resources (see chapter 9 of LDHfor details); and

• imprest fund procedure where ADB makes an advance disbursement from the loan account for deposit to an imprest account to be used exclusively for ADB’s share of eligible expenditures (see chapter 10 of LDH for details).

Simplified Documentation under the Reimbursement Procedure While normally ADB requires submission of full supporting documentation, there are special cases where it accepts simplified documentation when • the statement of expenditures (SOE) procedure involves the borrower submitting an SOE to support an application (see paragraphs 9.8 to 9.22 of LDH for details);

• the force account works procedure involves the borrower submitting periodic certification of the progress or completion of civil works in support of its application for reimbursement (see paragraphs 9.23 to 9.26 of LDH for details); and

• the simultaneous application for subloan approval and withdrawal (SAW) procedure involves qualified DFIs submitting simplified supporting documents when they request reimbursement of expenditures and ADB’s confirmation of subloans below the set “free limit” (see paragraphs 9.27 to 9.30 of LDH for details).

158 Appendix 9

Suggested Disbursement Procedures

The four procedures are normally used for the following kinds of payment:

Suggested Disbursement Nature of Payment/s Precondition for Payment Procedure

Mainly large civil works, Payments are due Direct payment progress payments, consultants’ fees, procurement of goods Importation costs The borrower has opened an LC Commitment with a provision that the negotiating bank will be reimbursed by ADB for payments made to the supplier Local currency costs, petty Expenditures have been incurred Reimbursement purchases, and small civil and paid for by the borrower from works its own funds Contractors’ bills and The borrower experiences cash Imprest fund suppliers’ invoices, flow difficulty numerous items of operating expenses, other eligible expenditures

Appendix 9 159

WITHDRAWAL APPLICATION FOR DIRECT PAYMENT AND REIMBURSEMENT ADB Loan No. ------Date: Application No. To: Asian Development Bank Type of Disbursement 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Direct Payment Reimbursement Attention: Loan Administration Division, Controller's Department (CTLA)

Sir/Madam:

1. In connection with the Loan Agreement dated ______between the Asian Development Bank and the (Borrower) , please pay from the Loan Account:

Currency Amount in Figure Amount in Words

The said amount is required for payment or reimbursement of eligible expenditures in the said currency as described in the attached Summary Sheet(s).

2. The undersigned certifies and agrees as follows: a. these expenditures were/are/will be made for the purposes specified in the Loan Agreement and the undersigned has not previously withdrawn from the Loan Account or obtained or will obtain any other loan, credit, or grant for the purpose of fully or partially meeting these expenditures. b. the goods or services have been procured in accordance with the Loan Agreement and the cost and terms of the purchase thereof are reasonable and in accordance with the relevant contract(s). c. the goods or services were or will be produced in and supplied by a member country of ADB as specified in the attached Summary Sheets(s). d. for expenditures claimed on the basis of a Statement of Expenditures (SOE), all authenticating documents have been retained in the location shown on the individual SOE Summary Sheets and will be made available for review by auditors and ADB representatives upon request. e. as of the date of this application, there is no existing default under the Loan Agreement, the Project Agreement or the Guarantee Agreement, if any. f. if any funds withdrawn pursuant to this application are returned, the current value of such funds will be applied as credit to the Loan Account or, if the amount is small, applied to the next loan service payment due.

3. Payment Instructions: A. Payee's Name and Address Payee's Name Payee's Address B. Name and Address of Payee's Bank and Account No. Bank Name Bank Address Payee's Account No. SWIFT Code C. Correspondent Bank (If Payee’s Bank is not located in the Country whose currency is claimed, enter the name and address of their bank’s correspondent in the country whose currency is to be paid.) Bank Name Bank Address Account No. of Payee's Bank SWIFT Code D. Special Payment Instructions and Other References

4. This application consists of ______pages including ____ pages of Summary Sheets.

From: Name of Borrower

Signature of Authorized Representative(s)

Printed Name/Position/Title of Authorized Representative(s)

160 Appendix 9 Instructions in preparing the Withdrawal Application Form for Direct Payment and Reimbursement (ADB Form ADB-DRP/RMP)

General Instructions

1. Submit original Withdrawal Application (WA) to the Asian Development Bank (ADB) (or to its Resident/Regional Mission, if instructed).

2. Prepare separate WA for each currency of payment and for each payee.

3. Number WAs consecutively, not exceeding five digits/characters.

4. Consolidate claims until the amount being withdrawn is at least US$100,000 equivalent or an amount advised by ADB.

5. When completed, verify the application for completeness of supporting documentation and accuracy of details before passing to the Authorized Representative(s) for signature. Mistakes and omissions result in delayed payment.

Withdrawal References

1. Date: Enter the date the WA is signed by Authorized Representative(s), not the date it was prepared.

2. Loan Number: Show ADB loan number clearly.

3. Application Number: Number WAs consecutively. If the project has more than one executing agency (EA) or implementing agency, the project coordinator should assign an alpha identification for each EA. For example : A0001 to A9999 for EA no. 1 and B0001 to B9999 for EA no. 2.

4. Type of Disbursement: Indicate in the appropriate box the type of WA claim, whether for Direct Payment or Reimbursement Procedure.

Payment Instructions

1. Payee Name and Address: Indicate full name and address of Payee for identification of payment.

2. Name and Address of Payee’s Bank and Account No. : Indicate full name and address of the Payee’s bank, which may include a banker/branch designation. Account number is important. Give SWIFT code if Payee’s bank is a member of SWIFT.

3. Correspondent Bank: Where payment is to be made to a bank not located in the country of the currency to be paid, indicate its full name and address. Provide SWIFT code if the bank is a member of SWIFT.

4. Special Payment Instructions: Indicate any particulars, special instructions or references to facilitate payment or identification of payment.

5. Name of Borrower: Fill in name as it appears in the Loan Agreement.

6. Authorized Representative(s): Pass this application only to Authorized Representative(s) for signature. Verify if the list of Authorized Representative(s) has been changed.

Appendix 9 161

SUMMARY SHEET FOR DIRECT PAYMENT/REIMBURSEMENT/RE PLENISHMENT/LIQUIDATION

Mark appropriate Direct Payment (ADB-DRP-SS) Reimbursement (ADB-RMP-SS) Replenishment/Liquidation (ADB-IFP-SS) box: (ADB-Direct Payment Procedure-Summary Sheet) (ADB-Reimbursement Procedure-Summary Sheet) (ADB-Imprest Fund Procedure-Summary S heet)

Summary Sheet No.: Date: ADB Loan No.: Supporting Documents Attached (please mark with an X) No. & Title of Category/Sub-category: Application No.:

Item No. & Date of PCSS Description of Goods Name and Date of Amount Paid/ Nature of Contract/ Invoice/ Receipt Bill of a b c No. Contract/PO No. and Services Address of Supplier Payment (Due) Payable Payment Made PO Claim Lading Certificate

Total Amount Paid/Payable % of ADB Financing Amount Requested for Withdrawal d

Notes: a Indicate against each item, whether the payment is a down payment, or an installment payment (if so, the number of install ment). b In case this was sent earlier, indicate the reference of the earlier letter in the footnote using (*). c In case of civil works contract, a duly signed progress or interim certificate should be submitted. d Ensure that amount agrees with the sum indicated in the application.

Borrower: By: (Authorized Representative's Signature, Name and Position) ADB Form No. ADB-DRP/RMP/IFP-SS Revised January 2007

162 Appendix 9

STATEMENT OF EXPENDITURES (SOE)R CONTRACTS FO OF US$100,000 ANDW BELO For the Period ______to ______

SOE for: Reimbursement Liquidation

SOE Sheet No.: ADB Loan No. Category/subcategory: Application No.: Date:

P R O C U R E M E N T D I S B U R S E M E N T C o n t r a c t P a r t i c u l a r s of P a y m e n t ADB F i n a n c i n g

Item Description of Contract Name and Address of PCSS* Amount Retention Amount Paid Cost of ADB ExchangeUS$ Equiv.ChargedPaid by Date Bill No. Date Taxes Remarks No. Supplier/Contractor Number of Bill Money Financing at___ % Rate Imprest AccountCheck No.

* PCSS - Procurement Contract Summary Sheet. TOTALS

CERTIFICATION

It is hereby certified that the above amounts have been paid for proper execution of project activities withinnditions the terms of the and Loan co Agreement. All documentation authenticating these expenditures has been retained in (insert location) and will be madeuest available of review upon missions. req It is further certified that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Borrower: By: (Authorized Representative Signature, Name and Position) Appendix 9 163 STATEMENT OF EXPENDITURES (SOE) FREE FORMATa For the Period ______to ______

Loan No.: Withdrawal Application No.: Date:

Summary Sheet No.: Liquidation/Replenishment of Imprest Advances

Category/subcategory No.: Reimbursement

Item No.

TOTALS A) Total B) Percentage of ADB Financing C) ADB Financingb (A x B)

CERTIFICATION It is hereby certified that the above amounts have been paid for proper execution of project activities within the terms and conditions of the Loan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and will be made available upon request of review missions. It is further certified that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Borrower: By: (Authorized Representative Signature, Name and Position)

Notes: a This free format is applicable to local expenditures such as recurrent operating cost, fellowship and training, etc., which are not covered by contract awards. For other SOE claims, column headings and titles may be added/changed as appropriate to suit the circumstances of the Project. b Ensure that the total amount or the aggregate of all summary sheets agrees with the sum indicated in the application which should be equivalent to US$100,000 or above.

164 Appendix 9

WITHDRAWAL APPLICATION FORM FOR IMPREST FUND

ADB Loan No. Date ------Application No. To: Asian Development Bank Type of Disbursement 6 ADB Avenue, Mandaluyong City Initial Advance 1550 Metro Manila, Philippines Increase in Ceiling Attention: Loan Administration Division, Controller's Department (CTLA) Replenishment

Sir/Madam: 1. In connection with the Loan Agreement dated ______between the Asian Development Bank and the (Borrower) , please pay from the Loan Account for the purpose of establishing/replenishing the Imprest Fund.

Currency Amount to be Paid (in figures) Amount to be paid (in words)

2. The Borrower certifies and agrees as follows: a. the said amount is required for payment of eligible expenditures as described in the attached Estimate of Expenditures Sheet(s) from ______(date/month/year) to ______(date/month/year). b. any advances by the Asian Development Bank (ADB) to the Imprest Fund may be limited to a sum smaller than the amount requested for advances or replenishment, allowing the Fund to be gradually reduced and fully documented prior to loan closing date. c. the undersigned has not previously withdrawn or applied for withdrawal of any amounts from said Loan Account nor obtained or will obtain any loan, credit, or grant for the purpose of fully or partially meeting the expenditures described in the Estimate of Expenditures Sheet(s) or Summary Sheet(s); d. the expenditures described in the attached Estimate of Expenditures Sheet(s) / Summary Sheet(s) are to be made for the purposes specified in the Loan Agreement and in accordance with its terms and conditions; and e. promptly within 6 months after the payment(s), the undersigned will furnish proof satisfactory to ADB to liquidate and document the advance. f. for expenditures to be liquidated on the basis of a Statement of Expenditures (SOE), all authenticating documents will be retained in the location shown on the individual SOE Summary Sheet(s) and will be made available for review by auditors and ADB representatives upon request. g. as of the date of this application, there is no existing default under the Loan Agreement, the Project Agreement or the Guarantee Agreement, if any. h. if any funds withdrawn pursuant to this application are returned, the current value of such funds will be applied as credit to the Loan Account or, if the amount is small, applied to the next loan service payment due.

4. This application consists of ____ pages including ____ pages of Summary Sheets. From: Name of Borrower

Signature of Authorized Representative(s)

Printed Name/Position/Title of Authorized Representative(s)

Appendix 9 165

Instructions for preparing the Withdrawal Application Form for Imprest Fund (ADB Form No. ADB-IFP)

General Instructions

1. Submit original Withdrawal Application Form (WA) to the Asian Development Bank (ADB) (or to its Resident/Regional Mission, if instructed). 2. Number WAs consecutively, not exceeding 5 digits or characters. 3. For replenishment of advances, consolidate claims until the amount being withdrawn is at least US$100,000 equivalent or an amount advised by ADB. 4. When the application is completed, verify completeness of supporting documentation and accuracy of details before passing to the Authorized Representative(s) for signature. Mistakes and omissions result in delayed payment.

Withdrawal References

1. Date: Enter the date WA is signed by Authorized Representative(s), not the date it was prepared. 2. Loan Number: Show ADB loan number clearly. 3. Application Number: Number WAs consecutively. If the project has more than one executing agency (EA) or implementing agency, the project coordinator should assign an alpha identification for each EA. For example: A0001 to A9999 for EA no. 1 and B0001 to B9999 for EA no. 2. 4. Type of Disbursement: Indicate in the appropriate box the type of WA claim, whether for Initial Advance/Increase in Ceiling, or Replenishment.

Estimate of Expenditures Sheet (ADB Form No. ADB-IFP-EES)

For Initial Advance:

1. Provide all details as required in form ADB-IFP-EES. Estimated expenditures should normally be based on the amount of contracts awarded and to be awarded . Estimated expenditures should not exceed the contract amounts. 2. For expenditures related to operational costs, the amount should be linked to the Project’s annual budget provision. 3. No supporting documents are required.

For Replenishment:

1. In addition to 1 and 2 above, before submitting the WA, submit contracts and procurement documents to ADB's Project Division concerned (contracts exceeding US$100,000). 2. Where the Statement of Expenditures (SOE) is not allowed, submit all evidences of payment, invoices, bills of lading, or work certificates. The requirements are the same for reimbursement procedure. 3. In all cases, attach bank statement from the bank maintaining the imprest fund and the bank reconciliation of the imprest fund account.

Payment Instructions

1. Payee’s Name and Address: Indicate full name and address of Payee for identification of payment. 2. Name and Address of Payee’s Bank and Account No.: Indicate full name and address of the Payee’s bank, which may include a banker/branch designation. Account number is important. Give SWIFT code if Payee’s bank is a member of SWIFT. 3. Correspondent Bank: Where payment is to be made to a bank not located in the country of the currency to be paid, indicate its full name and address. Provide SWIFT code if the bank is a member of SWIFT. 4. Special Payment Instructions: Indicate any particulars, special instructions or references to facilitate payment or identification of payment. 5. Name of Borrower: Fill in the name as it appears in the Loan Agreement. 6. Authorized Representative(s): Pass this application only to Authorized Representative(s) for signature. Verify if the list of Authorized representative(s) has been changed.

166 Appendix 9

ESTIMATE OF EXPENDITURES SHEET

ADB Loan No.: Application No.: Date:

Category No.: Estimate Sheet No.: a

Contract Contract Description of Goods Contract Estimated Amount Exchange Estimated Amount No. Date and Services Amount of Expenditures b Rate in US$ Equivalent

Total this page From previous page Total estimated expenditures Percentage of expenditures to be financed by ADB Amount eligible for ADB financing Account balance Amount request

Notes: a A separate Estimate of Expenditure Sheet should be used for each category. b Refer to terms of payment for each contract and indicate the amount needed in the currency of expenditure. The amount in this column should not exceed the corresponding amount in the column "Contract Amount."

Borrower: By: (Authorized Representative Name and Signature)

(Position / Title of Authorized Representative)

ADB Form No. ADB-IFP-EES Revised January 2007 Appendix 9 167

IMPREST ACCOUNT RECONCILIATION STATEMENT (IARS) LOAN/GRANT/NO.______

Application Number ______With (Bank) ______Account Number ______Bank Address ______

1 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE IMPREST ACCOUNT NOT YET RECOVERED US$ X,XXX,XXX.XX

2 BALANCE of Imprest account as of ______US$ XXX, XXX.XX per bank statement (copy attached)

3 ADD: Amount of eligible expenditures claimed in attached application (WA no.______) US$ XXX, XXX.XX

4 ADD: Amount claimed in previous applications not yet credited at date of bank statement US$ XXX, XXX.XX

Withdrawal Application No. Amount XXXXX US$ XXX, XXX.XX XXXXX US$ XXX, XXX.XX XXXXX US$ XXX, XXX.XX

5 TOTAL expenditures withdrawn from Imprest account but not yet claimed for replenishment

a. Second Generation Imprest Accounts (SGIA) 1

a.1 Total SGIA balance accounted for PIU#1 ______US$ XXX, XXX.XX a.2 Total SGIA balance accounted for PIU#2 ______US$ XXX, XXX.XX a.3 Total SGIA balance accounted for PIU#3 ______US$ XXX, XXX.XX a.4 Total SGIA balance accounted for PIU#4 ______US$ XXX, XXX.XX a.5 Total SGIA balance accounted for PIU#5 ______US$ XXX, XXX.XX

Total SGIA balances accounted for US$ XXX, XXX.XX

b. Transfer in transit US$ XXX, XXX.XX

c. Petty cash balance US$ XXX, XXX.XX

d. Unliquidated expenses (itemize expenses) US$ XXX, XXX.XX

e. Others (Please specify) US$ XXX, XXX.XX

US$ XXX, XXX.XX

6 TOTAL ADVANCE ACCOUNTED FOR US$ X,XXX,XXX.XX

Explanation of any discrepancy between totals appearing in lines 1 and 6 above (e.g., earned interest credited to the account, bank charges, etc.):

Authorized Representative

1 List all existing SGIAs with corresponding amount advanced. Attach latest Second Generation Imprest Account Reconcilation Statements (SGIARS) and bank statements. 168 Appendix 9

LIQUIDATION OF ADVANCE

Date ADB Loan No.

To: Asian Development Bank Application No. 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines

Attention: Loan Administration Division, Controller's Department (CTLA)

Attached are the Summary Sheets and the supporting documents (if any) for expenditures in the sum of:

Currency Amount (in figure) Amount (in words)

incurred under the Loan Agreement of the Asian Development Bank. Please liquidate against previous advance(s).

Description of Goods and Services: Category Description Amount

Total

Note : Separate Summary Sheet should be used for each category.

Name of Borrower Signature of Authorized Representative(s)

Printed Name/Position Title of Authorized Representative(s)

Appendix 9 169 FUNDS FLOW MECHANISM

The proposed flow of funds for the Project in both countries are illustrated below.

Figure A12.1: Flow of Funds – Lao People’s Democratic Republic

Asian Development Imprest Account Bank ` LNTA + MOF

PCU Project Account

Consultants and Contractors above $50,000 PIU Project Accounts (9 accounts)

Flow of Funding Request Forms Flow of Funds to Imprest Funding Request and Project Accounts Review/Endorsement

LNTA = Lao National Tourism Authority, MOF = Ministry of Finance, PCU = project coordinating unit, PIU = project implementation unit. Source: Asian Development Bank.

Figure A12.2: Flow of Funds – Viet Nam

Imprest Account Asian Development MCST + MOF Bank

PCU Project Account

Consultants and Contractors above $50,000 PIU Project Accounts (5 accounts)

Flow of funding Flow of Funds to Request forms Funding Request Imprest and Project Accounts Review/Endorsement

MCST = Ministry of Culture Sports and Tourism, MOF = Ministry of Finance, PCU = project coordinating unit, PIU = project implementation unit. Source: Asian Development Bank.

170 Appendix 10

ASIAN DEVELOPMENT BANK

Southeast Asia Department Social Sector Division

[Date]1 [The Borrower]

Dear Sir or Madam:

Subject: [Loan No. and Project Title] FINANCIAL REPORTING AND AUDITING REQUIREMENTS

This letter is to ensure your timely compliance with the loan covenants and the quality of financial information as required by ADB. ADB's Handbook for Borrowers on the Financial Governance and Management of Investment Projects Financed by the ADB (the Booklet) is enclosed to guide you.

ADB, by its Charter, is required to ensure that the proceeds of any loan made, guaranteed, or participated in by ADB are used for the purposes for which the loan was approved. ADB requires accurate and timely financial information from its borrowers to be assured that expenditure was for the purposes stated in the loan agreement.

For this particular loan, the requirements are stipulated in sections _____2 and _____3 of the Loan Agreement of ______between ADB and [the Borrower] and sections ______4 and _____5 of the Project Agreement6 of ______between ADB and [name of the EA].7 Copies of the Loan/Project Agreements are enclosed for onward transmission by your office to your EA and the auditor(s), together with a copy of this letter.

The following are the main requirements:

ADB requires the EA to maintain separate project accounts and records exclusively for the Project to ensure that the loan funds were used only for the objectives set out in the Loan or Project Agreements. The project accounts comprise the following:8 - - - The first set of project accounts to be submitted to ADB covers the fiscal year ending ______. As stipulated in the Loan or Project Agreements, they are to be submitted up to ______months after the end of the fiscal year. For this loan, the deadline is by ______. A sample report format with explanatory notes, is attached as Annex A.

The accounts and records for the project are to be consistently maintained by using sound accounting principles. Please stipulate that your external auditor is to express an opinion on whether the financial report has been prepared using international or local generally accepted accounting standards and whether they have been applied consistently.

ADB prefers project accounts to use international accounting standards prescribed by the International Accounting Standards Committee. Please advise your external auditor

Appendix 9 171

to comment on the impact of any deviations, by [name of the Executing Agency] from international accounting standards.

Please ensure that your external auditor specifies in the Auditor's Report the appropriate auditing standards they used, and direct them to expand the scope of the paragraph in the Auditor's Report by disclosing the key audit procedures followed. Your external auditor is also to state whether the same audit procedures were followed for all supplementary financial statements submitted.

ADB wishes that auditors conform to the international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, request that your external auditor to indicate in the Auditor's Report the extent of any differences and their impact on the audit.

The external auditor's opinion is also required on whether

the proceeds of the ADB's loan have been utilized only for the project as stated in the Loan Agreement; the financial information contains data specifically agreed upon between [name of the Borrower or EA] and ADB to be included in the financial statements; the financial information complies with relevant regulations and statutory requirements; and compliance has been met with all the financial covenants contained in the Loan or Project Agreements.

The Auditor's Report is to clearly state the reasons for any opinions that are qualified, adverse, or disclaimers.  Actions on deficiencies disclosed by the external auditor in its report are to be resolved by [name of Borrower or Executing Agency] within a reasonable time. The external auditor is to comment in the subsequent Auditor’s Report on the adequacy of the corrective measures taken by [name of Borrower or EA].

Compliance with these ADB requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor.

Yours sincerely,

Director Social Sectors cc: (EA) (External auditor of the Borrower or EA)

1 The audit letter, with the loan and project agreements, is sent to the borrower when the auditor has been appointed or when the agreements are sent by the program department to the Ministry of Finance or other authority of the borrower.

172 Appendix 10

2 Specify section no. in the loan agreement on maintaining project accounts and records. 3 Specify section no. in the loan agreement on the audit requirements. 4 Specify section no. in the project agreement on maintaining project accounts and records. 5 Specify section no. in the project agreement on the audit requirements. 6 If there is a project agreement. 7 When more than one project agreement, provide similar information. 8 Listed are standard accounts required from nonrevenue-earning entities. Try to identify specific titles of financial statements expected to be submitted by the Borrower and EAs. For revenue-earning entities, the submissions consist of the entities’ audited financial statements. For nonrevenue-earning entities, the submissions consist of audited project accounts.

Appendix 10 173

Model Audit Opinion for a Non-Revenue-Earning Project To: Borrower (or designated agency) We have audited the accompanying financial statements (pages ___ to___ ) of the ______Project financed under the Asian Development Bank Loan # ______as of December 31, 20__, and for the year then ended. These financial statements are the responsibility of the management of the ______EA. Our responsibility is to express an opinion on the accompanying statements based on our audit. We conducted our examination in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of misstatement. Our audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audit also includes assessing the accounting principles and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. The ____ (EA’s) policy is to prepare the accompanying statements in the format agreed between the Asian Development Bank and the Government of ______as noted in the Minutes of Negotiations for the Loan, [on a cash receipts and disbursements basis in which cash is recognized when received and expenses are recognized when paid, rather than when incurred] / [on an accruals basis in which expenses are recognized when incurred and revenue is reported when income is due.] In our opinion, (A) the aforementioned financial statements and appended notes that were also the subject of the audit, fairly present in all material respects the financial position of the ______project as at______20__and the results of its operations for the year ended ______20__, in conformity with ______accounting standards, applied on a basis consistent in all material respects with that of the previous year; (B) the [Borrower] [EA] has utilized all proceeds of the loan withdrawn from the Asian Development Bank only for purposes of the Project as agreed between the Asian Development Bank and [the Borrower] in accordance with the Loan Agreement; and no proceeds of the loan have been utilized for other purposes; and (C) the [Borrower] [EA] was in compliance as at the date of the balance sheet of the year of audit with all financial covenants of the Loan Agreement. In addition: (a) (1) With respect to Statements of Expenditures, adequate supporting documentation has been maintained to support claims to the Asian Development Bank for reimbursements of expenditures incurred; and (2) which expenditures are eligible for financing under Loan Agreement No.______. (b) (1) The Imprest Accounts (page____ ) give a true and fair view of the receipts collected and payments made during the year ending _____ ; and (2) these receipts and payments support Imprest Account liquidations/replenishments during the year.

[(a) and (b), above, are to be provided where the Loan Agreement requires separate Imprest Account and Statement of Expenditures audits and audit opinions.]

174 Appendix 11

REPORTING REQUIREMENTS

SAMPLE PROGRESS REPORT Pro Forma of the Executing Agency’s Project Progress Report

A. Introduction and Basic Data

Provide the following:

· ADB loan number, project title, borrower, executing agency(ies), implementing agency(ies); · total estimated project cost and financing plan; · status of project financing including availability of counterpart funds and cofinancing; · dates of approval, signing, and effectiveness of ADB loan; · original and revised (if applicable) ADB loan closing date and elapsed loan period based on original and revised (if applicable) loan closing dates; and · date of last ADB review mission.

B. Utilization of Funds (ADB Loan, Cofinancing, and Counterpart Funds)

Provide the following:

· cumulative contract awards financed by the ADB loan, cofinancing, and counterpart funds (commitment of funds to date), and comparison with time- bound projections (targets); · cumulative disbursements from the ADB loan, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets); and · reestimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely.

C. Project Purpose

Provide the following:

· status of project scope/implementation arrangements compared with those in the report and recommendation of the President (RRP), and whether major changes have occurred or will need to be made; · an assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements; · an assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and · other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives.

D. Implementation Progress

Provide the following:

Appendix 11 175

· assessment of project implementation arrangements such as establishment, staffing, and funding of the PMO or PIU;

· information relating to other aspects of the EA’s internal operations that may impact on the implementation arrangements or project progress;

· progress or achievements in implementation since the last progress report;

· assessment of the progress of each project component, such as, - recruitment of consultants and their performance; - procurement of goods and works (from preparation of detailed designs and bidding documents to contract awards); and - the performance of suppliers, manufacturers, and contractors for goods and works contracts;

· assessment of progress in implementing the overall project to date in comparison with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets, the reference framework or guidelines in calculating the project progress including examples are shown in Appendix 2); and

· an assessment of the validity of key assumptions and risks in achieving the quantifiable implementation targets.

E. Compliance with Covenants

Provide the following:

· the borrower's compliance with policy loan covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance; · the borrower’s and EA’s compliance with financial loan covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and · the borrower’s and EA’s compliance with project-specific loan covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems

Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

176 Appendix 11

Framework and Guidelines in Calculating Project Progress

A. Introduction

1. To ensure that all implementation activities are reflected in measuring implementation progress against the project implementation schedule, the term "physical completion” in the PPR has been changed to "project progress.”

2. Physical and precommencement activities are considered in calculating project implementation progress. These activities, which may include recruitment of consultants, capacity building, detailed design, preparation of bid and prequalification documents, etc., could constitute a significant proportion of overall implementation and therefore should be counted.

3. Each activity in the implementation schedule will be weighted according to its overall contribution (using time as a reference) to progress of project implementation. These weights will then be used to calculate the percentage of project progress along the entire time span of the project. This is to provide a holistic view of the pace of implementation.

B. Framework for Compiling Activity List and Assigning Weights

4. As implementation activities and their corresponding weights will vary according to the type of project, sector, and country, sector divisions or RMs will be responsible for determining and including them in the project administration memorandum. The actual project implementation progress of these activities should be reported regularly through the EA’s quarterly project progress report. To ensure ADB-wide consistency, the following framework has been established; its application will be monitored through the PPR.

1. Compilation of Activity List

5. Sector divisions or RMs concerned should identify major implementation activities and include them in the implementation schedule, which is attached as an appendix in the report and recommendation of the President (RRP). The implementation schedule should follow the critical path of the project’s major activities in project implementation taking account of various country, sector, and project constraints.

2. Assignment of Weights

6. Corresponding weights for each activity should be assigned to ensure that “project progress" measures the percentage of achievement (nonfinancial except when the project has credit components) for all events during the entire duration of the implementation schedule. To avoid disproportionate assignment of weights, to the extent possible these should be evenly distributed along the implementation schedule. When activities are concurrent, avoid “double counting.”

3. Computation of Project Progress

7. Once all activities are identified and corresponding weights assigned, project progress should be calculated using the following steps:

(i) Determine the actual percentage progress (nonfinancial) of each activity.

Appendix 11 177

(ii) Multiply these percentages by the assigned weight of each activity to arrive at the weighted progress. (iii) Add up the resulting weighted progress of all activities to determine the project progress.

Illustration of this calculation using a generic sample implementation schedule and a specific example in the education sector.

Appendix 11 178

Implementation Schedule with Activities and Weights 11 Appendix

Yr1 Yr2 Yr3 Yr4 Yr5

a B

b C d c D ef A C T I V I T I E S A

1. Sum of all weights should equal 100 percent (a+b+c+d+e+f+g = 100%) 2. When calculating the percentage of “project progress,” all completed activities should be counted as accomplished, regardless of when they were scheduled to be completed. For example, when calculating the percentage of “project progress” after year 3, if activity D is completed in year 3 rather than in year 2, it should still be included in the computation. 3. Total weight of each activity is as follows: Activity A–a; Activity B–b; Activity C–c; Activity D–d; and Activity E–e + f +g 4. Project progress of a project is the summation of the actual percentage of progress for each activity multiplied by the total weight of each activity.

Sample Implementation Schedule

(a) (b) (a) x (b) Activities Year 1 Year 2 Year 3 Year 4 Assigned Actual Weighted Weight Progress Progress Establish PIU 5% 100% 6% Establish Accreditation Board, etc. 5% 0% 0% Appoint Staff and Budget 4% 75% 3%

Adopt Architecture Plans 2% 100% 2%

Shortlist Consulting Firms 6% 100% 6% Prepare Fellowship Program 6% 76% 4% Prepare Civil Works Tendering 30% 0% 0% Civil Works: Classrooms, Dorms, etc. 6% 0% 0% Procurement of Furniture and Equipment 16% 10% 2% Field Work of Consultants 7% 0% 0% Provide Fellowships 6% 0% 0% Conduct Study Tours 6% 0% 0% Provide Curriculum Standards 6% 0% 0% Total Weight 100% Imp. Progress 24%

(a) Assigned weight for each activity (b) Actual progress of each activity (a) x (b) weighted progress for each activity Project progress = sum of all weighted progress for each activity

Appendix 11 Appendix 179

180 Appendix 12

PROJECTB PERFORMANCE MANAGEMENT SYSTEM (PPMS)

1. The Project Performance Management System (PPMS) activities are used to identify, record and analyze (monitor and evaluate) data and information to ensure that planned interventions will achieve their objectives, will be sustainable and result in positive impacts for beneficiaries. A PPMS will be established and implemented by the PCUs and PIU’s for the entire length of the Project. An international and national monitoring and evaluation specialist will assist the PCU and PIU’s in each country to establish the PPMS as early as possible during year 1 of project implementation.

2. In accordance with the PPMS Handbook of the ADB and Project objectives, the PPMS assists: (i) the Project in the development of pro-poor tourism, meaning tourism that delivers economic and social benefits to the poor, implementation, and operation and management of project interventions; (ii) the capacity building of national, provincial and local government agencies in planning and implementing development interventions and the provision of support services to participating communities; and (iii) the management of the Project in implementation and subsequent management, operations and maintenance of the Project interventions and reporting. The PPMS provides a tool to determine the efficiency and effectiveness, and cost of implementation approaches, as well as provide data, information and reports for management decisions to refine approaches to project implementation when needed. It involves stakeholders from the community/village, district, provincial and national levels. The Project will provide financial and technical support to government agencies involved in the implementation of the system and work to integrate aspects of the PPMS into regular monitoring protocols used by government agencies participating in the Project.

II. PROJECTB OUTCOME AND SCOPE

3. The PPMS takes into account the impact that the Project intends to contribute to implementing the GMS Tourism Sector Strategy (GMS-TSS) and to bring about a more environmentally and socially sustainable pattern of tourism development that is more inclusive and brings equitable livelihood opportunities for GMS citizens, especially ethnic groups, women and youth. It also recognizes that the Project is intended to develop models of pro-poor tourism, in natural and cultural areas and along economic corridors that can be replicated throughout the GMS. The Project will result in improved capacity of government tourism institutions, the private sector and of local communities to plan, construct, manage, operate, and maintain community- based pro-poor tourism subprojects and small-scale infrastructure, as well as enhance sustainable visitor capacities at urban, natural and cultural heritage sites of importance for tourism. It is expected that the Project will run for 5 years, commencing January 1, 2009.

III. PROJECTB POPULATION & BENEFICIARIES

4. The Project will be located Loa PDR and Viet Nam. In Lao PDR, project outputs will be delivered in 9 provinces (Bokeo, Champasak, Luang Namtha, Oudomxay, Sayabouli, Houaphanh, Vientiane, Salavanh and Savannakhet) and involve approximately 150 villages; and in 5 provinces (Cao Bang, Bac Kan, Quang Binh, Quang Tri and Thua Tien Hue) and involve approximately 80 villages in Viet Nam. The Project will focus mostly on poor rural communities for the pro-poor tourism development output, and benefit local communities and heritage managers in and around the Siphandone Wetlands, in the Vang Vieng urban area, and along the North-South and East-West Economic Corridor in Lao PDR, and at Phong Nga Khe Bang National Park, the Bac Kan Cultural Landscape, and along the East-West Economic

Appendix 12 181

Corridor in Viet Nam. The Project is targeting a total of 417,600 direct and indirect beneficiaries of which 186,500 are located in the 9 provinces of Lao PDR comprising 35,800 direct and 150,700 indirect beneficiaries, and 231,100 beneficiaries are located in the 5 provinces of Viet Nam comprising 26,500 direct and 204,600 indirect beneficiaries. In addition, the Project will benefit an estimated 2,000 trainers involved in vocational training for small and medium tourism enterprises and professional development training for public sector tourism officials, and benefit indirectly an estimated 55,000 small and medium tourism enterprise skilled staff, and 4,800 public sector tourism officials at the national, provincial and district levels. Direct beneficiaries are defined as those people, including men, women, youth and ethnic minority groups that benefit from the project, for example, by gaining employment and income from guiding, producing handicrafts, selling souvenirs, selling food, operating accommodation establishments, or working as boat or vehicle drivers. Direct beneficiaries are also those that receive skills and knowledge training because of the project. Indirect beneficiaries are defined as those who benefit from access to improved infrastructure built by the project, improved communication infrastructure induced by the project, new market opportunities to sell raw agricultural products that are processed into goods consumed by tourists, and an increase in extended family members access to health care and education because of higher household income gained from involvement in the tourism industry. A detailed estimate of direct and indirect beneficiaries by project outcomes is shown in table 1.

Table 1 Estimated Project Beneficiaries

Project area Poverty Direct Indirect Total Total Incidence Beneficiaries Beneficiaries Beneficiaries beneficiaries (%) 1 that are poor Output 1: Sustainable Tourism Development 19,300 42,500 61,800 0 - Siphandone Wetlands 7,500 37,500 45,000 - Vang Vieng Urban Environment Improvements 11,800 5,000 16,800 Output 2: Facilitation of Tourism on Economic Corridors 4000 40000 44000 0 - North-South Corridor 2000 20000 22,000 - East-West Corridor 2000 20000 22,000 Output 3: Pro-Poor Tourism Development 12,000 60,000 72,000 0 - Bokeo 2,000 10,000 12,000 - Oudomxay 2,000 10,000 12,000 - Houaphanh 2,000 10,000 12,000 - Sayabouli 2,000 10,000 12,000 - Vang Vieng 2,000 10,000 12,000 - Salavanh 2,000 10,000 12,000 Output 4: HRD Vocational and Professional development 500 8,200 8,700 0 - Voactional Training for Touriem SMEs 300 6700 7,000 - Professional Training for Public Sector Tourism Officials 200 1500 1,700 Total La PDR 35,800 150,700 186,500 0 Viet Nam: Output 1: Sustainable Tourism Development 7,500 55,000 62,500 21,335 - Bac Kan province 26.5 3,500 17,500 21,000 5,565 - Quang Binh province 38.0 4,000 37,500 41,500 15,770 Output 2: Facilitation of Tourism on Economic Corridors 2,500 25,000 27,500 7,590 - Quang Tri Province 27.6 2,500 25,000 27,500 7,590 Output 3: Pro-Poor Tourism Development 15,000 75,000 90,000 25,164 - Bac Kan province 26.5 3,000 15,000 18,000 4,770 - Cao Bang province 20.3 3,000 15,000 18,000 3,654 - Hue province 27.4 3,000 15,000 18,000 4,932 - Quang Binh province 38.0 3,000 15,000 18,000 6,840 - Quang Tri province 27.6 3,000 15,000 18,000 4,968 Output 4: HRD Vocational and Professional development 1500 49600 51100 0 - Voactional Training for Touriem SMEs 900 47100 48,000 - Professional Training for Public Sector Tourism Officials 600 2500 3,100 Total Viet Nam 26,500 204,600 231,100 54,089 Total for Project 62,300 355,300 417,600 54,089 1. Based on various data sources, filed observationa and site surveysin Lao PDR and Viet Nam

182 Appendix 12

IV. STAKEHOLDERSB

5. In the design of the PPMS all concerned national stakeholders will be included. These are:

1. National Level

a. Lao PDR:

i. The Executing Agency (EA) is the Lao National Tourism Administration (LNTA) ii. The Project Coordination Unit is located in the LNTA’s Department of Planning and Cooperation iii. A national steering committee has been set up with the Director General level representatives of the LNTA, the Ministry of Finance, and the Ministry of Planning

b. Viet Nam:

i. The Executing Agency (EA) is the Ministry of Tourism, Culture and Sports (MTCS) ii. The Project Coordination Unit (PCU) is in the MTCS iii. A national steering committee has been set up with the Director General level representatives of MTCS, the Ministry of Finance, the Ministry of Planning and Investment and the Ministry of Environment and Natural Resources

2. Provincial Level

a. Loa PDR:

6. A provincial level inter-agency coordination committee (PICC) representing concerned agencies covering where appropriate natural and cultural heritage site management, urban environment management, public works and construction, road transportation, environmental managers, and concerned district authorities will be established to ensure that all the interests and concerns of the related agencies are reflected in the project outcome.

7. In each province, a Provincial Implementation Unit has been set up within the Provincial Tourism Department.

8. Each PIU include technical staff based at provincial level that will support district and village level project implementation partners and beneficiaries and coordinate with the PICC and Local Community Panel (LCP).

b. Viet Nam:

9. In each province, a Provincial Implementation Unit (PIU) has been set up within the Provincial Tourism Department or Provincial Department of Tourism and Trade.

10. A provincial level inter-agency coordination committee (PICC) representing concerned agencies covering, where appropriate, natural and cultural heritage site management, urban environment management, ethnic minority affairs, youth, women, public works and construction, road transportation, environmental managers, and concerned district authorities will be established to ensure that all the interests and concerns of the related agencies are reflected in

Appendix 12 183 the project outcome.

11. Each PIU includes technical staff based at the provincial level that will support district and village level project implementation partners and beneficiaries and coordinate with the PICC and Local Community Panel (LCP).

3. Village level

12. Local Community Panel (LCP) representing stake holders in the local community including village-level mass orginizations such as the Youth Union, Women’s Union and and traditional leadership.

V. EXISTINGB MONITORING SYSTEMS

1. Tourism Statistics

13. The present extent of tourism-related data collection at the national level concerns the collection of data on annual visitor arrivals, number of hotel and guesthouses, number of rooms and occupancy rates. Information is also collected on the number of restaurants and entertainment establishments, tour operators, tourist spending and foreign exchange receipts generated by tourism nationally and compiled into Annual Statistical Reports on Tourism. Only some of this data is disaggregated by province in Lao PDR and data on employment in the tourism industry, number of communities or community beneficiaries from tourism and the environmental and social effects of tourism is not systematically collected or measured. At the provincial level in Viet Nam, annual statistics yearbooks contain a chapter with detailed data on number of hotels, restaurants, tourism receipts, arrivals and arrival forecasts. Data on number of communities or community beneficiaries from tourism and the environmental and social effects of tourism is not systematically collected or measured.

14. Information on the participation of women, ethnic minorities and the poor in the tourism industry is not part of the national tourism surveillance system, mainly because of a lack of capacity on the part of public management authorities to collect and report this data. This problem is exacerbated by a lack of a simple, easy to implement standardized monitoring system.

