TABLE OF CONTENTS TABLE OF TABLES ..................................................................................................................................... 3 TABLE OF FIGURES ................................................................................................................................... 3 LIST OF ACRONYMS .................................................................................................................................. 4 EXECUTIVE SUMMARY ............................................................................................................................ 5 1 BACKGROUND ................................................................................................................................. 12 1.1 POVERTY SITUATION IN LAO PDR .............................................................................................. 12 1.1.1 From a Quantitative Perspective ....................................................................................... 12 1.1.2 Trends in Poverty Reduction.............................................................................................. 12 1.1.3 Inequality and Economic Growth ...................................................................................... 13 1.1.4 From a Qualitative Perspective ......................................................................................... 14 1.2 NATIONAL POVERTY ERADICATION PROGRAMME........................................................................ 15 2 OVERVIEW OF THE POVERTY REDUCTION FUND............................................................... 18 2.1 BRIEF INTRODUCTION OF THE POVERTY REDUCTION FUND ......................................................... 18 2.2 BASIC FACT SHEET ON PRF .......................................................................................................... 18 2.3 OBJECTIVES OF PRF ..................................................................................................................... 19 2.4 KEY PRINCIPLES ........................................................................................................................... 19 2.5 MENU OF ELIGIBLE ACTIVITIES AND “NEGATIVE” LIST ................................................................. 21 2.6 PROJECT ORGANIZATION AND STRUCTURE .................................................................................. 22 2.7 OVERVIEW OF THE AUTONOMOUS FUND MANAGEMENT ............................................................. 23 2.8 TARGETING AND PHASING............................................................................................................ 24 2.9 PROJECT CYCLE, PROCEDURES AND PROJECT MENU ................................................................... 27 2.10 MIS, MONITORING, EVALUATION, SUPERVISION, REPORTING ..................................................... 30 2.11 FUND FLOWS, DISBURSEMENTS AND ACCOUNTING ..................................................................... 31 3 METHODOLOGY AND APPROACH............................................................................................. 33 3.1 PRF STANDARD CYCLE OF ACTIVITIES ......................................................................................... 33 3.2 PARTICIPATORY PLANNING........................................................................................................... 34 3.2.1 Background ........................................................................................................................ 34 3.2.2 Village Need and Priority assessment (VNPA) .................................................................. 34 3.3 SUB-DISTRICT GROUPING OF VILLAGE CLUSTERS: THE REVISITED KHET ...................................... 38 3.4 SUB-PROJECT PROPOSAL QUALITY CHECK LIST............................................................................. 40 3.5 SOCIALIZATION ............................................................................................................................ 41 3.6 RESOURCE ALLOCATION .............................................................................................................. 42 3.7 TECHNICAL / ENGINEERING ASPECTS AND UNIT COST DATABASE ................................................. 45 3.8 TRAINING ..................................................................................................................................... 47 3.9 MONITORING AND EVALUATION – MIS ........................................................................................ 48 3.9.1 Forms and Database Development.................................................................................... 49 3.9.2 Sub-project categories and codes....................................................................................... 51 3.10 COMPLAINT PREVENTION AND RESOLUTION ................................................................................. 52 3.11 PROCUREMENT ............................................................................................................................. 52 4 ACHIEVEMENTS AND SHORTCOMINGS .................................................................................. 53 4.1 CALENDAR OF MAIN ACTIVITIES................................................................................................... 53 4.2 SOCIALIZATION AND VILLAGE NEED ASSESSMENTS ...................................................................... 55 4.3 SUB-PROJECT PRIORITIZATION AND APPRAISAL ............................................................................ 59 4.4 IMPLEMENTATION OF SUB-PROJECTS ............................................................................................ 64 4.5 TRAINING FOR STAFF AND KHET VOLUNTEERS............................................................................ 65 4.5.1 Sub-Project Proposal Formulation and Implementation ................................................... 65 4.5.2 Survey, Design, Costing and Construction Management................................................... 66 4.5.3 Basic Management............................................................................................................. 66 4.5.4 Financial Management and Disbursement at the Community Level and Community procurement ....................................................................................................................... 66 4.5.5 M&E................................................................................................................................... 67 Poverty Reduction Fund, Annual Report 2003 4.5.6 PRF Unit Cost Database (UCD)........................................................................................ 67 4.6 PRF EQUIPMENT & OFFICES ......................................................................................................... 69 4.7 MANUALS AND HANDBOOKS ........................................................................................................ 71 4.8 DEVELOPMENT AND USE OF IEC MATERIAL ................................................................................. 72 4.8.1 Songs.................................................................................................................................. 73 4.8.2 Flipchart............................................................................................................................. 73 4.8.3 Posters – Brochures - Handouts ........................................................................................ 74 4.8.4 Information Board.............................................................................................................. 74 4.8.5 Newsletter........................................................................................................................... 75 4.8.6 Website............................................................................................................................... 75 4.8.7 Radio Broadcast.................................................................................................................76 4.9 MENU OF OPTIONS – NEGATIVE LIST............................................................................................. 77 4.10 VILLAGE - KHET LEVELS RELATIONS ............................................................................................ 79 4.11 UNEXPLODED ORDNANCES (UXO) .............................................................................................. 80 4.11.1 UXO Clearance.................................................................................................................. 80 4.11.2 Cooperation with UXO LAO.............................................................................................. 81 4.12 STAFFING (PERFORMANCE ASSESSMENT) ..................................................................................... 82 4.13 BASELINE SURVEY ....................................................................................................................... 85 4.13.1 Background ........................................................................................................................ 85 4.13.2 Data collection................................................................................................................... 88 4.14 STUDY ON SOCIAL ORGANIZATIONS IN THE LAO PRF.................................................................. 88 4.15 WORLD BANK MISSIONS............................................................................................................... 89 4.16 WORK