The World Bank Report No: ISR3517 Implementation Status & Results Lao People's Democratic Republic Public Disclosure Copy Lao Environment and Social Project (P090693) Operation Name: Lao Environment and Social Project (P090693) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Last Modified Date: 18-Jul-2011 Country: Lao People's Democratic Republic Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 30-Jun-2005 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date 25-Oct-2011 Last Archived ISR Date 18-May-2011 Effectiveness Date 14-Apr-2006 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the management of environmental and social issues associated with the sustainable use of natural resources in Lao PDR. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Policy Implementation 1.60 Community and Biodiversity 1.46 Management and Monitoring Support 0.94 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Project implementation progress remains behind schedule, but the PDO is relevant and achievable. Nineteen subgrants (valued at $2.5 million) have been signed which will help strengthen the capacity of key agencies and other stakeholders to better manage environmental and social issues associated with the sustainable use of natural resources. Subgrants are focusing on three key areas: environmental and social management policy implementation support; management of Protected Areas; and capacity building of the Environmental Protection Fund (EPF). For policy implementation support, eleven sub-grants are supporting the development and implementation of several decrees to enhance effectiveness of natural resources and environmental management in Lao PDR. High priority is given to the implementation of decrees on Environmental Impact Assessment, Resettlement and Compensation, and River Basin Organization. Other sub-grants are supporting capacity building for the Water Resources and Environmental Administration Page 1 of 6 The World Bank Report No: ISR3517 (WREA), and implementation of the provincial environment strategy action plan in the provinces ofBolikhamxay, Khammouane, and Savannakhet. The sub-grants also support provincial authorities and local communities in managing National and Provincial Protected Areas and will support livelihood development for conservation through the establishment Public Disclosure Copy of a community conservation network at village level. Finally, the subgrants are also strengthening capacity of the Environment Protection Fund (EPF) in portfolio management, fiduciary monitoring, planning and fund mobilizing, and are providing technical advice. The project is also supporting the implementation of the National Policy on Environment and Social Sustainability in Hydropower Sector (NPSH), but the follow-up activities will be implemented under a separate Bank project. Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in the % of environment compliance Percentage Value 0.00 0.00 certificates (ECCs) issued by WREA that are of adequate quality as judged by a third party Date 30-Apr-2011 30-Jun-2013 annually starting June 2010 as a baseline and Comments SESO was finalized and The measurement should be agree on the % incr being translated into Lao made based on inclusion of language the Standard Environment and Social Obligation (SESO) form into the CA by 60%for hydropower and mining projects. Increase in the % of complaints resolved in Percentage Value 0.00 Bolikhamxay and Khammouane Provinces. First measurement of this indicator will be Date 30-Apr-2011 30-Jun-2013 conducted by December 2010 to serve as a Comments % of complains has been 50% of the complaints will be new baseline. The target is by agreed. Grievance solved using the grievance mechanism has been mechanism developed and training provided to staff. Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target By December 31, 2010, database for tracking Number Value type and number of development projects in the Selected Provinces is established. Date 18-Dec-2009 30-Apr-2011 31-Dec-2010 Comments No database Training and capacity building The databases are available is underway, the database is at the target provinces being updated Page 2 of 6 The World Bank Report No: ISR3517 By December 31, 2012, a unit responsible for Number Value 0.00 monitoring social impacts and a functional Public Disclosure Copy complaint handling mechanism are established Date 30-Jun-2010 30-Apr-2011 31-Dec-2012 in Bolikhamxay and Khammouane Provinces. Comments No unit or complaint handling SMUs were unofficially Unit and complaint handling mechanism exists. established in Khammouane mechanism have been and Bolikhamxay provinces. established in both provinces Comment Capacity building for SMUs is underway Baseline Value Committee not established By June 30, 2010, the River Basin Committee Number Value 100.00 for NT-NKD is established. Date 11-Oct-2010 30-Apr-2011 30-Jun-2010 Comments Committee not established NT-NKD RBC in operations By December 31, 