15. One of the major problems in implementing a national monitoring system to accurately measure the economic, social and environmental benefits that tourism can produce is that there is a lack of financial resources and capacity to collect, process, and analyze information. These tasks are considered to be a burden, and are usually done only if a Project provides the necessary financial and technical support. The sustainability of such a process is linked to the ability of tourism to generate public revenues that can be used to implement monitoring protocols once project resources are finished.

16. Several projects in the GMS region have developed pilot pro-poor tourism monitoring systems including the UNESCO-LNTA Nam Ha Ecotourism Project 16 and the ADB Financed 17 Mekong Tourism Development Project F . While these have provided rich lessons in how to monitor pro-poor tourism interventions there is still a lack of standardization in monitoring approaches and a lack of capacity to carry them out at the national, provincial, district and

16 UNESCO LNTA Nam Ha Ecotourism Project, 1999 – 2008 17 Mekong Tourism Development Project, 2003 - 2008

184 Appendix 12 village level.

VI. PPMSB APPROACH

17. The conceptual approach of the PPMS is to design a system that is integrated, participative and as easy as possible to implement. Ideally, the methodology will build on existing procedures, consider lessons learned in the GMS, and test the application of the system throughout the project area before making adjustments and scaling-up aspects of the system to the national level.

18. The PPMS will incorporate: (i) stakeholder consultation from the national, provincial, district and village level to develop and implement the system; (iii) assessment techniques at the village level to compliment secondary data sources; (iv) the organizational structure of the Project and institutional capabilities of the EA; (v) the need to establish indicators, data sources, data processing and report production responsibilities for PIU’s under each project output; (vii) ways to measure evidence to establish causality between project inputs and project outputs as well as evidence of the overall impact of the project; (viii) a methodology for data collection, processing, analysis and reporting (information dissemination) at national, provincial, district and village level; (ix) determine PPMS resource requirements (staff, equipment, costs); and (x) a simple but effective approach.

19. At each level, consideration will need to be given to what level of managerial and technical support will be required to provide sufficient backing to the project teams that will work directly with government agencies and participating communities. The EA’s existing institutional capacity to implement the PPMS, including available management information systems (MIS) to track selected indicators, will be reviewed and expanded where necessary.

20. The PPMS will be established with the assistance of international and national consultants, PCU and PIU staff and will be implemented in collaboration with government staff from tourism, cultural and natural heritage, and town planning authorities. Information on broad tourism trends will be collected at the national level by the PCU, and provincial information and information specific to project interventions will be collected by PIU’s. Data will be collected annually from the public and private sector and communities on, for example, visitor arrivals, tourism revenue, the distribution of tourism revenues, employment in tourism or tourism-related jobs, participation of women, youth and ethnic groups in tourism, the environmental and social effects of tourism and local people’s satisfaction with the way tourism is organized in their communities. Data will be collected, compiled and analyzed at the PIU level and passed on to the PCU for compilation into unified reports and for dissemination of these reports back to the PIU’s, the National Project Steering Committee and in international meetings such as GMS Tourism Working Group Meetings and the project’s bi-annual Subregional Project Steering Committee Meeting. The PIU will publicize the contents of these reports at the provincial, district and community level, and utilize the data for decision making regarding the formulation of biannual action plans of the project and the implementation of management actions.

VII. PROJECTB PERFORMANCE MANAGEMENT SYSTEM (PPMS)

21. The PPMS will operate throughout the life of the Project, until the impact evaluation stage at the end of the Project.

22. The PPMS defines indicators and reporting systems to enable the Government, ADB, and all stakeholders to evaluate the progress and impact of each outcome, and the Project as a

Appendix 12 185 whole. To implement the PPMS, financial resources amounting to US$ 170,000 or US$ 10,000 per pro-poor (11), natural heritage (2), cultural heritage (1), urban environment (1) and

186 Appendix 12 economic corridor (2) interventions over a period of 5 years has been allocated under the Project. This figure does not include consulting services or regular salaries of PCUs and PIUs staff that will be paid for by the government and through other project mechanisms. Monitoring will include, for example: i. Outputs: Number of people trained, number of infrastructures built, number of pieces of promotional materials produced, number of master plans produced, type and number of manuals produced ii. Outcomes: Increases in income, increased equitable participation by women, ethnic groups and youth, reduction in adverse environmental conditions, increased visitation, increased spending by tourists, increased length of stay by tourists, iii. Impact: Tourism receipts and arrivals in the GMS increase, jobs are created in the tourism sector, better management models of environmentally and socially sustainable tourism are development are adopted that create equitable livelihood opportunities for GMS citizens, especially ethnic groups, women and youth.

Examples of numeric targets and performance indicators for Project impacts, outcomes and outputs are summarized in table 2 on pages 14 and 15 of this appendix.

G. Project Impacts and Outcome

23. The GMS: Sustainable Tourism Development Project (the Project) will contribute to the implementation of the GMS Tourism Sector Strategy (GMS-TSS) and the provision of equitable livelihood opportunities for GMS citizens. The Project outcome will be the development of a sustainable, culturally and environmentally sound pro-poor tourism approach for the GMS.

H. Project Outputs 24. Output 1: Model sustainable tourism development projects protecting the environment and cultural heritage developed: Tourism development can be used as a tool in protecting important natural sites and improving environmental conditions of key urban tourism centers to increase overall sustainability and improve their competitiveness as destinations. The subprojects being proposed to deliver this output in each country are described below.

In Lao PDR, Output 1 includes two output models: 25. Biodiversity at the Siphandone Wetland is conserved and protected through tourism development: The Siphandone Wetland is located in the southern part of Champasak province, and is part of the Tri-border Biodiversity Corridor that straddles Lao PDR, Cambodia, and Thailand. The Wetland contains about four thousand islands, with the largest and most visited among them being Don Kong, Don Det and Don Kone. It is home to more than 72,000 people. Poor communities living in and adjacent to the Wetland depend on it for food security and harvesting of natural resources for earning income. Over the years, growing populations and high prices for fish is increasing fishing and hunting activities in the Wetland and threatening Siphandone’s biodiversity. Under Output 1, this model will provide alternative income opportunities for the local population through the development of sustainable tourism activities.

26. The model will include: (i) a preparation of a heritage-based tourism zoning plan and tourism structure and management plan for the wetlands area; (ii) upgrading of a 4 km access road that connects Route 13 to the boat landing at Nakasang Village; (iii) improvements to the existing pathways on Don Det and Don Kone Islands; (iv) environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste

Appendix 12 187 management at the market and in the village; (v) construction of a visitor information and interpretation facilities on the Nakasang Village side of the Wetlands; (vi) construction of fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands; (vii) capacity development and livelihood support programs for local communities, especially women, youth and ethnic groups, to become site managers that engage local communities in managing and interpreting the natural heritage values of the wetland; (viii) implementation of a gender and ethnic groups development program; (ix) a public awareness program for wetland conservation and protection, HIV and AIDS, and other tourism-related awareness activities; and (x) monitoring and evaluation program.

27. Environmental conditions are improved in Vang Vieng town: Vang Vieng Town functions as both a tourist center and as a tourist service point half way between Vientiane City and Luang Prabang. Tourism volumes are growing annually at 15% to 20%, and are expected to surpass 100,000 by 2008. The 72 lodging establishments (with over 1,000 rooms) and 90 restaurants are unable to accommodate the growing number of tourists, with additional establishments planned in the 2008. The pressures of tourism development on the environment are evident by the volume of grey water discharged directly into the drainage system and into the river. While black waste water is treated by septic tanks, grey water from kitchens, laundries and commercial activities (e.g., cleaning) and heavily silted storm water runoff needs to be treated. Under Output 1, this model will improve the environmental conditions of Vang Vieng town, contribute to the reduction in downstream river pollution, and protect the water quality of the river for local use and tourism activities.

28. The model will include: (i) a preparation of a tourism master plan for the district, with special emphasis placed on zoning its urban core: (ii) expansion and improvement of the existing drainage system in the core area of Vang Vieng town; (iii) upgrading of selected roads in the core area to ensure storm water drains to side entry pits; (iv) an additional bio-filter to remove a significant percentage of contaminants (e.g., hydrocarbons and sediments); (v) a second truck for solid waste collection; (vi) a survey of existing connections, preparation and implementation of plans to increase property drainage connections to the new public drainage system; (vii) an awareness program for proper waste management practices, HIV and AIDS, and other tourism-related awareness activities; (viii) capacity strengthen of the Urban Development Administration Authority; and (ix) monitoring and evaluation program.

In Viet Nam, Output 1 includes also two output models: 29. 1.A Biodiversity at Phong Nha Ke Bang Protected National Park is conserved and protected through tourism development: Phong Nha Ke Bang National Park is a UNESCO 1 Natural World Heritage Site F located in Quang Binh Province—approximately 500 km south of Hanoi. Covering an area of 85,754 hectares of rugged limestone mountains, the National Park straddles the Ho Chi Minh Trail and neighbors the Hin Nam No National Protected Area in Lao PDR. More than 75,000 people live in the surrounding communities around the National Park and about 2,100 people reside in the remote villages within the Park. Since becoming a natural protected area, loss of access to the forest and non-timber forest products has affected the survival of the people in communities in and around the Park, which continues to threaten the biodiversity of the National Park. Phong Nha Ke Bang is confronted with the following major challenges: (i) lack of local participation in the management and servicing of the national park, (ii) unsustainable development of tourist facilities in the park’s administration area, and (iii) unsustainable consumption of park biodiversity resources by residents residing in the Park and

188 Appendix 12 in the surrounding areas to meet food and income security.

30. The subproject addresses these challenges by developing a model for tourism development in natural protected areas in the GMS. The subproject includes: (i) formulation and implementation of a thematic tourism interpretation plan for the park within the overall framework of the Park’s management plan; 2 (ii) preparation and implementation of a program to improve access to tourist sites and develop tourism-related interpretative and protective infrastructure, including improvements to the Phong Nga and Tien Son (Fairy) caves and development of the proposed Phong Nha Ke Bang Nature Circuit (see Appendix G, Detailed Project Description); (iii) improvements to existing solid waste disposal and management procedures; (iv) preparation and implementation of a marketing and promotion plan, including marketing and promotional materials; (v) development and implementation of training programs for local people in the development, operation and maintenance of tourist attractions and community-based tourism ventures; (vi) implementation of a gender and ethnic groups development program; (vii) development of a database and GIS system on cultural practices and indigenous knowledge of the area; (viii) a public awareness program for biodiversity conservation and protection, proper solid waste management, HIV and AIDS, and other tourism-related awareness activities; (ix) a manual to guide the preparation and implementation of future GMS tourism subprojects aimed at protecting important natural sites in already designated protected areas; and (x) monitoring and evaluation program.

31. 1.B Cultural heritage in Bac Kan is conserved and protected through tourism development: Located in the northern highlands of Viet Nam along Road No. 3, Bac Kan province is about 120 km north of Hanoi and is bordered by Cao Bang, Tuyen Quang, Thai Nguyen and Lang Son provinces. Only 5% of the 4,794 km2 land area is used for agriculture while the remaining 95% is still forested. About 85% of the residents in Bac Kan depend on agriculture for subsistence and 3 livelihood, and total income per capita was less than $100 in 2002 (or about 265 kg of rice). F Around 300,000 people from 10 different ethnic groups live in the 7 districts and 122 communes of Bac Kan. Close to 87% are ethnic minorities from the Tay, Dao, Nung, H’mong, Hoa and San Chay ethnic minority groups. Bac Kan is known for its rich ethnic traditions and natural and biodiversity landscapes such as the Ba Be Lake, Ba Be National Park and Nang Tien cave. In 2007, 100,305 tourists visited Bac Kan, of which 6% were international tourists. Since 2000, overall tourism volumes to the province have increased at 22.67% per annum with international tourism growing at 13.8 % per annum. As ethnic minorities experience a rapid shift to market- based economies and urbanization, there is a risk of cultural heritage loss and, especially language and oral traditions, indigenous knowledge, music, rituals, belief systems and cultural industries. Modernity, materialism and consumerism brought about by rapid growth in the region could also contribute to the erosion of ethnic identity in these communities.

32. The subproject aims to support the people of Bac Kan to conserve, protect and showcase their rich ethnic traditions in a way that is both attractive to tourists and does not compromise their underlying heritage values or authenticity. Construction of a heritage interpretation and visitor information center in Bac Kan capital will celebrate the ethnic culture and traditions in a way that is not exploitative but attractive to tourists curious to know more about ethnic minorities in the northern mountainous region. Strong partnerships with the Museum of Ethnography in Hanoi and other centers across Viet Nam (e.g., Muong Ethnic Minority Cultural Space in Hoa Binh province) will be required to support the establishment of

2 The management plan will be developed by park authorities with the support from GTZ, starting in 2008. 3 ADB. 2004. Integrated Water Resources Management: Practical Experiences and Successful Lessons in Bac Kan Province, Viet Nam. Manila.

Appendix 12 189 the center in Bac Kan. Subproject activities include: (i) programs for institutional strengthening and capacity building of local tourism and cultural heritage managers at the provincial and district level; (ii) preparation of cultural mapping, creation of a GIS system, and development of an ethnographic database for the province; (iii) review and revision of the tourism master plan for Bac Kan Province; (iv) construction of the Bac Kan Heritage Interpretation and Visitor Information Center; (v) development of tourist destinations and products in selected villages around Bac Kan for visitors and residents; (vi) development and delivery of training programs for local residents at the new Center to help revitalize cultural industries; (vii) delivery of a capacity development program for local communities in tourism-related livelihood development and cultural heritage management; (viii) preparation and implementation of a private sector investment program for cultural heritage tour operation and potential eco-lodges; (ix) preparation and implementation of a marketing program to promote sustainable tourism and cultural industry products of Bac Kan; (x) implementation of a gender and ethnic groups development program; (xi) a public awareness program for respecting cultural heritage, trafficking of wildlife and antiquities, HIV and AIDS, and other tourism-related awareness activities; (xii) manual to guide the preparation and implementation of future GMS tourism subprojects aimed at protecting important cultural heritage sites; and (xii) a monitoring and evaluation program.

33. Output 2: Pro-poor community-based and supply-chain tourism projects operational: Pro-poor tourism development includes traditional community-based tourism development approaches combined with new supply-chain initiatives. Output 2 will result in a number of subprojects in 6 provinces in Loa PDR and 5 provinces in Viet Nam to demonstrate ways in which to involve and benefit more poor communities in the tourism economy; thereby, promoting inclusive growth. Output 2 will aim at protecting ethnic cultures and minimizing adverse impacts of tourism especially on vulnerable groups such as women, youth and the elderly. A sectoral approach has been adopted for this output, based on a demonstration model created for Aloui District, Thua Tien Hue Province, with selection of other sites in the designated provinces of Loa PDR and Viet Nam to be done during project implementation (see Appendix 1 for selection criteria).

34. The pro-poor tourism subprojects will address the problems identified by expanding the traditional pro-poor community-based tourism approach where individual or clusters of tour programs are developed and operated by communities, to a more inclusive subproject that will link the production of agricultural goods and handicrafts by poor communities into the national tourism economy. The benefits of growth in the major tourism centers of Vientiane, Luang Prabang and Pakse in Lao PDR; and Hanoi, Hue and Da Nang in Viet Nam have not been distributed widely outside of the main urban and resort-based tourist enclaves, and weak linkages to provincial economies and inability to develop and market tour programs have prevented poor communities in surrounding districts from seizing growth opportunities due to increased tourism and economic activity in the main cities.

35. Subprojects will be developed in the provinces of Bokeo, Houaphanh, Saravanh, Oudomxay and Sayabouli, and in Vang Vieng District (Vientiane Province) in Lao PDR; and Thua Tien Hue, Quang Binh, Quang Tri, Bac Kan and Cao Bang in Virt Nam. These provinces have been selected to provide synergies between project output 2 and other project outputs, and to minimize project administration costs during implementation. In Lao PDR, Bokeo province is one of two provinces that is host to the North-South Economic Corridor while Saravanh Province is host to the East-West Economic Corridor. In Viet Nam, Quang Tri province borders Lao PDR and is host to the East West Economic Corridor. Quang Binh Province includes Phona Nha Ke Bang where there is tremendous potential for community- based and supply-chain tourism development. Bac Kan and Cao Bang provinces are grouped

190 Appendix 12 together as a single tourist destination by MCST and a number of tour operators. Project activities under the pro-poor tourism subcomponent include. (i) development of community- based tourism tour products ad services; (ii) a public awareness program for tourism-related activities; (iii) identification and development of tourism-related supply chain opportunities; (iv) capacity development of tourism-related micro-enterprises and communities; (v) design and implementation of small-scale tourism-related infrastructure (e.g., visitor information center); (vi) preparation and implementation of a gender and ethnic groups development program; (vii) preparation and implementation of a marketing and promotion program; (viii) promotion of community-based tourism networks and tourism stakeholder associations; (ix) a manual to guide the preparation and implementation of pro-poor tourism initiatives in the GMS (to be coordinated with Lao PDR); and (x) monitoring and evaluation program.

36. Output 3: GMS tourism corridors developed: The potential for tourism development along the GMS Economic Corridors, in particular the North-South Economic Corridor (NSEC) and East-West Economic Corridors (EWEC), has remained untapped, as past road projects have been linear in design—construction from point A to point B. As roads are completed and transportation becomes easier, faster and more efficient, cross border movement of goods and people are likely to increase. To capture economic benefits from tourism, there is a need to create markets to sell locally produced goods, install scenic viewpoints or information and visitor centers at border crossings and develop tourist attractions along the routes. While sustainable tourism development along these corridors can bring economic opportunities to ethnic groups and local communities, it also increases their risks and vulnerabilities to external influences—all of which may not be positive (e.g., HIV and AIDS and human trafficking). Harnessing tourism’s economic potential along the GMS corridors requires a joint approach by the GMS countries that, once implemented, will successfully transform GMS economic corridors into GMS sustainable tourism corridors. Output 3, with support from the Mekong Tourism Coordination Office in Bangkok Thailand, will develop this common subregional approach aimed at creating a common marketing plan and a tourism circuit along the economic corridors. The output includes demonstration subprojects in Loa ODR and Viet Nam that will develop attractions at strategic locations along the NSEC that links Yunnan Province in the PRC with Southeast Myanmar and Northeast Thailand, and the EWEC that links Viet Nam to Lao PDR and northeast Thailand. 4 The output will also include activities that will help manage the negative risks and vulnerabilities associated with greater movement of people and tourists across borders. A sectoral approach has been adopted for this output, with the final selection of sites to be done during project implementation (see Appendix 1 for selection criteria).

37. In Lao PDR, a number of potential tourism sites can be found in Namtha and Vieng Phoukha Districts (Luang Namtha province) as well as in Bokeo province along the NSEC portion in the country, as well as in Salavan Province on the EWEC. While the specific sites have not been selected, the Government has nominated a number of potential locations for consideration during project implementation on the NSEC, including: (i) an interpretation center and concession area in the Nam Ha National Protected Area at Chalensouk Village; (ii) a picnic area near the Nam Eng Cave; (iii) an interpretative trail at Vat Mahaphot and Associated Ancient Historic Sites; (iv) an interpretative trail at Bor Kung Nature Park; (v) a scenic viewpoint at Nam Phae Village; and (vi) a visitor center at the southern end of the corridor in Lao PDR in Bokeo. These potential sites, including others along the NSEC and EWEC will be evaluated against the selection criteria in Appendix 1. In Viet Nam, a number of potential tourism sites can be found in Quang Tri province that links Dong Ha City to Lao Bao in Viet Nam to Dansavanh and

4 Travers, Robert. 2007. Tourism on Road 9 in Lao PDR and Viet Nam: Identifying Opportunities for the Poor. A Value Chain Appraisal. SNV Netherlands Development Organization, December 2007.

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Savannakhet in Lao PDR along the EWEC. The EWEC was selected as it transverses both Viet Nam and Lao PDR; thereby, providing opportunities for enhanced regional cooperation in the development of a tourism corridor. For instance, the output will support the development and installation of the thematic signage and roadside rest areas along the EWEC. In cooperation with Lao PDR, Thailand and Myanmar, Viet Nam may lead the development of a common signage system along the EWEC to promote sites of interests. While the specific sites have not been selected, the Government has nominated a number of key tourism locations along or adjacent to EWEC (see Appendix G, Detailed Project Description for the proposed sites).

38. Activities under this output include: (i) preparation of a tourism development and management plans for individual sites and the corridor as a whole; (ii) design and construction of infrastructure including access roads, parking lots, ticket booths, information centers, walking trails, markets, interpretation and sanitary facilities; (iii) community preparation and delivery of livelihood support programs; (iv) tourism management training for site managers and local tour- guide training program; (v) development and implementation of a marketing and promotion program; (vi) implementation a gender and ethnic groups development program; (vii) a public awareness program for HIV and AIDS, human trafficking and drug abuse and other tourism- related awareness activities; (vii) a manual on procedures and practices for transforming the GMS economic corridors into GMS sustainable tourism corridors through a common subregional approach (in cooperation with Lao PDR; and (viii) monitoring and evaluation program.

39. Output 4: Human resources in the tourism sector developed: Output 4 will create a pool of master trainers to meet training needs in the area of (i) small-scale tourism and hospitality operation, and (ii) public sector tourism management. A training institution for each subproject will be selected through competitive bidding, and will receive support to improve its training facilities as the central training institute. About 160 master trainers (65 in Lao PDR and 95 in Viet Nam) will receive a training scholarship over a period of five years for both training courses. Award of scholarships will be based on a set of selection criteria that will be developed during implementation. A percentage of the total number of trainers will be selected to further train trainers in Viet Nam. These trainers will then train operators and staff in small-scale hospitality enterprises, and public sector officials responsible for tourism management at the national, provincial and local levels. This output will include two demonstration subprojects:

1. A pool of master trainers in small-scale tourism and hospitality is created 40. The need to have quality service standards in small hotels, guest houses and other stand alone lodging accommodations as well as in restaurants and other tourist-oriented establishments such as souvenir shops located in the main tourism centers is regarded as critical to the competitiveness of more remote provinces and tourist centers where the poor are often located. Tourist-oriented establishments in the tourist priority zones have high tourism potential with many poor people. Output 4 will include a subproject for providing human resource development opportunities for small-scale tourism and hospitality operators. 41. This subproject includes: (i) review of the existing training needs assessment (TNA) for staff in small-scale hospitality establishments in Loa PDR and Viet Nam; (ii) revision or development of service standards for SME tourism and hospitality enterprises, and related training standards based upon ASEAN and other existing models; (iii) development of a gender and ethnic sensitive and inclusive training manuals in (a) Food and Beverage Service, (b) Cookery, (d) Housekeeping, (e) Bartending, and (f) Front Office Reception; (g) Security and Safety following international (or ASEAN) competency standards; (iv) teacher training kits or manuals; (v)

192 Appendix 12 production of CD ROMs and web-based training materials; (vi) development and maintenance of a web-based “Knowledge Center” which will be accessible to others, including other GMS countries; (vii) translation of training manuals in the Lao and Vietnamese languages and other ethnic languages, as appropriate; (viii) training of 150 master trainers, of which 100 will receive a scholarship, and 400 training of trainers; (ix) support for minor improvements to the winning institution that will undertake cascade training for industry trainers; and (xi) monitoring and evaluation program. 2. A pool of master trainers for the training of public sector tourism officials is created 42. The GMS Tourism Sector Strategy 2006-2010 recorded a need for capacity development/training of middle-level public officials from the tourism authorities at the provincial and tourism site levels, including other government agencies working in the tourism sector. However, the sector lacks standardized training material, the capacity for trainers to train public sector officials, and suitable training venues to undertake such trainings. Under Output 4, an additional subproject for human resource development will be prepared to demonstrate ways of addressing these challenges and filling these gaps. 43. The subproject includes: (i) review of the existing TNA in Loa PDR and Viet Nam on public sector tourism officials; (ii) revision or development of customized training programs based on the review of the TNA; (iii) development of teacher training materials and case studies; (iv) creating of reading materials on best practices and lessons learned; (v) development of teacher training kits or manuals; (vi) production of CD ROMs and other digitized interactive training materials; (vii) translation of teaching materials into the Loa and Vietnamese languages and other ethnic languages; (viii) development and maintenance of a web-based “Knowledge Center” which will be accessible others, including other GMS countries; (ix) training of 90 master trainers (30 in Lao PDR and 60 in Virt Nam), of which 60 (15 in Lao PDR and 45 in Viet Nam) will receive scholarships, and 800 trained officials in the tourism or tourism-related industry (400 each in both countries); and (x) monitoring and evaluation program. 44. Output 5: Efficient project implmentation services are operational. The project coordination units (PCU) will be located at the offices of the Lao National Tourism Administration, and in Viet Nam, at the offices of the MCST, with a project field office in Hue province with the Project Manager, consultant team and administrative support staff. The Hue field office will be will hosted by the Department of Tourism in Thua Tien Hue. Project implementation units (PIUs) will be established in each of the participating provinces in both countries and will be fully staffed to operate efficiently. This output includes: (i) international and national consulting services with specializations in tourism sector development, heritage preservation and development, financial accounting, social and gender development, resettlement, environment, civil engineering and supervision, project performance management system development, ecotourism, supply chain development and human resource development; (ii) support for overall project implementation and coordination; (iii) capacity development for the PCU located at the national tourism organizations of both countries, as well as the project field office in Hue, and PIUs; (iv) external monitoring for resettlement; (v) project auditing; and (vii) intermittent monitoring and evaluation of the overall Project by an independent consultant or institution. I. Project design and monitoring framework

45. The design and monitoring framework is in Page iii. The system will be designed to monitor and evaluate the project outcome, outputs and the main activities under each of the 5 outputs.

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J.B Key Performance Indicators

46. Examples of key performance indicators to assess the effectiveness of the Project in achieving outputs 1 – 5 are summarized in table 2. These indicators will be reviewed and refined as part of the establishment of the PPMS during the early stages of the Project.

Table 2: Examples of Key Performance Indicators (Cumulative 2009-2016) # Key Performance Indicators Lao PDR Viet Nam GMS A. Impacts in the GMS by 2016 1 Additional receipts per annum from international tourism to GMS ($ millions) 389 7,328 32,000 2 Additional international arrivals to the GMS 3.6 million 9.8 million 52 millon 3 Additional jobs created directly in the tourism sector of the GMS 53,000 2.255 million 1,200,000 Number of World Heritage Sites in the GMS that are well managed and re-investing into the 4 10 conservation and protection of the site by applying models developed by the project B. Project Outcomes by 2013 At least 60,000 people benefit directly from tourism by receiving 35,000/30% 25,000/30% 1 employment, income and training. 30% of direct beneficiaries are women women women At least 300,000 people benefit indirectly from tourism development 100,000/40% 200,000/40% 2 through improved infrastructure and market access opportunities. 40% women women of indirect beneficiaries are women 3 International tourist arrivals increases by 30% compared to 2008 levels Y Y 4 Tourist’s average daily expenditure increases by 20% Y Y International tourist’s average length of stay is increased by 1 day at 5 Y Y each Project site Output 1. Model sustainable tourism development projects protecting the environment and C. cultural heritage developed 1 Number of protection and access infrastructure sets installed, operated and maintained 4 4 - 2 Number of site managers and operators trained in sustainable tourism 500 1,000 - 3 Number of model tourism or interpretation plans for natural, cultural and urban tourism areas 4 5 - 4 Number of model tour-circuits - 2 - 5 Number of positive press articles or mass media productions on the sites 10 10 - 6 Number of manuals on sustainable culture and nature tourism development 3 2 - D. Output 2. Pro-poor community-based and supply chains tourism projects operational 1 Number of community-based tours developed 6 5 - 2 Number of training programs developed 18 10 - 3 Number of pro-poor service suppliers established and employing women and ethnic groups 9 5 - 4 Number of inbound tour services suppliers employing women and ethnic groups established 18 10 - 5 Number of pro-poor tourism complexes constructed and operating 9 5 - 6 Number of provincial gender tourism strategies prepared 9 5 - 7 Number of provincial ethnic minority participation programs prepared 9 5 - 8 Number of different types of guide books, brochures and websites produced 27 15 - 9 Number of trade fairs staged per annum 1 1 - 10 Number of monitoring reports produced and disseminated 9 5 - 11 Number of Manuals on CBT and value chains produced 1 1 - E. Output 3. GMS tourism corridors developed 1 Number of different attraction sites developed in the Corridors 7 5 - 2 Number of Corridor-based community-tourism management plans prepared 2 1 - 3 Number of different types of guide books, brochures and websites produced 21 15 -

194 Appendix 12

# Key Performance Indicators Lao PDR Viet Nam GMS 4 Number of Corridor monitoring reports produced and disseminated 2 5 - 5 Number of Corridor-based Manuals on CBT and value chains produced 1 1 - F. Output 4. Human resources in the tourism sector developed 1 Number of public sector tourism officials trained 2,000 2,000 - 2 Number of train the trainer courses undertaken 50 50 - 3 Number of data collection systems in place (provinces) 17 64 - G. Output 5. Efficient project implementation services are operational 1 Regional, national and provincial steering committee and PCU in operation 1 each 1 each - 2 PIU’s established and operational 10 5 - 3 Consulting services mobilized as planned Y Y - 4 Annual Audits carried out 5 5 - 5 Bi-annual reviews 10 10 - H. Sustainability 1 Adequate Government support pro-poor community-based tourism initiatives (Y/N) y y - 2 Community institutions manage the pro-poor community-based tourism developments (Y/N) y y - 3 Revenue from CBT developments is sufficient for O&M 1 and long-term monitoring (Y/N) y y - 4 Private sector organizations cooperate as partners with local communities (Y/N) y y - 5 Public revenues sufficient to cover incremental O&M costs of new tourism infrastructure (Y/N) y y - 6 Local community panels formed with voice in tourism development in their communities (Y/N) y y - 1. O&M = Operations and Maintenance

K. Activity Indicators

47. More detailed target indicators are expected to be prepared for each set of activities as part of the bi-annual action plans of the project to deliver each output including the following:

Output 1 Model sustainable tourism development projects protecting the environment and cultural heritage developed:

1.11 Extensive community participation with 180 villages complete and enhanced awareness of the benefits and costs of tourism by year 3. 1.12 Completed and approved planning and documentation by year 2. 1.13 Completed infrastructure design by year 2 1.14 All IEEs, EIAs, EMPs completed and approved by year 2 1.15 All resettlement plans prepared and being implemented by year 3 1.16 All Gender/Ethnic minorities participation program designed and being implemented by year 3 1.17 All construction and supervision completed by year 4 1.18 All institutional strengthening and capacity building for O&M designed by year 2 and completed by year 3 1.19 The design of the marketing and promotion program completed by year 3 and being implemented by year 4 1.20 All monitoring and evaluation systems designed and operational by year 2

Output 2: Pro-poor community-based supply-chain tourism projects operational:

i. All institutional strengthening and capacity building completed by year 2 ii. Community awareness and participation program designed and being implemented by year 2

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iii. Community-based tourism product development program designed by year 2 and being implemented by year 3 iv. All capacity building trainings for tourism enterprises and communities designed and completed by year 4 v. All design and construction of small-scale infrastructure completed by year 4 vi. Design and implementation of Gender/Ethnic minorities participation program by year 2 vii. Community-based marketing and promotion program designed and being implemented by year 3 viii. Monitoring and evaluation system designed and operational by year 2

Output 3: GMS tourism corridors developed:

i. Design and implementation of community awareness and participation program completed by year 4 ii. All planning, infrastructure design and documentation works completed by year 2 iii. All IEEs, EIAs, EMPs completed and approved by year 2 iv. All resettlement plans prepared and being implemented by year 2 v. The Gender/Ethnic minorities participation program designed and implemented by year 2 vi. All construction and supervision completed by year 4 vii. All institutional strengthening and capacity building for O&M completed by year 3 viii. Tourism Corridors marketing and promotion program designed and being implemented by year 3 ix. All monitoring and evaluation systems designed and operating effectively by year 2

Output 4: Human resources in the tourism sector developed:

i. Master training and trainer curriculum/training materials prepared by year 2 ii. Master trainers recruited and training of master trainers commenced at central institutions by year 2 iii. Renovation, furnishing, fitting and equipping of training centres completed by year 2 iv. Cascade training of trainers being undertaken at training other centres by year 4 v. Monitoring and evaluation system designed and operational by year 2

Output 5: Efficient project implementation services operational:

i. All PCUs and PIUs established in year 1 ii. All long-term consultants recruited by year 1 with other recruited as needed without delay iii. All PCU and PIU office and equipment purchased and operational by year 1 iv. PIU counterpart and support staff recruited and in place by year 1 v. All management, including the PPMS, and financial reporting systems designed and operational by year 1

196 Appendix 12 PROJECT PERFORMANCE REPORT (GRANT) SERIAL NO : As of 30 Jun 2009 DIVISION : SESS DEPARTMENT : SERD PROJECT NO : 38015-02 (ALL AMOUNTS IN US$ MILLION) STATUS : ACTIVE

BASIC DATA LAST: CURR: NAME PROJECT AT RISK : No No TI 0117-LAO: GMS SUSTAINABLE TOURISM Impact and Outcome : S Targeted Intervention DEVELOPMENT PROJECT Implementation Progress (IP) : S M - MDGT8 Potential Problem (PP) : No ECO, ENV, RC Related Loan(s): Override : No Subthemes 2457-VIE(SF) Developing rural areas Natural resources conserv Cooperation in Regional Public Goods MFF NO :

------CLOSING------PHYSICAL ELAPSED GRANT APPROVAL FUND SIGNING EFFECTIVITY ORIGINAL REVISED ACTUAL COMPLETION GRANT PERIOD NO(S) 0117-LAO 15 Oct 08 03 14 Nov 30 Mar 09 30 Jun 14 ORIG : Jun 14 ORIG. 12% 08 REV : REV.

*Fund Code Legend: 03=ADF

PROJECT PROGRESS: 9% LAST: ACTUAL DAYS (last 12 months): 0 REVIEW MISSIONS: NEXT: PLANNED DAYS: 0

EXECUTING AGENCIES: National Tourism Authority of Lao PDR

FINANCING PLAN PROJECT TOTAL COUNTERPART CURRENT BALANCE COST 10.870 FUNDS VALUE OF AVAILABLE FOR ADB 10.000 ADEQUATE GRANT: COMMITMENT: Government 0.870 APPROVED : 9.280 10.000 NET : 10.000

GRANT UTILIZATION ------CUMULATIVE CONTRACT AWARDS ------2009 CONTRACT AWARDS ------ADB OTHERS CUMULATIVE 1Q 2Q 3Q 4Q TOTAL DEC 08 0.000 0.000 CONTRACTS TO NET GRANT(S): 7% PROJ 0.000 0.400 0.000 0.000 0.400 30 Jun 09 0.720 0.000 ACTUAL 0.000 0.720 0.000 0.000 0.720 Proj 09 0.400 ------CUMULATIVE DISBURSEMENTS ------2009 DISBURSEMENTS ------ADB OTHERS CUMULATIVE 1Q 2Q 3Q 4Q TOTAL DEC 08 0.000 0.000 DISBURSEMENTS PROJ 0.000 0.000 0.500 0.000 0.500 30 Jun 09 0.500 0.000 TO NET GRANT(S): 5% ACTUAL 0.000 0.500 0.000 0.000 0.500 Proj 09 0.500

AUDITED PROJECT AGENCY FINANCIAL SECTOR ENVIRONMENTAL SOCIAL FINANCIAL ECONOMIC ACCOUNTS / DELAY STATEMENTS / DELAY COVENANTS COVENANTS COVENANTS COVENANTS COVENANTS COMPLIANCE S / 0 mos. NR / - mos. S S S WITH COVENANTS:

MAJOR ISSUES/PROBLEMS (IP, Impact and Outcome, Covenants) Nida A. Calma Anupma Jain Designation: Designation: Project Officer Social Sector Specialist

PAU ASSISTANT PROJECT SPECIALIST

Update Control : Anupma Jain; Judith B. Doncillo; Ludovina R. Balicanot; Mylene O. Camara-Crespo; Nida A. Calma Last updated by: Nida A. Calma

Appendix 12 197

IMPACT AND OUTCOME

Impact Description A sustainable, culturally and environmentally sound, pro-poor tourism approach for the GMS developed; and

Preservation of natural and cultural heritage.

Outcome Description Sustainable tourism development that creates livelihood opportunities for the poor

Performance Targets/Indicators Rating Progress/Status (HS,S,PS,U) 1. By 2016 in the GMS, (i) receipts from international tourism S increased from $23 billion to $55 billion; (ii) 52 million International tourist arrivals; and (iii) 1.2 million new jobs in the tourism sector created.

2. By 2016 in the GMS,50% of world heritage sites well S preserved and 30% of tourism income from visitor site entry fees is re-invested in conservation and protection

3. By 2013 in the project areas: (i) 60,000 people benefit S directly and 300,000 indirectly from tourism development, of which at least 30% are women and 37% are poor; (ii) the number of international tourist arrivals at each project site increases by 30% compared with 2008 levels; (iii) tourists’ average daily expenditure increases by 20%; and (iv) international tourists’ average length of stay increases by 1 day at each project site.

Key Assumptions/Risks Rating Assessment of Current Status (HS,S,PS,U) Assumptions: 1. Adequate human resources to implement environmental and S cultural heritage protection laws, regulations, and guidelines in place.

2. Adequate planning mechanisms and regulation are in place S and enforced.

3. Tourists continue to demand sustainable tourism products. S

Risks: Mitigated (Y/N) 1. Adverse economic or social upheavals such as Yes war, political instability, or natural disasters occur.

2. Governments are unable to mobilize public and Yes private resources to implement strategic GMS projects.

3. Uncontrolled tourism causes congestion, Yes increased pollution, and the deterioration of the destinations.

4. Over-commercialization of cultural traditions Yes degrade cultural heritage and the identity of ethnic minorities

Overall Rating S NOTE: Overall Rating is based only on Assumptions and Risks until project completion. Thereafter, Immediate DO assessment will be included

198 Appendix 12

Rating Upon Suspension (for COSO use only) New Impact and Outcome Rating: Effective Date: Date of Lifting:

Remarks:

Recent Development (Date: 14/07/2009) Recruited individual consultants; ADB approved overall ranking of consulting firms for Package 1 consulting services.

Problems with Impact and Outcome Description Action Taken/Proposed

Project Quality (one time input)

Capacity Building Training Participatory Project Manager/Project Office Incorporated Lessons Logical Framework Component Component Process prior to Loan approval Learned in Sector/Country Yes Yes Yes Yes Yes Yes

Update Control : Nida A. Calma Last Updated by : COSO Monthly Uploading Last Modified on : 10/07/2009 06:42 AM Created on : 10/11/2008 02:18 PM

Appendix 12 199

IMPLEMENTATION PROGRESS

Project Outputs Description Indicators / Targets Status 1. Model sustainable tourism development By 2013, for each site: projects protecting the environment and - Protection and access infrastructure (access cultural heritage developed in: Siphandone roads, markets, viewing points, walking trails and Wetland and Vang Vieng town signage, information and visitor centers, access and environmental improvement parking, river piers, community lodges, and sanitary facilities) installed, operated, and maintained; Site managers and operators trained on sustainable tourism practices Tourism master plans developed GMS manuals on nature-based, urban, and ethnic minority tourism in the GMS developed; Gender-sensitive public awareness programs implemented

2. Pro-poor, community-based, supply- Manual on CBT and tourism value chain To be assessed later. chain tourism projects operational development in the GMS produced. For each of the 11 participating provinces: To be assessed later. - At least 1 CBT tour circuit, 1 tourist site, and 1 supply-chain subproject developed and operational Gender-sensitive training program on environment, culture, and tourism for tour operators and guides developed and implemented Ethnic minority and gender participation program produced Guidebooks, brochures, and website produced Monitoring program established and annual report published At least 2,000 people trained in each province, of which at least 30% are women

3. GMS tourism corridors developed For each of the two economic corridors (north–south To be assessed later corridor in the Lao PDR and east–west corridor in the Lao PDR and Viet Nam): - Infrastructure (access roads, signage, information centers, viewing points) installed, operated, and maintained in 5 sites; Tourism corridor management plan with section on gender and ethnic groups produced Guidebooks, brochures, and website produced; Monitoring and evaluation program established and annual report published; Combined manual on developing tourism corridors in the GMS produced At least 2,000 people trained in each province, of which at least 30% are women.

4. Human resources in the tourism sector At least 800 tourism officials, 40% of them women, To be assessed later. developed have been trained to plan and manage sustainable tourism projects. At least 400 trainers and 180 master trainers are To be assessed later. trained, 40% of which will be women.

5. Efficient project implementation services PCUs and PIUs fully staffed and operate efficiently To be assessed later. are operational Provincial gender and ethnic participation plans are To be assessed later. implemented

Key Project Inputs

200 Appendix 12 (Loan Categories from LFIS/Logical Framework) Remarks

Key Assumptions/Risks (Input-Output) Assessment of Current Status Site managers able to acquire necessary technical and management capacities Government authorities willing to cooperate with local communities living in the project areas Local authorities committed to pro-poor tourism development Planning and environmental controls and enforcement measures in place Communities willing and able to operate and maintain small tourism infrastructure Governments recruit qualified staff and consultants to perform management and coordination Communities willing and able to operate and maintain small infrastructure Movement of tourists along economic corridors increases Countries are willing to cooperate to develop common approaches for tourism corridors. Tourism officials attend the training sessions and apply the knowledge. Trainers are willing to conduct training sessions and apply acquired knowledge. Governments can recruit qualified staff and consultants to perform the variety of tasks envisioned under the Project.

Implementation Progress Rating Criteria Rating Remarks (HS, S, PS, U) 1. Project Implementation S 2. Change in Project Scope S 3. Change in Implementation Arrangements S 4. Project Costs HS 5. Counterpart Funding/Cofinancing HS 6. Major Covenants (exclude #7 below) S 7. Audited Project Accounts and Corporate Financial S Statements Overall Rating S Design Changes

Recent Development (Date: 14/07/2009) ADB has released the initial advance to the imprest account. Individual consultants have been recruited. ADB has approved the evalaution of financial proposals and overall ranking for Package 1 consulting services.

Problems with IP Description Action Taken/Proposed

Update Control Judith B. Doncillo; Ludovina R. Balicanot; Mylene O. Camara-Crespo; Nida A. Calma Last updated by Nida A. Calma

Appendix 12 201

Rating Criteria for the Assessment of Implementation Progress Date of Change(DD-MM-YYYY): 14/07/2009

Project: 38015-02 - GMS SUSTAINABLE TOURISM DEVELOPMENT PROJECT

Grant Number: 0117-LAO Department: SERD Division: SESS Approval Date: 15/10/2008 Signing Date: 14/11/2008 Effectivity Date: 30/03/09 Original Closing Date: 30/06/2014 Status: ACTIVE

PROJECT GRANTS

1. Project Implementation: 2 months delay < 20% delay 2 - Satisfactory 2.92 % delay

2. Change in Project Scope No Major Changes 2 - Satisfactory months pending

3. Change in Implementation No Major Changes 2 - Satisfactory Arrangements: months pending

4. Project Costs No overrun 3 - Highly Satisfactory 0 % overrun

5. Counterpart Funding/Cofinancing No shortfall 3 - Highly Satisfactory Adequate Funds % shortfall

6. Major Covenants 2 - Satisfactory

7. Audited Project Account / Agency 2 - Satisfactory Financial Statements:

Overall Project Implementation Rounded: 2 Satisfactory

Note: This is for recording purposes only and does not affect in any way the overall IP Rating. For guidelines in calculating project progress, please

refer to Appendix 2 of PAI5.01 NotesH Link

Project Progress: 9%

Override IP Rating (for COSO use only) New IP Rating: Effective Date: Date of Lifting:

Justification for Override Justification for Lifting

Rating Upon Suspension (for COSO use only) New IP Rating: Effective Date: Date of Lifting: Remarks:

Update Control : Judith B. Doncillo; Ludovina R. Balicanot; Mylene O. Camara-Crespo; Nida A. Calma Last Updated by : Nida A. Calma Last Modified on : 14/07/2009 05:51 PM Created on : 10/11/2008 02:20 PM

202 Appendix 12

POTENTIAL PROBLEM PROJECT

Rating Criteria Flag Actual Remarks (Yes/NO) Rating 1. Project Implementation Delays No S 2. Poor Compliance with Covenants No S 3. Established, Staffed, and Operating PMU/PIU No S 4. Fielding of Consultants No S 5. Shortage of Counterpart Funds/Cofinancing No HS 6. Cost Overrun No HS 7. Poor Compliance with Audited Project Accounts and Agency No S Financial Statements 8. Environmental or Social Problems No S 9. Significant Disbursement Delays No 0.500 / 0.000= 10. In Risk Sector in a Country with History of Past Problems No 0% 11. Project Fielded Missions Yes 0 Overall Rating No < 4 flags

Override PP Rating (for COSO use only) New PP Rating: Effective Date: Date of Lifting:

Justification for Override Justification for Lifting

Update Control : Judith B. Doncillo; Ludovina R. Balicanot; Mylene O. Camara-Crespo; Nida A. Calma Last Updated by : COSO Monthly Uploading Last Modified on : 14/07/2009 05:51 PM Created on : 10/11/2008 02:22 PM

Appendix 12 203

COVENANTS

Project and EA Accounts Months Date Months Acceptable Auditor's Status of EA FY FY Due Due Received Delayed Y / N Opinion Complianc Rating En After (Q, U or e d FY A)

Submission of Audited Project Accounts (APA):

Lao National Tourism Sep 08/09 6 31-03-2010 - 0 - - NYD S Administration

Submission of Agency Financial Statements (AFS): Not Required

Overall Compliance and Rating: NYD S Findings/Actions Taken or To be Taken and other Remarks:

Project Specific Covenants NOTE: To edit a specific covenant click on the section name shown in green below.

Sector Environmental S Social S Financial S Economic Others S Overall Rating S

Problems/Remarks/Issues with Covenants

Update Control : Judith B. Doncillo; Ludovina R. Balicanot; Mylene O. Camara-Crespo; Nida A. Calma Last Updated by : Nida A. Calma Last Modified on : 14/07/2009 05:33 PM Created on : 10/11/2008 02:19 PM

204 Appendix 12 Environmental Covenants Project- Date Date Delays Status of Rating Remarks/Issues Specific Due Complie (mo.) Compliance (HS,S,PS,U) Covenant d s 1. Vang Vieng District Regulation. Within 12 months after the Effective Date, the Recipient shall ensure that the local government of Vang Vieng shall issue district regulations, acceptable to ADB, on sanitation requiring, among others (a) connecting sullage drains and septic tanks to drains in high and medium density areas, and to drains or properly designed and constructed soakaways in low density areas; (b) providing a septic tank that meets prescribed standards in each household or business located in high and medium density areas; and (c) providing on-site treatment facilities in hotels, restaurants, hospitals, and industrial enterprises to treat their wastewater. (LA, Schedule 4, para. 12) 30/03/2010 Not Yet Due - 2. Environment. The Recipient shall comply with its environmental laws and regulations and ADB's Environment Policy (2002). If there is any discrepancy between the Recipient laws and regulations and ADB's Environment Policy, ADB's Environment Policy requirements will apply. It will ensure that the design, construction, operation and implementation of each subproject will be carried out in accordance with the initial environmental examination (IEE), the environmental management plan (EMP) and the environmental assessment and review framework (EARF). In each Participating Province, a cluster IEE shall be prepared for subprojects to be developed under Parts 2 and 3 of the Project. However, if any of the screening results indicate the need for environmental analysis, individual IEEs shall be prepared for each subproject requiring further analysis and submitted to ADB for approval before any contract awards. Any adverse environmental impacts arising from the construction, operation and implementation of the subprojects will be minimized by implementing the environmental mitigation and management measures, and other recommendations specified in the EMP. The Recipient shall ensure construction-phase environmental requirements of the EMP are incorporated in bidding documents and civil works contracts. The Recipient shall, provide certification that unexploded ordinance has been cleared before it submits an IEE to ADB for approval or, if an IEE has already been approved, before commencement of civil works. (LA, Schedule 4, para. 16) 30/03/2012 Ongoing S Overall Rating S

Social Covenants Project- Date Date Delays Status of Rating Remarks/Issues Specific Due Complie (mo.) Compliance (HS,S,PS,U) Covenant d s 1. Involuntary Resettlement. The Recipient shall ensure that it shall not approve any Subproject that involves significant involuntary resettlement according to ADB's Policy on Involuntary Resettlement (1995). The Recipient shall further ensure that all land and right-of-way required for the Project shall be made available in a timely manner and adequate compensations shall be paid to affected people prior to any civil works contract's award. Any involuntary resettlement shall be carried out in accordance with the resettlement framework (RF) agreed upon between the Recipient and ADB, and ADB's Policy on Involuntary Resettlement (1995). A RP shall be prepared for each Subproject involving land acquisition or resettlement and shall be submitted to ADB for review and approval prior to any related civil works contract's award. The RPs, that have been prepared and agreed by the Recipient and ADB, for the sample Subprojects, shall be updated and provided to ADB for review and approval following detailed design and prior to civil work contracts' award. Draft RPs and draft updated RPs shall be disclosed to affected people prior to submission to ADB for review and approval. (LA, Schedule 4, para. 14) Ongoing S 2. Indigenous Peoples. The Recipient shall ensure that the Project shall be implemented in accordance with the applicable laws and regulations of the Recipient and ADB's Policy on Indigenous Peoples (1998) and shall carry out the specific measures on Indigenous Peoples stipulated in the ethnic groups development framework (EGDF) that has been agreed between the Recipient and ADB. The Recipient shall further ensure that Indigenous Peoples have equitable opportunities to access scholarships and to participate in training, recruitment, income generation activities under the Project. (LA, Schedule 4, para. 15) Ongoing S 3. Gender. The Recipient shall ensure that the Project is carried out in accordance with ADB's Policy on Gender and Development (1998) and the gender strategy contained in the gender action plan (GAP) for the Project that has been prepared and agreed between the Recipient and ADB. The Recipient shall further ensure, and shall cause LNTA and the Participating Provinces to ensure, that the GAP and the specific actions and targets contained therein, are included in the project and provincial rolling work plans. In particular, at least 40% of capacity development activities and 50% of scholarships for master trainers are reserved for qualified women. Further, at least 30% of the PCU and the PlUs staff shall be women. Activities identified in the GAP shall be implemented in a timely manner and shall have adequate resources allocated for its preparation and implementation. Gender-related targets and indicators are included in the Project performance monitoring system (PPMS). By mid-term, each Participating Province shall develop a provincial gender plan for the tourism sector. LA, Schedule 4, para. 17) Ongoing S 4. Overall Rating S

Appendix 12 205

Financial Covenants Project- Date Date Delays Status of Rating Remarks/Issues Specific Due Complie (mo.) Compliance (HS,S,PS,U) Covenant d s 1. Operation & Maintenance Within 36 months after the Effective Date, the Recipient shall cause the local government of Vang Vieng to prepare and implement a mechanism to ensure that public assets such as roads, drainage and solid waste management can generate sufficient revenues. The Recipient shall further ensure that the revenues generated by the public asset will be used for O&M. (LA, Schedule 4, para 11) 30/03/2012 Not Yet Due - 2. Within 36 months after the Effective Date, the Recipient shall cause the provincial tourism department of Champassak to increase the current entry fee to the Siphandone area to a level sufficient to cover the required O&M of the tourist site facilities. Such increase shall be at least 50% of the current entry fee. At least 50% of the revenues generated from the entry fee will be used for the O&M of the facilities at the tourism site. (LA, Schedule 4, para 12) 30/03/2012 Not Yet Due - 3. Counterpart Funding. The Recipient shall provide counterpart funds for Project implementation on time. LNTA shall cause the Participating Provinces to make timely submission to the MOF of annual budgetary appropriation request in respect of the Project and MOF shall promptly disburse the appropriated funds during each year of Project implementation. (LA, Schedule 4, para 8) Ongoing S 4. Imprest Account. Except as ADB may otherwise agree, the Recipient shall establish immediately after the Effective Date, an imprest account at the Bank of the Lao PDR. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB's Loan Disbursement Handbook, and detailed arrangements agreed upon between the Recipient and ADB. (LA, Schedule 2, para 5[a]) 30/03/2009 Complied HS Overall Rating S

206 Appendix 12 Other Covenants Project- Date Date Delays Status of Rating Remarks/Issues Specific Due Complie (mo.) Compliance (HS,S,PS,U) Covenant d s 1. Established, Staffed, and Operating PMU/PIU

Ongoing S 2. Fielding of Consultants

Ongoing S 3. Subregional Project Steering Committee (SPSC). An SPSC shall be established to oversee overall project implementation at the subregional level. LNTA and the Ministry of Culture, Sports and Tourism (MCST) of Viet Nam shall, respectively, appoint its representatives to sit as members of SPSC. Senior officials of at least a director general level of LNTA and MCST shall alternately chair the SPSC. Representatives from the national tourism offices (NTOs) of other countries within the GMS will be invited as observers to discuss the lessons learned from the demonstration subprojects and potential to replicate them. The Mekong Tourism Coordination Office (MTCO) shall act as a secretariat of the SPSC. (LA, Schedule 4, para. 2) Ongoing S 4. Subregional Project Steering Committee (SPSC). An SPSC shall be established to oversee overall project implementation at the subregional level. LNTA and the Ministry of Culture, Sports and Tourism (MCST) of Viet Nam shall, respectively, appoint its representatives to sit as members of SPSC. Senior officials of at least a director general level of LNTA and MCST shall alternately chair the SPSC. Representatives from the national tourism offices (NTOs) of other countries within the GMS will be invited as observers to discuss the lessons learned from the demonstration subprojects and potential to replicate them. The Mekong Tourism Coordination Office (MTCO) shall act as a secretariat of the SPSC. (LA, Schedule 4, para. 3) Ongoing S 5. Project Coordination Unit (PCU). A PCU has been established within the office of LNTA. The PCU is headed by a project director (Project Director). The Project Director shall be assisted by a deputy director and at least five staff, who shall be responsible for Project accounting, monitoring and evaluation, environment, natural and cultural heritage, social and gender issue. The PCU shall be responsible for (i) coordinating the Project; (ii) selecting, engaging and managing the consultants; (iii) carrying out procurement activities, (iv) providing necessary data to the auditor and submitting the audited financial statement to ADB on time; (v) monitoring and evaluating the Project; (vi) consolidating Project reports to be submitted to the ADB and the Recipient, and (vii) coordinating with the PCU in Viet Nam, the MTCO and the NTOs of other GMS countries. The PCU shall receive support from the international and national consultants. (LA, Schedule 4, para. 4) Ongoing S 6. Project Implementation Unit (PIU). A PIU has been established in each Participating Province to undertake the day-to- day implementation of the Project. Each PIU shall receive guidance from the PCU and shall be responsible for implementing, coordinating, monitoring, and reporting activities at the provincial level. Each PIU shall be headed by a provincial Project Director and shall have a project manager and five staff, who shall be responsible for project accounting, monitoring and evaluation, environment, natural and cultural heritage, social and gender issues. (LA, Schedule 4, para. 5) Ongoing S 7. Provincial Project Steering Committee (PPSC). A PPSC shall be established in each Participating Province within three months of the Effective Date. The PPSC shall provide policy guidance to the PIU and shall oversee Project implementation at the provincial level. The PPSC shall consist of representatives from agencies at provincial level that are in charge of natural and cultural heritage site management, urban environment, public works, transportation, borders, and district authorities. The PPSC shall be chaired by a senior official from the provincial government and the PIU shall serve as the secretariat of the PPSC. (LA, Schedule 4, para. 6) 30/06/2009 Ongoing S 8. Community Tourism Group (CTG). The Recipient shall cause LNTA to ensure that community consultation takes place in every step of Project implementation. For this purpose, the PlUs shall work with each of the participating communities to establish a CTG in each of the participating communities. The CTG may comprise of stakeholders' representatives, the relevant village leaders and mass organizations such as women's union and youth union. The purpose and the main responsibilities of CTG shall be (i) to raise issues of concern to the PIU, (ii) to ensure that the concerns are adequately reflected in the implementation program, (iii) to assist in the implementation of the community awareness program and (iv) to ensure that the community is involved in the community based monitoring and evaluation. The PIU shall invite the CTG to attend the regular PPSC meetings. (LA, Schedule 4, para. 7) Ongoing S 9. Subprojects Selection Criteria. The Recipient and LNTA shall ensure that selection of subprojects under Parts 2 and 3 of the Project, as described in Schedule 1 to this Grant Agreement, shall be carried out in accordance with the selection criteria, which have been agreed between the Recipient and ADB. (LA, Schedule 4, para. 9) Ongoing S 10. Human Resources Training. The Recipient shall ensure that priority for the training to be provided under Part 4 of the Project, as described in Schedule 1 to this Grant Agreement, shall be given to master trainers, trainers and public sector officials in tourism sector from the Participating Provinces. The Recipient shall further ensure that the selection of master trainers, trainers and public sector officials shall be carried out in accordance with the selection criteria, which have been agreed between the Recipient and ADB. (LA, Schedule 4, para. 10) Ongoing S

Appendix 12 207

11. Project Performance Management System (PPMS). The Recipient shall ensure that the PPMS, developed for the Project, is integrated into the information management system of LNTA and the provincial tourism departments. The PlUs shall be responsible for ensuring that the PPMS is implemented and updated, in consultation with the local communities, to (i) examine the Project's technical performance, (ii) evaluate the delivery of the planned facilities, (iii) assess the achievement of the Project's outputs and outcome, (iv) ensure compliance with social safeguards, and (v) measure the Project's benefits. Data shall be disaggregated by sex, ethnic group and income level where feasible. The PlUs shall prepare the annual PPMS reports and submit to the PCU. Subsequently, the PCU shall consolidate and submit the report to ADB. (LA, Schedule 4, para. 18) Not Yet Due - 12. Anti Corruption Measures The Recipient shall comply with, and shall cause LNTA to comply with ADB's Anticorruption Policy (1998, as amended to date) and the Policy relating to Enhancing AD8's Role in Combating Money Laundering and the Financing of Terrorism (2003). The Recipient (i) acknowledges ADB's right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive or coercive practices relating to the Project; (ii) agrees to cooperate fully with and to cause LNTA to cooperate fully with any such investigation and to extend all necessary assistance, including providing access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation; and (iii) agrees to refrain, and cause LNTA to refrain, from engaging in money laundering activities or financing of terrorism and shall allow, and cause LNTA to allow, ADB to investigate any violation or potential violation of these undertakings. (LA, Schedule 4, para. 19)

Without limiting the generality of the preceding paragraph, the Recipient shall (a) ensure that LNTA and the PlUs conduct periodic monitoring inspections on all contractors' activities related to fund withdrawals and settlements and (b) ensures that, and shall cause LNTA and the PlUs to ensure that, all contracts financed by ADB in connection with the Project include provisions specifying the right of ADB to audit and examine the records and accounts of LNTA, PlUs and all contractors, suppliers, consultants and other service providers as they relate to the Project. (LA, Schedule 4, para. 20) Ongoing S 13. 19. Within 6 months of the Effective Date, LNTA shall create a Project website to disclose information about various matters on the Project, including procurement. With regard to procurement, the website shall include information on the list of participating bidders, name of the winning bidder, basic details on bidding procedures adopted, amount of contract awarded, and the list of goods/services procured. (LA, Schedule 4, para. 21) 30/09/2009 Not Yet Due - 14. Within 6 months of the Effective Date, LNTA shall prepare a grievance redress mechanism, acceptable to ADB, and establish a task force at the PCU to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including grievances relating to resettlement and environmental issues. The task force shall (i) make public the existence of this Grievance Redress Mechanism, through public awareness campaign, (ii) review and address grievances of stakeholders of the Project, in relation to either the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (iii) proactively and constructively respond to them. (LA, Schedule 4, para. 22) 30/09/2009 Not Yet Due - Overall Rating S

208 Appendix 13

SUMMARY INITIAL ENVIRONMENTAL EXAMINATION (LAO PEOPLE’S DEMOCRATIC REPUBLIC)

A. Introduction

1 1. The Sustainable Tourism Development Project (the Project) F will develop a sustainable, culturally and environmentally sound, pro-poor tourism approach for the Greater Mekong Subregion (GMS) and the implementation of the GMS Tourism Sector Strategy (GMS-TSS). The Project outcome will be sustainable tourism development that creates livelihood opportunities for the poor. The Project seeks to (i) enhance the protection and conservation of natural, cultural, and urban heritage assets of importance for tourism development; (ii) increase the contributions to poverty reduction of pro-poor tourism initiatives; (iii) develop sustainable tourism corridors; (iv) raise public officials’ tourism-management skills in provinces and districts and at the site; and (v) improve service and hygiene standards among staff in small and medium-sized hospitality enterprises in the provinces.

2. The Project will have five outputs: (i) model sustainable tourism development projects protecting natural, cultural, and urban heritage sites of importance to tourism are operational; (ii) pro-poor, community-based, supply-chain tourism projects are developed and operational; (iii) community-operated facilities along the GMS economic corridors bring improved economic benefits to local communities; (iv) the human resource capacity of public and private tourism stakeholders is developed; and (v) efficient project management services are fully operational. Environmental assessment was conducted for small-scale infrastructure under outputs 1 through 3, while environmental consideration was included in output 4. 2 Three initial environmental examinations (IEEs) were prepared: (i) one each for two subprojects identified under component 1 and (ii) one for likely interventions to be identified under components 2 and 3. The environmental assessment and review framework was also developed. The summary of outputs is attached.

B. Description of the Environment

3. The project area has a typical tropical monsoon climate with pronounced wet and dry seasons and high rainfall, humidity, and temperatures. These climatic conditions vary with latitude and altitude within the country, with the mountains and highland areas receiving considerably more precipitation and less extreme heat than the floodplains.

4. The Mekong River flows through the Siphandone Wetland in southern Lao People’s Democratic Republic (Lao PDR). The Mekong is a major source of water for agriculture, human domestic use, hydroelectricity, and freshwater fisheries. The wetland is a crucial feeding and rearing habitat for an area with exceptionally diverse fish and other aquatic fauna. About 1,200 species of fish have been identified in the Mekong River, including such well known endangered species such as the Irrawaddy dolphin, Mekong catfish, and giant barb.

5. There are several national protected areas in the Project area. Poverty rates in the project provinces are higher than the national average of 38.6%, except in Bokeo (37.4%) and

1 The Project covers the following nine provinces: Champasak, Bokeo, Luang Namtha, Savanakhet, Oudomxay, Xayaboury, Saravanh, Houaphanh, and Vientiane. 2 Small-scale infrastructure includes the following four categories of civil works: (i) construction or rehabilitation of existing footpaths, boat landing areas, and drainage; (ii) improvements to existing waste collection and management practices; (iii) construction or rehabilitation of existing markets; and (iv) protective and improvement measures in caves.

Appendix 13 209

Vang Vieng town (32%). The upland ethnic minority communities in the project area suffer high rates of infant and maternal mortality; low access to health, education, and other social services; high illiteracy; and limited involvement in the market economy. Since the Lao PDR’s tourism product is strongly associated with nature and culture, tourism can offer new sets of opportunities to poor people.

C. Potential Impacts and Environmental Management Plan

6. The small scale of the interventions means that potential negative impacts associated with their design, construction, and operation will be temporary, minor, and localized. They can be mitigated to acceptable levels.

7. Visitor Impacts on Cave System. A baseline survey will be conducted if construction of a walkway and lighting system in the Tham Eng cave site on the north–south economic corridor is selected under output 3. It is expected to indicate that the impacts can be effectively mitigated through the adoption of careful planning, design, construction, and operation.

8. Unexploded Ordnance. A baseline survey will be conducted to undertake a level 3 survey of unexploded ordnance to ensure the risks of exposure to the community and visitors is minimal with the development of small-scale tourism infrastructure. This is a precautionary measure, as one of the provinces selected for the pro-poor program is an affected area. Confirmation of clearance is required where there is site disturbance, especially works and construction below ground.

9. Construction Impacts. The subprojects involve small construction works (e.g., scenic lookouts, markets, toilets, and walking trails). Possible environmental impacts from construction may include loss of vegetation and increased dust, noise, traffic, waste, and soil erosion. These impacts will be temporary and addressed by a number of specific environmental screening criteria incorporated in the IEEs and the environmental assessment and review framework (EARF).

10. Waste Collection and Treatment. Higher numbers of visitors will generate increased solid wastes and wastewater. The proposed design includes the provision of waste collection bins and equipment, the installation of gross pollutant traps in existing drains, and improved management and hygiene practices at the solid waste site. The existing landfill site has sufficient capacity to treat more waste. Monitoring of waste collection will be undertaken to measure the volume and types of waste and appropriately design and modify current waste collection and treatment practices and awareness programs.

11. Environmental Benefits. The Project will improve the environmental and health situation in and around the subproject sites—and potentially in a larger area, if the models and approaches to the development of the subprojects are replicated as envisaged. Waterborne diseases are a significant health threat in the vicinity of all the subproject sites, especially the sustainable tourism and pro-poor sites. The Project will reduce solid wastes and water pollution in the Vang Vieng River in the Lao PDR, as well as improve the town’s amenities as a tourist destination. It will demonstrate the use of low-impact visitor access infrastructure in sensitive environments such as at the Siphandone Wetland and at key attractions along the north–south economic corridor in the Lao PDR.

210 Appendix 13

D. Public Consultation

12. A series of public consultations was conducted at the national, provincial, commune, and village levels during project preparation. Agency representatives and villagers supported the proposed project activities and provided variable inputs on the location and design of interventions. No major issues were identified with the proposed projects. The public consultations allowed ideas to be integrated into the design of mitigation measures and monitoring programs. Public consultation is an ongoing and integral process in project implementation. Continuous dialogue with the communities affected by and/or benefitting from the project, as well as with relevant governments, will be carried out during detailed design and implementation.

E. Environmental Assessment and Review Framework

13. The Lao National Tourism Administration (LNTA) is the Executing Agency, and the project coordination unit (PCU) will be established in it. The Executing Agency is responsible for coordinating relevant local agencies to ensure the adequate quality of IEEs, obtain IEE approval from the Water Resources and Environmental Administration, and monitor the progress of implementation. Provincial project implementation units (PIUs) will be established in the department of tourism of participating provinces. The PIUs bear the main responsibility for updating and implementing environmental management plans for the Siphandone and Vang Vieng subprojects, conducting environmental assessment for the subprojects to be identified under outputs 2 and 3, in accordance with the EARF prepared during project preparation.

14. The IEEs prepared for the Project will guide the PIUs in updating environmental management plans for the Siphandone Wetland and Vang Vieng subprojects during detail design. The EARF will guide each PIU in screening subprojects, specifying institutional requirements for environmental management and monitoring to ensure compliance with the applicable laws and regulations of the Government and the Environment Policy (2002) and Environmental Assessment Guidelines (2003) of the Asian Development Bank. The EARF is in Supplementary Appendix F.

15. The project includes the estimated environmental management plan costs of $20,000 each for the Siphandone and Vang Vieng subprojects under output 1 and $10,000 each for outputs 2 and 3 for the baseline survey for unexploded ordnance and the Tham Nam Eng cave, water monitoring, and any other necessary monitoring. Environmental personnel (3 person- months of international consultancy and 10 person-months of national) will be provided in the PCU and PIUs.

F. Conclusion

16. The IEE found that most of the proposed interventions will not adversely affect environmentally sensitive areas, nor will they cause significant changes in the physical, biological, and social environment. A special study will be conducted if the proposed interventions at the Tham Nam Eng cave site are selected to ensure that karst environments will not be disturbed. Any environmental effects will be minor and easily mitigated through the adoption of sound environmental planning, design, construction, and management practices at all sites. No environmental impact assessment is required for the Project.

Supplementary Appendix F2 211

Initial Environment Examination

Project Number: 38015 June 2008

Lao PDR: GMS Sustainable Tourism Development Project

OUTPUT 1: SUSTAINABLE TOURISM INFRASTRUCTURE SIPHANDONE WETLAND BIODIVERSITY CONSERVATION & TOURISM

The Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

212 Supplementary Appendix F2

A. Introduction

1. This subproject is located in Southern Lao PDR in Kong District, Champasak Province, which is situated in the Mekong River Corridor GMS Priority Tourism Zone and the Emerald Triangle. The Siphandone Wetland (Siphandone, meaning 4,000 islands in the Lao language) extends to the border with Cambodia and contains thousands of channels and islands, with the largest and most visited among them being Don Kong, Don Det and Don Kone. The Wetland is part of the Tri-border Biodiversity Corridor that straddles Lao PDR and Vietnam. The main tourism access to Siphandone is via a small boat landing 4 km off Highway 13 at Ban Nakasang. IUCN and the Mekong River Commission are currently working with the Ministry of Agriculture and forestry to assist in the designation of Siphandone as a Candidate Ramsar Site.

2. The wetland is home to 136 villages with an estimated population of 72,600. Around 75% of these rate themselves as poor. Siphandone’s biodiversity is seriously threatened by over-fishing and hunting activities by poor communities living in and adjacent to the wetland who depend on it for food security and harvesting of natural resources for income. However, the unmanaged nature of tourism development is causing outsiders to become the main beneficiaries of the tourism economy while local communities have tended to be marginalized and forced to continue to depend upon harvesting wetland biodiversity resources for food security and income. When local people do work in the tourism industry, a lack of skills and understanding of tourism is causing most of them to remain stuck in low-paying jobs such as day-laborers and cleaners that miss out on higher paying tourism-related employment opportunities such as guides and small business managers and operators. There is thus a need to develop ways in which local communities can participate more effectively in tourism-related livelihood opportunities in order to contribute more effectively to biodiversity conservation of the wetland.

B. DESCRIPTION OF PROJECT

3. A detailed description of the project is provided in Section III Part B (Components and Outputs) and in Appendix 2 (Detailed Subproject Descriptions). Detailed cost estimates and engineering concept diagrams for the proposed works are provided in Appendices 4 and 5.

4. The outcomes for the project are:

(i) Significantly increase the level of participation and ownership in higher value tourism- related livelihood opportunities by local communities living in and adjacent to the wetlands (ii) Ensure that tourism development in the wetlands is environmentally sustainable and contribute to the conservation and protection of the areas rich biodiversity (iii) Document, conserve and interpret the area’s natural and cultural resources and traditional livelihood practices (iv) Ensure that women, ethnic minorities, youth and the elderly are given opportunities to equitably participate in the tourism industry

(v) Facilitate the management and flow of tourists into the wetland through improvements to the sites physical infrastructure and tourism management systems

5. The overall scope of works will involve better tourism planning and management, improvements to access, environmental improvements at key points, visitor information and interpretation, and capacity building and livelihood support to local communities. The main components of the subproject include:

Supplementary Appendix F2 213

(i) Preparation of a heritage based tourism zoning, structure and management plan for the wetlands area; (ii) Improvements to the 4 km access road that connects route 13 to the boat landing at Nakasang Village and improvements to the pathways on Don Det and Don Kone Islands; (iii) Environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste management at the market and in the village; (iv) Construction of visitor information, interpretation facilities and fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands; (v) Capacity building and support programme for local communities, especially, women, youth and ethnic minorities, to participate in tourism-related livelihoods, and training for site managers to engage local communities in managing and interpreting the natural heritage values of the wetland; and (vi) Development and implementation of a community-based natural resource monitoring protocol.

6. The components (i), (v) and (vi) do not involve any site works and will not cause any adverse impacts on the environment. The screening of potential environmental impacts has been undertaken for components (i), (ii) and (iv) with a further break-down of the individual site works being proposed.

C. DESCRIPTION OF ENVIRONMENT

1. Physical Resources

7. Champasak Province lies in the southwestern part of Laos and has a total land area of 1.541 million hectares. The Salavan Province lies to the north, Sekong and Attapeu Provinces to the east, Cambodia to the south and Thailand to the west. Pakse, located on the confluence of the Mekong and Se Don Rivers, is the Province’s capital city and the largest city in southern Laos. Some 62% of the Province land area is forest land, 31% is used for agriculture and 3% is wetland.

8. The climate is monsoonal with a southwest monsoon (humid-hot) from late March to October and the northeast monsoon (dry and cooler) from November to early March. The dry season extends from January to April, while rain falls mainly during May to October. The average rainfall at Khong is about 1700mm per annum with falls of around 300mm per month experienced during June to September. The monsoonal climate affects the hydrology and ecology of the Mekong River – the water level rises quickly during the rainy season and floods the river corridor and often damages village and crops. After the rainy season the water levels falls and reaches a minimum in April. The rising waters of the Mekong create backflow into the floodplains and allow fish to migrate into the seasonal wetlands. 24 9. The Mekong River, before crossing into Cambodia, braids into a maze of channels and islands known as Siphandone, meaning “four thousands islands’. These islands, riverbed isles and sandbars rise from the Mekong River – this is the widest part of the river’s breadth, expanding about 14 kilometers. The islands can be seen from January to March but some will be submerged during the monsoon period, from May to November. Larger islands characterize the northern part of the wetlands - Don Khong is the largest island in southern Laos with permanent residents of farmers and fishermen. The central part has some large alluvial islands separated by narrow channels, rapids and many small islets. The southern part has a few sandy

24 G. Daconto (Editor) 2001. Siphandone Wetlands, Funded by the European Commission

214 Supplementary Appendix F2 islands and features a series of waterfalls and rapids. The most spectacular natural attraction is Khon Phapaeng, the biggest waterfall in Southeast Asia. From here the Mekong discharges into a deep pool on the border with Cambodia, where the endangered Irrawaddy freshwater dolphin is often visible during the dry season. The waterfalls act as a physical barrier to its progression upstream.

10. The soils in the floodplains are generally sandy alluvium with limited silt deposits at the base of the low hills. The larger islands are permanent sand deposits with steep riverbanks. The smaller islands are also alluvial and often seasonally inundated. The alluvial soils along the river banks are unstable and affected by river levels, changes to the channels and removal of the vegetation – a river erosion survey found that 65% of the banks could be classified as 25 undergoing erosion or dominated by erosion. F Sandstone rocky islets and deep pools are found more in the southern part of the wetland complex. Laterite soils are found in the Ben Nakasarn area.

11. Most of the local people rely on the river as a source for drinking water, cleaning and disposal of both wastes. As a consequence, there have been health hazards of faecal contamination and vector borne diseases resulting from the general lack of sanitation coupled with the high population density – contamination of the water has led to diarrhoea infections, 26 malaria, schistosomiasis and opisthorchiasis incidents. F

2. Ecological Resources

12. Some 62% of the Province land area is forest land, 31% is used for agriculture and 3% is wetland. About 60% of the forest land is managed as Forest Conservation Area and Forest Protection Area. There are three National Protected Areas within the Champasak Province – Dong Hau Sao NPA (110,000 ha), Xepian NPA (240,000 ha) and Phou Xiengthong NPA (120,000 ha). There are 62 mammal species, 44 reptile species, 400 fish species, 344 bird 27 species and 21 amphibian species identified within the Province F .

13. The total area of Siphadone wetlands has been estimated by IUCN as being 399km2 but when adding in a 1km buffer along the river course, the total area would be 486m2. There is no overall management plan for the wetlands but research and investigations have been conducted, primarily into improving aquatic resources management. Work funded by the European Commission 28 has recommended greater grass-roots level resource management, environmental management capacity building, seeking RAMSAR listing, considering future ecotourism opportunities and increased scientific research.

14. Most of the islands within Siphadone have been converted to rice paddys and generally there is a very narrow wooded strip along the river foreshore. Some of these forests are remnant mixed semi-deciduous evergreen forests although are subject to harvesting and clearing.

15. A large number of fish species found within the Mekong undertake long migrations between the upper reaches and lower reaches and between the river and floodplains. The Khone falls limits the migratory routes on the river to a few key channels. The fauna of the

25 ibid page 33 26 ibid page 22 27 Seminar Paper on Integrated Wetland Management in Champasak Province, Mr Soupany Syripoungno, Deputy Head of PAFO of Champasak Province (Date Unknown) 28 G. Daconto 1999 in cooperation with Department of Forestry, Ministry of Agriculture and Forestry and Agriculture and Forestry Division. Environmental Protection and Community Development in Siphandone Wetland, Champassak Province, Lao PDR, Final report.

Supplementary Appendix F2 215 wetlands has very high biodiversity value and provides for a very wide range of hydrological conditions and habitat structures that have evolved as a consequence of the complex morphology of the Mekong River channels and the wide seasonal range of the river regime. Not only are the wetlands of immense ecological value, but also they are vital to the local community as a source of food and resources from the river and floodplains. The threats to the wetland values have been widely recognised and include large scale hydro-electric development that would alter fish migratory routes, hydrology, silt depositing and the conditions of the aquatic environs (e.g. water temperature, water quantity, turbidity); large scale irrigation schemes; inappropriate land development which cause loss of forest habitat, increased run-off and new sources of pollution (e.g. fertilisers); large scale deforestation, mining and road construction within the river catchment that led to increased silt deposition; introduced species; 29 unsustainable fishing, hunting and riverbank vegetation harvesting F . Indiscriminate dumping of waste is entering the Mekong River through the lack of any effective stormwater control, litter collection or solid waste treatment.

3. Socio-economic

16. The population of Champasak Province was about 500,000 in 2001 and is expected to have reached 575,000 by 2004. Pakse is the capital city of Champasak Province and the largest city in southern Laos. Champasak Province population includes lowland Lao, Khmer, Phu Thai and various Mon-Khmer groups. The province is well known for matmii, silks and cottons that are hand-woven of tie-dyed threads. The wetlands are home to 136 villages with an estimated population of 72,600. Around 75% of these rate themselves as poor. The main source of employment is farming, fishing and tourism.

17. A description of the local community views and the social and poverty impacts at Siphandone Wetlands is provided in Section V of the main report. The community consultation revealed general support for the proposed improvements as it was seen as increasing visitors to the area and providing more opportunities for gaining income.

D. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 18. The components (i), (v) and (vi) do not involve any site works and will not cause any adverse impacts on the environment. The screening of potential environmental impacts has been undertaken for components (i), (ii) and (iv) with a further break-down of the individual site works being proposed. 19. The measures to reduce or mitigate the potential impacts identified with works for component (i), (ii) and (iv) are listed in Table 2 of Appendix 1. The Table indicates the (i) site works/activity, (ii) potential environmental impacts, (iii) mitigation measures, (iv) responsible entity, (v) monitorable outputs, and (vi) funding. The magnitude assesses whether the impacts of the works will be minor or significant given consideration of (i) absolute and relative amount of ecosystem affected and (ii) intensity of impact. The extent of the impact is based on the likely duration of the environmental impacts (S = short term (<1yr), M= medium term (1-10 yrs), L=

29 G. Daconto (Editor) 2001. Siphandone Wetlands, Funded by the European Commission. There have been past proposals for large scale developments near Khone Phapheng including an international airport, hotels, casino, golf courses, restaurants, zoo and resorts. There is currently a hotel and golf course near completion and a Korean funded development proposal for using a 80ha site for a hotel and golf course development – if approved, it will be within close proximity of the waterfall and involve clearing of remnant vegetation. A Malaysian company has signed an agreement with the Lao government to conduct an 18-month feasibility study for the Don Sahong hydro-electric dam. The proposal is to block one of the main channels of the mainstream Mekong River in the Khone Falls area and there is concern that the dam will cause resettlement of some local villages, significantly alter fish migratory routes, construction of roads between islands and impact on the waterfalls.

216 Supplementary Appendix F2 long term (>10 yrs). In most cases the mitigation measures are capable of reducing or minimising the impacts over time.

20. The positive environmental impacts are: (i) creating a better visitor arrival point to the wetlands and Ban Nakasang village that will overcome current congestion, traffic and parking problems; (ii) providing a better understanding of the value and conservation significance of the Siphandone wetlands to the globe, nation and local community; (iii) upgrading basic visitor infrastructure that allows visitors to access and enjoy the wetlands; (iv) reducing the level of pollutants entering the river by the drainage line with use of a gross pollutant trap; and (v) improving the living conditions of the local community through the reduction of health hazards involved with lack of sanitation and solid waste treatment.

21. The negative environmental impacts are not significant and can be mitigated with responsible application of environmental processes during pre-planning, construction and operation as indicated in Table 2 of Appendix 1. None of the proposed components will affect environmentally sensitive areas, nor will they cause changes in the physical, biological, and social environment. There may be some inconvenience to access and traffic flows during the upgrading of the roads, market place and parking area but this will be temporary only without precluding access. There will be some increased flows into the drainage system due to road widening and improved drainage lines along the road and market areas. However the gross pollutant trap will collect waste that enters the river system and will reduce ponding within the road drains where there can be community health risks associated with mosquitoes, vermin and sullage seepage. Currently any waste that enters the drains flows down the riverbank and will remain there until the Mekong River levels rise to flush the waste away. At low river levels, visitors have to walk past the waste to gain access across the riverbed sands to the boats.

22. Discussions with the Mekong River Commission indicated that there are currently no guidelines for the construction of boat landing structures on the Mekong River. However as a matter of protocol, it is appropriate that the advice of the Commission be sought on the proposed design of the boat landing structures before construction approval is sought from the province. The Commission did not consider the upgrading of existing boat landing facilities as a significant development or likely to create adverse impacts.

23. The proposed works are aimed at fixing existing environmental problems that will also improve the capacity of the local area to sustain increased visitation in future years. Importantly these works are also aimed at providing better conservation outcomes for the Mekong River, wetlands, villages and the living conditions of the local population. 24. As Champassak Province was heavily bombed during the war, it will be a pre-requisite to confirm that UXO clearance has been undertaken at any of the sites where earthworks and disturbance will occur. At this stage, no information is available from MAG for these sites.

E. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN

25. The Environmental Protection Law 1999 provides overall responsibility for environmental protection to the Water Resources and Environmental Administration (WREA), a new body created within the Prime Minister’s Office. All IEE and EIA proposals are considered under the Regulation on Environment Assessment in the Lao PDR (2002). The Regulation on Environmental Assessment under the Law states that any projects affecting the environment requires a project description to enable the Development Project Responsible Agency (DPRA)

Supplementary Appendix F2 217 to (i) undertake a project environment screening to issue an environmental compliance certificate prior to commencement of any works; or (ii) to determine whether an IEE is required to ascertain whether an EIA is to be prepared.