2012, an implementation Number Value model for a river basin organization in Lao PDR is developed. Date 11-Oct-2010 30-Apr-2011 31-Dec-2012 Comments No model available Underway Model for river basin organization developed. By December 31, 2010, WREA has prepared Number Value guidelines for incorporating ECC measures in Concession Agreement for hydropower Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 projects signed by the Recipient after the Comments No guideline Draft standard environment enactment of the Environment and Soc and social obligations (SESO) form for large hydropower projects completed and being applied; translation and consultation is By December 31, 2012, social safeguard Number Value 100.00 training program is developed for agencies and Public Disclosure Copy provinces participating in the Project and Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 atleast sixty (60) trainees are trained (ten (10) Comments No program exists; no Done. Training and capacity Training program developed; from DESIA, five (5) trainees trained building are underway; 60 trainees trained in information is being collected accordance with program developed. By December 31, 2012 national guideline for Number Value Ethnic Groups# consultation has been completed and the relevant agencies# staff Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 have been trained on how to conduct such Comments No guidelines; no staff trained Underway. Guidelines complete; staff consultation. trained Page 3 of 6 The World Bank Report No: ISR3517 Indicator Name Core Unit of Measure Baseline Current End Target By December 31, 2010, site plans for six (6) Number Value Public Disclosure Copy protected areas are available and the site plans have identified priority actions. Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 Comments No site plans Done. All six site plans Site plans for 6 PAs available completed. with priority actions being implemented. By December 31, 2012, at least sixty percent Percentage Value 20.00 60.00 (60%) of the priority activities identified are being implemented in the six (6) protected Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 areas. Comments No site plans $81,000 has been committed to the six PPAs for the implementation of their priority activities. By December 31, 2012, at least ten (10) Number Value 100.00 10.00 conservation communities are established in NT-NKD Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 Comments No Community Conservation 12 Community Conservation Unit Network established. EPF and WREA have received part of the NT2 Amount(USD) Value 0.00 0.00 revenue for financing their respective priority development projects by December 31, 2010. Date 18-Dec-2009 30-Apr-2011 30-Jun-2013 Comments None received Eligible for government funding mechanism for receiving NT2 revenue available. Eighty percent (80%) of Sub-projects financed Percentage Value 86.00 80.00 by the Original Grant have been completed satisfactorily by December 31, 2010. Date 04-May-2010 30-Apr-2011 31-Dec-2010 Comments N/A Indicator slightly exceeded Public Disclosure Copy By December 31, 2012, EPF#s annual Percentage Value 33.00 13.00 15.00 administrative cost which is about thirty three percent (33%) of a Sub-grant amount has been Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 reduced to no more than fifteen percent (15%) Comments of an Additional Grant. Eighty percent (80%) of Sub-projects financed Percentage Value 0.00 80.00 by the Additional Grant have been completed satisfactorily by December 31, 2012. Date 18-Dec-2009 30-Apr-2011 31-Dec-2012 Comments Underway. All 19 subgrants signed. Implementation is ongoing. Page 4 of 6 The World Bank Report No: ISR3517 Data on Financial Performance (as of 05-Jul-2011) Financial Agreement(s) Key Dates Public Disclosure Copy Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P090693 IDA-H1770 Effective 30-Jun-2005 15-Aug-2005 14-Apr-2006 30-Jun-2013 P090693 IDA-H5400 Effective 12-Jan-2010 08-Feb-2010 21-Apr-2010 30-Jun-2013 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090693 IDA-H1770 Effective XDR 2.70 2.70 0.00 2.70 0.00 100.00 P090693 IDA-H5400 Effective XDR 1.90 1.90 0.00 0.51 1.39 27.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The client should focus on capacity development at the local level to monitor compliance with Environmental Compliance Certificates to ensure that environmental and social management issues are well addressed at all infrastructure development activities, particularly along the hydro and mining projects. The EPF has developed a 5-year strategy plan but its approval is still being discussed by its Board of Directors. The EPF will need adequate budgetary support to carry out its mandate. Restructuring History Level one Approved on 12-Jan-2010 Page 5 of 6 The World Bank Report No: ISR3517 Related Projects P116734-Lao Environment and Social Project - Additional Financing Public Disclosure Copy Public Disclosure Copy Page 6 of 6