26. There are no standard guidelines for the environment screening in Lao PDR and judgement is based on experience and considering suggested guidelines in other countries and agencies (e.g. World Bank, ADB). Component (i), (v) and (vi) would not require the preparation of an IEE under the current application of the Regulation on Environmental Assessment process.

27. The project activity would be classified as a Category C under the criteria of the ADB Environmental Assessment Guidelines 2003 where there is no need for the preparation of an IEE.

28. Environmental monitoring in Siphandone wetlands will be the responsibility of the WREA provincial level with reporting to the national WREA office in Vientiane and the provincial governor’s office of Champassak Province. The environmental monitoring plan should focus on the collection of waste at the gross pollutant trap and at the small landfill sites on the islands.

29. There is little value in monitoring water quality in the Mekong River as (i) there is limited potential for reduction in water quality resulting from the components; (ii) the Mekong is a large river subject to many sources of pollution upstream of the site; (iii) the high costs of monitoring involved with limited relevance to the project; and (iv) the Mekong River Commission is the appropriate agency to ascertain the general environmental condition of the river in a more strategic approach. The discussions with the Mekong River Commission indicated that there was no extensive baseline data collected on water quality at Siphandone wetlands. The proposed environmental monitoring for component (iv) does not require monitoring of water quality as it is intended to remove gross pollutants from entering the river system and not treat water quality. A budget of $500 US has been allowed for labour in cleaning-up and analysing waste at the river environs near the gross pollutant traps every year for 5 years. The key aspects of the monitoring for the gross pollutant trap will be to keep records of the (i) amount of waste removed; (ii) analysis of the waste material collected by broad categories by volume e.g. plastic, food, paper, cloth; (iii) monitoring of the frequency of clean-up of the trap; and (iv) the overall condition of the river environs (e.g. level of waste observed) up to 100m below the trap. It will be necessary for the river environs to be cleaned-up below the trap immediately after installation so as to provide a reasonable baseline for observing increased waste in the future.

30. A budget of $4000 US has been allocated for water quality tests and ground water tests at each of the 10 selected villages. The key aspects of the monitoring for the village solid waste collection site and the small landfill sites for solid waste on the islands will be to keep records of the (i) amount of waste volume collected by general location; (ii) analysis of the waste material collected by broad categories by volume e.g. plastic, food, paper, cloth etc.;(iii) estimate of waste volume that can be recycled.

F. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

31. A site visit was arranged during July 2006 and involved visits to Khone Phapheng, Ban Nakasang, Don Det, Don Kong and Done Kone. In addition to visits to the villages and local attractions, a 2 hour boat trip was arranged upstream of the Ban Nakasang to view the wetlands. Meetings were held with the Vice Governor of Champassak Province and the provincial offices

218 Supplementary Appendix F2 of Planning; Agriculture and Fisheries; Tourism; and STEA 30 . Meetings were also held in Vientiane with the national Lao PDR offices of Tourism, STEA, WWF and the Mekong River Commission. In addition the projects were discussed with participants at the two national workshops held in Vientiane during July 2006 and September 2006. Workshops have been conducted each year on the protection of biodiversity values in the Siphandone wetlands with the proceedings being documented by STEA 31 , and these were reviewed as part of the background research. Website research and review of any relevant reports and information was also conducted.

32. The main purpose of the above consultation was to achieve background information on the Siphandone wetlands including relevant policy, past research, environmental issues and response to the initial ideas for the components. One of the concerns raised through the consultation was the potential environmental impacts of a major hydro-electric power scheme development proposal in the southern portion of the Siphandone wetlands (Khone Falls area) which could create extensive flooding, affect fish migration routes, damage wetland habitat 32 values and involve resettlement of villagers F . There is concern that any negative impacts would not only be in the Khone Falls area, but also on fisheries and communities all along the Mekong River and its tributaries in Laos as it would block fish from migrating into Laos from Cambodia. The other concern was the possible commencement of a major resort/golf course development within close proximity of Khone Phapheng Falls, the wetlands and involving clearing of a large area of remnant vegetation. Consultation with provincial agencies indicated that no development application had been lodged and consequently no planning approval assessment or IEE undertaken.

33. Future stakeholder consultation on environmental issues should involve (i) a community meeting and preparation of an information sheet about the project in advance of works commencing, (ii) an information sheet sent to all households and businesses (@ 2 per year) indicating the results of environmental monitoring of the collected waste on a 6 month basis, (iii) presentation of an outline of the proposed works at the annual Siphandone wetlands workshop and (iv) continual liaison with relevant agencies and NGO’s including the Mekong River Commission.

G. FINDINGS AND RECOMMENDATIONS

34. There are limited environmental impacts associated with the proposed developments for the Siphandone Wetland Biodiversity and Tourism project. The initial screening of potential environmental impacts of the components indicates that they will not significantly affect environmentally sensitive areas, nor will they cause changes in the physical, biological, and social environment. Any environmental effects would be minor and easily mitigated through the adoption of sound environmental planning, design, construction and management practices at all sites. Many of the proposed works provide positive environmental impacts as they are aimed at fixing existing environmental problems and improve the capacity of the local area to sustain increased visitation in future years. Importantly these works are also aimed at providing better conservation outcomes for the Mekong River, wetlands, villages and the living conditions of the

30 The implementation of the environmental law in Lao was previously with the Science, Technology and Environemntal Agency (STEA) and this responsibility has now been taken over by WREA. 31 STEA 2004 Proceedings Workshop on problems and Opportunities for Environmental and Biodiversity Management at Wetland Ecology in Kong District; STEA 2005 Activity Financing contract Second Workshop of Ecotourism and integrated Ecosystem Management; and STEA 2006 Proceedings Workshop on Man and the Biosphere. 32 Malaysian company has signed an agreement with the Lao government to conduct an 18-month feasibility study for the Don Sahong dam (Vientiane Times)

Supplementary Appendix F2 219 local population. No EIA or EMP is required to be prepared to identify, assess and manage the potential impacts of the components. However the environmental implications of the proposed development would need to be reviewed and monitored following site investigations and operational works.

H. CONCLUSIONS

35. The proposed components will not cause significant environmental impact and are Category C under the criteria of the ADB Environmental Assessment Guidelines 2003 and judgement that would be made by WREA using the Regulation on Environmental Assessment within the Environmental Protection Law 1999. No EIA or EMP is required for the proposed works.

36. The proposed works will provide a range of benefits including: (i) creating a better visitor arrival point to the wetlands and Ban Nakasang village that will overcome current congestion, traffic and parking problems; (ii) providing a better understanding of the value and conservation significance of the Siphandone wetlands to the globe, nation and local community; (iii) upgrading basic visitor infrastructure that allows visitors to access and enjoy the wetlands; (iv) reducing the level of pollutants entering the river by the drainage line with use of a gross pollutant trap; and (v) improving the living conditions of the local community through the reduction of health hazards involved with lack of sanitation and solid waste treatment.

Supplementary Appendix F 220

220

Table SAF2.2 : Assessment of Potential Environmental Impacts

F2 Appendix Supplementary Potential Environmental Impacts or Values Road and Construct car New wetland Improved Improved waste New Is the project likely to: drainage park and visitor pathways on management wetland upgrading to upgrade market interpretation Don Det and services at Ban and Ban spaces at Ban and Done Kone Nakasang, Don island Nakasang Nakasang information Islands Det and Done ecotouri centre at Ban Kone Islands sm Nakasang attractio ns cause land disturbance - soil erosion, subsistence, instability and landslip L L L L L L reduce local and wider catchment area water quality from disturbance to L L L L L L drainage patterns, dams, sedimentation, turbidity, or the excess demand for supply increase peak and flood flows L-M L L L L L cause loss of downstream beneficial uses L L L L L L adversely impact upon geological or geomorphological features, particularly L L L L L L those of known local, national or international conservation significance result in significant vegetation loss from clearing or indirect impacts, particularly L L L L L L species and communities of known local, national or international conservation significance adversely impact upon local and transient (those species whose range may L L L L L L include the project site) fauna species, particularly those of known local, national or international conservation significance. the introduction of pests, weeds or diseases L L L L L L increase the frequency and intensity of fire L L L L L L result in contamination of the immediate and/or broader environment, from the L L L L L L storage or use of chemicals (including bioaccumulation) generate emissions which may cause atmospheric / environmental impacts and L L L L L L human health impacts at a local or larger scale generate excessive waste from construction and / or ongoing maintenance and L L L L L L operational processes result in visitor numbers beyond the perceived carrying capacity of the site L L L L L L result in a significant increase in noise and / or vibration L L L L L L result in unnatural lighting effects that may impact upon flora and fauna, or L L L L L L deplete the sense of naturalness of the area result in the fragmentation of an otherwise ‘intact’ natural landscape L L L L L L

Potential Environmental Impacts or Values Road and Construct car New wetland Improved Improved waste New Is the project likely to: drainage park and visitor pathways on management wetland upgrading to upgrade market interpretation Don Det and services at Ban and Ban spaces at Ban and Done Kone Nakasang, Don island Nakasang Nakasang information Islands Det and Done ecotouri centre at Ban Kone Islands sm Nakasang attractio ns adversely impact upon the land use and amenity values of adjacent or L L L L L L downstream areas (including the integrity of agricultural land, or other industry that the local community may depend on) result in parking or traffic problems (congestion, pedestrian / fauna safety L L L L L L issues) adversely impact upon the existing or potential recreational use, and quality of L L L L L L recreational experiences adversely impact or alter the visual value of the site and surrounding area - L L L L L L when viewed from a range of key viewpoints

SupplementaryAppendixF2 SupplementaryAppendixF2 221

222 Table SAF2.3 : Environmental Management Plan

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding F2 Appendix Supplementary Entity Outputs Sources Location and Design All Activities mines and UXOs UXO clearance from MAG as a pre- PIUs Local government Project costs contamination requisite for works clearance

Resettlement Impacts As a general rule, no land acquisition or IA’s/ Resettlement Plans Project costs or relocation of houses will be involved. At resettlement provincial the detailed design stage, a resettlement consultants counterpart plan will be prepared assessments to funds determine the need for temporary or

permanent acquisition of land or non-land assets and will specify mitigation measures and compensation. Short resettlement plans will be prepared if necessary. Road and drainage upgrading to Ban Nakasang Seal road and upgrade Increased run-off from any • Design road drainage to compensate PIU’s/ civil Less evidence of Project costs drainage road widening for increased surface run-off and engineer ponding within Inconvenience to users collect sediment in drains consultants street and drains during road upgrading • Upgrade village main road drains that capture majority of waste and re-direct to gross pollutant traps before entering the river • Facilitate greater local and visitor awareness about litter reduction and monitor illegal sources of pollution into drains e.g. sewage pipes, trade waste Construct car park and upgrade market spaces at Ban Nakasang • Limited visual impact • Consult with market operators about PIU’s/ civil Solid waste Project costs as current market the design and location of the new engineer and collection system facilities are poor facilities; using local architecture environmental operational quality and have no forms consultants No evidence of connection to local • Design to improve pedestrian access septic tank capacity heritage through market and separation of failure • Increased wastes and service and visitor parking wastewater • Seal surface to protect groundwater • Direct run-off from car parking area through grassed lined drains before entering surrounding areas or link to main road drains

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding Entity Outputs Sources • Organize localised solid waste collection and recycling system within the market place and village • Design toilets for low water use and construct septic tank with capacity for peak daily use • Monitoring of septic tank and removal as required Construct river steps for Increased riverbank • Seek the advice and approval of the PIU’s/ civil Approval of MRC Project costs boat ferry service during erosion Mekong River Commission for the engineer granted high water levels Visual impact at low river design of the steps/landing area consultants levels (although largely • Design a relatively minor set of steps insignificant given other that do not protrude into main river structures) stream, but improve visitor/local access and safety to boats in high river levels • Maintain river beach access at other times Upgrade foreshore Limited impact as existing • Focus upgrading works on existing PIU’s/ civil Paths completed Project costs village paths paths in place paths in preference to constructing engineer new tracks consultants • Wider paths along commercial road where higher pedestrian use • Install drainage diverts to disperse run-off flows New wetland visitor interpretation and information centre at Ban Nakasang

Construct new building Visual impact • Site building off the main view-line by PIU’s/ civil Approval of building Project costs F2 Appendix Supplementary at the proposed new locating within the car park arrival engineer design by arrival point 400m from area consultants Commune Leader river • Design building to use appropriate design elements related to the historic significance of the village and consideration of original building design. Improved pathways on Don Det and Done Kone Islands Upgrade gravel surface Increased run-off from any • Design road drainage to compensate PIU’s/ civil Road drains Project costs of roads and improve road widening for increased surface run-off engineer designs approved drainage consultants by Engineer Consultant Install interpretative Increased site and traffic • Locate pavilion off the site but within PIU’s/ civil Approval for Project costs pavilion and retain impacts on railway and pier view of the main structures engineer pavilion 223 historic character of the site with increased visitors • Retain its crushed stone surface, consultants

Supplementary Appendix F 224

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding 224 Entity Outputs Sources former French railway and commercial tourism width and alignment with

line, bridge and pier use consideration given to only allowing F2 Appendix Supplementary structure limited numbers and small size vehicles and some passing bays • Restrict any commercial tourism developments that can be viewed or will impinge on these historic sites and heritage vales Improved waste management services at Ban Nakasang, Don Det and Done Kone Islands Install solid waste Pollution entering the • Install practical system in each village PIU’s/ civil Number of Project costs collection, transport and Mekong River for collection of waste from engineer and households disposal system in local Local health hazards households and businesses and environmental benefiting from Water quality villages recycling waste consultants solid waste tests and • Initial baseline survey of water quality, collection, transport ground water groundwater resources and waste and disposal tests conducted treatment sites at villages to system in local at 10 sample determine current conditions and villages villages compliance to health standards. (estimate test • Identify a suitable location on the analysis costs islands for disposal and management for initial survey • Cover market collection point at $4000US) • Requirements for septic tanks and monitoring systems in place under policy of no waste into Mekong • Funding assistance scheme to support poorer households to install toilets and have access to clean water supply (e.g. wells) New wetland and island ecotourism attractions Construct walks on Erosion of riverbanks • Seek the advice and approval of the PIU’s/ civil Approval of MRC Project costs selected islands with Visitor site impacts Mekong River Commission for the engineer and Monitor visitor natural and cultural design of the steps/landing area environmental numbers on walks themes for interpretation • Identify landing areas on islands with consultants less river current exposure to reduce erosion risks • Promote the island visits as ecotourism trips using small boats and small visitor groups with commitment to conservation as a feature of the island experience • Design new trail to be no wider than 1.5m, minimal benching and

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding Entity Outputs Sources vegetation clearing, use soil or compacted gravel surface and install drainage deflection to disperse run-off • Visitor signage and improve local and visitor awareness of litter reduction Construction Impacts All activities Dust and noise Dust and noise Temporary dust and noise Construction specifications will require Contractors, IAs, Approved contract Project costs hazards may be created by contractors to (i) water exposed earth National specifications and use of heavy machinery at surfaces to limit the generation of dust, (ii) supervision EMP quarry sites and around provide covers on loose materials when consultants construction sites. being hauled close to settlements and on Reports on spoil heaps to prevent wind-blown soil environmental loss, (iii) reinstate vegetative cover on all management and bare surfaces upon completion of the Contractors monitoring works, (iv) locate any potentially hazardous machinery or chemicals at sites Reports of review remote from habitation, (v) maintain missions construction plant in good condition, (vi) limit working hours in populated areas, and Reports of (vii) enforce the use of ear protection and independent dust filtering masks for workers. monitoring Contractors will avoid routing construction consultants plant through populated areas, and will manage construction traffic with signals, flagmen, and appropriate signs. Soil and Land Soil and Land Supplementary Appendix F2 F2 Appendix Supplementary Damage to agricultural Construction specifications will require IAs Approved contract Project costs land, river banks, public contractors to (i) use public roads for specifications and spaces, and other nearby accessing work sites in agreement with National EMP areas by (i) passage of local authorities, work within the right-of- supervision construction plant; (ii) way of the original structure or the consultants Reports on temporary storage of boundaries of leased land; (ii) store environmental construction materials; (iii) construction materials in designated areas management and disposal of excavated for which prior agreements have been monitoring spoil; (iv) establishment of negotiated; (iii) dispose of excess earth fill the contractor’s camp and material in designated areas, reshape any Reports of review working areas for such disposed material in such a way as to Contractors missions assembly of structural avoid subsequent erosion or collapse, and elements (e.g., pre-cast replace topsoil and vegetation on all Reports of

concrete components), exposed surfaces; (iv) establish working independent 225 aggregate crushing, or areas in designated sites remote from monitoring

Supplementary Appendix F 226

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding 226 Entity Outputs Sources servicing of machinery; (v) population clusters; (v) establish and consultants

disposal of liquid and solid maintain in good working order proper F2 Appendix Supplementary wastes; and (vi) creation of means of collecting and disposing of solid borrow areas. and liquid wastes; and (vi) extract all earth Excavation can render fill materials from licensed borrow areas or sites susceptible to other environmentally non-sensitive areas, landslides and collapse and reshape borrow areas to avoid subsequent erosion or collapse on completion, revegetating exposed surfaces. Contractors will stabilize any exposed slopes that would be susceptible to collapse and will provide appropriate drainage. Operation Impacts Increased visitors Increased litter and wastes Clean-up river environs near current IA’s Monitoring records Project costs entering Meekong River drainage outfall after installing gross /environmental for 2 weeks during Odour, animal foraging, pollutant traps consultants rainy and dry Labour for wind and dispersal of litter Provision of bins and improved collection season season clean-up and Leachate causing system as well as awareness raising Monitoring records analysis of contamination of surface programs to be provided under the project 2 times a year waste of 5 and ground water Cover waste daily or often enough to person days reduce problems each 5 years @ Identify appropriate measures to reduce $20 US/day = rodents and reduce birds at tipface $500US Maintain aerobic conditions during the composting process Check under-lying soils are relatively impermeable and existing drains are functional for allowing runoff and leachate to be collected Conduct monitoring by recording volume, types of wastes at the GPT Survey the condition of the river environs (e.g. level of waste observed) up to 20m below the trap (It will be necessary for the river environs to be cleaned-up below the trap immediately after installation so as to provide a reasonable baseline for observing increased waste in the future.) Regular inspection and development of practical operation and maintenance

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding Entity Outputs Sources procedures Supplementary Appendix F2 F2 Appendix Supplementary 227

228 Supplementary Appendix F2

Initial Environment Examination

Project Number: 38015 March 2008

Lao PDR: GMS Sustainable Tourism Development Project

SUBPROJECT 2: VANG VIENG DRAINAGE AND TREATMENT IMPROVEMENTS

Supplementary Appendix F2 229

A. INTRODUCTION

1. The site is located in Vientiane Province, in the town of Vang Vieng, the capital of Vang Vieng District. The town is located on the main tourist route (Highway 13) about half way between Vientiane and the World Heritage town of Luang Prabang. The town is located adjacent to the Song River that flows into the Mekong River. The town is also accessible by boat from Vientiane. The town is located in the Mekong River Priority Tourism Zone.

2. Considerable improvements to the town’s road and drainage system have been undertaken in recent years under the Small Towns Development Sector Project (ADB TA 3492- LAO). These works were deemed to be a Category B project under the ADB Environmental Assessment Guidelines 2003 and an IEE was prepared that considered that the works did not require the preparation of an EIA.

3. The proposed works under this Subproject are essentially an extension of the implementation of the Small Towns Development Sector Project with the addition of installing gross pollutant traps on main drainage lines to reduce the level of waste entering the river system. The works are all located within the town boundaries of Vang Vieng. The IEE has been prepared on the basis of site visits, review of available information, web research and consultation with key stakeholders.

B. DESCRIPTION OF PROJECT

4. A detailed description of the project is provided in Section III Part B (Components and Outputs) and in Appendix 2 (Detailed Subproject Descriptions). Detailed cost estimates and engineering concept diagrams for the proposed works are provided in Appendices 4 and 5.

5. The project outcomes are to: (i) Protect the river water quality for local and tourism use. (ii) Contribute to the reduction in downstream river pollution. (iii) Enhance the environmental quality of Vang Vieng town as a tourist center and place to live for its residents (iv) Demonstrate how waste water can be controlled in the smaller tourist centers of the GMS.

6. To achieve the above outcomes for the subproject, the overall scope of works will be to build upon the work already completed by the Small Towns Development Sector Project for Vang Vieng. The main components of the subproject include:

(i) extension of drains in the core of the town (ii) road pavement and improvements to secondary roads in the town core (iii) stormwater treatment with primary screening to remove solid waste through use of gross pollutant traps and a wetland filter (iv) provision of an additional vehicle for solid waste collection (v) awareness campaign to residents and business establishments on maintenance of septic tanks and compliance with grey and black water connection regulations; and (vi) training of the Urban Development Administrative Authority staff to ensure that guest houses, restaurants and commercial establishments comply with waste water regulations. 7. The proposed civil works are (refer to Appendix 6 for diagrams):

(i) construct 575m of stormwater pipes down cross road 1 to drain 4, 275m to drain 5 and extend road drainage by 1150m along road 1;

230 Supplementary Appendix F2

(ii) construct 150m entrance road to town between the airstrip and road 1 with sealed pavement, kerb and piped stormwater; (iii) construct cross road 2 with sealed pavement, kerb and piped stormwater; (iv) construct gross pollutant traps for drainage lines 1 and 2 within the public road given the difficulty of access, existing private land tenure holdings and higher costs of servicing the traps at other locations; and (v) construct a wetland filter for drainage lines 3 and 4 on public land where they merge.

C. DESCRIPTION OF ENVIRONMENT

8. An IEE report was prepared for the Small Towns Development Sector Project for the physical works involved with improvements of the existing streets and stormwater drainage in 33 Vang Vieng F . This report has been used, along with site visits and background research to describe the environment.

1. Physical Environment

9. The town is located in Vang Vieng District in Vientiane Province. The town is located on the main tourist route (Highway 13) about half way between Vientiane and the World Heritage town of Luang Prabang. The town is located adjacent to the Song River that flows into the Mekong River.

10. The town is located on an alluvial plain of the Song River at an elevation of about 200m with karst mountains rising to 500-900m. The soils are friable clayey loam extending to a depth of about 1m above alluvial deposits. The rainfall varies from 1000mm-2800mm between years with about 85% of the rainfall received during the monsoon season between May to September. The temperatures range from a low of 18oC during December to 33oC in February with the hotter months being February – May. The water table varies between the dry and wet seasons. Flooding occurs at the northern side of the town.

2. Biological Environment

11. Little information is available on the biological values in Vang Vieng and discussions with Provincial agencies indicated that no information was available. The natural values of the town have been largely modified through urban land use development and construction of an airstrip during the Viet Nam war and little substantive remnant vegetation or habitat remains within the town area with the exception of some mature indigenous hardwood trees.

12. Although black water waste is treated by septic tanks, grey water from kitchens, laundries, commercial activities such as cleaning and heavily silted storm water runoff is discharged directly into the drainage system leading to the river. In addition, although black water waste is treated by septic tanks, the continued expansion of the tourism establishments has not been matched in increased septic tank capacity, resulting in discharge of black water into the ground and further exacerbating water pollution effects.

3. Socio-economic

13. There are 22 villages within the Vang Vieng District, 7 of which are found within the town area. The district population is 46,399 with 9396 households. The main cultural groups are Lao Lum (@ 75%) with the balance divided between Hmong and Khamu. The main source

33 Ministry of Communication Transport Post and Construction , Department of Housing and Urban Planning 2005. Initial Environmental Examination Reports of Pakxanh, Vang Vieng, Meuang Pek and Xamneua.

Supplementary Appendix F2 231 of income is from agriculture and tourism. Cement production is also a major industry located near the town. The Vang Vieng District is just below the 20% poor level.

D. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

14. The components (v) and (vi) do not involve any site works and will not cause any adverse impacts on the environment. Components (i), (ii) and (iv) are continuing elements of the Small Town Development Sector Project and whilst having been covered by an IEE for the Small Town Development Sector Project for Vang Vieng, are included as part of the environmental examination for this project. The screening of potential environmental impacts has also been undertaken for component (iii), which is considered to be a new work that is complementary to the Small Town Development Sector Project. The screening indicates whether the impacts are considered to have (i) low impact (L), (ii) moderate impact (M), and (iii) high impact (H).

15. The measures to reduce or mitigate the potential impacts identified with works for component (i), (ii), (iii) and (iv) are listed in Table 2 of Appendix 1. The Table indicates the (i) site works/activity, (ii) potential environmental impacts, (iii) mitigation measures, (iv) responsible entity, (v) monitorable outputs, and (vi) funding.

16. The positive environmental impacts from components (i), (ii), (iii) and (iv) include: (i) collection and reduction of stormwater waste that is currently polluting the creek, Song River and eventually the Mekong River; (ii) allow completion of necessary works for the Small Town Development Sector Project, that were not funded under the original program (e.g. drainage improvements across the town centre, road upgrading); (iii) allow transportation of the collected waste to the sanitary landfill site; (iv) to support the litter awareness and education programs within the community; and (v) improve the amenity and reduce risks of health problems within the town resulting from inadequate urban infrastructure and increasing visitor levels.

17. The negative environmental impacts are considered to be minor and would mainly apply during the construction stage and maintenance/cleaning times when there is some disruption to road access. The placement of the gross pollutant trap within the public road is recommended for drainage lines 1 and 2 due to the lack of suitable public land and thus higher costs for achieving access and service capability. This will result in closure of the access road to vehicles through traffic during construction and installation of the trap and some times of temporary closure (less than 1 hour) when the waste is collected and transported from the trap. The gross pollutant trap recommended to be installed on public land for drainage lines 3 and 4 and will not involve closure of roads during construction or servicing of the trap as it can be accessed via a side-road. None of these works will have an adverse visual impact due to the selected locations and that the facilities will either be underground or at ground surface.

E. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN

18. The Environmental Protection Law 1999 provides overall responsibility for environmental protection to the Water Resources and Environmental Administration (WREA), a new body created within the Prime Minister’s Office. All IEE and EIA proposals are considered under the Regulation on Environment Assessment in the Lao PDR (2002).The Regulation on Environmental Assessment under the Law states that any projects affecting the environment

232 Supplementary Appendix F2 requires a project description to enable the Development Project Responsible Agency (DPRA) to (i) undertake a project environment screening to issue an environmental compliance certificate prior to commencement of any works or (ii) to determine whether an IEE is required to ascertain whether an EIA is to be prepared.

19. There are no standard guidelines for the environment screening in Lao PDR and judgement is based on experience and considering suggested guidelines in other countries and agencies (e.g. World Bank, ADB). Component (ii) would not require the preparation of an IEE under the current application of the Regulation on Environmental Assessment process.

20. The project activity would be classified as a Category C under the criteria of the ADB Environmental Assessment Guidelines 2003 where there is no need for the preparation of an IEE.

21. Environmental monitoring in Vang Vieng will be the responsibility of the WREA provincial level with reporting to the national WREA office in Vientiane and the provincial governor’s office of Vientiane Province. The WREA office has the experience of involvement in the implementation of the Small Town Development Sector Project. The key aspects of the monitoring should be to keep records of the (i) amount of waste removed (i) analysis of the waste material collected by broad categories by volume e.g. plastic, food, paper, cloth (ii) monitoring of the frequency of clean-up of the traps and (iv) the overall condition of the river environs (e.g. level of waste observed) up to 100m below the trap. It will be necessary for the river environs to be cleaned-up below the trap immediately after installation so as to provide a reasonable baseline for observing increased waste in the future.

22. Discussions with the Mekong River Commission indicated that monitoring of water quality on the Song River was a provincial matter and that the Commission did not collect or have baseline data on the river’s water quality. Discussions with the provincial agencies indicated that no baseline data on the water quality was available for the Song River. The proposed environmental monitoring for component (ii) does not require monitoring of water quality as it is intended to remove gross pollutants and not treat water quality.

23. The following environmental monitoring program has been budgeted for under the subproject costs.

Supplementary Appendix F2 233

Environmental Monitoring Program Costs

Clean-up of river environs on drainage lines Labour for clean-up and analysis of waste of after installing gross pollutant traps and then on 30 person days per year @ 5 years @ annual basis after end of rainy season with $20US/day = $3000US analysis of type and volume of waste collected

Water quality monitoring in Song River at 3 Water quality monitoring @ WREA lab in locations - above gross pollutant trap (gpt) 2 & 3, Ventianne (allow $100 US for 8 elements below gtp 2 &3 and below gtp 1 analysed) plus transit costs of sample $20 US) @ 3 sites @ 2 times per year for 5 years = $3600

F. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

24. Two site visits were conducted by the consultant team in July and September 2006. On each occasion meetings and site inspections were held with provincial representatives from STEA, Ministry of Tourism and the Ministry of Communication Transport Post and Construction in the Department of Housing and Urban Planning. These meetings discussed the implementation of the Small Town Development Sector Project, priorities for future projects, design of works and options for implementation. During September 2006 a meeting was held with the Deputy Governor for the Vang Vieng District to discuss the project and priorities. Meetings were also arranged with STEA national office to discuss the application of the legislation and to review a copy of the Small Town Development Sector Project IEE. A site walk was held with the Village Leader to confirm which sites were in public and private ownership. In summary the consultation indicated continuing support for the implementation of the Small Town Development Sector Project and that the proposed works would extend the benefits of the improvements to the towns drainage system and in particular, to help reduce the waste entering the Song River.

25. review and confirm environmental assessment processes.

G. FINDINGS AND RECOMMENDATIONS

26. There are very limited environmental impacts associated with the proposed improvements to the drainage system in Vang Vieng. The initial screening of potential environmental impacts of the components indicates that they will not affect environmentally sensitive areas, nor will they cause changes in the physical, biological, and social environment. The proposed works are largely an extension of the works envisaged under the IEE prepared for the Small Town Development Sector Project that found no need for an EIA to be prepared. The proposed works are aimed at fixing existing environmental problems and this will also improve the capacity of the local area to sustain increased visitation in future years. Importantly these works are also aimed at providing better conservation outcomes for the Song River, local ecotourism adventures and the living conditions of the local population.

27. The impacts associated with the proposed works are temporary and can be largely mitigated through the adoption of sound planning, design, construction and management practices at the sites.

28. None of the proposed components are considered to have significant environmental impact and do not require an EIA or EMP to be prepared to identify, assess and manage the

234 Supplementary Appendix F2 potential impacts. However the environmental implications of the proposed development will need to be reviewed and monitored following site investigations and operational works. Record keeping of the waste collected, nature of waste and frequency of collection will help monitor the success of the project.

H. CONCLUSIONS

29. The proposed works at Vang Vieng will provide a range of positive environmental benefits for the community and will not cause adverse environmental impacts. Most of the proposed components are continuing elements of the Small Town Development Sector Project previously covered by an IEE for the Small Town Development Sector Project for Vang Vieng. Further environmental examination of these components indicated that no IEE, EIA or EMP is required for these works. In addition no IEE is required for the new works for installing gross pollutant traps on the main drainage lines.

30. The benefits include (i) collection and reduction of stormwater waste that is currently polluting the creek, Song River and eventually the Mekong River; (i) allow transportation of the collected waste to the sanitary landfill site; and (ii) to support the litter awareness and education programs within the community.

Table SAF2.1: Assessment of Potential Environmental Impacts

Potential Environmental Impacts or Values Extension of Sealed road Installing Additional Will the project cause: stormwater drains pavement gross vehicle for in town with kerb pollutant solid waste and traps and collection stormwater wetland filter drains impairment of historical/cultural monuments/areas and loss/damage to these sites L L L L degradation of aesthetic and property value loss L L L L nuisance to neighbouring areas due to foul odour and influx of insects, rodents etc L L L L dislocation or involuntary resettlement of people L L L L public health hazards from odour, smoke from fire and diseases transmitted by flies, insects, L L L L birds and rats deterioration of water quality L L L L land use conflicts L L L L road blocking and/or increased traffic during construction of facilities M H H L noise and dust from construction activities L L L L temporary silt runoff due to construction L L L L cause land disturbance - soil erosion, subsistence, instability and landslip from site works L L L L reduce local and wider catchment area water quality from disturbance to drainage patterns, L L L L dams, sedimentation, turbidity, or the excess demand for supply increase peak and flood flows L L L L cause loss of downstream beneficial uses L L L L adversely impact upon geological or geomorphological features, particularly those of known L L L L F2 Appendix Supplementary local, national or international conservation significance result in significant vegetation loss from clearing or indirect impacts, particularly species and L L L L communities of known local, national or international conservation significance adversely impact upon local and transient species, particularly those of known local, national or L L L L international conservation significance the introduction of pests, weeds or diseases L L L L increase the frequency and intensity of fire L L L L adversely impact upon the existing or potential recreational use, and quality of recreational L L L L experiences adversely impact or alter the visual value of the site and surrounding area - when viewed from a L L L L range of key viewpoints 235

236

Table SAF2.2: Summary of Environmental Impacts and Mitigation Measures F2 Appendix Supplementary

Site /Activity Impacts Mitigation Measures Responsible Monitorable Funding Entity Outputs Sources Location and Design All Activities mines and UXOs UXO clearance from MAG as a pre-requisite for works PIUs Local government Project costs contamination clearance

Resettlement As a general rule, no land acquisition or relocation of IA’s/ Resettlement Project costs or houses will be involved. At the detailed design stage, a resettlement Plans provincial resettlement plan will be prepared assessments to consultants counterpart determine the need for temporary or permanent acquisition funds of land or non-land assets and will specify mitigation measures and compensation. Short resettlement plans will be prepared if necessary. Installing of gross Traffic interruption Install gross pollutant traps within road surface IA’s Reduced waste Project costs pollutant traps for Blocked drains Clean-up drains after installation of the traps observed in drainage lines 1 and 2 Impact on neighbouring Collect waste on a regular basis to reduce odour problems drains properties Consult with neighbours about proposed works Manage traffic flows to minimize delays and inconvenience Collect waste during normal working hours so as to reduce noise levels to nearby houses Installing of gross Upgrading of side road to Design wetlands taking advantage of drainage line and IA’s Reduced waste Project costs pollutant trap within the access the proposed trap contours observed in public land at merging of site for construction and Design to cater for major drainage flows and slowing the drains drainage line 3 and 4 operation (minimal impact release of water to the Song River and would be beneficial for Collect waste on a regular basis to reduce odour problems other users of the road) Collect waste during normal working hours so as to reduce Noise and odour noise levels to nearby houses Seal road and upgrade Increased run-off from any Design road drainage to compensate for increased surface PIU’s/ civil Less evidence of Project costs drainage road widening run-off and collect sediment in drains engineer ponding within Inconvenience to users Upgrade village main road drains that capture majority of consultants street and drains during road upgrading waste and re-direct to gross pollutant traps before entering the river Facilitate greater local and visitor awareness about litter reduction and monitor illegal sources of pollution into drains e.g. sewage pipes, trade waste During Construction All activities Dust and noise Construction specifications will require contractors to (i) Project costs Temporary dust and noise water exposed earth surfaces to limit the generation of Contractors, Approved contract hazards may be created by dust, (ii) provide covers on loose materials when being IAs, specifications,

use of heavy machinery at hauled close to settlements and on spoil heaps to prevent National EMP, Reports on quarry sites and around wind-blown soil loss, (iii) reinstate vegetative cover on all supervision environmental construction sites. bare surfaces upon completion of the works, (iv) locate any consultants management and potentially hazardous machinery or chemicals at sites monitoring, remote from habitation, (v) maintain construction plant in good condition, (vi) limit working hours in populated areas, review missions and (vii) enforce the use of ear protection and dust filtering Contractors Reports of masks for workers; and (viii) avoid avoid routing independent construction plant through populated areas monitoring consultants Soil and Land Construction specifications will require contractors to (i) Damage to agricultural land, use public roads for accessing work sites in agreement IAs Approved contract Project costs river banks, public spaces, with local authorities, work within the right-of-way of the specifications and other nearby areas original structure or the boundaries of leased land; (iii) National dispose of excess earth fill material in designated areas, supervision Reports on reshape any such disposed material in such a way as to consultants environmental avoid subsequent erosion or collapse, and replace topsoil management and and vegetation on all exposed surfaces; (iv) establish monitoring working areas in designated sites remote from population clusters; (v) establish and maintain in good working order Reports of review proper means of collecting and disposing of solid and liquid missions wastes; and (vi) extract all earth fill materials from licensed Contractors borrow areas or other environmentally non-sensitive areas, Reports of and reshape borrow areas to avoid subsequent erosion or independent collapse on completion, revegetating exposed surfaces. monitoring consultants Installing of gross Disruption to road access Investigate pre-construction off the pit off-site IA’s Construction Project costs pollutant traps within the during construction and Inform community of disruption in advance of installation undertaken with road crossings for installing the trap Use temporary signs in advance of the site (e.g. prior minimal disruption drainage lines 1 and 2 Temporary closure of road intersections) to inform users of the road closure to traffic for maintenance and Provide temporary measures to allow pedestrian access F2 Appendix Supplementary clearing of waste from the Clean-up drains after installation of the traps trap Service traps outside of peak traffic times Installing of wetland filter Erosion and loss of Minimise extent of site works and make use of the local IA’s No major erosion system and gross vegetation where pit and topography to reduce works or silting of the pollutant trap for drainage ponds are formed Install temporary measures to reduce erosion and siltation drainage line lines 3 and 4 Siltation of the drainage line from site works Introduced weeds Clean-up drains after installation of the traps During Operation Increased visitors Increased litter and wastes Water quality monitoring in Song River at 3 locations - IA’s Monitoring Project costs creating increased waste entering Song River above gross pollutant trap (gpt) 2 & 3, below gtp 2 &3 and /environmental records for 2 that enters the drains and Odour, animal foraging, wind below gtp 1 consultants weeks during Water quality Song River and affects and dispersal of litter Clean-up of river environs on drainage lines after installing rainy and dry monitoring @ water quality gross pollutant traps and then on annual basis after end of season season WREA lab in 237

rainy season with analysis of type and volume of waste Monitoring Ventianne collected records 2 times a (allow $100 US 238 Provision of bins and improved collection system as well as year for 8 elements awareness raising programs to be provided under the analysed) plus

project transit costs of F2 Appendix Supplementary Cover waste daily or often enough to reduce problems sample $20 Identify appropriate measures to reduce rodents and US) @ 3 sites reduce birds at tipface @ 2 times per Maintain aerobic conditions during the composting process year for 5 years Check under-lying soils are relatively impermeable and = $3600 existing drains are functional for allowing runoff and leachate to be collected Labour for Conduct monitoring by recording volume, types of wastes clean-up and at the GPT analysis of Survey the condition of the river environs (e.g. level of waste of 30 waste observed) up to 20m below the trap (It will be person days necessary for the river environs to be cleaned-up below the per year @ 5 trap immediately after installation so as to provide a years @ reasonable baseline for observing increased waste in the $20US/day = future.) $3000US Regular inspection and development of practical operation and maintenance procedures

Supplementary Appendix F4 239

Environmental Assessment and Review Framework ______

Project Number: 38015 June 2008

Laos PDR: Greater Mekong Sustainable Tourism Development

The Environment Assessment and Review Framework is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

240 Supplementary Appendix F4

ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK

VIII. IntroductionB

1. The main goal of the GMS Sustainable Tourism Development Project (the Project) is to contribute towards the sustainable socioeconomic development of Lao People’s Democratic Republic (Lao PDR) focusing especially on poverty reduction, sustainable development of the environment and protection of vulnerable groups from exploitation. To achieve this goal, the project seeks to: (i) enhance the protection and conservation of natural, cultural and urban heritage assets of importance for tourism sector development; (ii) increase the contributions to poverty reduction of pro-poor tourism initiatives; (iii) improve the facilitation of tourism across the land borders and along the Economic Corridors; (iv) raise public sector official tourism management skills at the provincial, prefecture, country, district and site level; (v) improve service and hygiene standards among staff in small to medium hospitality enterprises in the provinces; and (vi) enhance locally generated private sector participation in small and medium tourism enterprise investment and operation.

31. The Project is classified as environmental category B. Three IEEs were prepared: (i) one each for two subprojects identified under component 1; and (ii) one for likely interventions to be identified under component 2 & 3. in accordance with ADB's Environmental Assessment Guidelines (2003), and conforms with environmental assessment requirements defined in Regulation on Environment Assessment in the Lao PDR (2002). The Environmental Assessment and Review Framework (EARF) has been developed to document the procedures for the environmental assessment of subprojects that will be implemented under the Project.

IX. OverviewB of Types of Subprojects to be Assessed

32. The proposed Project will have 5 outputs: (i) Sustainable, culturally and environmentally sound tourism demonstration projects for the GMS developed and operational to (a) help protect natural heritage sites of importance to tourism (Siphandone Wetlands in Champassak Province); and (b) improve the environment of urban tourism centers (Vang Vieng town in Vientiane Province); (ii) Pro-poor community-based and supply-chain tourism projects developed and operational in 6 provinces (Huaphanh, Oudomxay, Saravanh, Xayabouly, Bokeo, and Vang Vieng District in Vientiane Province); (iii) Community-operated facilities tourist and services along the GMS economic corridors that bring economic benefits to local communities improved (North- South Corridor in Bokeo and Luang Namtha provinces and East-West Corridor in Savanakhet Province); (iv) Human resource capacity of public and private tourism stakeholders developed to create (a) a pool of trainers to train skilled staff in small-scale hospitality enterprises, and (b) public sector officials responsible for tourism management at the provincial and destination level; and (v) Efficient project management services fully operational.

Supplementary Appendix F4 241

Table SAF4.1: Summarizes the Overall Project Scope of Work Outputs Types of activities Sustainable Siphandone This project involves the preparation of a heritage based tourism zoning, tourism Wetland structure and management plan for the wetlands area. The physical Infrastructure Biodiversity improvements include (i) upgrading of the 4 km access road that Conservation and connects route 13 to the boat landing at Nakasang Village and Tourism improvements to the pathways on Don Det and Don Kone Islands (ii) environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste management at the market and in the village; and (iii) construction of visitor information, interpretation facilities and fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands The project also provides capacity building and support programme for local communities, especially, women, youth and ethnic minorities, to participate in tourism-related livelihoods, and training for site managers to engage local communities in managing and interpreting the natural heritage values of the wetland. A community-based natural resource monitoring protocol will be developed. Vang Vieng This project is an extension of the implementation of the Small Towns Dranage and Development Sector Project drains in the core of the town. The main Treatment activities are to (i) extend road pavement and improvements to Improvements secondary roads in the town core; (ii) provide stormwater treatment with primary screening to remove solid waste through use of gross pollutant traps and a wetland filter; (iii) provision of an additional vehicle for solid waste collection; (iv) awareness campaign to residents and business establishments on maintenance of septic tanks and compliance with grey and black water connection regulations; and (v) training of the Urban Development Administrative Authority staff to ensure that guest houses, restaurants and commercial establishments comply with waste water regulations Pro Poor Small-scale The development of facilities such as information centers, community tourism-related lodges, viewing points, and walking trails, sanitary facilities, river piers, infrastructure interpretative signage, reception areas at border checkpoints, parking areas and markets. A budget of $400,000 US has been allocated for each of the six pro poor provinces. Community This includes product development programs, identification and development development of tourism industry related supply chains, Capacity building programs programs for tourism-related local micro-enterprises and communities, development of gender development participation program and ethnic minorities participation program, development of marketing and promotion program, promotion of community-based tourism networks and tourism stakeholder associations and a project performance monitoring system. These costs have been included in the $400,000 US budget for each province. North South Small-scale tourism To develop 5 tourist attractions along route 3 including scenic lookouts, Economic Corridor related attractions small car parks, walking trails, picnic facilities, visitor information and and infrastructure interpretation, cave walk and lighting and other small-scale visitor facilities. These works will create economic opportunities for local communities, lengthen the time tourists spend in Lao PDR, reduce poverty, and create jobs, especially for women and ethnic minorities. A budget of $1.3 M US has been allocated. Promotion, support These include the preparation of tourism development and management and training plans for the sites, community preparation and livelihood support programs program (agriculture and handicraft production), tourism management training for site managers and local tour-guide training program and a marketing and promotion program for the North-South Economic Corridor Tourism Circuit. These costs have been included in the $1.3M US budget.

242 Supplementary Appendix F4

X. NationalB Environmental Assessment and Review Procedures

33. Water Resources and Environmental Administration (WREA), a new body created within the Prime Minister’s Office, has the approval authority. All IEE and EIA proposals are considered under the Regulation on Environment Assessment in the Lao PDR (2002). The identification of projects that require an Environmental Impact Assessment is made using an initial screening of the project environment. Those projects determined to be non-exempt from environmental assessment must proceed to conduct an IEE pursuant to Article 9 of the Regulation. If the IEE concludes that no EIA is needed, and EMP must be developed in conjunction with the IEE report. If the IEE determines that the project needs an EIA, the TOR for the scoping of a subsequent EIA must be prepared.

34. Most of the proposed project interventions are unlikely to exceed the criteria requiring an IEE. However, to ensure appropriate environmental assessment for each subproject, a preliminary environmental screening (attachment 1) will be conducted for each subproject to determine the need for IEE.

XI. SpecificB Procedures to be used for Subprojects

A.B Institutional Responsibilities

35. The executing agency (EA) is the Lao National Tourism Administration (LNTA) in Lao PDR. The Project coordination unit (PCU) will be established within the LNTA. The PCU will be responsible for carrying out all of the necessary actions at the central level including overall coordination at the national and subregional levels and day-to-day management and monitoring of the Project. The PCU is responsible for coordinating relevant local agencies to ensure adequate quality of IEEs, obtain approval from WREA and monitor overall subproject and EMP implementation.

36. The Provincial Project Implementation Units (PIUs) will be established at the provincial level in the department of tourism of each participating province to undertake the day-to-day implementation of the Project. For the Vang Vieng subproject under Output 1, the Implementing Agency (IA) will be the urban development administration authority (UDAA) or the Department of Public Works and Transport (DPWT) of the province, which will establish a separate project management unit (PIU).

Table SAF4.2: Environmental Responsibilities Institution Responsibilities

Lao National PCU consists of Project Director and 6 permanent staff; responsible for overall supervision, Tourism monitoring and reporting to ADB on the environmental aspects Administration in Lao PDR (EA) PIU’s (IA) Responsible for (i) review checklist for conducting environmental assessment with the help of the Environmental; Consultant (ii) conducting and preparing environmental assessment for intended works; (iii) obtaining approval by WREA if necessary; and (iv) monitoring and reporting to EA the implementation of the mitigation measures and monitoring;

B. Environmental Screening Criteria 37. The environmental screening criteria for subproject selection are documented below. All subprojects must: (i) Avoid permanent negative impacts on a known rare or endangered flora or fauna

Supplementary Appendix F4 243

species; and (ii) Avoid direct, or indirect significant, negative impacts on important items of cultural heritage.

C.B Procedures for Environmental Assessment of Subprojects

38. During the detail design, the relevant PIUs will update the IEE and Environmental Management Plans (EMPs) prepared for the Siphandon and Vang Vieng subprojects under Output1. Each relevant PIU will carry out the following procedures to ensure that adequate environmental assessment will be conducted for the subprojects to be identified and selected under Output 2 and 3 during implementation.

a. Subproject Identification and Preparation

39. Sustainable tourism infrastructure needs at commune and village levels will be identified and prioritized through the local, provincial and national planning process that was used to prepare the Project Preparatory Technical Assistance (PPTA) F34 and was also built upon the previous ADB-supported ADTA 35 completed in 2005 and the lessons learn from the on-going GMS Mekong Tourism Development Project 36. This is a participatory process, which involves communities in identifying their needs, and provides for their direct involvement in resource allocation, decision making, implementation and monitoring at the local level.

b. Environmental Assessment Procedures for Tourism Infrastructure 40. Environmental Classification. Environmental screening will be conducted for identified subprojects by the PIU’s, assisted by the environmental consultants and district staff from WREA, to screen and classify the environmental category and identify necessary mitigation measures using the appropriate preliminary environmental screening check list (attachment 1). Subprojects that fall into environment category A will be excluded.

41. Preparation of IEEs. One overall IEE for a cluster of subprojects will be prepared for each of the selected provinces given the number of small-scale civil works proposed to be implemented within Project Outputs 2 and 3. One overall IEE will attach environmental screening checklists. For those subprojects that would require further environmental assessment as a result of the screening, relevant PIUs will prepare individual IEEs based on the sample IEE prepared during Project preparation and submit to ADB for its review. For example, an individual IEE needs to be prepared for the civil works within Tham Nam Eng cave if it is selected. Public consultation will be carried out to record communities’ concerns and consider such concerns in the design, specific mitigation measures and monitoring. Specific mitigation measures and monitoring plans with budget requirements and institutional responsibilities will be described in the IEEs.

42. Review of IEEs. All IEEs prepared by responsible IAs will be submitted to the PCU after the governor’s approval. The PCU will submit to ADB and WREA individual IEEs that would require additional environmental assessment as result of environmental screening for its review and approval prior to commencing activities under a Works contract for a Subproject.

34 ADB. 2005. Technical Assistance to the Greater Mekong Subregion: preparing the Sustainable Tourism Development Project . Manila. 35 ADB. 2004. Technical Assistance to the Greater Mekong Subregion for the Tourism Sector Strategy Study. Manila 36 ADB. 2002. Report and Recommendation of the President to the Board of Directors on Proposed Loans to Kingdom of Cambodia, Lao People’s Democratic Republic, and Socialist Republic of Viet Nam for the Greater Mekong Subregion: Mekong Tourism Development Project. Manila.

244 Supplementary Appendix F4

43. Environmental Monitoring. PIUs are responsible for supervising contractors’ performance and compliance with the environmental provisions. Local villages will also conduct visual completion check to report any unintended environmental impacts.

44. Environmental Reporting. PIUs are responsible for monitoring and reporting the environmental compliance in quarterly and annual reports that will be submitted to PCU for its review and the PCU will send it to ADB for review.

XII. PublicB Consultation and Information Disclosure

45. Public participation is an integral part of the subproject preparation and implementation. A series of public consultation was conducted at the national, provincial, commune and village levels during the project preparation. Overall, the consulted villagers supported the proposed Project and provided variable inputs to the location and design of interventions. Main concerns raised include resettlement impacts, risks of increased water pollution and wastes due to increased use of chemicals and construction of new markets. Such concerns were integrated in the design of mitigation measures and monitoring programs. During the EA planning process, any concerns raised by the subproject communities will be documented as part of the preliminary environmental screening process and be taken into consideration during the subproject identification and design of mitigation measures, and monitoring plans. During implementation, local facilitators will facilitate consultation process. All documents on environmental issues including IEEs and progress reports will be properly kept as part of the project documentation and made available to the public in Lao language.

XIII. StaffingB Requirement and Budget

46. Overall mitigation measures are included in the project costs (attachment 2). A baseline survey is recommended with the construction of a walkway and lighting system within the Tham Eng cave site on the North-South Economic Corridor. This is expected to indicate that the impacts can be effectively mitigated through the adoption of careful planning, design, construction and operation of the site. A baseline survey is also required to undertake a level 3 survey of UXO to ensure the risks of exposure by the community and visitors is minimal with the development of small-scale tourism infrastructure. This is a precautionary measure as one of the provinces selected for pro-poor program is an affected areas for UXO, there needs to be confirmation that UXO clearance is undertaken in areas where there is to be site disturbance for the subproject including all below-ground works and construction. An international (3 person months) and domestic (10 person months) environmental consultants will be recruited to assist the PIU’s, and PCU in conducting environmental assessment and incorporating necessary mitigation measures. The terms of references are provided in the Attachment 3.

Attachment 2

ENVIRONMENTAL MANAGEMENT COSTS

Sub-project Activity Cost Estimate

1. Sustainable Tourism Water quality tests and ground water tests conducted at 10 sample villages Estimate test analysis Infrastructure: costs for initial survey at a. Siphandone Wetland $4000US Clean-up river environs near current drainage outfall after installing gross pollutant traps Labour for clean-up and analysis of waste of 5 person days each 5 years @ $20 US/day = $500US Undertake a level 3 survey of UXO of all sites where there will be site works or disturbance to ensure project costs the risks of exposure by the community and visitors is minimal with the development of small scale tourism infrastructure. b. Vian Vieng drainage and Water quality monitoring in Song River at 3 locations - above gross pollutant trap (gpt) 2 & 3, below gtp lab in Ventianne (allow treatment improvements 2 &3 and below gtp 1 $100 US for 8 elements Supplementary Appendix F4 analysed) plus transit costs of sample $20 US) @ 3 sites @ 2 times per year for 5 years = $3600

Labour for clean-up and analysis of waste of 30 person days per year @ 5 years @ $20US/day = $3000US Undertake a level 3 survey of UXO of all sites where there will be site works or disturbance to ensure Project costs the risks of exposure by the community and visitors is minimal with the development of small scale tourism infrastructure. 2. Pro Poor Tourism Undertake a level 3 survey of UXO of all sites where there will be site works or disturbance to ensure Project costs Development Initiative the risks of exposure by the community and visitors is minimal with the development of small scale tourism infrastructure. 3. Facilitation of Tourism on Assess the potential environmental impacts of constructing a 200m walkway and lighting system within The budget for survey has the East West Economic Tham Nam Eng cave. The baseline survey should: been included in the pre- Corridor Tourism Zone • review the survey work undertaken by Dreybrodt J and laumanns. L (editors) 2005 operating costs for the • survey the cave features and conditions within 200m of the entrance subproject. • assess the potential environmental impacts on the cave physical and biological values including the habitat for bats • identify what mitigation measures can be taken to reduce potential impacts e.g. group size,

capping of visitor numbers, recommended frequency of visits, use of low impact lighting, 245 positioning of walkway, construction materials • identifying indicators for environmental monitoring plan To monitor the environmental impacts of the proposed walkway and lighting system within Tham Nam The budget for Eng cave. The monitoring should determine: environmental monitoring

• whether the overall environmental condition of the cave environs/features/fauna has altered from has been included in the 246 the baseline survey using the indicators operating costs for the • whether as a result of any adverse change, there should be changes to the use and management subproject.

of the cave; and F4 Appendix Supplementary • if required, what upper limit of visitor numbers or other measures to the cave should be set to ensure sustainable tourism.

The basic monitor of the baseline conditions of the cave should be undertaken every year by minor review and then a major assessment undertaken in 5 years to review the results of the 5 years of baseline monitoring information.

Supplementary Appendix F4 247

OUTLINE TERMS OF REFERENCE FOR CONSULTANTS

A. International Consultants

1. International Environment Specialist (3 person-months)

129. The assignment requires an environmental specialist with qualifications in natural resource/science/environmental management with at least 10 years previous experience in undertaking project management, environmental impact assessments, environmental monitoring plans and environmental studies. Previous experience in the GMS countries is desirable. The location will be at Project PCU and provinces, including frequent field trips to subproject sites. The International Environment Specialist will be responsible for assisting the PIUs and PCU in setting up an overall management system of environmental assessment, monitoring, reporting and evaluation, and advising implement the Project. The consultant will provide technical and training support to the PCU and PIU staff and work closely with the national and local environmental agencies, communities and NGos at the site level. The consultant will be responsible for supervising the work of the National Environment Specialist. The specific tasks include: (i) Review all project related documents including the Initial Environmental Examination (IEE), Review the Environmental Assessment and Review Framework (EARF), and other project related documents including feasibility studies; (ii) Visit Siphandong and Vang Vieng subprojects to discuss with the relevant provincial and district departments, review the detail design, assess induced impacts (e.g., adequacy of the design treatment capacity of drainage, existing landfills and collection system as a result of projected increase in tourists), assess the existing institutions’ monitoring/management capacity and update the Environmental Management Plans (EMP) if necessary; (iii) Update environmental screening checklists and develop baseline survey and monitoring procedures; (iv) Develop a template for a provincial IEE that covers overall environmental screening results of the infrastructure interventions; (v) Visit selected project communes and discuss with relevant provincial and district department and any relevant international or national NGOs to identify main environmental issues, any relevant on-going studies and projects, training needs, and relevant local environmental regulations; (vi) Guide a national environment consultant how to (a) assist each PIU in carrying out adequate environmental screening and preparing for a provincial IEE and (b) conduct an IEE for a specific intervention; (vii) Develop standardized quarterly and annual environmental reporting and evaluation formats for PIU and PCU; (viii) Develop standardized environmental reporting procedures for civil work contractors to monitor compliance; (ix) Develop training materials and conduct environmental safeguard training for the PCU, IAs, other relevant local governments and financial institutions; (x) work with other relevant consultants to include environmental and natural resources management aspects in other relevant capacity building and awareness building activities; (xi) Develop environmental monitoring indicators to be included in the overall project monitoring and evaluation; and

248 Supplementary Appendix F4

(xii) Visit selected subproject sites in Year 1 and 2 to review the overall implementation of EMP and subprojects, and revise the environmental assessment, monitoring and reporting procedures if necessary.

B. National Consultants

1. NATIONAL ENVIRONMENT SPECIALIST (12 PERSON-MONTHS)

130. The location will be at Project PCU and provinces, including frequent field trips to subproject sites. The National Environment Specialist will work under the supervision of the International Environment Specialist on all aspects of the subprojects dealing with environmental assessment, evaluation, monitoring and reporting. The specific tasks include:

(i) Assist international environment specialist in finalizing environmental screening checklists, baseline survey and monitoring procedures, standardized quarterly and annual environmental reporting and evaluation formats for PIU and PCU, standardized environmental reporting procedures for civil work contractors and project monitoring indicator for environment; (ii) Based on the detail design assist respective PIUs in finalizing IEEs for Vang Vieng and Siphandon in accordance with the Decree No 1770/STEA and submitting them to WREA for its approval: (iii) Assist international environment specialist in designing environmental training and awareness raising activities; (iv) Assist PIUs in carrying out environmental screening checklists and preparing for a provincial IEE and an IEE for a specific intervention if necessary; (v) Assist PIUs in carrying out baseline surveys including water sampling and drainage cleanup; (vi) Review the progress of EMP implementation and advice on monitor implementation of the works for any non compliance issues; (vii) Assist PIUs in preparing for quarterly and annual environmental monitoring reports; and (viii) Liase with national resettlement specialists to get community feedback on the EMP implementation and any other concerns.

Table A13: Summary of Outputs Output 1: Sustainable Tourism Development Output 4: Human Output 5: Project Output 2: Pro-poor Output 3: Facilitation on Resource Management Natural Site Urban Site Tourism Development Economic Corridors Development

Siphandone Wetland in Vang Vieng town wastewater Pro-poor tourism On the north–south Support for Support for Champasak Province in Vientiane Province subproject in corridor, five points training of efficient project Saravanh Province, plus two border points: trainers in small- management Oudomxay Province, (i) Nam Ha Protected scale hospitality services Hoaphanh Province, Area Interpretation service skills Bokeo Province, and Center, (ii) Nam Eng and training of Vang Vieng District in Cave Complex, (iii) Vat public officials at Vientiane Province Mahaphot and ancient two existing site, (iv) Nam Phae training and village scenic education viewpoint, and (v) Don institutions Chai/Phimonsin village handicraft market

(i) Preparation of a (i) Extension of drains in (i) Community-based (i) Preparation of Tourism training (i) Set up heritage-based tourism the core of the town tourism product tourism development for industries, project zoning, structure, and (ii) Road pavement and development and management plans communities and coordination management plan improvements to secondary (ii) Identification of for the sites the government units (ii) Improvements to the 4 roads in the town core tourism development (ii) Construction of (i) review of km access road (iii) Installation of gross supply chain small-scale existing training (iii) Environmental pollutant traps and a (iii) Capacity building infrastructure needs improvements at Ban wetland filter to remove for micro enterprises (iii) Community (ii) development Nakasang and on Don Det solid waste (iv) Small-scale preparation and of services and Done Kone (iv) Provision of an infrastructure such as livelihood support standards for (iv) Construction of visitor additional vehicle for solid information centers, program small and F4 Appendix Supplementary information and waste collection walking trains, and (iv) Tourism medium-sized interpretation facilities and (v) Environmental sanitary facilities management training enterprises in fully interpreted access awareness campaign for (v) Gender for site managers and tourism and trails at Nakasang and on residents and business development local tour guide training hospitality Don Det, Done Kone, and establishments participation program program enterprises and smaller islands (vi) Training of the Urban (vi) Marketing and (v) Marketing and training (v) Capacity building and Development Administrative promotion program promotion program for standards support program for local Authority staff (vii) Community-based the north–south (iii) development communities tourism networks economic corridor of training (vi) Development and (viii) Impact monitoring tourism circuit manuals and 249 implementation of a (vi) Impact monitoring materials community-based natural and evaluation program (iv) development resource monitoring of web-based protocol knowledge center Source: Asian Development Bank.

250 Appendix 14 SUMMARY RESETTLEMENT PLAN AND FRAMEWORK 1. A resettlement plan has been prepared for the two subprojects in component 1 of the Sustainable Tourism Development Project (the Project), where sites have been identified and surveys and consultations found that resettlement and land acquisition will be necessary. Resettlement frameworks for the Lao People’s Democratic Republic (Lao PDR) and Viet Nam have been prepared because the prioritization and selection of sites for subprojects in outputs 2 and 3 will follow a sector approach and be done during project implementation. The frameworks have been developed based on the Policy on Involuntary Resettlement (1995) of the Asian Development Bank (ADB) and include the specific policies and guidelines for the processes of land acquisition and resettlement for each of the two countries.

2. Scope of Land Acquisition and Resettlement Impacts. Resettlement plans have been prepared for the subprojects in Siphandone in Lao PDR and Phong Nga Khe Bang National Park in Viet Nam. In Siphandone, 28 households with 141 people will be affected. Three households will be relocated, and 28 households (including the three to be relocated) will experience temporary impacts from the relocation of their market stalls. The shop owners have been guaranteed a stall at the new market to be constructed under the Project. Seven of the affected households are poor, and two are headed by women. In Phong Nga Khe Bang, one household of six people will lose 900 square meters of land currently used for farming. The household is neither poor nor ethnic minority. No resettlement plan is required for the Vang Vieng subproject in the Lao PDR or the Bac Kan subproject in Viet Nam, as they will not require any land acquisition or resettlement. In the unlikely event that land acquisition or resettlement will become necessary, any impacts will be addressed in accordance with the respective resettlement frameworks.

3. For each remaining subproject found to require land acquisition and resettlement, a resettlement plan will be prepared by the project implementation units (PIUs) under the guidance of the project coordination units (PCUs). It is envisaged that, as the interventions will be small and priority will be given to avoiding or minimizing resettlement and land acquisition, impacts will not be significant. Some minimal resettlement or land acquisition may be necessary, such as relocating a few households; effects on farmland or garden plots and crops; and the utilization of public or communal land for the construction of small markets, parking lots, covered bus stops, river landings and stairs, embankment protection, cultural and interpretation centers, refreshment stands, walkways, footbridges, toilets with water supply, ticket booths, lodges, pavilions, and signage. As all impacts are expected to be minimal, it is likely that only short resettlement plans will be prepared for this Project.

4. Legal and Policy Framework. The policy framework and entitlements have been developed from the relevant laws, decrees, and regulations of the governments of Viet Nam and the Lao PDR and ADB’s Policy on Involuntary Resettlement (1995). Both countries have enacted a number of laws, decrees, and regulations that constitute the legal framework for land acquisition, compensation, and resettlement. Provisions and principles adopted in the resettlement plans and frameworks will supplement the provisions of relevant decrees currently in force in Viet Nam and the Lao PDR, wherever a gap exists.

5. Principles of Resettlement. The following principles were formulated to bridge the differences between ADB and government resettlement policies and will apply to all civil works undertaken: (i) Involuntary resettlement and impacts on land, structures, and other fixed assets will be avoided or minimized where possible by exploring all alternative options. (ii) Affected people residing, working, doing business, or cultivating on required land as of the completion date of the census and detailed measurement survey will be entitled to compensation and rehabilitation assistance to assist them in improving, or at least maintaining, their pre-project living standards and productive

Appendix 14 251 capacities. The Project will ensure that affected people are able to find alternative sites and income sources. (iii) Lack of formal legal title or rights will not be bar eligibility for compensation and assistance under the Project. Affected people will not be displaced until the village allocates suitable alternative land or compensation is paid that is sufficient to purchase suitable land in the same or a neighboring village. (iv) All compensation will be based on replacement cost at the time of compensation. For houses and other structures, this will involve the costs for materials and labor at the time of acquisition, with no deduction for depreciation or salvageable materials. Compensation for land will be replacement land as a priority or, where this is not possible, in cash adequate to purchase land locally of equivalent area and quality and, where required, to improve land to achieve suitable quality. (v) The process and timing of land and other asset acquisition will be determined in consultation with affected people to minimize disturbance. (vi) Where houses and structures are partly affected to the degree that the remaining portion is not viable for its intended use, the Project will acquire the entire asset, and affected people will be entitled to compensation at replacement cost for the entire asset. (vii) Affected people will be systematically informed and consulted about the Project, their rights, the options available to them, and proposed mitigating measures. The comments and suggestions of affected people and communities will be taken into account. (viii) The key information in the resettlement plan, such as the measurement of losses, detailed asset valuation, compensation and resettlement options, detailed entitlements and special provisions, grievance procedures, timing of payments, and displacement schedule will be disclosed to affected people in an understandable format, such as through the distribution of public information booklets, prior to submission to ADB for review and approval. (ix) Resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights, and to ensure the restoration of their income and living standards. (x) Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved. (xi) Special measures will be incorporated in the resettlement plan to protect socially and economically vulnerable groups such as indigenous peoples, households headed by women, children, households headed by the disabled, the elderly, the landless, and people living below the generally accepted poverty line. Vulnerable affected people will be provided with appropriate assistance to help them improve their standard of living through asset-building strategies such as land provision, replacement housing of minimum standards, and strengthened security of tenure. (xii) There will be effective mechanisms for hearing and resolving grievances during the updating and implementation of the resettlement plan. Resettlement committees will include representatives from affected people, especially women and other vulnerable groups. (xiii) Institutional arrangements will be in place for the timely and effective design, planning, consultation, and implement of the land acquisition, compensation, resettlement, and rehabilitation programs. (xiv) Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period. (xv) Appropriate reporting, monitoring, and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring and

252 Appendix 14 evaluation of the land acquisition, resettlement, and rehabilitation processes and their final outcomes will be conducted by an independent monitor. (xvi) Voluntary donation will not be applied for any assets. (xvii) Civil works contracts will not be awarded for a specific subproject or geographic area until (a) compensation payment and relocation to new sites have been satisfactorily completed for that subproject or geographic area; (b) the agreed rehabilitation program is in place; and (iii) the area is free from all encumbrances as per the approved resettlement plan. (xviii) Cash compensation or replacement land for affected households losing all of their residential land will be made available well ahead of civil works to allow the affected households sufficient time to reconstruct their houses. (xix) No demolition of assets and/or entry to properties will be done until the affected household is fully compensated and relocated.

6. Entitlements and Compensation. Entitlements and compensation are based on the Project’s social surveys and consultations and on the Governments’ and ADB’s requirements and procedures. People eligible for compensation are those who will experience negative impacts on their assets or livelihoods as a result of the Project. Affected people who appear in the subprojects’ census will be entitled to compensation and assistance. Loss of land will be compensated through land-for-land arrangements or, if the affected people prefer, cash compensation at an amount equal to the current market value. For affected houses and structures, compensation and assistance will be equivalent to the provision of, or full replacement costs for, building a house or structure of the same size and standard. Loss of unharvested annual crops will be compensated at current market value. Relocating households will receive subsistence allowances, and affected people belonging to vulnerable groups will be entitled to additional special allowances. The resettlement frameworks contain detailed entitlement matrixes summarizing types of impact, eligibility, and compensation. However, it may not cover all types of impact and can be enhanced in the resettlement plans depending on the findings of the surveys and subproject impacts. Standards described may not be lowered but may be enhanced in the ensuing resettlement plans as required and on the basis of detailed social impact analysis. The entitlement matrix is found in the resettlement frameworks in Supplementary Appendix B.

7. Consultation, Disclosure, and Grievance Redress. At the early stages of project preparation, local authorities and leaders of different administrative levels in each of the Project areas were informed about the project proposal and its objectives and proposed activities. They were consulted on development needs and resettlement issues, their perception of project objectives and technical designs, and their tasks and roles in project planning and implementation. Affected people were informed of the proposed Project by household and have been involved in developing the proposed resettlement and compensation packages. Some have expressed their preference for the type of compensation to receive. Disclosure of the resettlement plans to the affected people has been done, using locally appropriate information booklets. Further consultations will be undertaken prior to finalizing detailed design to incorporate affected people’s requests and suggestions to minimize resettlement impacts. A grievance mechanism has been established to ensure that affected people’s concerns and grievances are addressed and resolved in a timely and satisfactory manner. Affected people will be made fully aware of their grievance rights and the procedures, verbally and in writing, during consultation and the survey and at the time of compensation. 8. Implementation Arrangements. Responsibility for resettlement spans various levels of government and project contractors. In Viet Nam, these include the Ministry of Culture, Sports, and Tourism; provincial people’s committees; district people’s committees, project implementation consultants; and specifically formed provincial, district, and village resettlement committees. The resettlement framework and plans will be approved by the Ministry of Culture, Sports and Tourism (MCST) and the provincial people’s committees of the relevant provinces. In the Lao PDR, the

Appendix 14 253 institutions responsible include the Lao National Tourism Administration (LNTA); Urban Development Administration Authority’s Department of Public Works and Transport (in Vang Vieng); Water Resource and Environment Administration; project implementation consultants; provincial authorities; and specifically formed provincial, district, and village resettlement committees. The resettlement framework and plans will be approved by LNTA and the Water Resources and Environmental Administration and endorsed by the relevant provinces. The PIUs will ensure coordination of provincial and/or district agencies involved in resettlement and review compensation rates and the resettlement budget.

9. Implementation Schedule. The resettlement plans include detailed implementation schedules coordinated with the civil works schedule. All subproject resettlement plans will be reviewed by ADB prior to project implementation. Approval to award any civil works contracts will not be given until the required lands have been fully acquired and the affected households are appropriately compensated and relocated. 10. Monitoring and Evaluation. The PCU and PIUs are responsible for internal monitoring of land acquisition and resettlement. The PIUs will submit quarterly resettlement reports to the PCUs. The PCUs will include PIU resettlement progress in the Project’s quarterly progress reports submitted to ADB. Monitoring reports will be uploaded to ADB's website. For external monitoring and post evaluation activities, the PCUs will engage a suitable domestic agency acceptable to ADB, under terms of reference acceptable to ADB. The PCUs and PIUs will provide the domestic agency with all resettlement-related documents.

11. Cost and Budget. Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period. Subproject resettlement plans will include a breakdown of each type of loss with corresponding cost estimates reflecting replacement costs at current market values. The cost estimates will make adequate provision for contingencies.

12. Resettlement Frameworks and Resettlement Plans. Table A14 provides a summary of project impacts for the two countries and the related resettlement documentation required at the different stages of project preparation.

Table A14: Summary of Project Impacts After Detailed Marginal Significant Prior to Appraisal Design Subproject/Output impact Impact No RP Short Full Short Full (HHs) (HHs) Framework RP RP RP RP Lao PDR Siphandone 28 0 x Wetland Vang Vieng Town 0 0 x Pro-poor x x community-based tourism Tourism x x Corridors Viet Nam Phong Nga Khe 1 0 x Bang National Park Bac Kan Ethnic 0 0 x and Cultural center Pro-poor x x community based tourism Tourism corridors x x HH = household, Lao PDR = Lao People’s Democratic Republic, RP= resettlement plan. Source: Asian Development Bank.

254 Supplementary Appendix B1

Resettlement Framework

Lao PDR: Sustainable Tourism Development Project

May 2008

Prepared by: Lao National Tourism Administration

The Resettlement Framework is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

Supplementary Appendix B1 255

CURRENCY EQUIVALENTS 1USD = 9,100 Kip

ABBREVIATIONS

ADB Asian Development Bank AP Affected persons DMS Detailed Measurement Survey DRC District Resettlement Committee EA Executing Agency EG Ethnic Groups GMS Greater Mekong Subregion GoL Government of Lao PDR IP Indigenous Peoples IR Involuntary Resettlement Lao PDR Lao People’s Democratic Republic LNTA Lao National Tourism Administration LWU Lao Women’s Union PCU Project Coordination Unit PIU Project Implementation Unit PIB Public Information Booklet PRC Provincial Resettlement Committee RC Resettlement Committee RF Resettlement Framework RP Resettlement Plan SES Socioeconomic Survey VRC Village Resettlement Committee WREA Water Resource and Environment Administration

256 Supplementary Appendix B1

DEFINITION OF TERMS Project Affected People (APs) includes any person, entity or organization affected by the Project, who, on account of the involuntary acquisition of assets in support of the implementation of the Project, would have their (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house and buildings, land (including residential. commercial, agricultural, plantations, forest and grazing land) water resources, fish ponds, communal fishing grounds, annual or perennial crops and trees, or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily; and (iii) business, profession, work or source of income and livelihood lost partly or totally, permanently or temporarily.

Compensation is payment in cash or in-kind at replacement cost for an asset to be acquired by the Project.

Cut-Off Date means the date prior to which the occupation or use of the project area makes residents/users of the project area eligible to be categorized as APs. The cut-off date for this Project will be the final day of the detailed measurement survey (DMS) in each subproject.

Entitlement means a range of measures comprising compensation in cash or in kind, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and business restoration which are due to APs, depending on the type and degree of their losses, to restore their social and economic base.

Household means all persons living and eating together as a single social unit. The census used this definition and the data generated by the census forms the basis for identifying the household unit.

Income restoration means re-establishing income sources and livelihoods of APs to their pre- project levels.

Land Acquisition is the process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the State in the implementation of the Project or any of its components in return for fair compensation.

Rehabilitation means assistance provided to severely affected APs due to the loss of 10% or more productive assets (i.e., farmland, fishpond, vegetable garden, etc.), incomes, employment or sources of living such as shops and place of employment have to be reconstructed and/or relocated. The livelihood support may be given in cash or in kind or a combination of the two in order to improve, or at least achieve full restoration of living standards to pre-project levels.

Relocation is the physical shifting of an AP from his/her pre-project place of residence and/or business.

Replacement Cost is the amount in cash or in-kind needed to replace an asset and is the value determined as compensation for: a. Agricultural land and fishpond based on market prices that reflect recent land sales prior to the commencement of subproject construction or displacement, and in the absence of such recent sales, based on productive value; b. Residential land based on market prices that reflect recent land sales prior to the commencement of subproject construction or displacement, and in the absence of such recent land sales, based on similar location attributes; c. Houses and other related structures based on current market prices of materials and labour without depreciation nor deductions for salvaged building materials;

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d. Annual crops based equivalent to the highest production of crop over last three years multiplied by the current market value of crops; e. Perennials crops and trees and other based on current market value based on type, age, diameter at breast height and productive capacity; and f. Other assets (i.e., cultural, aesthetic) current market value for repairing and/or replacing assets or the cost of mitigating measures.

Resettlement refers to all measures taken by the Project proponents to mitigate any and all adverse social impacts of the Project on the APs, including compensation for lost assets and incomes, and the provision of other entitlements, income restoration assistance, and relocation as needed. Severely Affected Person means a person who will (i) lose 10% or more of their productive assets, such as agriculture/aquaculture land holding, and/or (ii) physically displaced from housing and/or (iii) lose 10% or more of total income sources due to the Project. Vulnerable Groups are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly or disabled, (ii) households living below the poverty threshold, (iii) the landless, and (iv) indigenous peoples and ethnic minorities.

258 Supplementary Appendix B1

CONTENTS

I.H INTRODUCTION

A.H Project

B.H Scope and Scale of Resettlement

II.H LEGAL FRAMEWORK, POLICIES AND GUIDELINES

A.H Government Laws, Decrees, and Guidelines

B.H ADB Policies

C.H Resolving Inconsistencies

III.H PROJECT PRINCIPLES, ELIGIBILITY AND ENTITLEMENTS

A.H Project Principles

B.H Eligibility and Entitlements

IV.H RELOCATION AND INCOME RESTORATION STRATEGY

V.H VULNERABILITY, GENDER AND ETHNICITY

A.H Indigenous Peoples Specific Actions

B.H Gender Strategies

VI.H PREPARATION AND IMPLEMENTATION OF RPs

A.H Screening

B.H RP Preparation

C.H RP Implementation

VII.H INSTITUTIONAL FRAMEWORK

A.H Lao National Tourism Administration

B.H Urban Development Administration Authority

C.H Resettlement Committees

D.H Water Resource and Environment Administration

E.H Project Implementation Consultants

VIII.H CONSULTATION, GRIEVANCE REDRESS, AND DISCLOSURE H275

A.H Consultation and Disclosure

B.H Grievance Redress

C.H Disclosure

IX.H MONITORING AND EVALUATION

A.H Internal Monitoring

B.H External Monitoring

X.H BUDGET ATTACHMENT 1 Involuntary Resettlement Categorization Form 25 ATTACHMENT 3 Sample Public Information Booklet 27

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A. I.B Introduction B.

C. A.B Project

1. The regional Sustainable Tourism Development Project (the Project) will contribute to the implementation of the Greater Mekong Subregion (GMS) Tourism Sector Strategy and the provision of livelihood opportunities for GMS citizens. The Project outcome will be the development of a sustainable, culturally and environmentally sound pro-poor tourism approach for the GMS. It will have five outputs: (i) model sustainable tourism development projects protecting natural, cultural and urban heritage sites of importance to tourism are operational; (ii) pro-poor community-based and supply-chain tourism projects are developed and operational; (iii) community-operated facilities along the GMS economic corridors bringing economic benefits to local communities improved; (iv) human resource capacity of public and private tourism stakeholders are developed; and (v) efficient project management services are fully operational.

D. B Scope and Scale of Resettlement

2. A short Resettlement Plan (RP) has been prepared for the infrastructure improvements in Siphandone Wetlands, Champasak Province where a total of 25 stall owners in Naksang village will be temporarily affected from having to relocate while the new market is constructed and 3 persons will have to move their shops from the riverbank to the new market.

3. No RP is necessary for the infrastructure improvements in Vang Vieng Town, as it will not cause any resettlement or land acquisition impact. However, for the solid waste trap in Muong Song village the project coordinating unit (PCU) must conduct due diligence after the subproject design is finalized to ensure that the water will not be diverted to block the access road to the river. In the unlikely event of impacts on the road or that land must be acquired, any impacts will be addressed in accordance with this framework.

Table SAB1.1: Summary Initial Assessment of Land Acquisition and Resettlement Issues Estimated Affected Affected Households APs losing Other Impacts Project site Land Households/ population to be 10% or more Acquisition Shops relocated of (m2) productive assets Parking Lot 1,360 m2 Two rest sheds and public Nakasang (District land) toilet will be rebuilt as part Village of the Project. Market Area 3,200 m2 25 126 8 (temporary) 0 Temporary relocation for 25 (District land) stall owners, 8 stallowners living in their stalls.

Riverbank 70m x 2m 3 15 3 0 Temporary relocation of (District land) shops to temporary market during reconstruction should be avoided. The 3 stallowners use the shops for residential purposes. 2 fuel service stations to be moved to parking area. Total 4,700 m2 28 141 8 temporary 0 (District land) 3 permanent

4. For the pro-poor community-based and supply chain tourism projects, the Lao National Tourism Administration (LNTA) has proposed interventions in 6 provinces. Interventions will also

260 Supplementary Appendix B1 be identified and prioritized along the North-South and East-West Economic Corridors. The prioritization and selection of the interventions for inclusion in outputs 2 and 3 will follow a sector approach and will be done during project implementation. Therefore, this Resettlement Framework (RF) has been prepared to guide in preparation and implementation of RPs and due diligence for all of these interventions. It is envisaged that since these interventions will be small-scale and priority will be given to avoiding or minimizing resettlement, resettlement impacts will not be significant. Few if any people will be severely affected by land acquisition. Some minimal resettlement or land acquisition may be necessary, such as relocation of a few households, effects on farmland or garden plots and crops, the utilization of public or communal land for the construction of small markets, parking lots, covered bus stops, river landings and stairs, embankment protection, cultural and interpretation centers, refreshment stands, and in scenic spots, walkways, foot bridges, sanitary toilets with water supply, ticket booths, lodges, prayer pavilions, and signage. As all impacts are expected to be minimal, it is likely that only short RPs will be prepared for this Project. Screening forms to be used for each subproject are included in Appendix 1 and 2.

E. II.B Legal Framework, Policies and Guidelines F. 5. This RF is developed from the laws and decrees of the Government of Lao (GoL) People’s Democratic Republic (PDR) and Asian Development Bank’s (ADB’s) relevant policies and guidelines. Provisions and principles adopted in this RF will supplement the provisions of relevant decrees currently in force in Lao PDR wherever a gap exists.

G. A.B Government Laws, Decrees, and Guidelines 6. In Lao PDR, compensation principles and policy framework for land acquisition and resettlement are governed by the following laws, decrees and regulations: (a) The Constitution 1 (1991), (b) the Land Law (2003) F , (c) Road Law (1999), (d) Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project (No.192/PM, dated 7 July 2005), and (e) Regulations for Implementing Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project (No.2432/STEA, dated 11 November 2005).

H. B.B ADB Policies

7. The aim of the ADB Policy on Involuntary Resettlement (ADB, 1995) is to avoid or minimize the impacts on people, households, businesses and others affected by the land acquisition required by a project. Where resettlement is not avoidable, the overall goal of the ADB policy is to compensate and assist affected people (AP) to restore their living standards to levels equal to, if not better than, that they had before the Project.

8. The main objectives and principles of the ADB Policy on Involuntary Resettlement (IR) are as follows:

(i) IR should be avoided where feasible; (ii) Where population displacement is unavoidable, it should be minimized by exploring all viable project options; (iii) People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the Project;

1 The Land Law 04/NA of 21 October 2003 supersedes the earlier Law 01/NA 12 April 1997.

Supplementary Appendix B1 261

(iv) APs should be informed fully and closely consulted in resettlement and compensation options; (v) Existing social and cultural institutions of APs who must relocate should be supported and used to the greatest extent possible, and APs should be integrated economically and socially into host communities; (vi) Lack of legal rights to the assets lost or adversely affected will not prevent APs from entitlement to compensation and rehabilitation measures. Those without legal title to land occupied or used by them (e.g., non-titled APs) will be entitled to various kinds of resettlement assistance to improve their socioeconomic status; (vii) Particular attention must be paid to the needs of the poorest APs and other vulnerable groups that may be at high risk of impoverishment. This may include APs without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples and ethnic minorities. Appropriate assistance must be provided to help them improve their socioeconomic status; (viii) All stages of resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards; (ix) As far as possible, IR should be conceived and executed as part of the Project. IR is to be treated as a development opportunity; (x) The full costs of resettlement and compensation should be included in the presentation of project costs and benefits; (xi) The costs of resettlement and compensation may be funded by counterpart funds and/or considered for inclusion in the Bank loan for financing of the Project.

9. The ADB Policy on Indigenous Peoples (ADB, 1998) defines indigenous or ethnic minority peoples as “those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.” The Policy recognizes the potential vulnerability of indegionous peoples (IPs) in the development process; that IPs must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. The anticipated impact (positive and negative) and mitigation measures are incorporated in the Project’s Ethnic Groups Development Framework. Social analysis of a project or subproject will assess whether indigenous or ethnic groups (EGs) are likely to be affected by the Project or subproject. If a project or subproject is likely to have impacts caused by land acquisition only, specific action for IPs, specified in the Project or subproject RP is required to address the impacts. If IPs population affected by a subproject exceeds 20% of all the APs, small-scale livelihood activities, which shall be prepared in consultation with indigenous peoples populations, shall be incorporated in subproject RPs as a special rehabilitation program.

10. The ADB Policy on Gender and Development (ADB, 1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process for development activities. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the Project. ADB’s Operations Manual (OM) F2/OP requires that the findings of a gender analysis be included in the RP, and

262 Supplementary Appendix B1 at all stages, resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards.

11. The ADB Public Communications Policy (ADB, 2005) seeks to encourage the participation and understanding of stakeholders and people affected by ADB-assisted activities. Information on ADB-funded projects should start early in the preparation phase and continue throughout all stages of project development, in order to facilitate dialogue with affected people and other stakeholders. The Executing Agency (EA) should, as necessary, develop a project communications plan and designate a focal point to maintain contact with AP. With respect to land acquisition, compensation and resettlement, information should be distributed to (APs) and publicly in the following manner: (i) the draft RP prior to loan appraisal; (ii) the final RP following its completion; and, (iii) the revised RP, following any revisions. This information can be in the form of brochures, leaflets or booklets, in the local language(s) as well as English, the working language of the ADB. When APs include non-literate people, other appropriate methods of communications will be used. The policy also requires disclosure of social monitoring reports.

I. C.B Resolving Inconsistencies

12. The recent changes in the GoL PDR legislation related to compensation and resettlement in development represents a significant improvement in the rights of citizens when their livelihoods, possessions and society are affected by development projects.

13. Both Lao Law and ADB policies entitle APs to compensation for affected land and non- land assets at replacement cost. However, definition of severely APs varies between ADB (OMF2 para 5) at 10% and Decree 192/PM (Article 8) at 20% of income generating assets affected. However in accordance with Decree 192/PM (Article 6) which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the Project, the 10% definition of severely affected will be adopted as part of the Project’s resettlement policy.

14. Both Lao Law and ADB policies entitle non-titled APs to compensation for affected assets at replacement cost and other assistance so that they are not made worse off due to the Project. Decree 192/PM goes beyond ADB’s policy and provides APs living in rural or remote areas, or APs in urban areas who do not have proof of land-use rights and who have no other land in other places, compensation for loss of land-use rights at replacement cost, in addition to compensation for their other assets and other assistance. Should APs be found to be non-titled and required to relocate, the Project will ensure they are provided replacement land at no cost to the APs, or cash sufficient to purchase replacement land.

J. III.B Project Principles, Eligibility and Entitlements

A. ProjectB Principles

15. The basic principles of this project are the following:

(i) IR and impacts on land, structures and other fixed assets will be avoided or minimized where possible by exploring all alternative options; (ii) APs residing, working, doing business and cultivating land within the required project area as of the completion date of the census and detailed measurement survey (DMS) will be entitled to compensation and rehabilitation assistance to assist them in improving, or at least maintaining their pre-project living standards

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and productive capacities. The Project will ensure that APs are able to find alternative sites or income sources; (iii) Lack of formal legal title or rights will not be a bar to eligibility for compensation and assistance under the Project. APs will not be displaced from affected land until the village allocates suitable alternative land or compensation is paid that is sufficient to purchase suitable land within the same or neighbouring village; (iv) All compensation will be based on the principle of replacement cost at the time of compensation. For houses and other structures, this will involve the costs for materials and labour at the time of acquisition, with no deduction for depreciation or for salvageable materials. Compensation for land will be replacement land as a priority, or where this is not possible, in cash adequate to purchase land locally of equivalent size and quality, and where required to improve land to achieve suitable quality; (v) The process and timing of land and other asset acquisition will be determined in consultation with APs to minimize disturbance; (vi) Where houses and structures are partially affected to the degree that the remaining portion is not viable for its intended use, the Project will acquire the entire asset, and APs will be entitled to compensation at replacement cost for the entire asset; (vii) APs will be systematically informed and consulted about the Project, the rights and options available to them and proposed mitigating measures. The comments and suggestions of APs and communities will be taken into account; (viii) The key information in the RP such as measurement of losses, detailed asset valuation, compensation and resettlement options, detailed entitlements and special provisions, grievance procedures, timing of payments and displacement schedule will be disclosed to APs in an understandable format such as the distribution of public information booklets (PIBs) prior to submission to ADB for review and approval; (ix) Resettlement identification, planning and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights, and to ensure the restoration of their income and living standards; (x) Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved; (xi) Special measures will be incorporated in the RP to protect socially and economically vulnerable groups such as IPs, women-headed households, children, households headed by the disabled, the elderly, landless and people living below the generally accepted poverty line. Vulnerable APs will be provided with appropriate assistance to help them improve their standard of living through asset building strategies such as provision of land, replacement housing of minimum standards and increased security of tenure; (xii) There will be effective mechanisms for hearing and resolving grievances during updating and implementation of the RP. Resettlement committees (RCs) will include representatives from APs especially women and vulnerable groups; (xiii) Institutional arrangements will be in place to timely and effectively design, plan, consult and implement the land acquisition, compensation, resettlement, and rehabilitation programs; (xiv) Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period;

264 Supplementary Appendix B1

(xv) Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitor; (xvi) Voluntary donation will not be applied for any assets; (xvii) Civil works contracts will not be awarded for a specific subproject or geographic area until (i) compensation payment and relocation to new sites have been satisfactorily completed for that subproject or geographic area, (ii) agreed rehabilitation program is in place, and (iii) the area is free from all encumbrances as per approved RP; (xviii) Cash compensation or replacement land for affected households losing entire residential land will be made available well ahead of civil works to allow the affected households sufficient lead time to reconstruct their houses; and (xix) No demolition of assets and/or entry to properties will be done until the affected household is fully compensated and relocated.

B. EligibilityB and Entitlements

16. Eligibility. All APs who are identified in the project-impacted areas on the cut-off date, will be entitled to compensation for their affected assets and rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity and production levels. The cut-off date will be the final day of the detailed measurement survey (DMS) in each subproject. Those who encroach into the subproject area after the cut-off date will not be entitled to compensation or any other assistance.

17. Entitlements. The entitlement matrix in Table 3 includes the main types of losses and the corresponding nature and scope of entitlements. Following detailed design, DMS and socioeconomic surveys (SES) will be the basis for determining actual impacts, and replacement cost surveys will be carried out to determine actual replacement costs and rates.

18. Voluntary donation will not be applied for any assets.

19. The entitlement matrix may not cover all types of impacts but can be enhanced in the RPs based on the findings of the social assessment and subproject impacts. Standards described will not be lowered but can be enhanced in the subproject RPs as required.

Table SAB1.3: Project Entitlement Matrix Type of Losses Entitled Entitlements Implementation Issues Persons Productive Land Legal owner or • For marginal loss of land, cash • Voluntary donation of productive occupant compensation at replacement cost land will not be allowed by the identified during which is equivalent to the current Project. DMS. market value of land within the village, of similar type, category and productive capacity, free from transaction costs (taxes, administration fees), • If the impacts on the total productive land is 10 % or more, as

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Type of Losses Entitled Entitlements Implementation Issues Persons a priority, replacement land of similar type, category and productive capacity of land within the village, OR, at the request of AP, cash compensation at replacement cost plus assistance to purchase and register land Residential Land Legal owner or • With remaining land sufficient to • Voluntary donation of minor strips occupant rebuild houses/structures: (i) Cash of residential land not be allowed identified during compensation at replacement cost by the Project DMS. which is equivalent to the current market value of land of similar type and category, and free from transaction costs (taxes, administration fees) and (ii) Project contractor to improve remaining residential land at no cost to APs (e.g. filling and leveling) so APs can move back on remaining plot. • Without remaining land sufficient to rebuild houses/structures: (i) Replacement land equal in area, same type and category, without charge for taxes, registration and land transfer OR (ii) cash compensation at replacement cost which is equivalent to the current market value of land of similar type and category, free from transaction costs (taxes, administration fees) plus assistance to purchase and register land. Fish Pond Owner of • Cash compensation of affected • Adequate time provided for AP to affected portion at replacement cost which harvest fish stocks fishpond is equivalent to the current market • Voluntary donation of fishpond value of fishpond, labour and rent land, will not be allowed by the of equipment to excavate fishpond, Project free from transaction costs (taxes, administration fees) • If the currently held fish stocks will not be harvested before the Project takes possession of the fishpond, then cash compensation for the projected mature value of fish stock held at the time of compensation. • Construction contractor to restore/repair remaining fishpond. If support cannot be provided by the contractor, the AP will be entitled to cash assistance to cover for payment of labour and rent of equipment to restore/repair fishpond. Totally Affected Owners of • Cash compensation at replacement • Adequate time provided for APs to Houses/Shops, affected houses cost for the entire structure rebuild/repair their structures and Secondary whether or not equivalent to current market prices • Affected houses and shops that are Structures land is owned of (i) materials, with no deduction no longer viable are those whose (kitchen, rice for depreciation of the structure or remaining affected portion are no bins) salvageable materials; (ii) materials longer usable/habitable.

266 Supplementary Appendix B1

Type of Losses Entitled Entitlements Implementation Issues Persons Partially Affected transport; and (iii) labour cost to Houses/Shops cover cost for dismantling, transfer but no longer and rebuild; and viable • Excluding those who will move (Will require back to their residual land, timely relocation) provision of dump trucks for hauling personal belongings at no cost to the APs. Temporary Use Legal owner or • For agricultural and residential land • The construction supervision of Land occupant to be used by the civil works consultant will ensure that the (i) contractor as by-pass routes or for location and alignment of the by- contractor’s working space, (i) rent pass route to be proposed by the to be agreed between the civil works will have the least landowner and the civil works adverse social impacts; (ii) that the contractor but should not be less landowner is adequately informed than the unrealized income and of his/her rights and entitlements revenue that could be generated by as per the Project resettlement the property during the period of policy; and (iii) agreement reached temporary use of the land; (ii) cash between the landowner and the compensation at replacement cost civil works contractor are carried for affected fixed assets (e.g., out. structures, trees, crops); and (iii) restoration of the temporarily used land within 1 month after closure of the by-pass route or removal of equipment and materials from contractor’s working space subject to the conditions agreed between the landowner and the civil works contractor. Partially Affected Owners of • Cash compensation at replacement Houses and affected houses cost for the affected portion of Shops and whether or not structure equivalent to current secondary land is owned market prices of (i) materials and structures labour , with no deduction for depreciation of the structure or for (Will not require salvageable materials; (ii) materials relocation) transport; and (iii) cost of repair of the unaffected portion. Loss of business Owners of • Cash compensation equivalent to The rates have been verified through income due to shops and stalls the average daily profit multiplied interviews with informal shop owners temporary by the number of days of business to get an estimate of daily net profit. relocation of disruption (4 days). shops and stalls • First and last month of market fees waived during the temporary relocation period. • Guaranteed stall of similar size in the new market. • Subsidy over 24 months to compensate for any increased stall rentals after market reconstruction: 1 st year subsidy of 100%, 2nd year subsidy of 50%. Loss of business Owners of • Cash compensation equivalent to The rates have been verified through income during shops the average daily profit multiplied interviews with informal shop owners relocation or by the number of days of business to get an estimate of daily net profit. during disruption (4 days). dismantling/repair of affected

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Type of Losses Entitled Entitlements Implementation Issues Persons portion (without relocation) Crops and Trees Owner of crops • If standing annual crops are and trees ripening and cannot be harvested, whether or not cash compensation at replacement land is owned cost equivalent to the highest production of crop over the last three years multiplied by the current market value of crops. • For perennial crops and trees, cash compensation at replacement cost equivalent to current market value based on type, age, and productive capacity. • For timber trees, cash compensation at replacement cost equivalent to current market value based on type, age and diameter at breast height (DBH) of trees. Electricity Poles Electricity • Cash compensation for cost to Companies dismantle, transfer and rebuild. Transition Relocating • Relocating APs without any subsistence households – impact on business or source of allowance relocating on incomes will be provided with residual land or cash or in-kind assistance to other sites equivalent to 16 kg of rice at Severely current market value for 3 months affected APs per household member. losing 10% or • Relocating APs with main source more of their of income affected (i.e., from productive land businesses) or APs losing more than 10% of their productive land will be provided with cash or in- kind assistance equivalent to 16 kg of rice at current market value for 6 months per household member. Transportation Relocating Provision of dump trucks to haul all APs may also opt for cash allowance households – to old and new building materials and assistance. The amount (cost of other sites personal possessions. labour and distance from relocation site) to be determined during Provision of manpower to assist with implementation. dismantling of structures. Severe impacts Severely • An additional allowance of 1 month The poorest will be those below the on vulnerable affected supply of rice per person in the national poverty line (urban or rural APs vulnerable APs household. as applicable). (Relocating APs such as the • The contractors will make all and those losing poorest, or reasonable efforts to recruit 10% or more of households severely affected and vulnerable their productive headed by APs as labourers civil works. assets) women, the elderly or disabled, and ethnic minorities

K. IV.B Relocation and Income Restoration Strategy L. 21. Households that have to relocate will participate in identifying and selecting options to relocate on their existing plots, to move to plots provided by the district, or to receive cash

268 Supplementary Appendix B1 compensation and to make their own arrangements for relocation. In the case that any businesses have to relocate, they will be assisted to find viable new sites. Households who are severely affected through the loss of 10% or more productive assets will be provided with replacement land, assisted to purchase replacement land or receive cash compensation. APs will also be compensated for losses of harvest and receive transition subsistence allowances. Severely affected vulnerable APs will receive additional allowances equal to 1 month supply of rice per person in the household. If needed, appropriate livelihood restoration programs will be designed and implemented during project implementation in consultation with APs. APs will not be displaced until the village allocates land within the same or neighboring village.

M. V.B Vulnerability, Gender and Ethnicity N. 22. The RF recognizes that certain social groups may be less able to restore their living conditions, livelihoods and income levels; and therefore, at greater risk of impoverishment when their land and other assets are affected. The Project will identify any specific needs or concerns that need to be considered for the IPs groups/EGs and other vulnerable groups such as landless, poor, and households headed by women, disabled, elderly or children without means of support. A gender strategy and EGs specific actions will be included in the RP if applicable.

O. A.B Indigenous Peoples Specific Actions

23. To ensure that the IPs/EGs APs receive full benefit of resettlement activities, land acquisition and compensation, the following specific activities will be integral to the RP:

(i) In villages with IPs/EGs, one man and one woman representative from each group will be included in each of the RCs [District (DRC) and Village (VRC)] level; During the final DMS both men and women, and female-headed EGs households will participate in the DMS, and will be accompanied by a DRC or VRC member who will provide translation as needed to ensure APs understand and are in agreement with the DMS results; (ii) Compensation will be given to both men and women from EGs households; Where EGs households are required to rebuild or relocate, rehabilitation options and sites will be acceptable to the household and ensure they are able to continue their existing livelihood and lifestyle, and remain within their community (if they so choose); (iii) Where land is allocated or use rights assigned, registration will be in the name of husband or wife if the affected land was acquired prior to marriage and joint registration in the names of both husband and wife if the land was acquired by both husband and wife; (iv) All public information and consultation meetings will include local translation in EGs’ languages so that information and exchange of views is facilitated for all men and women APs. Village meetings will be held to raise AP awareness and understanding of resettlement related issues such as project timing, entitlements, compensation determination and payments, grievance process, support for relocation/ rebuilding etc., and specific women focus groups will also be held to cover the same issues; (v) Rehabilitation measures for businesses will ensure that EGs households and/or female headed households as well as other APs are treated equitably in terms of assistance to find and/or get allocation of replacement land, and in the provision of allowances (including business income loss, transition and vulnerability allowances);

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(vi) Where EGs households live within villages of another ethnicity, RCs will pay special attention to their compensation and transition. External monitoring will also review these cases; (vii) Monitoring of RP preparation, consultation and awareness, implementation, and AP rehabilitation and satisfaction will all be undertaken using ethnicity disaggregated data; (viii) Internal monitoring will ensure consultation incorporates translation to EGs languages in minority villages and for minorities living in villages of other ethnicity; and (ix) Both male and female EGs members will be able to participate in the jobs that are created during subproject construction and maintenance in the project area.

P. B.B Gender Strategies

24. A number of strategies will be adopted to ensure gender-sensitive resettlement and rehabilitation measures and, to engage women actively in the planning and implementation of the resettlement program as well as other programs. The RCs, resettlement specialists and social and gender specialists will be directly involved in all aspects of the development and implementation of the gender strategy, to ensure that these measures are adequately implemented.

25. The strategies for APs that will relocate from, or rebuild on residential and/or commercial land they occupy in the subproject areas will be made gender-sensitive in the following ways: (i) The RCs will make concerted efforts to consult with female APs (household heads and women in AP households). This will be done through individual and women focus group discussions. The role of local Lao Women’s Union (LWU) representatives will be crucial in facilitating these consultations and ensuring women’s specific needs are met; (ii) In addition to village forums, specific women’s focus group meetings will be held to raise awareness and understanding of resettlement related issues such as project timing, entitlements, compensation determination and payments, grievance process, support for relocation/rebuilding etc; (iii) Women will be consulted specifically to establish criteria for replacement land or improvements to existing lands, particularly in relation to the planning of available lands and maintenance of the household utility areas, as well as issues relating to access to community services and facilities such as schools, health facilities and markets, as well as their economic activities; (iv) Consultations with APs regarding arrangements for secure tenure will ensure that women including women-headed households and other female household members understand clearly what their options and obligations are; and, that the views of women are considered in making decisions; (v) New land registrations will be made in both spouse’s names if the land acquired by the Project was acquired by husband and wife during marriage, or in the case of female headed households, in the women’s name; (vi) Compensation payments will be signed off by both spouses, or in the case of female headed households, by the women; (vii) The civil works contracts will include employment targets for the poor, and women from the Project affected villages and local area. They will also include commitments to gender equity including: (i) ensuring that no child labour or trafficked labour will be used, (ii) no discrimination against the employment of

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qualified women, and (iii) no differential wages paid to men and women for work of equal value; (viii) Special measures will be taken in disseminating information to and consulting with women to ensure that they understand clearly the policies, entitlements and other procedures of the resettlement program, and are able to make informed decisions; (ix) The LWU in affected villages will monitor vulnerable APs, including female headed households for signs of stress or health impacts due to resettlement activities. If noted, these will be reported to the RCs and PIU for assistance; (x) The resettlement information system for the Project will ensure that all databases and monitoring indicators are disaggregated by gender; (xi) The PIU will provide training for all RCs to build capacity in resettlement administration and to enhance gender and ethnicity sensitivity in resettlement management.

26. Women who are heads and/or members of AP households as well as other women in the communities will be encouraged and assisted to participate fully in the planning and implementation of the project resettlement program, by drawing on their knowledge, skills and interests. Actions contained in the RP aim to facilitate this participation including, among others:

(i) Female members of RCs will be supported in their roles through local exchanges with women in RCs from other areas to learn from the experiences in other villages; (ii) Female APs (heads and/or members of AP households) will be involved with local officials in the identification, review and selection of replacement land for individual residential and/or commercial land, as well as for resettlement sites. Women will also be consulted about resettlement site development; (iii) Women will be consulted in the plan for relocation or replacement of village affected structures; (iv) Female APs and other women in local communities will be involved in the planning of local resettlement activities, and will be assisted by them to develop plans for their own households, including, as necessary, coordinating technical, construction and relocation advice and support from the village and the district officials; and (v) Female APs and other women in local communities will be involved in other initiatives to address the social and environmental impacts of the Project, such as prevention programs for HIV/AIDS/STI and trafficking of women and children.

VI. Preparation and Implementation of RPs Q. 27. This chapter provides the guidelines for screening and RP preparation and implementation.

R. A.B Screening

28. Resettlement screening for subprojects will be carried out as soon as the sub-projects are finally selected for inclusion in the Project. The concerned RCs and project staff will determine the requirements for preparation of RPs. The RCs and project staff will use the screening and categorization form in Appendix 1 to determine the nature and significance of resettlement effects.

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29. The screening criteria based on the degree of resettlement impacts are:

(i) Not significant (Category B) - as a result of the subproject, fewer than 200 people will be physically displaced from housing or lose less than 10% of their productive (income-generating) assets. A short RP will be required; or (ii) No resettlement effect (Category C) - the subproject does not require temporary or permanent land acquisition, and there are no impacts involving the loss of land, structures, crops and trees, businesses or income. No RP is required. S.

T. B.B RP Preparation

30. If resettlement impacts are unavoidable and preparation of a RP is therefore required, a short RP will be prepared using the following procedures:

(i) Undertake a census of all APs; (ii) Undertake DMS 2 of all losses of all APs. At the same time, inform potential APs (without discrimination) of the subproject, its likely impacts, and principles and entitlements as per the RF; (iii) Undertake a SES 3 of at least 10% of all APs, 20% of severely affected APs and IPs population; (iv) Undertake a replacement cost survey for various types of affected assets as a basis for determining compensation rates at replacement cost. Determine the losses in accordance with the entitlement matrix 4; (v) Provide project and resettlement information to all persons affected in a form and language that are understandable to them, and closely consult them on compensation and resettlement options, including relocation sites and economic rehabilitation; (vi) Prepare the draft RP with time-bound implementation schedule, procedures for grievance mechanism and monitoring and evaluation, and a budget; (vii) Finalize the subproject RP and translate to local language; (viii) Disclose the draft and final RP in accordance with ADB’s policy on public communications 5 to the affected communities and on ADB’s website. The draft RP will be disclosed to APs prior to submission to ADB for approval. The final RP will be disclosed after approval.

Table SAB1.4 : Surveys for RP Preparation

Detailed The census and detailed measurement survey (DMS) of lost assets will collect data on the Measurement affected assets from 100% of APs following detailed engineering design. The data collected Survey (DMS) during the DMS will constitute the formal basis for determining affected persons (AP) entitlements and levels of compensation. For each AP, the scope of the data will include: • Total and affected areas of land, by type of land assets; • Total and affected areas of structures, by type of structure (main or secondary); • Legal status of affected land and structure assets, and duration of tenure and ownership; • Quantity and types of affected crops and trees; • Quantity of other losses, e.g., business or other income, jobs or other productive assets;

2 Data will be gender and indigenous peoples disaggregated. 3 It will include gender analysis and data will be gender and ethnic minority disaggregated. 4 If there are new categories of APs and/or losses identified during the DMS (other than those described in the entitlement matrix), the entitlements will be derived in accordance with ADB’s policy and guidelines. 5 ADB, 2005, Public Communications Policy. Manila.

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estimated daily net income from informal shops; • Quantity/area of affected common property, community or public assets, by type; • Summary data on AP households, by ethnicity, gender of head of household, household size, primary and secondary source of household income viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, poor or indigenous peoples; • Identify whether affected land or source of income is primary source of income; and • AP knowledge of the subproject and preferences for compensation and, as required, relocation sites and rehabilitation measures. Socioeconomic At a minimum, the socioeconomic survey (SES) will collect information from a sample of 10% of Survey affected people and 20% of severely affected APs, disaggregated by gender and ethnicity. The purpose of the SES is to provide baseline data on APs to assess resettlement impacts, and to be sure proposed entitlements are appropriate, and to be used for resettlement monitoring. The scope of data to be collected includes: A. Household head: name, sex, age, livelihood or occupation, income, education and ethnicity; B. Household members: number, livelihood or occupation, school age children and school attendance, and literacy, disaggregated by gender; C. Living conditions: access to water, sanitation and energy for cooking and lighting; ownership of durable goods; and D. Access to basic services and facilities. Replacement The replacement cost survey (RCS) will be done in parallel with DMS and SES activities by Cost Survey collecting information from both secondary sources and primary sources (direct interviews with people in the affected area, material suppliers, house contractors), and from both those affected and those not affected. The government rates will be adjusted, as necessary, based on the findings of a RCS. Compensation rates will be continuously updated to ensure that APs receive compensation at replacement cost at the time of compensation payment.

U. C.B RP Implementation

31. Land acquisition, compensation and relocation of APs cannot commence until the RP has been reviewed and approved by ADB. Commencement of civil works may commence in sections where there are no resettlement impacts. All resettlement activities will be coordinated with the civil works schedule. ADB will not allow construction activities in specific sites until all resettlement activities have been satisfactorily completed, agreed rehabilitation assistance is in place, and the site is free of all encumbrances.

V. VII.B Institutional Framework

32. Responsibility for resettlement spans various levels of government and project contractors, and these include the Lao National Tourism Administration, Urban Development Administration Authority/Department of Public Works and Transport (Vang Vieng), Water Resource and Environment Administration (WREA) Project implementation consultants, and specifically formed provincial, district and village resettlement committees. The role and functions of each of these organizations is detailed in this section.

W. A.B Lao National Tourism Administration

33. The Lao National Tourism Administration (LNTA) will be the EA for the Project. It will be responsible for the overall technical supervision and execution of the Project and will establish a central Project Coordination Unit (PCU). The PCU will be responsible for the day-to-day management and monitoring of all project activities including coordination with the PCU in Vietnam and the Mekong Tourism Coordination Office (MTCO), the PCU in Vang Vieng and the Provincial Implementation Units. The PCU will be headed by a project director and eight permanent staff, including a project manager, a financial controller, a tourism development specialist, a natural and cultural heritage specialist, an environment specialist, a social development specialist, a marketing specialist and a monitoring and evaluation specialist. It will be supported by international and national consultants.

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34. LNTA will establish a PCU in Vang Vieng and Provincial Project Implementation Units (PIUs) at the provincial level to undertake the actual delivery of the subprojects. The PIUs will be headed by a project director and staffed by a project manger, a tourism development and training specialist, a social development specialist, an environmental specialist, and a construction supervisor. The PIUs will be responsible for implementing, coordinating, monitoring, and reporting activities at the Provincial level under PCU instruction and guidance.

35. LNTA will be responsible for the overall coordination of organizations involved in resettlement and for RP preparation and updating, supervision and management of RP implementation. It will further be overall responsible for ensuring that RP updating and implementation activities are consistent with those described in the RP and will also be responsible for internal monitoring of resettlement activities. The LNTA will appoint a Social Development Specialist who will be primarily responsible for resettlement for this Project. LNTA will provide overall guidance and technical support to the provincial and DRCs.

X. B.B Urban Development Administration Authority/Department of Public Works and Transport

36. For the Vang Vieng subproject under Output 1, the Implementing Agency (IA) will be the urban development administration authority (UDAA). The PCU in Vang Vieng will be headed by a project director and staffed by a project manger, an environmental engineer, an accountant and a part-time education officer.

Y. C.B Resettlement Committees

37. Local authorities will assist the Project in various resettlement planning and implementation activities. In project areas where there will be resettlement, this support will be formalized into RCs established at the Province, District and Village level.

38. The Provincial Resettlement Committees (PRCs) will undertake critical roles, including: (i) undertaking consultation meetings with APs, (ii) establishing compensation rates (replacement costs) for affected assets; (iii) review and confirmation of final DMS data; (iv) undertake final agreement with APs on compensation; and (v) manage funds disbursed from the Provincial Department of Finance for disbursement to APs, (v) monitor and report on all RP activities; (v) act as grievance officers. The PRCs will be supported by the DRC and VRC who will assist in all local activities.

39. The DRC will be composed of local authorities, representatives of mass organizations, village elders/traditional leaders and APs. The District governor chairs the DRC while members are from the Lao Women’s Union (LWU), and APs (including women APs) and IP representatives.

40. In villages where resettlement is needed a VRC will also be formed. The VRC will include APs (apart from the Village Chief and Deputy Chief) and women (in addition to the LWU representative). VRCs and DRCs responsible for villages with AP indigenous peoples populations will include traditional minority leaders, both men and women in their committees. The main responsibilities of the DRCs and VRCs will be to facilitate various activities including: (i) facilitation of public information and consultation by ensuring village and AP awareness at all stages of project planning and implementation; (ii) assisting in the identification of alternative land for relocating APs; (iii) assisting in the identification of productive land (paddy, teak plantation) or land that can be developed to make it productive for APs losing productive land / source of income; (iv) leading the organization of village level support (labor and materials) for relocated people and those rebuilding onsite and for APs requiring assistance to develop land to

274 Supplementary Appendix B1 make it productive; (v) assisting in the identification of special needs of vulnerable APs and providing timely assistance; (vi) assisting/overseeing implementation of the DMS and confirmation of the results; and (vii) provide first point of contact in the Grievance Mechanism, and record all grievances.

41. The DRCs and VRCs may not have experience in many of the requirements of the RP, and as such they require some training beyond simple instruction. A project implementation consultant will design and implement the necessary capacity building for the DRCs and VRCs.

D. Water Resource and Environment Administration

42. WREA will review and approve the RP. WREA is also responsible for monitoring of resettlement activities. WREA will review all internal and external monitoring reports and undertake periodic inspections. The Water Resources and Environment Offices (WREO) in Champassak and Vientiane provinces and the Water Resources and Environment District Offices (WREDs) will support the implementation of the RPs at the relevant subproject sites.

E. Project Implementation Consultants

43. The Project will contract an international resettlement specialist for 2 person-months to support the PCU in handling resettlement issues. The consultant will also be responsible for training the local social development consultant and the PCU social development specialist in resettlement planning, implementation, monitoring, and evaluation. The resettlement consultant will have experience in both planning and implementation of RPs in Lao PDR.

44. In addition to the resettlement specialist, one international and one national social and gender specialist will be mobilized for 6 person-months and 18 person-months, respectively. The specific tasks of these consultants include:

(i) Ensuring that due diligence is carried out for all subprojects; (ii) Operationalize the gender strategy; develop capacity building training modules and conduct workshop and capacity building training on resettlement activities for the RCs, Women’s Union, Youth Union; (iii) Conduct workshop/training for men and women from AP households on: (i) village level consultation process; (ii) leadership skills; (iii) resettlement, rehabilitation and relocation-related issues; (iv) Ensure that men and women from indigenous peoples groups, affected women headed households are consulted effectively and have access to fair compensation and timely compensation; (v) Monitor grievance process for the women from the affected households; (vi) Develop disaggregated monitoring indicators by gender (together with Monitoring & Evaluation specialist); (vii) Prepare progress report on gender strategy as part of the quarterly progress report on resettlement; (viii) Ensure that representatives of EGs are included in the RCs; (ix) Ensure that appropriate consultation process is carried out for EGs AP households; (x) Ensure that EGs AP households receive capacity building training/workshop on resettlement related activities; (xi) Ensure that EGs AP households receive fair compensation and land title or land use certificates where applicable; (xii) Ensure that EGs AP households have access to fair grievance process;

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(xiii) Provide inputs to gender specialist and M&E specialist on disaggregated monitoring indicators by EGs; (xiv) Prepare progress report on EGs specific actions as part of the quarterly progress report on resettlement.

VIII. Consultation,B Grievance Redress and Disclosure Z.

A. B Consultation and Disclosure

45. Consultation with the AP will be carried out as soon as the PIUs are mobilized so that their needs and preferences can be incorporated into the design arrangements. They will also participate in the various RP processes: DMS, RCS, identification of sites, hand over of entitlements, monitoring of impacts and benefits, and discussion and settlement of grievances. The scope of information to be provided to APs includes: (i) description of project and overall schedule; (b) DMS and RCS results, (c) policy principles and entitlements and special provisions, (d) grievance procedures, (e) timing for payments and displacement schedule, and (f) institutional responsibilities. 46. The RCs and PIUs will be responsible for the disclosure of the RP to the APs prior to submission to ADB. ADB will upload the final RP on ADB’s resettlement website. Monitoring reports on any resettlement will also be uploaded on ADB’s website.

B. B Grievance Redress

47. Article 13 of Decree 192/PM requires the Project to establish an effective mechanism for grievance resolution. Lao legal requirements for this mechanism are further described in Part VI of the Decree’s Implementing Regulations, and in detail in the Technical Guidelines. 48. The objectives of this mechanism are to ensure AP satisfaction with implementation of the RP, and in effect provide for on the ground monitoring by APs of the adequate implementation of the RP.

49. Decree 192/PM determines that the prime responsibility for grievance resolution is the Project proponent, i.e., LNTA. As they are responsible for carrying out project works which are likely the source of grievances (such as the DMS, establishing replacement costs, determining other allowances) they are best placed to respond to and resolve grievances in the most timely and acceptable method. However, should APs remain dissatisfied, they may bring up their complaints through other avenues as described below.

50. At the central level LNTA, a committee will be established to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including grievances due to resettlement and environmental issues. The committee will (i) make public of the existence of this Grievance Redress Mechanism, through public awareness campaign; (ii) review and address grievances of stakeholders of the Project, in relation to either the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (iii) proactively and constructively responding to them. The social development and environment specialists will be responsible for the resettlement and environment-related grievances.

51. The RCs at the district and provincial levels, composed of concerned departments, local officials, village chiefs, AP representatives, women representatives, and mass organizations will also act as grievance officers. Hence, a separate grievance redress committee at each district will no longer be established for this Project.

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52. The project grievance redress procedure for this Project will operate as follows:

(a) Step 1 – Village Level. Initial points of contact will be between APs and their village officials. The PIU staff will maintain regular contact with all village offices and represent the Project in consultations with aggrieved parties. All complaints and grievances will be properly documented by both the village offices and the project staff and addressed through consultations in a transparent manner aimed at resolving matters through consensus. All meetings between the village officials, project staff and complainants will take place in a public place and include participation of representatives of APs, local non-benefit organizations, and village heads to ensure transparency. Where the complaint is verbal, the VRC or project staff (whichever is first contacted) is responsible for keeping a written record of the grievance.

(b) If within 5 days of lodging the grievance, participants are not able to reach an amicable decision, or complainants are not satisfied with the Project’s decision, the complaint will be forwarded to the DRC. APs and local mass organizations may forward their grievance directly to the DRC or do so with the assistance of the project staff. It will be the role of the project staff to ensure that any unresolved grievance is forwarded in a timely manner to the DRC.

(c) Step 2. District Level – If APs are not satisfied with, or do not receive a response from the DRC within 10 days of their complaint being lodged with the DRC, then the complaint can be forwarded to the PRC. Again, elevation of the complaint to these bodies can be undertaken by the AP or with the assistance of the project staff. It will be the role of the project staff to ensure that any unresolved grievance from the DRC is forwarded in a timely manner to the PRC.

(d) Step 3 – Provincial Level - If the complaint still remains unresolved within 10 days of being lodged to PRC, APs and local mass organizations may forward their grievance directly to the LNTA.

(e) Step 4 – Central Level. LNTA will ensure to review and resolve all complaints within 10 days.

53. The complaint, as a last resort, will be lodged with the Court of Law whose decision would be final. Although the technical guidelines for resettlement designate this elevating of the complaint to the local mass organizations, non-benefit organizations and AP representatives, in order to ensure the availability of adequate resources to carry out this procedure, the LNTA will be responsible for forwarding the complaint and ensuring its process in the courts.

54. All legal and administrative costs incurred by APs and their representatives are to be covered by the Project.

55. The RCs will provide quarterly reports to the LNTA on grievances received, including names and pertinent information about the APs, nature of complaint, dates the complaints are lodged, and resolutions. Grievances not resolved will also be recorded, detailing negotiations and proposals which could not be agreed on, and the date of these negotiations.

56. If APs are still not satisfied with the resolution of their complaints at the Project and central level they may also (or permit representatives to on their behalf) raise their concern or complaint with the ADB Southeast Asia Department, Social Sector Division, through the ADB Resident Mission office in Vientiane.

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AA. C.B Disclosure 57. The PIUs will disclose to the APs (i) draft RPs prior to submission for review and approval by ADB; (ii) final RPs approved by WREA and ADB, and (iii) any revisions to the RPs as a result of changes in scope or design layout. Key information in the RPs to be disclosed to the affected households, will include (i) compensation, relocation and rehabilitation options, (ii) DMS results, (iii) detailed asset valuations, (iv) entitlements and special provisions, (v) grievance procedures, (vi) timing of payments, and (vii) displacement schedule. The information will be made publicly available in Project offices and provided to the affected households in the form of an information leaflet or brochure, or RP - all in a form and language that can be readily understood by those affected. Social monitoring reports will also be made available to affected households and will be uploaded on ADB website.

IX. MonitoringB and Evaluation BB. 58. Monitoring and evaluation of the RP allows project owners to ensure smooth progress of RP implementation, by providing for a review of information on the progress of implementation of RP activities. Importantly, monitoring must also address the degree to which the resettlement activities have achieved their desired outcomes, particularly where this involves the rehabilitation of AP’s housing, livelihoods and lifestyles.

59. These two monitoring objectives will be addressed through two mechanisms: (a) internal monitoring by the LNTA and PRCs, and (b) external monitoring and evaluation by an independent monitor.

A. Internal Monitoring

60. The role of internal monitoring and evaluation is to ensure that resettlement institutions are well-functioning during the course of project implementation, and that resettlement activities are undertaken in accordance with the implementation schedule described in the RP. In this way, the protection of APs’ interests and the schedule for civil works can be assured.

61. Primary responsibility for internal monitoring lies with LNTA as the project executing agency. LNTA will be responsible for overseeing the formation, function, and activities of the implementing agencies, and through quarterly monitoring reports, summarize this progress. The LNTA will ensure that information on resettlement progress flows from PRCs, DRCs, VRCs and the staff working with the resettlement consultants. All monitoring data will be collected to ensure gender and ethnicity disaggregation. The quarterly progress reports will also include resettlement audit statements to show disbursement of loan funds for resettlement.

62. The indicators that will be monitored regularly will include: Table SAB1.5: Monitoring and Evaluation Indicators Type Indicator Examples of Variables

INPUTS Staffing and • Number of project dedicated LNTA staff INDICATORS Equipment • Confirmation of each PRC, DRC and VRC • Number of PRC and DRC members and job function • Adequate equipment for performing functions (including grievance recording) • Trainings undertaken • External monitor contracted and mobilized • Construction Contractor meeting local employment targets for unskilled labour

278 Supplementary Appendix B1

Type Indicator Examples of Variables

Finance • Funds disbursed to APs in a timely manner (compensation for non-land assets and allowances) • Funds disbursed to develop relocation sites, improvement of land to make it productive; administration costs; external monitoring • Government funds disbursed to APs in a timely manner (land acquisition) PROCESS Consultation, • Distribution of PIB to all APs INDICATORS Participation , and • Summary RP available in all districts Grievance Resolution • Translation of materials in indigenous peoples villages and for individual minority APs in villages of other ethnicity • Consultations and participation undertaken as scheduled in the RP • Grievances by type and resolution • Number of local-based organizations participating in project OUTPUT Acquisition of Land • Area of cultivation land acquired INDICATORS • Area of residential land acquired • Fishponds acquired Buildings • Number, type and size of private houses/structures acquired • Number, type and size of community buildings acquired • Number, type and size of government assets affected Trees and Crops • Number and type of private trees acquired • Number and type of government/community trees acquired • Number and type of crops acquired • Crops destroyed by area, type and number of owners Compensation and • Number of households affected (land, buildings, trees, crops) Rehabilitation • Number of owners compensated by type of loss • Amount compensated by type and owner • Number and amount of payment paid • Compensation payments made on time • Compensation payments according to agreed rates • Number of houses demolished • Number of porches/kitchens dismantled • Number of replacement houses built by APs on the same plot • Number of replacement houses built by APs on other plots they own • Number of replacement houses built by APs on allocated plots • Number of replacement businesses constructed by APs • Number of owners requesting assistance for additional replacement land • Number of replacement land purchases effected • Number of land titles and land survey certificates issued • Number of vulnerable groups provided additional assistance Reestablishment of • Number of community buildings repaired or replaced Community • Number of seedlings supplied by type Resources

B. External Monitoring

63. While internal monitoring focuses on the implementation of scheduled tasks, external monitoring provides an independent avenue to verify these results, and also to take a more qualitative assessment of the success of these measures to meet their intended objectives. As such, the external monitor is required to ascertain whether APs have been able to restore their living standards and their livelihoods, and have not become worse off due to the Project. All monitoring data will be collected so as to allow disaggregation by gender and ethnicity.

64. The indicators and the mechanisms used to measure them are detailed in 6 below. Importantly, the external monitor will be required to review plans for and implementation of the Contractors’ involvement in providing civil works support for replacement land improvement.

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65. The external monitor will come from an independent organization, such as an academic or research institute or consultant firm in Laos, with experience in resettlement monitoring and social assessment. They will be contracted by LNTA and commence in advance of resettlement implementation, so as to assess the process of the DMS and RP updating and develop the formats for their monitoring missions. They will further conduct monitoring missions at end of project. The final report will be a post-evaluation report to be prepared 6 months following completion of resettlement activities. These reports will be provided to the LNTA and to the ADB for uploading on ADB’s resettlement website.

66. The external monitor’s reports will include any identified issues and recommendations for rectifying outstanding matters. The monitor will also highlight any significant successes and commendable approaches or methods used in the project which may provide a learning opportunity to the LNTA and other projects encountering resettlement. Table SAB1.6: External Monitoring Indicators, Methods and Schedule Indicators Variables Mechanism for Timing of Assessment Assessment RP • Resettlement staffing • Review of internal monitoring • Every monitoring Implementation • Compensation Disbursements reports mission • Land and assets acquired • Review Contractor plans and • Preparation of replacement land actions • Loan funds disbursement • Interviews with and • Government funds disbursement observation of implementing • Public information and consultation agencies at each level • AP asset replacement • Random sample of interviews with APs Restoration of • Compensation at replacement cost • Interviews with APs – • Every monitoring Living • Compensation with no depreciation stratified sample for those mission Standards and or fees/taxes relocating, and those being Livelihoods • Adequacy and suitability of allocated land, indigenous replacement land peoples and women • Adequacy of moving costs • Review of internal monitoring • Adequate timing for asset reports acquisition/replacement • Review of revised • Tenure security of APs compensation costs and materials costs • Interviews with Provincial Lands Departments for land records • Changes in AP income levels, and • Replicate socioeconomic • At the sources of income survey of a sample of APs commencement of • Changes in AP access to services • Comparison with original resettlement and utilities socioeconomic survey and implementation • AP participation in community with later results and project organizations • Village level focus group completion • AP participation in associated social discussions, including action programs related to the women and indigenous project peoples • Vulnerable groups rehabilitation • Interviews with vulnerable APs AP Satisfaction • AP awareness of resettlement • Review records of grievance • Every monitoring procedures and entitlements lodging and redress mission • AP awareness and use of grievance • Random sample of system interviews with APs • AP satisfaction with the resettlement • Community meetings process • Focus Groups discussions with various categories of APs

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Indicators Variables Mechanism for Timing of Assessment Assessment Effectiveness • Accuracy of DMS for AP and asset • Review records of • Every monitoring of loss recoding and planning grievances and redress mission Resettlement • Adequacy of budget for • Random sample of Planning implementation interviews with APs • Adequacy of implementation • Interviews with implementing schedule to undertake required agencies at each level tasks • Occurrence of unforeseen problems Resettlement • Re-occupation of cleared land • Village chief meetings • Every monitoring Impacts • Migration to the project area • Random AP interviews mission • Observation

X. BudgetB and Implementation Schedule

67. Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period. The budget will cover compensation costs, allowances and rehabilitation measures, administration costs, and contingency. Land acquisition will be part of the Government’s counterpart fund. The Ministry of Finance will be responsible for the disbursement of funds. The Government will ensure timely provision of counterpart funds for resettlement to meet any unforeseen obligations in excess of the resettlement budget estimates in order to satisfy resettlement requirements and objectives.

68. Government funds will be utilized for compensation for non-land assets, provision of necessary allowances, special assistance to be provided to vulnerable APs, development of individual replacement plots, and administration costs. The RPs will identify key activities for which funds will be used, any disbursal milestones and auditing requirements that will facilitate appropriate and timely delivery.

69. The Project will be for a period of 5 years from 2008.

Table SAB.7: Implementation Schedule Tasks Schedule Establish PIUs Quarter 1, 2009 Undertake consultation and participation programs Quarter 3 2009 – Quarter 3 2012 Establish Compensation and Resettlement Committees at all Levels Quarter 1, 2009 Carry out joint verification of Assets and detailed measurement survey Quarter 3, 2009 Update compensation rates and apply Project entitlements Quarter 3, 2009 Update RP and obtain ADB concurrence Quarter 4, 2009 Present Compensation Payment to APs Quarter 4, 2009 Assist in developing new land for APs Quarter 1, 2010 Start of civil works Quarter 3, 2010 Internal and external monitoring Continuous

RP Updating Activities Schedule Consultation, DMS, SES and Disclosure by subproject Quarter 1 and 2, 2009 Approval of updated subproject RP by ADB Quarter 2, 2009 Implementation of Updated subproject RP Quarter 3, 2009 onwards Award of civil works contracts for subproject or geographic area Quarter 4, 2009 Internal monitoring Continous

Supplementary Appendix B1 281

Clearance of acquired land Quarter 3, 2009 Handover of site to contractors, start of civil works Quarter 1, 2010 - onwards

282 Supplementary Appendix B1

Attachment 1

Lao National Tourism Administration INVOLUNTARY RESETTLEMENT CATEGORIZATION A. Introduction

1. Each sub-project is assigned an involuntary resettlement category depending on the significance of the probable involuntary resettlement impacts.

B. Information on sub-project a. Name of subproject: ______b. Location: ______c. Technical Description: ______C. Screening Questions for Resettlement Categorization 2. Initial screening for involuntary resettlement is to be conducted following detailed design.

Involuntary Resettlement Effects Yes No RemarksB

Does the sub-project include upgrading or rehabilitation of existing physical facilities? Will it require permanent land acquisition? Is the ownership status and current usage of the land known? Are there any non-titled people who live or earn their livelihood at the site or within the Right of Way? Will there be loss of housing? Will there be loss of agricultural plots? Will there be losses of crops, trees, and fixed assets? Will there be loss of businesses or enterprises? Will there be loss of incomes and livelihoods? Will people lose access to facilities, services, or natural resources? Will any social or economic activities be affected by land use-related changes? D. Involuntary Resettlement Category 3. After reviewing the answers above, the Resettlement Committee and the project agree subject to confirmation, that the project is a: [ ] Category B, Not Significant* IR impact, a short Resettlement Plan is required and will be submitted to ADB by ______2008. * Not Significant - Less than 200 people will experience major impacts which are defined as being physically displaced from housing ore losing 10% or more of their productive assets (income generating). [ ] Category C, No IR impact, no resettlement report is required.

If Category B: Please provide information on Affected Persons 1. Any estimate of the likely number of households that will be affected by the Project? No Yes N/A. If yes, approximately how many? ______2. Are any of them poor, female-heads of households, or vulnerable to poverty risks? No Yes N/A. If yes, please briefly describe their situation.

Supplementary Appendix B1 283

3. Are any APs from indigenous or ethnic minority groups? No Yes N/A. If yes, please briefly describe their situation:

Prepared By: Verified by:

Signature: Signature: Name: Name: Position: Position: Date: Date:

284 Supplementary Appendix B1

Attachment 3

Resettlement Plan Sample Public Information Booklet Sustainable Tourism Development Project Lao National Tourism Administration Nakasang Village, Champassak province

What is the Sustainable Tourism Development Project? The proposed Sustainable Tourism Development Project will develop sustainable, culturally and environmentally sound pro-poor tourism approaches in Laos and Vietnam. In the Siphandone wetlands the Project will: (i) prepare a heritage-based tourism zoning plan and tourism structure and management plan for the wetlands area; (ii) upgrade a 4 kilometer (km) access road that connects Route 13 to the boat landing at Nakasang Village; (iii) improve the existing pathways on Don Det and Don Kone Islands; (iv) environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste management at the market and in the village; (v) construct a visitor information and interpretation center on the Nakasang Village side of the Wetlands; (vi) construct fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands; and (vii) provide training and livelihood support programs for local communities, especially women, youth and ethnic groups. The Lao National Tourism Administration (LNTA) is implementing the Project, with financing assistance from the Asian Development Bank (ADB). How extensive is the need to acquire land and other assets for the Project? The Project will acquire some district owned land for the improvement of the riverbank, the reconstruction of the market and the reconstruction of the Nakasang parking lot. The people operating their businesses in these areas will be temporarily affected by the construction. What will happen to the people losing assets and sources of livelihood? Compensation will be paid at replacement cost in cash or in-kind (for example, structure-for- structure) for all assets affected, including sources of livelihood. Other forms of assistance will also be provided to households depending on the severity of project impacts. What is “replacement cost”? This is the amount needed to replace an affected asset without deductions for taxes or costs of transactions. Replacement costs relevant for this Project are calculated as follows: (i) Residential land based on market prices that reflect recent land sales, and in the absence of such recent land sales, based on similar location attributes; (ii) Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials. What are the key principles for helping affected households under the Project? (i) Avoid, if not minimize, land acquisition and relocation, and impacts on sources of livelihoods of people; (ii) Restore the standard of living of affected households; (iii) Replace and compensate lost assets at replacement cost, on top of providing allowances and income restoration support, as warranted; (iv) Inform and consult the affected households about the Project, impacts, options for compensation and assistance, and grievance redress mechanism; (v) Protect social/cultural institutions;

Supplementary Appendix B1 285

(vi) Non-titled affected households (those who have no title to the land or customary rights) have rights to receive Project entitlements provided that they meet the cut- off date for eligibility; (vii) Identify and assist vulnerable groups at high risk of impoverishment, such as female-headed households with dependents, disabled household heads, households falling under the generally accepted indicator for poverty, children and the elderly households who are landless and with no other means of support, landless households, and ethnic minorities; and (viii) No demolition of assets/entry to properties will be done until the affected household is fully compensated and relocated. Who are eligible to be compensated and assisted under the Project? All affected people (AP), households, and institutions/organizations that satisfy the cut-off date for eligibility are eligible to be compensated and assisted under the Project. The cut-off date coincides with the period the census of APs (regardless of tenure status) and the inventory of losses (IOL) were conducted in March 2008, to be validated and updated later during the detailed measurement survey (DMS). Persons not covered in the census are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the IOL, or (ii) they have been included among the affected due to changes in project design. What are the entitlements of affected households? Project entitlements listed in Table 1 are based on the impacts identified during the census and IOL. Said entitlements will be adjusted and updated, as needed consistent with the project resettlement policy, based on the results of the DMS to reflect a more precise inventory and assessment of impacts on assets and on the people.

Table 1-Summary Project Entitlements Type of Losses Entitled Persons Entitlements Implementation Issues Residential Land Legal owner or • With remaining land sufficient to rebuild • Voluntary donation of minor strips of occupant identified houses/structures: (i) Cash residential land not be allowed by the during DMS. compensation at replacement cost Project . which is equivalent to the current market value of land of similar type and category, and free from transaction costs (taxes, administration fees) and (ii) Project contractor to improve remaining residential land at no cost to APs (e.g. filling and levelling) so APs can move back on remaining plot. • Without remaining land sufficient to rebuild houses/structures: Replacement land equal in area, same type and category, without charge for taxes, registration and land transfer, OR cash compensation at replacement cost which is equivalent to the current market value of land of similar type and category, free from transaction costs (taxes, administration fees) plus assistance to purchase and register land. Totally Affected Owners of affected • Reconstruction/provision of new • Adequate time provided for APs to Houses/Shops, and houses whether or structure of same size and value OR rebuild/repair their structures Secondary not land is owned cash compensation at replacement • Affected houses and shops that are no Structures (kitchen, cost for the entire structure equivalent longer viable are those whose rice bins) to current market prices of (i) materials, remaining affected portion are no with no deduction for depreciation of the longer usable/habitable.

286 Supplementary Appendix B1

Type of Losses Entitled Persons Entitlements Implementation Issues Partially Affected structure or salvageable materials; (ii) Houses/Shops but materials transport; and (iii) labor cost no longer viable to cover cost for dismantling, transfer (Will require and rebuild. relocation) Temporary Use of Legal owner or • For agricultural and residential land to • The construction supervision consultant Land occupant be used by the civil works contractor as will ensure that the (i) location and by-pass routes or for contractor’s alignment of the by-pass route to be working space, (i) rent to be agreed proposed by the civil works will have between the landowner and the civil the least adverse social impacts; (ii) works contractor but should not be less that the landowner is adequately than the unrealized income and informed of his/her rights and revenue that could be generated by the entitlements as per the Project property during the period of temporary resettlement policy; and (iii) agreement use of the land; (ii) cash compensation reached between the landowner and at replacement cost for affected fixed the civil works contractor are carried assets (e.g., structures, trees, crops); out. and (iii) restoration of the temporarily used land within 1 month after closure of the by-pass route or removal of equipment and materials from contractor’s working space subject to the conditions agreed between the landowner and the civil works contractor. Partially Affected Owners of affected • Cash compensation at replacement Houses and Shops houses whether or cost for the affected portion of structure and secondary not land is owned equivalent to current market prices of (i) structures materials and labour , with no deduction for depreciation of the structure or for (Will not require salvageable materials; (ii) materials relocation) transport; and (iii) cost of repair of the unaffected portion. Loss of business Owners of shops • Cash compensation equivalent to the The rates have been verified through income due to and stalls average daily profit multiplied by the interviews with informal shop owners to temporary number of days of business disruption get an estimate of daily net profit. relocation of shops (4 days). and stalls • First and last month of market fees waived during the temporary relocation period. • Guaranteed stall of similar size in the new market. • Subsidy over 24 months to compensate for the increased stall rentals after the market is reconstructed: 1 st year subsidy of 100%, 2nd year subsidy of 50%. Loss of business Owners of shops • Cash compensation equivalent to the The rates have been verified through income during average daily profit multiplied by the interviews with informal shop owners to relocation or during number of days of business disruption get an estimate of daily net profit. dismantling/repair (4 days). of affected portion (without relocation) Transition Relocating • Relocating APs without any impact on subsistence households – business or source of incomes will be allowance relocating on provided with cash or in-kind residual land or to assistance equivalent to 16 kg of rice other sites at current market value for 3 months per household member Severely affected • Relocating APs with main source of APs losing 10% or income affected (i.e., from more of their businesses) or APs losing more than productive land 10% of their productive land will be provided with cash or in-kind assistance equivalent to 16 kg of rice at current market value for 6 months per household member . Transportation Relocating Provision of dump trucks to haul all APs may also opt for cash assistance.

Supplementary Appendix B1 287

Type of Losses Entitled Persons Entitlements Implementation Issues allowance households – to old and new building materials and The amount (cost of labour and distance other sites personal possessions. from relocation site) to be determined Provision of manpower to assist with during implementation. demantling and rebuilding structures at temporary market. Severe impacts on Severely affected • An additional allowance of 1 month The poorest will be those below the vulnerable APs vulnerable APs supply of rice per person in the national poverty line as defined in the (Relocating APs such as the household. poverty partnership agreement with ADB. and those losing poorest, or • First priority in allocation of new stall in 10% or more of households the reconstructed market. their productive headed by • The contractors will make all assets) women, the reasonable efforts to recruit severely elderly, or affected and vulnerable APs as disabled, and labourers civil works. indigenous peoples

How are the grievances of affected persons (or households) heard and resolved? An AP (or household) may bring his/her complaint before any member of an established Village Resettlement Committee (VRC), either through the Village Chief, a project staff or directly to the VRC, in writing or verbally. The VRC will meet personally with the aggrieved person (or household) and will have 15 days to resolve the complaint. If the AP (or household) is not satisfied with the action taken by VRC on his/her complaint, the aggrieved person (or household) may bring the case, either in writing or verbally, to any member of the District Resettlement Committee (DRC). The DRC has 15 days to resolve the case. If the affected person (or household) is not satisfied with the action taken by DRC on his/her complaint, the aggrieved person (or household) may bring the case, either in writing or verbally, to any member of the Provincial Resettlement Committee (PRC). The PRC has 15 days to resolve the case. If the affected person (or household) is not satisfied with the action taken by PPC on his/her complaint, the aggrieved person (or household) may bring the case to a court of law for adjudication. All legal and administrative costs incurred by an affected person/household and their representatives are to be covered by the Project.

What is the tentative schedule for implementing resettlement? RP Updating Activities Schedule Consultation, DMS, SES and Disclosure by subproject Quarter 1 and 2, 2009 Approval of updated subproject RP by ADB Quarter 2, 2009 Implementation of Updated subproject RP Quarter 3, 2009 onwards Award of civil works contracts for subproject or geographic area Quarter 4, 2009 Internal monitoring Continous Clearance of acquired land Quarter 3, 2009 Handover of site to contractors, start of civil works Quarter 1, 2010 - onwards

How can an affected person or household participate in the Project? All affected persons or households are encouraged to participate in all consultation meetings and other project related activities in order to ensure that they are fully informed and consulted. Their active participation during the DMS and implementation of the Resettlement Plan will help LNTA determine the appropriate measures to mitigate impacts, identify problems or potentials problems, and identify ways of responding expeditiously to solve any problems.

288 Supplementary Appendix B1

Where can affected households get additional information about resettlement related information? The full RP, detailed project entitlements and compensation unit rates are available from the VRC, DRC, and PRC, and from the office of the Provincial Implementation Unit. Who might be contacted for any inquiries about the Project? Mr. Thaviphet, Lao National Tourism Administration. Phone number:

Provincial/District/Village ______

Asian Development Bank (Manila, Philippines) Social Sector Division, Southeast Asia Department, Tel. +63-2-632-4444

Asian Development Bank, Lao Resident Mission Corner of Lanexang Av. and Samsenthai Rd. P.O. Box 9724 Vientiane, Lao PDR, Tel: +856 21 250444

Supplementary Appendix B2 289

Resettlement Plan

Lao PDR: Sustainable Tourism Development Project

SIPHANDONE WETLAND BIODIVERSITY CONSERVATION AND TOURISM

May 2008

Prepared by: Lao National Tourism Administration

The Resettlement Plan is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

290 Supplementary Appendix B2

CURRENCY EQUIVALENTS 1USD = 9,100 Kip

ABBREVIATIONS

ADB Asian Development Bank AP Affected persons CTPC Communications, Transport Post and Construction DMS Detailed Measurement Survey DRC District Resettlement Committee GMS Greater Mekong Subregion GoL Government of Lao PDR IOL Inventory of Losses Lao PDR Lao People’s Democratic Republic LNTA Lao National Tourism Administration LWU Lao Women’s Union MCTPC Ministry of Communications, Transport Post and Construction PCU Project Coordination Unit PIB Public Information Booklet PIU Project Implementation Unit PRC Provincial Resettlement Committee RC Resettlement Committee RF Resettlement Framework RP Resettlement Plan SES Socioeconomic Survey VRC Village Resettlement Committee WREA Water Resources and Environment Administration

Supplementary Appendix B2 291

Compensation is payment in cash or in-kind at replacement cost for an asset to be acquired by the Project.

Income restoration means re-establishing income sources and livelihoods of APs to their pre- project levels.

Land Acquisition is the process whereby a person is compelled by the Government through the Executing Agency (EA) of the Project to alienate all or part of the land s/he owns or possesses in favor of the State in the implementation of the Project or any of its components in return for fair compensation.

Relocation is the physical shifting of an AP from his/her pre-project place of residence and/or business.

Replacement Cost is the amount in cash or in-kind needed to replace an asset and is the value determined as compensation for: g. Agricultural land and fishpond based on market prices that reflect recent land sales prior to the commencement of subproject construction or displacement, and in the absence of such recent sales, based on productive value; h. Residential land based on market prices that reflect recent land sales prior to the commencement of subproject construction or displacement, and in the absence of such recent land sales, based on similar location attributes;

292 Supplementary Appendix B2

i. Houses and other related structures based on current market prices of materials and labour without depreciation nor deductions for salvaged building materials; j. Annual crops based equivalent to the highest production of crop over last three years multiplied by the current market value of crops; k. Perennials crops and trees and other based on current market value based on type, age, diameter at breast height and productive capacity; and l. Other assets (i.e., cultural, aesthetic) current market value for repairing and/or replacing assets or the cost of mitigating measures.

Supplementary Appendix B2 293

TABLE OF CONTENTS CONTENT PAGE I. INTRODUCTION 1 II. SCOPE AND SCALE OF RESTTLEMENT 1 III. SOCIO ECONOMIC INFORMATION 4

IV. LEGAL FRAMEWORK, POLICIES AND GUIDELINES 5

V. PROJECT PRINCIPLES, ELIGIBILITY AND ENTITLEMENTS 8

VI.B RELOCATION AND INCOME RESTORATION STRATEGY 12

VII.B VULNERABILITY, GENDER AND ETHNICITY 13

VIII.B INSTITUTIONAL FRAMEWORK AND IMPLEMENTATION 13

ARRANGEMENTS

IX.B CONSULTATION, GRIEVANCE REDRESS AND DISCLOSURE 15

X.B MONITORING AND EVALUATION 18

XI.B BUDGET 21

XII.B IMPLEMENTATION SCHEDULE AND TIMELINE 22

ATTACHMENTB 1: INVOLUNTARY RESETTLEMENT CATEGORIZATION 23

FORM

ATTACHMENTB 2: TABLE OF AFFECTED PERSONS 25

ATTACHMENTB 3: PUBLIC INFORMATION BOOKLET 28

294 Supplementary Appendix B2

Figure 1: MAP OF THE PROPOSED ENGINEERING WORKS

Supplementary Appendix B2 295

I. Introduction A. Project 1. The regional Sustainable Tourism Development Project (the Project) will contribute to the implementation of the Greater Mekong Subregion (GMS) Tourism Sector Strategy and the provision of livelihood opportunities for GMS citizens. The Project outcome will be the development of a sustainable, culturally and environmentally sound pro-poor tourism approach for the GMS. It will have five outputs: (i) model sustainable tourism development projects protecting natural, cultural and urban heritage sites of importance to tourism are operational; (ii) pro-poor community-based and supply-chain tourism projects are developed and operational; (iii) community-operated facilities along the GMS economic corridors bringing economic benefits to local communities improved; (iv) human resource capacity of public and private tourism stakeholders are developed; and (v) efficient project management services are fully operational.

2. This Resettlement Plan (RP) covers the subproject under Output 1 in Champassak Province, Siphandon Wetlands. The subproject will include: (i) a preparation of a heritage-based tourism zoning plan and tourism structure and management plan for the wetlands area; (ii) upgrading of a 4 kilometer (km) access road that connects Route 13 to the boat landing at Nakasang Village; (iii) improvements to the existing pathways on Don Det and Don Kone Islands; (iv) environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste management at the market and in the village; (v) construction of a visitor information and interpretation facilities on the Nakasang Village side of the Wetlands; (vi) construction of fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands; (vii) capacity development and livelihood support programs for local communities, especially women, youth and ethnic groups, to become site managers that engage local communities in managing and interpreting the natural heritage values of the wetland; (viii) implementation of a gender and ethnic groups development program; (ix) a public awareness program for wetland conservation and protection, HIV and AIDS, and other tourism-related awareness activities; (x) manual to guide the preparation and implementation of future GMS tourism subprojects aimed at protecting important natural sites; and (xi) monitoring and evaluation program.

3. The resettlement impacts will not be significant for this subproject, as fewer than 200 people will be physically displaced from housing or lose more than 10% of their productive (income-generating) assets. Per ADB’s requirements, a short RP has been prepared for this subproject.

II. Scope and Scale of Resettlement

4. The subproject will involve civil engineering works as described below. The following will not require any land acquisition or resettlement:

(a) Access Road Upgrade: A 4.0 km access road from highway 13 to the boat landing at Nakasang Village already exists but the pavement and drainage have not been engineered or constructed to adequate standard. Poor drainage and contamination of the pavement by clay makes the road impassable during wet periods. The Project will upgrade existing drains and pavement of the road. The upgraded road will be the same width as the existing one (approx. 6 meters) and all drainage is to be upgraded within the existing road reserve and fences. No resettlement or land acquisition is required;

296 Supplementary Appendix B2

(b) Storm water Drainage: Along both side of the final 400 meters (m) of the road before the river, storm water pipes will be extended and a Gross Pollution Trap of 10m x 10m will be constructed to remove solid wastes and sediment before discharge into the river. No resettlement or land acquisition is required;

(c) Track improvements to Don Det and Don Kone Islands: A 3 m wide pathway that begins at Ban Houa and ends at Ban Dang Korn will be upgraded to include shoulder drains within the right of way. No resettlement or land acquisition is required;

(d) Cultural Interpretation center: A Cultural Interpretation Center will be constructed in Nakasang village. The total area of land designated for the 2 construction is 1,050 square meter (m ). The land is vacant and belongs to the district government. No resettlement or land acquisition is required;

(e) Parking Lot Don Det: The parking area in Don Det will be upgraded with drains to handle storm water and a gravel pavement. The land to be used is four-sided measuring 120m x 12m x 35m x 85m and has a 0.5m buffer area between the fence and the road. The land is owned by Khong District. The district will need to inform the current users of the parking lot (a tour company) about the upcoming construction and suspend their lease with appropriate notice;

5. The following civil engineering works will cause some impacts:

(a) Parking Lot Nakasang Village: A sealed parking lot with drainage will be constructed in Nakasang village. The lot is 20m x 68 m (1,360 m2) with a capacity of 50 cars and 6 buses. There is a fence separating the proposed parking lot from the adjoining site to the east where a health center is located. A small road to a nearby village lies west to the proposed lot. A 0.42 hectare (ha) plot of district owned land lies north of the proposed lot, which is vacant except for a small open-walled shed. The proposed land for the parking lot is owned by the district. There are four temporary structures on the lot, each about 2m x 3m (6 m2). Two of the four are collectively owned by the village and used as rest sheds. The remaining two are small shops that two merchants from the market use alternately with their space in the market to sell soup. There is also a 2m x 3m toilet that is collectively owned by the village. The two merchants will be compensated as outlined in the below section on the relocation of the market, and have reported that they will base themselves permanently in the new market once it is constructed. The two rest sheds and the toilet will be reconstructed as part of the amenities block to be built by the Project;

(b) This parking lot will contain the temporary market (40 stalls, 25 currently occupied – see below) during reconstruction of the market. The parking lot will be upgraded only after the temporary stall holders have vacated the space for transfer to the new market site;

Supplementary Appendix B2 297

(c) Riverbank: A newly paved walkway approx. 70 m long with 2 access points to the river will be constructed along the river bank over the existing path. The new path will be 2 m wide including cross fall and drainage. Access to the river will be in the form of steps 3 m wide. The land is owned by the district and there are 3 structures along the river which will need to be relocated for this subproject. The structures are all shops though the owners also use them for residential purposes. They are built on stilts and suspended over the Mekong River watercourse – accordingly there are no land impacts and no trees affected;

(d) All 3 households affected by the construction have expressed that they prefer access to a stall in the new market, of equal size to their present structures, so they can continue conducting commercial activity. There is adequate space in the market to accommodate them. The affected households also requested to receive USD5,000 to compensate for the replacement costs for their residences. This is assessed to be in accordance with current market prices. Each of the 3 households has been consulted to ascertain their willingness to transfer, the conditions proposed for the move, and the compensation. They have all confirmed their willingness to move under these conditions;

(e) There are also two small fuel service stations, 1.5m x 1.5m on the riverbank containing a 200 liter drum of fuel. They are operated in the rainy season only. The fuel stations will be moved to the Nakasang parking lot;

(f) The construction of the riverbank should start after the market has been reconstructed so that the 3 shops can relocate directly to the market and the 2 fuel stations directly to the parking lot;

(g) Reconstruction of Market: The Nakasang market is 40m x 80m (3,200 m2). It contains 47 spaces for market stalls, of which 25 are currently occupied. In addition, 5 stall owners occupy the market seasonally. There are also 50 small non-permanent tables in the market where vegetables and food is sold in the morning by the stall holders. The current market is of poor quality with dirt pavement and no sanitary, water or storm water drainage. The land designated for the construction is owned by the district and is valued at 90,000 kip per m2 based on current market prices. The land is currently being used as a market place. No land acquisition is necessary, but the stalls will be temporarily relocated for about 6 months to the parking lot while the market is being reconstructed. The reconstruction of the market will be done during the dry season, when the 5 stall owners that only occupy the market seasonally will not be affected;

(h) A total of 25 stall owners will be temporarily affected from having to relocate while the new market is constructed. 7 of these households are poor and 2 of them are headed by women. 3 persons will have to move their shops from the riverbank to the new market. The detailed information on the affected persons and scope of losses is presented in Appendix 3.

298 Supplementary Appendix B2

Table SAB2.2: Scope of Land Acquisition and Resettlement Impacts Estimated Affected Affected Households to APs losing Other Impacts Project site Land Households/ population be relocated 10% or more Acquisition Shops of (m2) productive assets Parking Lot 1,360 m2 Two rest sheds and Nakasang Village (District land) public toilet will be rebuilt as part of the Project. Market Area 3,200 m2 25 126 8 (temporary) 0 Temporary (District land) relocation for 25 stall owners, 8 stallowners living in their stalls.

Riverbank 70m x 2m 3 15 3 0 Temporary (District land) relocation of shops to temporary market during reconstruction should be avoided. The 3 stallowners use the shops for residential purposes. 2 fuel service stations to be moved to parking area. Total 4,700 m2 28 141 8 temporary 0 (District land) 3 permanent

III. Socio-Economic Information

6. The Siphandone Wetland is in Champassak Province and is part of the biodiversity corridor that straddles Lao PDR, Cambodia and Thailand. It contains more than four thousand islands, and is home to more than 72,000 people. Poor communities living in and adjacent to the wetland depend on it for food security and earning income. Over the years, growing population and high fish prices have increased fishing and hunting activities, threathening Siphandone’s biodiversity.

7. The main tourist access to the Wetland is via Nakasang, a village located about 4 km off Route 13, the main north-south highway in Lao PDR. There are 245 households in the village, with a total population of 1380 persons (640 female). 27 households were sampled for the PPTA socio-economic survey in Nakasang village. The results are summarized in the below tables. Detailed information on the Affected Persons is in Annex 3.

Table SAB2.2: Main source of income (%)

Cultivation Raising/ Live Forestry Business (inside Renting or selling Remittances catchin stock and outside land g fish village)

37 33.3 7.4 0 11.1 18.5 7.4

Supplementary Appendix B2 299

Table SAB2.3 Education:

Primary school Secondary school Illiterate

58.8 25.5 15.8

Table SAB2.3: Land ownership Hectars HHs (%) 0.35 3.70 1.00 22.20 1.20 3.70 1.50 3.70 2.00 7.40 3.00 3.70 5.60 3.70

IV. LegalB Framework, Policies and Guidelines

6. This Resettlement Plan (RP) is developed from the laws and decrees of the Government of Lao (GoL) People’s Democratic Republic (PDR) and Asian Development Bank’s (ADB’s) relevant policies and guidelines. Provisions and principles adopted in this RF will supplement the provisions of relevant decrees currently in force in Lao PDR wherever a gap exists.

A.B Government Laws, Decrees, and Guidelines

7. In Lao PDR, compensation principles and policy framework for land acquisition and resettlement are governed by the following laws, decrees and regulations: (a) The Constitution 42 (1991), (b) the Land Law (2003) F , (c) Road Law (1999), (d) Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project (No.192/PM, dated 7 July 2005), and (e) Regulations for Implementing Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project (No.2432/STEA, dated 11 November 2005).

B.B ADB Policies

8. The aim of the ADB Policy on Involuntary Resettlement (ADB, 1995) is to avoid or minimize the impacts on people, households, businesses and others affected by the land acquisition required by a project. Where resettlement is not avoidable, the overall goal of the ADB policy is to compensate and assist affected people (AP) to restore their living standards to levels equal to, if not better than, that they had before the Project.

9. The main objectives and principles of the ADB Policy on Involuntary Resettlement are as follows:

(a) Involuntary resettlement should be avoided where feasible;

42 The Land Law 04/NA of 21 October 2003 supersedes the earlier Law 01/NA 12 April 1997.

300 Supplementary Appendix B2

(b) Where population displacement is unavoidable, it should be minimized by exploring all viable project options;

(c) People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the Project;

(d) APs should be informed fully and closely consulted in resettlement and compensation options;

(e) Existing social and cultural institutions of APs who must relocate should be supported and used to the greatest extent possible, and APs should be integrated economically and socially into host communities;

(f) Lack of legal rights to the assets lost or adversely affected will not prevent APs from entitlement to compensation and rehabilitation measures. Those without legal title to land occupied or used by them (e.g., non-titled APs) will be entitled to various kinds of resettlement assistance to improve their socioeconomic status;

(g) Particular attention must be paid to the needs of the poorest APs and other vulnerable groups that may be at high risk of impoverishment. This may include APs without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples and ethnic minorities. Appropriate assistance must be provided to help them improve their socioeconomic status;

(h) All stages of resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards;

(i) As far as possible, involuntary resettlement should be conceived and executed as part of the project. Involuntary resettlement is to be treated as a development opportunity;

(j) The full costs of resettlement and compensation should be included in the presentation of project costs and benefits; and

(k) The costs of resettlement and compensation may be funded by counterpart funds and/or considered for inclusion in the Bank loan for financing of the project.

10. The ADB Policy on Indigenous Peoples (ADB, 1998) defines indigenous or ethnic minority peoples as “those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.” The Policy recognizes the potential vulnerability of indigenous peoples in the development process; that indigenous peoples must be afforded opportunities to participate in

Supplementary Appendix B2 301 and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. The anticipated impact (positive and negative) and mitigation measures are incorporated in the Project’s Ethnic Groups Development Framework. Social analysis of a project or subproject will assess whether indigenous or ethnic groups are likely to be affected by the Project or subproject. If a project or subproject is likely to have impacts caused by land acquisition only, specific action for indigenous peoples, specified in the Project or subproject RP is required to address the impacts. If indigenous peoples population affected by a subproject exceeds 20% of all the APs, small- scale livelihood activities, which shall be prepared in consultation with indigenous peoples populations, shall be incorporated in subproject RPs as a special rehabilitation program.

11. The ADB Policy on Gender and Development (ADB, 1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process for development activities. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the Project. ADB’s Operations Manual (OM) F2/OP requires that the findings of a gender analysis be included in the RP, and at all stages, resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards.

12. The ADB Public Communications Policy (ADB, 2005) seeks to encourage the participation and understanding of stakeholders and people affected by ADB-assisted activities. Information on ADB-funded projects should start early in the preparation phase and continue throughout all stages of project development, in order to facilitate dialogue with APs and other stakeholders. The Executing Agency (EA) should, as necessary, develop a project communications plan and designate a focal point to maintain contact with affected people. With respect to land acquisition, compensation and resettlement, information should be distributed to affected peoples (APs) and publicly in the following manner: (i) the draft RP prior to loan appraisal; (ii) the final RP following its completion; and, (iii) the revised RP, following any revisions. This information can be in the form of brochures, leaflets or booklets, in the local language(s) as well as English, the working language of the ADB. When APs include non- literate people, other appropriate methods of communications will be used. The policy also requires disclosure of social monitoring reports.

C.B Resolving Inconsistencies

13. The recent changes in the GoL PDR legislation related to compensation and resettlement in development represents a significant improvement in the rights of citizens when their livelihoods, possessions and society are affected by development projects.

14. Both Lao Law and ADB policies entitle APs to compensation for affected land and non- land assets at replacement cost. However, definition of severely affected APs varies between ADB (OM F2 para 5) at 10% and Decree 192/PM (Article 8) at 20% of income generating assets affected. However in accordance with Decree 192/PM (Article 6) which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the Project, the 10% definition of severely affected will be adopted as part of the Project’s resettlement policy.

302 Supplementary Appendix B2

15. Both Lao Law and ADB policies entitle non-titled APs to compensation for affected assets at replacement cost and other assistance so that they are not made worse off due to the Project. Decree 192/PM goes beyond ADB’s policy and provides APs living in rural or remote areas, or APs in urban areas who do not have proof of land-use rights and who have no other land in other places, compensation for loss of land-use rights at replacement cost, in addition to compensation for their other assets and other assistance. Should APs be found to be non-titled and required to relocate, the Project will ensure they are provided replacement land at no cost to the APs, or cash sufficient to purchase replacement land.

IV.B Project Principles, Eligibility and Entitlements

C. ProjectB Principles

16. The following principles were formulated to bridge the differences between ADB’s and the Government’s resettlement policies, and will apply to all civil works:

a) Involuntary resettlement and impacts on land, structures and other fixed assets will be avoided or minimized where possible by exploring all alternative options;

b) APs residing, working, doing business and cultivating land within the required project area as of the completion date of the census and detailed measurement survey will be entitled to compensation and rehabilitation assistance to assist them in improving, or at least maintaining, their pre-project living standards and productive capacities. The Project will ensure that APs are able to find alternative sites or income sources;

c) Lack of formal legal title or rights will not be a bar to eligibility for compensation and assistance under the Project. APs will not be displaced from affected land until the village allocates suitable alternative land or compensation is paid that is sufficient to purchase suitable land within the same or neighbouring village;

d) All compensation will be based on the principle of replacement cost at the time of compensation. For houses and other structures, this will involve the costs for materials and labour at the time of acquisition, with no deduction for depreciation or for salvageable materials. Compensation for land will be replacement land as a priority, or where this is not possible, in cash adequate to purchase land locally of equivalent size and quality, and where required to improve land to achieve suitable quality;

e) The process and timing of land and other asset acquisition will be determined in consultation with APs to minimize disturbance;

f) Where houses and structures are partially affected to the degree that the remaining portion is not viable for its intended use, the Project will acquire the entire asset, and APs will be entitled to compensation at replacement cost for the entire asset;

g) APs will be systematically informed and consulted about the Project, the rights and options available to them and proposed mitigating measures. The comments and suggestions of APs and communities will be taken into account;

h) The key information in the RP such as measurement of losses, detailed asset valuation, compensation and resettlement options, detailed entitlements and special

Supplementary Appendix B2 303

provisions, grievance procedures, timing of payments and displacement schedule will be disclosed to APs in an understandable format such as the distribution of public information booklets (PIBs) prior to submission to ADB for review and approval;

i) Resettlement identification, planning and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights, and to ensure the restoration of their income and living standards;

j) Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved;

k) Special measures will be incorporated in the resettlement plan to protect socially and economically vulnerable groups such as ethnic groups, women-headed households, children, households headed by the disabled, the elderly, landless and people living below the generally accepted poverty line. Vulnerable APs will be provided with appropriate assistance to help them improve their standard of living through asset building strategies such as provision of land, replacement housing of minimum standards and increased security of tenure;

l) There will be effective mechanisms for hearing and resolving grievances during updating and implementation of the RP. Resettlement committees (RCs) will include representatives from APs especially women and vulnerable groups;

m) Institutional arrangements will be in place to timely and effectively design, plan, consult and implement the land acquisition, compensation, resettlement, and rehabilitation programs;

n) Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period;

o) Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitor; and

p) Voluntary donation will not be applied for any assets.

D. EligibilityB and Entitlements

17. Eligibility. All APs who are identified in the project-impacted areas on the cut-off date, will be entitled to compensation for their affected assets, and rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity and production levels. The cut-off date will be the final day of the detailed measurement survey (DMS) in each subproject. Those who encroach into the subproject area after the cut-off date will not be entitled to compensation or any other assistance.

18. Entitlements. The entitlement matrix in Table 2 summarizes the main types of losses and the corresponding nature and scope of entitlements. Following detailed design, DMS and

304 Supplementary Appendix B2 socioeconomic surveys (SES) will be the basis for determining actual impacts, and replacement cost surveys will be carried out to determine actual replacement costs and rates.

Table SAB2.2: Entitlement Matrix Type of Entitled Entitlements Implementation Issues Losses Persons Residential Land Legal owner or • With remaining land sufficient to • Voluntary donation of land will not occupant rebuild houses/structures: (i) Cash be allowed by the Project. identified during compensation at replacement cost DMS. which is equivalent to the current market value of land of similar type and category, and free from transaction costs (taxes, administration fees); and (ii) Project contractor to improve remaining residential land at no cost to APs (e.g. filling and levelling) so APs can move back on remaining plot. • Without remaining land sufficient to rebuild houses/structures: Replacement land equal in area, same type and category, without charge for taxes, registration and land transfer OR cash compensation at replacement cost which is equivalent to the current market value of land of similar type and category, free from transaction costs (taxes, administration fees) plus assistance to purchase and register land. Totally Affected Owners of • Reconstruction/provision of new • Adequate time provided for APs to Houses/Shops, affected houses structure of same size and value rebuild/repair their structures and Secondary whether or not OR cash compensation at • Affected houses and shops that are Structures land is owned replacement cost for the entire no longer viable are those whose (kitchen, rice structure equivalent to current remaining affected portion are no bins) market prices of (i) materials, with longer usable/habitable. no deduction for depreciation of the Partially Affected structure or salvageable materials; Houses/Shops (ii) materials transport; and (iii) but no longer labour cost to cover cost for viable dismantling, transfer and rebuild. (Will require relocation) Temporary Use Legal owner or • For agricultural and residential land • The construction supervision of Land occupant to be used by the civil works consultant will ensure that the (i) contractor as by-pass routes or for location and alignment of the by- contractor’s working space, (i) rent pass route to be proposed by the to be agreed between the civil works will have the least landowner and the civil works adverse social impacts; (ii) that the contractor but should not be less landowner is adequately informed than the unrealized income and of his/her rights and entitlements revenue that could be generated by as per the Project resettlement the property during the period of policy; and (iii) agreement reached temporary use of the land; (ii) cash between the landowner and the compensation at replacement cost civil works contractor are carried for affected fixed assets (e.g., out. structures, trees, crops); and (iii) restoration of the temporarily used land within 1 month after closure of the by-pass route or removal of

Supplementary Appendix B2 305

Type of Entitled Entitlements Implementation Issues Losses Persons equipment and materials from contractor’s working space subject to the conditions agreed between the landowner and the civil works contractor. Partially Affected Owners of • Cash compensation at replacement Houses and affected houses cost for the affected portion of Shops and whether or not structure equivalent to current secondary land is owned market prices of (i) materials and structures labour , with no deduction for depreciation of the structure or for (Will not require salvageable materials (ii) materials relocation) transport, and (iii) cost of repair of the unaffected portion; Loss of business Owners of • Cash compensation equivalent to The rates have been verified through income due to shops and stalls the average daily profit multiplied interviews with informal shop owners temporary by the number of days of business to get an estimate of daily net profit. relocation of disruption (2 days). shops and stalls • First and last month of market fees waived during the temporary relocation period. • Guaranteed stall of similar size in the new market • Subsidy over 24 months to compensate for the increased stall rentals after the market is reconstructed: 1 st year subsidy of 100%, 2nd year subsidy of 50%. Loss of business Owners of • Cash compensation equivalent to The rates have been verified through income during shops the average daily profit multiplied interviews with informal shop owners relocation or by the number of days of business to get an estimate of daily net profit. during disruption (4 days). dismantling/repair of affected portion (without relocation) Transition Relocating • Relocating APs without any subsistence households – impact on business or source of allowance relocating on incomes will be provided with residual land or cash or in-kind assistance to other sites equivalent to 16 kg of rice at current market value for 3 months Severely per household member affected APs • Relocating APs with main source losing 10% or of income affected (i.e., from more of their businesses) or APs losing more productive land than 10% of their productive land will be provided with cash or in- kind assistance equivalent to 16 kg of rice at current market value for 6 months per household member Transportation Relocating Provision of dump trucks to haul APs may also opt for cash allowance households and all old and new building materials assistance. The amount (cost of shops – to other and personal possessions labour and distance from relocation sites site) to be determined during implementation Severe impacts Severely • An additional allowance of 1 month The poorest will be those below the on vulnerable affected supply of rice per person in the national poverty line as defined in the

306 Supplementary Appendix B2

Type of Entitled Entitlements Implementation Issues Losses Persons APs vulnerable APs household. poverty partnership agreement with (Relocating APs such as the • First priority in allocation of new ADB and those losing poorest, or stall in the reconstructed market. 10% or more of households • The contractors will make all their productive headed by reasonable efforts to recruit assets) women, the severely affected and vulnerable elderly, or APs as labourers civil works disabled, and indigenous peoples

V.B Relocation and Income Restoration Strategy

19. Compensation will be provided for loss of income from the temporary relocation while the market is being renovated. The district will wave the market fee and taxes for the first and the last month of their temporary location at the parking lot. The stall owners also will receive compensation for loss of income during the actual move, estimated to take 2 days. The 8 stall owners who live in their shops will be able to return to the new market and continue to live there, as agreed between the district, stall operators, market management and village leaders. In addition they will receive subsistence allowances equal to 16 kg of rice per household member for 6 months. The stall owners have stated that they need no transportation assistance for the move. All current stall owners will receive prioritization in the allocation of a new stall in the reconstructed market and a subsidy for the expected increases in market fees. The first year after the move, the market fees will be subsidized 100%, the second year 50% and by the 3rd year the merchants will shoulder the fees themselves. The village leadership has conducted meetings and consultations involving all store and stallholders and consulted them on the conditions for the temporary move to the parking lot and the return of the occupants to the reconstructed market. 20. Compensation will be provided for the 3 households that will have to relocate their shops from the riverbank to the new market. They will be given a guaranteed stall in the reconstructed market and provided a $5,000 cash compensation for their residences. In addition they will receive subsistence allowances equal to 16 kilogram (kg) of rice per household member for 6 months. 21. Screening forms to be used during RP finalization can be found in Appendixes 1 and 2.

VI.B Vulnerability, Gender and Ethnicity

22. The Project recognizes that certain social groups may be less able to restore their living conditions, livelihoods and income levels; and therefore, at greater risk of impoverishment when assets are affected. Vulnerable households will be provided with additional cash assistance or appropriate income restoration measures in consultation with them and they will be given an additional allocation of 1 month supply of rice per household member. During the RP preparation, 7 poor households and 1 female-headed household were found (see Appendix 3 for list of affected persons and inventory of losses). They will also get first priority in the allocation of a stall in the newly constructed market. Separate consultations have been done with women and poor households and will be continued during the time of RP updating and implementation on specific resettlement concerns, such as compensation, relocation and rehabilitation of livelihoods.

Supplementary Appendix B2 307

VII.B Institutional Framework and Implementation Arrangements

23. Responsibility for resettlement spans various levels of government and project contractors, and these include the Lao National Tourism Administration (LNTA), Water Resources and Environment Administration (WREA) at national provincial and district level, project implementation consultants, and specifically formed provincial, district and village RCs.

A.B Lao National Tourism Administration

24. LNTA will be the EA for the Project. It will be responsible for the overall technical supervision and execution of the Project and will establish a central Project Coordination Unit (PCU). The PCU will be responsible for the day-to-day management and monitoring of all project activities including coordination with the PCU in Viet Nam and the Mekong Tourism Coordination Office, the PCU in Vang Vieng and the Provincial Implementation Units. The PCU will be headed by a project director and eight permanent staff, including a project manager, a financial controller, a tourism development specialist, a natural and cultural heritage specialist, an environment specialist, a social development specialist, a marketing specialist and a monitoring and evaluation specialist. It will be supported by international and national consultants. 25. LNTA will establish Provincial Project Implementation Units (PIUs) at the provincial level to undertake the actual delivery of the subprojects. The PIUs will be headed by a project director and staffed by a project manger, a tourism development and training specialist, a social development specialist, an environmental specialist, and a construction supervisor. The PIUs will be responsible for implementing, coordinating, monitoring, and reporting activities at the Provincial level under PCU instruction and guidance. 26. LNTA will be responsible for the overall coordination of organizations involved in resettlement and for RP preparation and updating, supervision and management of RP implementation. It will further be overall responsible for ensuring that RP updating and implementation activities are consistent with those described in the RP and will also be responsible for internal monitoring of resettlement activities. The LNTA will appoint a Social Development Specialist who will be primarily responsible for resettlement for this Project. LNTA will provide overall guidance and technical support to the provincial and district RCs.

B.B Resettlement Committees (RCs)

27. Local authorities will assist the Project in various resettlement planning and implementation activities. In project areas where there will be resettlement, this support will be formalized into RCs established at the Province, District and Village level.

28. The Provincial Resettlement Committees (PRCs) will undertake critical roles, including: (i) undertaking consultation meetings with APs, (ii) establishing compensation rates (replacement costs) for affected assets; (iii) review and confirmation of final DMS data; (iv) undertake final agreement with APs on compensation; and (v) manage funds disbursed from the Provincial Department of Finance for disbursement to APs, (v) monitor and report on all RP activities; (v) act as grievance officers. The PRCs will be supported by the District (DRC) and Village Resettlement Committees (VRCs) who will assist in all local activities.

29. The District Resettlement Committee (DRC) will be composed of local authorities, representatives of mass organizations, village elders/traditional leaders and APs. The District governor chairs the DRC while members are from the District’s Lao Women’s Union (LWU), and APs (including women APs) and indigenous people representatives.

308 Supplementary Appendix B2

30. In villages where resettlement is needed a VRC will also be formed. The VRC will include APs (apart from the Village Chief and Deputy Chief) and women (in addition to the LWU representative). VRCs and DRCs responsible for villages with AP indigenous peoples populations will include traditional minority leaders, both men and women in their committees. The main responsibilities of the DRCs and VRCs will be to facilitate various activities including: (i) facilitation of public information and consultation by ensuring village and AP awareness at all stages of project planning and implementation; (ii) assisting in the identification of alternative land for relocating APs; (iii) assisting in the identification of productive land (paddy, teak plantation) or land that can be developed to make it productive for APs losing productive land / source of income; (iv) leading the organization of village level support (labor and materials) for relocated people and those rebuilding onsite and for APs requiring assistance to develop land to make it productive; (v) assisting in the identification of special needs of vulnerable APs and providing timely assistance; (vi) assisting/overseeing implementation of the DMS and confirmation of the results; and (vii) provide first point of contact in the Grievance Mechanism, and record all grievances.

31. The DRCs and VRCs may not have experience in many of the requirements of the RP, and as such they require some training beyond simple instruction. A project implementation consultant will design and implement the necessary capacity building for the DRCs and VRCs.

C. Water Resource and Environment Administration

32. The WREA will review and approve the RP. WREA is also responsible for monitoring of resettlement activities. WREA will review all internal and external monitoring reports and undertake periodic inspections.

D. Project Implementation Consultants

33. The Project will contract an international resettlement specialist for 2 person-months to support the PCU in handling resettlement issues. The consultant will also be responsible for training the local social development consultant and the PCU social development specialist in resettlement planning, implementation, monitoring, and evaluation. The resettlement consultant will have experience in both planning and implementation of resettlement plans in Lao PDR.

34. In addition to the resettlement specialist, one international and one national social and gender specialist will be mobilized for 6 person-months and 18 person-months, respectively. The specific tasks of these consultants include:

(a) Ensuring that due diligence is carried out for all subprojects; (b) Operationalize the gender strategy; develop capacity building training modules and conduct workshop and capacity building training on resettlement activities for the RCs, Women’s Union, Youth Union; (c) Conduct workshop/training for men and women from AP households on: (i) village level consultation process; (ii) leadership skills; (iii) resettlement, rehabilitation and relocation-related issues; (d) Ensure that men and women from indigenous peoples groups, affected women headed households are consulted effectively and have access to fair compensation and timely compensation; (e) Monitor grievance process for the women from the affected households; (f) Develop disaggregated monitoring indicators by gender (together with Monitoring & Evaluation specialist);

Supplementary Appendix B2 309

(g) Prepare progress report on gender strategy as part of the quarterly progress report on resettlement; (h) Ensure that representatives of ethnic groups are included in the RCs; (i) Ensure that appropriate consultation process is carried out for ethnic groups AP households; (j) Ensure that ethnic groups AP households receive capacity building training/workshop on resettlement related activities; (k) Ensure that ethnic groups AP households receive fair compensation and land title or land use certificates where applicable; (l) Ensure that ethnic groups AP households have access to fair grievance process; (m) Provide inputs to gender specialist and M&E specialist on disaggregated monitoring indicators by ethnic groups; and (n) Prepare progress report on ethnic groups specific actions as part of the quarterly progress report on resettlement.

VIII.B Consultation, Grievance Redress and Disclosure

A.B Consultation and Disclosure

35.B During RP preparation, several consultations were undertaken with the APs and authorities. On October 17, 2006 a meeting was held by the LNTA together with the village chief, the leader of the Village Mass Association, representatives of the LWU, village elders and youth, and affected persons. The District Governor of Khong District and the District Tourism Officer also attended. To follow up on these consultations, confirm findings and collect further information, additional consultations were done on March 3, 2008. Participants included LNTA, representatives from Champasak Provincial Tourism Department, Kong District Tourism Office, village chief, elders, committee members and affected persons. The consultation meetings have involved the following discussions: (a) Proposed infrastructure improvements; (b) Relocation issues; (c) Entitlement and compensation; (d) Objectives of the census and Inventory of Losses and socio-economic surveys; and (e) Need for active participation of the community.

36. Consultation and social survey shows that APs agree that their businesses be relocated to the proposed new market sites. However, the APs requested that the following requests will be made available to them: (a) To properly allocate new stalls to the APs; (b) To be compensated for the impacts of the relocation, in cash or in kind at market rates; (c) Assistance during relocation; and (d) Continue the consultation process to enable them to plan ahead and be ready during the actual relocation.

37. Further consultation with the APs will be carried out as soon as the PIUs are mobilized so that their needs and preferences can be further incorporated into the design arrangements. They will also participate in the various RP processes: DMS, RCS, identification of sites, hand over of entitlements, monitoring of impacts and benefits, and discussion and settlement of

310 Supplementary Appendix B2 grievances. The scope of information to be provided to APs includes: (i) description of Project and overall schedule, (b) DMS and RCS results, (c) policy principles and entitlements and special provisions, (d) grievance procedures, (e) timing for payments and displacement schedule, and (f) institutional responsibilities.

38. The PIUs will be responsible for the disclosure of the RP to the APs prior to submission to ADB in a form easily understandable to them. ADB will upload the final resettlement plan on ADB’s resettlement website. Monitoring reports on any resettlement will also be uploaded on ADB’s website. The RP has been translated and distributed to the provincial and district authorities. A PIB has been prepared (Appendix 3). The PIB has been translated and disclosed to the affected people. The draft RP will be posted on ADB’s website before appraisal and the final RP upon ADB Board approval of the Project.

B.B Grievance Redress

39. All APs have the right to appeal any aspect of decisions made not in accordance with the RP or with commitments given to them, or on which they disagree with the level or manner of compensation, including land, house or shop or stall relocation and compensation. The main objectives of the grievance procedure are to provide a mechanism to ensure that the compensation and resettlement programs have been implemented accurately and fairly, alleviating any adverse effects on APs, to mediate conflict and to avoid lengthy litigation that is unfair to APs and can delay the project. It also provides people who have objections or concerns about their assistance with an accessible and known procedure through which to raise their objections and have them resolved. 40. The project grievance redress procedure for this Project will operate as follows:

(c) Step 2. District Level – If APs are not satisfied with, or do not receive a response from the DRC within 10 days of their complaint being lodged with the DRC, then the complaint can be forwarded to the Provincial Resettlement Committee (PRC). Again, elevation of the complaint to these bodies can be undertaken by the AP or with the assistance of the

Supplementary Appendix B2 311

project staff. It will be the role of the project staff to ensure that any unresolved grievance from the DRC is forwarded in a timely manner to the PRC;

(d) Step 3 – Provincial Level - If the complaint still remains unresolved within 10 days of being lodged to PRC, APs and local mass organizations may forward their grievance directly to the LNTA;

(e) Step 4 – Central Level. LNTA will ensure to review and resolve all complaints within 10 days;

(f) The complaint, as a last resort, will be lodged with the Court of Law whose decision would be final. Although the technical guidelines for resettlement designate this elevating of the complaint to the local mass organizations, non-benefit organizations and AP representatives, in order to ensure the availability of adequate resources to carry out this procedure, the LNTA will be responsible for forwarding the complaint and ensuring its process in the courts;

(g) All legal and administrative costs incurred by APs and their representatives are to be covered by the Project;

(h) The RCs will provide quarterly reports to the LNTA on grievances received, including names and pertinent information about the APs, nature of complaint, dates the complaints are lodged, and resolutions. Grievances not resolved will also be recorded, detailing negotiations and proposals which could not be agreed on, and the date of these negotiations; and

(i) If APs are still not satisfied with the resolution of their complaints at the Project and central level they may also (or permit representatives to on their behalf) raise their concern or complaint with the ADB Southeast Asia Department, Social Sector Division, through the ADB Resident Mission office in Vientiane

IX.B Monitoring and Evaluation

41. Monitoring and evaluation of the RP allows project owners to ensure smooth progress of RP implementation, by providing for a review of information on the progress of implementation of RP activities. Importantly, monitoring must also address the degree to which the resettlement activities have achieved their desired outcomes, particularly where this involves the rehabilitation of AP’s housing, livelihoods and lifestyles. 42. These two monitoring objectives will be addressed through two mechanisms: (a) internal monitoring by the LNTA and RCs, and (b) external monitoring and evaluation by an independent monitor.

A. Internal Monitoring

43. The role of internal monitoring and evaluation is to ensure that resettlement institutions are well-functioning during the course of project implementation, and that resettlement activities

312 Supplementary Appendix B2 are undertaken in accordance with the implementation schedule described in the RP. In this way, the protection of APs’ interests and the schedule for civil works can be assured.

44. Primary responsibility for internal monitoring lies with LNTA as the project executing agency. LNTA will be responsible for overseeing the formation, function, and activities of the implementing agencies, and through quarterly monitoring reports, summarize this progress. All monitoring data will be collected to ensure sex and ethnicity disaggregation.

45. The indicators that will be monitored regularly will include any of the following, if applicable:

Table SAB2.4: Monitoring and Evaluation Indicators Type Indicator Examples of Variables

INPUTS Staffing and • Number of project dedicated LNTA staff INDICATORS Equipment • Confirmation of RCs • Number of PRC and DRC members and job function • Adequate equipment for performing functions (including grievance recording) • Trainings undertaken • External monitor contracted and mobilized • Construction Contractor meeting local employment targets for unskilled labour PROCESS Consultation, • Distribution of PIB to all APs INDICATORS Participation , and • Summary RP available in all districts Grievance Resolution • Translation of materials in indigenous peoples villages and for individual minority APs in villages of other ethnicity • Consultations and participation undertaken as scheduled in the RP • Grievances by type and resolution • Number of local-based organizations participating in project OUTPUT Acquisition of Land • Area of cultivation land acquired INDICATORS • Area of residential land acquired Buildings • Number, type and size of private houses/structures acquired • Number, type and size of community buildings acquired • Number, type and size of government assets affected Trees and Crops • Number and type of private trees acquired • Number and type of government/community trees acquired • Number and type of crops acquired • Crops destroyed by area, type and number of owners

Supplementary Appendix B2 313

Type Indicator Examples of Variables

Compensation and • Number of households affected (land, buildings, trees, crops) Rehabilitation • Number of owners compensated by type of loss • Amount compensated by type and owner • Number and amount of payment paid • Compensation payments made on time • Compensation payments according to agreed rates • Number of houses demolished • Number of porches/kitchens dismantled • Number of replacement houses built by APs on the same plot • Number of replacement houses built by APs on other plots they own • Number of replacement houses built by APs on allocated plots • Number of replacement businesses constructed by APs • Number of owners requesting assistance for additional replacement land • Number of replacement land purchases effected • Number of land titles and land survey certificates issued • Number of vulnerable groups provided additional assistance Reestablishment of • Number of community buildings repaired or replaced Community • Number of seedlings supplied by type Resources

B. External Monitoring

46. While internal monitoring focuses on the implementation of scheduled tasks, external monitoring provides an independent avenue to verify these results, and also to take a more qualitative assessment of the success of these measures to meet their intended objectives. As such, the external monitor will ascertain whether APs have been able to restore their living standards and their livelihoods, and have not become worse off due to the Project. All monitoring data will be collected so as to allow disaggregation by sex and ethnicity.

47. These indicators and the mechanisms used to measure them are detailed in Table 9 below. Importantly, the external monitor will be required to review plans for and implementation of the contractors involvement in providing civil works support for replacement land improvement.

48. The external monitor’s reports will include any identified issues and recommendations for rectifying outstanding matters. The monitor will also highlight any significant successes and commendable approaches or methods used in the project which may provide a learning opportunity to the LNTA and other projects encountering resettlement. Table SAB2.5: External Monitoring Indicators, Methods and Schedule Indicators Variables Mechanism for Timing of Assessment Assessment RP • Compensation Disbursements • Review of internal monitoring • Every monitoring Implementation • Land and assets acquired reports mission • Preparation of replacement land • Review Contractor plans and • Loan funds disbursement actions • Government funds disbursement • Interviews with and • Public information and consultation observation of implementing • AP asset replacement agencies at each level • Random sample of interviews with APs

314 Supplementary Appendix B2

Indicators Variables Mechanism for Timing of Assessment Assessment Restoration of • Compensation at replacement cost • Interviews with APs – • Every monitoring Living • Compensation with no depreciation stratified sample for those mission Standards and or fees/taxes relocating, and those being Livelihoods • Adequacy and suitability of allocated land, indigenous replacement land peoples and women • Adequacy of moving costs • Review of internal monitoring • Adequate timing for asset reports acquisition/replacement • Review of revised • Tenure security of APs compensation costs and materials costs • Interviews with Provincial Lands Departments for land records • Changes in AP income levels, and • Replicate SES of a sample • At the sources of income of APs commencement of • Changes in AP access to services • Comparison with original resettlement and utilities SES and with later results implementation • AP participation in community • Village level focus group and project organizations discussions, including completion • AP participation in associated social women and indigenous action programs related to the peoples project • Interviews with vulnerable • Vulnerable groups rehabilitation APs AP Satisfaction • AP awareness of resettlement • Review records of grievance • Every monitoring procedures and entitlements lodgment and redress mission • AP awareness and use of grievance • Random sample of system interviews with APs • AP satisfaction with the resettlement • Community meetings process • Focus Groups discussions with various categories of APs Effectiveness • Accuracy of DMS for AP and asset • Review records of • Every monitoring of loss recoding and planning grievances and redress mission Resettlement • Adequacy of budget for • Random sample of Planning implementation interviews with APs • Adequacy of implementation • Interviews with implementing schedule to undertake required agencies at each level tasks • Occurrence of unforeseen problems Resettlement • Re-occupation of cleared land • Village chief meetings • Every monitoring Impacts • Migration to the project area • Random AP interviews mission • Observation

X.B Budget 49. The estimated budget for resettlement for the subproject in Siphandone is US$24,777. Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period. The budget will cover compensation costs, allowances and rehabilitation measures, administration costs, and contingency. Land acquisition will be part of the Government’s counterpart fund. The Ministry of Finance will be responsible for the disbursement of funds. The Government will ensure timely provision of counterpart funds for resettlement to meet any unforeseen obligations in excess of the resettlement budget estimates in order to satisfy resettlement requirements and objectives.

Table SAB2.6: Estimated Budget for Siphandone Wetland Subproject

Supplementary Appendix B2 315

Units costs, Total cost, Resettlement and Land Acquisition Costs Units Kip Kip Total cost, USDa Physical losses Construction of new stalls 28 0 0 Reconstruction of fuel stations 2 4,500,000 9,000,000 1,000 Relocation, structures at riverbank 3 45,000,000 135,000,000 15,000 Income losses

Four days of income loss for 28 stall owners during relocation, based on average daily varies (20,000- income from market 28 900,000 LAK) 7,078,184 786

Waiver of first and last month district fees and varies (10,000 taxes during temporary relocation 25 – 80,000 LAK) 1,710,000 190

Subsidy for higher stall rentals after Varies (10,000 reconstruction of market: 1st year waived, 2nd – 80,000 LAK year 50% subsidy 28 per month) 17,235,000 1,915

Allowances 53 persons (38 in Subsistence allowance for HHs that live in market, shops and will be relocated (16 kg of rice per 15 HH member for 6 months) riverbank) 316,800 16,790,400 1,866 Additional allowances for poor and female headed households – additional 1 month 28 (16kg) of rice per HH member persons 52,800 1,478,400 164

Total Base cost 188,289,000 20,921

Implementation costs

Internal Monitoring (5%) 1,046

External Monitoring (20,000)c

Administration Costs (2%) 418

Contingencies (10%) 2,092

GRAND TOTAL 222,993,000 24,777 a Exchange rate: 1USD = 9000 LAK b The budget does not include the cost of construction new stalls as these are included in the civil works. However, the Project will ensure that each of the APs are allocated one of the stalls free of charge. c Included in overall project budget

a. Implementation Schedule and Timeframe

Tasks Schedule Establish PIUs Quarter 1, 2009 Undertake consultation and participation programs Quarter 3 2009 – Quarter 3 2012

Establish Compensation and Resettlement Committees at all Levels Quarter 1, 2009

316 Supplementary Appendix B2

Carry out joint verification of Assets and detailed measurement survey Quarter 3, 2009

Update compensation rates and apply Project entitlements Quarter 3, 2009 Update RP and obtain ADB concurrence Quarter 4, 2009 Present Compensation Payment to APs Quarter 4, 2009 Assist in developing new land for APs Quarter 1, 2010 Start of civil works Quarter 3, 2010 Internal and external monitoring Continuous

Supplementary Appendix B2 317

Attachment 1

Lao National Tourism Administration INVOLUNTARY RESETTLEMENT CATEGORIZATION 43 A. Introduction

1. Each sub-project is assigned an involuntary resettlement category depending on the significance of the probable involuntary resettlement impacts.

Involuntary Resettlement Effects Yes No RemarksB

D. Involuntary Resettlement Category 3. After reviewing the answers above, the Resettlement Committee and the project agree subject to confirmation, that the project is a: [ ] Category B, Not Significant* IR impact, a short Resettlement Plan is required and will be submitted to ADB by ______2008. * Not Significant - Less than 200 people will experience major impacts which are defined as being physically displaced from housing ore losing 10% or more of their productive assets (income generating). [ ] Category C, No IR impact, no resettlement report is required.

If Category B: Please provide information on Affected Persons

43 To be prepared by the PIU and verified by the District and Village Resettlement Committees.

318 Supplementary Appendix B2

1. Any estimate of the likely number of households that will be affected by the Project?

No Yes N/A. If yes, approximately how many? ______

2. Are any of them poor, female-heads of households, or vulnerable to poverty risks?

No Yes N/A. If yes, please briefly describe their situation.

3. Are any APs from indigenous or ethnic minority groups?

No Yes N/A. If yes, please briefly describe their situation:

Prepared By: Verified by:

Signature: Signature:

Name: Name:

Position: Position:

Date: Date:

Attachment 2

Table 1: Affected Persons – Riverbank Permanent home and land Land holdings (not Affected Person Information Temporary Impacts ownership (not affected) affected) No. Plan- People 44 Female Business Affected Person Poor House tation/agriculture Land Structure Sex in HH (# Ethnic Household Village Income Name (Y/N) 45 size Land (Sqm) (Sqm) 46 male, Group Head (Y/N) Kip /month (m2) #female) Mr. and Mrs. Tae 12m x Boulaphanh M/F 3M/2F N Lao N Nakasang 16m 10,000 m2 N/A 48 2,100,000

45 All affected persons are from the majority Lao ethnic group. 46 Exchange rate at time of assessment: 9,000 LAK/1USD

Supplementary Appendix B2 319

12m x Mr. Kout Viset M 2M/4F N Lao N Nakasang 16m 20,000 m2 N/A 101 20,000,000

Mr. Sikort 6m x Dammanivong M 3M/1F N Lao N Ta Paen 8m 3,000 m2 N/A 80 1,980,000

320 320 Table 2: Affected Persons Nakasang Market 47 (note all are Lao ethnic group) Data on Permanent Home Location Affected Person Information Impacts on Merchants to be Moved Temporarily

and Land Ownership B2 Appendix Supplementary Average Daily Plan- Income from Market No. Female Total Additional tation/ (note this is 10% of Affected Person People in HH Poor Househo monthly Land Structure Household Sex Village House Size agriculture gross revenue Name (# male, (Y/N) lds Head fees in (Sqm) (Sqm) Income Land reported, as #female) (Y/N) market Month (m2) discussed and agreed with merchants) Ha Ki 1. Taeng Khamsavat F 2M/3F N N 50,000 Kouay 8 x 12m 1 ha 0 48 40,000 0 Lives in 2. Van Keobounpanh M 2M/2 F Y N 40,000 Nakasang shop 0 0 18 20,000 0 3. Mai Bouttivong F 1 F N Y 40,000 Non Aen 12 x 17 m 2.5 ha 0 48 20,000 0 Lives in 4. Taotong Khamvongsa M 2M/2F Y N 40,000 Nakasang Shop 0 0 24 20,000 0 5. Vin Souvanjoumkham F 1M/2F N N 40,000 Don Som 12 x 15m 2.5 ha 0 24 30,000 50,000 Lives in 6. Fawn Pouangkalangsi M 5M/4F N N 10,000 Loppakdi shop 2 ha 0 36 40,000 0 Under 7. King Phangsi M 1M/2F N N 40,000 Nakasang const. 0 0 24 50,000 0 8. Sa Sakone F 3M/3F N N 70,000 Nakasang 8x10m 0.5 ha 0 24 20,000 0 9. Tongyen Vongkhamsao F 2M/2F N N 25,000 Nakasang 7 x 10m 1 ha 0 24 20,000 0 10. Somphet Nitmounhak M 7M/4F N N 25,000 Nakasang 9 x 8m 1.5 ha 0 24 20,000 0 11. None Oudomdet F 2M/4F N N 35,000 Nakasang 9x 12m 0 0 24 30,000 0 12. Niem Vilaphanh F 5M/2F N N 25,000 Loppakdi 7 x 12m 1 ha 0 48 20,000 0 13. Paeng Souksakoune M 3M/1F N N 40,000 Pieng Di 8 x 9 m 0 0 24 30,000 0 14. Khamman Sihavong F 1M/5F N N 15,000 Pieng Di 12 x 8 m 2.5 ha 0 24 10,000 0 Lives in 15. Phetsamone Phonesavat F 4M/2F Y N 20,000 Nakasang shop 0 0 24 10,000 0 Lives in 16. La Photisane F 2M/1F Y N 10,000 Nakasang shop 0 0 24 80,000 0 17. Chansada Lives in Louangchansada F 1M/2F Y Y 0 Nakasang shop 0 0 24 10,000 0 18. Heuang Phot F 4M/7F N N 40,000 Nakasang 12 x 9 m 2 ha 0 24 20,000 100,000 19. Hamyai Khampaseuth M 5M/2F N N 40,000 Nakasang 6 x 6m 4 ha 0 27 30,000 0 20. John Ornphanith M 3M/1F N N 50,000 Nakasang 8 x 11m 0.5 ha 0 24 30,000 0 21. Bounhieng Phoumsoupa F 1M/3F N N 80,000 Nakasang 12 x 8 m 0 0 24 30,000 0 22. Bounhieng Khammai M 2M/0F Y N 0 Nakasang Lives in 0 0 24 30,000 0

47 All are Lao Ethnic Group

Supplementary Appendix B2

Data on Permanent Home Location Affected Person Information Impacts on Merchants to be Moved Temporarily and Land Ownership Average Daily Plan- Income from Market No. Female Total Additional tation/ (note this is 10% of Affected Person People in HH Poor Househo monthly Land Structure Household Sex Village House Size agriculture gross revenue Name (# male, (Y/N) lds Head fees in (Sqm) (Sqm) Income Land reported, as #female) (Y/N) market Month (m2) discussed and agreed with merchants) shop

23. Mii Manichan F 1M/3F N N 50,000 Nakasang 8 x 12 m 0 0 24 30,000 300,000 Lives in 24. Joy Phoumsoupha M 2M/1F Y N 20,000 Nakasang Shop 0 0 18 15,000 0 25. Chankeo Phimpisone F 3M/3 F N N 50,000 Nakasang 12 x 15 m 2.5 ha 0 24 20,000 0

Supplementary Appendix B2 Appendix Supplementary 321

322 Supplementary Appendix B2

Attachment 3 Resettlement Plan Public Information Booklet Sustainable Tourism Development Project Lao National Tourism Administration Nakasang Village, Champassak province

What is the Sustainable Tourism Development Project? The proposed Sustainable Tourism Development Project will develop sustainable, culturally and environmentally sound pro-poor tourism approaches in Laos and Vietnam. In the Siphandone wetlands the Project will: (i) prepare a heritage-based tourism zoning plan and tourism structure and management plan for the wetlands area; (ii) upgrade a 4 km access road that connects Route 13 to the boat landing at Nakasang Village; (iii) improve the existing pathways on Don Det and Don Kone Islands; (iv) environmental improvements at Ban Nakasang, Don Det and Done Kone, including the area along the riverbank and better waste management at the market and in the village; (v) construct a visitor information and interpretation center on the Nakasang Village side of the Wetlands; (vi) construct fully interpreted access trails at Nakasang, Don Det, Done Kone and other smaller islands; and (vii) provide training and livelihood support programs for local communities, especially women, youth and ethnic groups. The Lao National Tourism Administration (LNTA) is implementing the Project, with financing assistance from the Asian Development Bank (ADB). How extensive is the need to acquire land and other assets for the Project? The Project will acquire some district owned land for the improvement of the riverbank, the reconstruction of the market and the reconstruction of the Nakasang parking lot. The people operating their businesses in these areas will be temporarily affected by the construction. What will happen to the people losing assets and sources of livelihood? Compensation will be paid at replacement cost in cash or in-kind (for example, structure-for- structure) for all assets affected, including sources of livelihood. Other forms of assistance will also be provided to households depending on the severity of Project impacts. What is “replacement cost”? This is the amount needed to replace an affected asset without deductions for taxes or costs of transactions. Replacement costs relevant for this project are calculated as follows: (i) Residential land based on market prices that reflect recent land sales, and in the absence of such recent land sales, based on similar location attributes; (ii) Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials; What are the key principles for helping affected households under the Project? (i) Avoid, if not minimize, land acquisition and relocation, and impacts on sources of livelihoods of people; (ii) Restore the standard of living of affected households; (iii) Replace and compensate lost assets at replacement cost, on top of providing allowances and income restoration support, as warranted; (iv) Inform and consult the affected households about the Project, impacts, options for compensation and assistance, and grievance redress mechanism; (v) Protect social/cultural institutions;

Supplementary Appendix B2 323

(vi) Non-titled affected households (those who have no title to the land or customary rights) have rights to receive Project entitlements provided that they meet the cut- off date for eligibility; (vii) Identify and assist vulnerable groups at high risk of impoverishment, such as female-headed households with dependents, disabled household heads, households falling under the generally accepted indicator for poverty, children and the elderly households who are landless and with no other means of support, landless households, and ethnic minorities; and (viii) No demolition of assets/entry to properties will be done until the affected household is fully compensated and relocated. Who are eligible to be compensated and assisted under the Project? All affected people, households, and institutions/organizations that satisfy the cut-off date for eligibility are eligible to be compensated and assisted under the Project. The cut-off date coincides with the period the census of affected persons (regardless of tenure status) and the inventory of losses (IOL) were conducted in March 2008, to be validated and updated later during the detailed measurement survey (DMS). Persons not covered in the census are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the IOL; or (ii) they have been included among the affected due to changes in project design. What are the entitlements of affected households? Project entitlements listed in Table 1 are based on the impacts identified during the census and IOL. Said entitlements will be adjusted and updated, as needed consistent with the Project resettlement policy, based on the results of the DMS to reflect a more precise inventory and assessment of impacts on assets and on the people.

Table 1-Summary Project Entitlements Type of Losses Entitled Persons Entitlements Implementation Issues Residential Land Legal owner or • With remaining land sufficient to rebuild • Voluntary donation of residential land occupant identified houses/structures: (i) Cash will not be allowed by the Project during DMS. compensation at replacement cost which is equivalent to the current market value of land of similar type and category, and free from transaction costs (taxes, administration fees) and (ii) Project contractor to improve remaining residential land at no cost to APs (e.g. filling and levelling) so APs can move back on remaining plot. • Without remaining land sufficient to rebuild houses/structures: (i) Replacement land equal in area, same type and category, without charge for taxes, registration and land transfer OR cash compensation at replacement cost which is equivalent to the current market value of land of similar type and category, free from transaction costs (taxes, administration fees) plus assistance to purchase and register land. Totally Affected Owners of affected • Reconstruction/provision of new • Adequate time provided for APs to Houses/Shops, and houses whether or structure of same size and value OR rebuild/repair their structures Secondary not land is owned cash compensation at replacement • Affected houses and shops that are no Structures (kitchen, cost for the entire structure equivalent longer viable are those whose rice bins) to current market prices of (i) materials, remaining affected portion are no with no deduction for depreciation of the longer usable/habitable.

324 Supplementary Appendix B2

Type of Losses Entitled Persons Entitlements Implementation Issues Partially Affected structure or salvageable materials; (ii) Houses/Shops but materials transport; and (iii) labor cost no longer viable to cover cost for dismantling, transfer (Will require and rebuild. relocation) Temporary Use of Legal owner or • For agricultural and residential land to • The construction supervision consultant Land occupant be used by the civil works contractor as will ensure that the (i) location and by-pass routes or for contractor’s alignment of the by-pass route to be working space, (i) rent to be agreed proposed by the civil works will have between the landowner and the civil the least adverse social impacts; (ii) works contractor but should not be less that the landowner is adequately than the unrealized income and informed of his/her rights and revenue that could be generated by the entitlements as per the Project property during the period of temporary resettlement policy; and (iii) agreement use of the land; (ii) cash compensation reached between the landowner and at replacement cost for affected fixed the civil works contractor are carried assets (e.g., structures, trees, crops); out. and (iii) restoration of the temporarily used land within 1 month after closure of the by-pass route or removal of equipment and materials from contractor’s working space subject to the conditions agreed between the landowner and the civil works contractor. Partially Affected Owners of affected • Cash compensation at replacement Houses and Shops houses whether or cost for the affected portion of structure and secondary not land is owned equivalent to current market prices of (i) structures materials and labour , with no deduction for depreciation of the structure or for (Will not require salvageable materials (ii) materials relocation) transport, and (iii) cost of repair of the unaffected portion; Loss of business Owners of shops • Cash compensation equivalent to the The rates have been verified through income due to and stalls average daily profit multiplied by the interviews with informal shop owners to temporary number of days of business disruption get an estimate of daily net profit. relocation of shops (2 days). and stalls • First and last month of market fees waived during the temporary relocation period. • Guaranteed stall of similar size in the new market • Subsidy over 24 months to compensate for the increased stall rentals after the market is reconstructed: 1 st year subsidy of 100%, 2nd year subsidy of 50%. Loss of business Owners of shops • Cash compensation equivalent to the The rates have been verified through income during average daily profit multiplied by the interviews with informal shop owners to relocation or during number of days of business disruption get an estimate of daily net profit. dismantling/repair (4 days). of affected portion (without relocation) Transition Relocating • Relocating APs without any impact on subsistence households – business or source of incomes will be allowance relocating on provided with cash or in-kind residual land or to assistance equivalent to 16 kg of rice other sites at current market value for 3 months per household member Severely affected • Relocating APs with main source of APs losing 10% or income affected (i.e., from more of their businesses) or APs losing more than productive land 10% of their productive land will be provided with cash or in-kind assistance equivalent to 16 kg of rice at current market value for 6 months per household member . Transportation Relocating Provision of dump trucks to haul all APs may also opt for cash assistance.

Supplementary Appendix B2 325

Type of Losses Entitled Persons Entitlements Implementation Issues allowance households and old and new building materials and The amount (cost of labour and distance shops personal possessions. from relocation site) to be determined Provision of assistance (manpower) during implementation. to dismantle structures, if needed. Severe impacts on Severely affected • An additional allowance of 1 month The poorest will be those below the vulnerable APs vulnerable APs supply of rice per person in the national poverty line as defined in the (Relocating APs such as the household. poverty partnership agreement with ADB. and those losing poorest, or • First priority in allocation of new stall in 10% or more of households the reconstructed market. their productive headed by • The contractors will make all assets) women, the reasonable efforts to recruit severely elderly, or affected and vulnerable APs as disabled, and labourers civil works. indigenous peoples

How are the grievances of affected persons (or households) heard and resolved? An affected person (or household) may bring his/her complaint before any member of an established Village Resettlement Committee (VRC), either through the Village Chief, a project staff or directly to the VRC, in writing or verbally. The VRC will meet personally with the aggrieved person (or household) and will have 15 days to resolve the complaint. If the affected person (or household) is not satisfied with the action taken by VRC on his/her complaint, the aggrieved person (or household) may bring the case, either in writing or verbally, to any member of the District Resettlement Committee (DRC). The DRC has 15 days to resolve the case. If the affected person (or household) is not satisfied with the action taken by DRC on his/her complaint, the aggrieved person (or household) may bring the case, either in writing or verbally, to any member of the Provincial Resettlement Committee (PRC). The PRC has 15 days to resolve the case. If the affected person (or household) is not satisfied with the action taken by PPC on his/her complaint, the aggrieved person (or household) may bring the case to a court of law for adjudication. All legal and administrative costs incurred by an affected person/household and their representatives are to be covered by the Project.

What is the tentative schedule for implementing resettlement?

Tasks Schedule Establish PIUs Quarter 1, 2009 Undertake consultation and participation programs Quarter 3 2009 – Quarter 3 2012 Establish Compensation and Resettlement Committees at all Levels Quarter 1, 2009 Carry out joint verification of Assets and detailed measurement survey Quarter 3, 2009 Update compensation rates and apply Project entitlements Quarter 3, 2009 Update RP and obtain ADB concurrence Quarter 4, 2009 Present Compensation Payment to APs Quarter 4, 2009 Assist in developing new land for APs Quarter 1, 2010 Start of civil works Quarter 3, 2010 Internal and external monitoring Continuous

326 Supplementary Appendix B2

Provincial/District/Village ______

Asian Development Bank (Manila, Philippines) Social Sector Division, Southeast Asia Department, Tel. +63-2-632-4444

Asian Development Bank, Lao Resident Mission Corner of Lanexang Av. and Samsenthai Rd. P.O. Box 9724 Vientiane, Lao PDR, Tel: +856 21 250444