The World Bank                                                      Implementation Status & Results Report
                Lao Airlines Sustainable Development Project (P181359)



Lao Airlines Sustainable Development Project (P181359)

EAST ASIA AND PACIFIC | Lao People's Democratic Republic | IBRD/IDA | Investment Project Financing (IPF) | FY 2024 | Seq
No: 1 | Archived on 04-Oct-2024 | ISR00528

Implementing Agencies: Ministry of Public Works and Transport



1. OBJECTIVE


 1.1 Development Objective
   Original Development Objective (Approved as part of Approval package on 02-Jan-2024)
   To reduce Lao Airlines business losses, enhance corporate financial reporting, and strengthen operational management.
   Has the Development Objective been changed since Board Approval of the Project Objective?

   No


2. OVERALL RATINGS

 Name                                                                     Current

 Progress towards achievement of PDO                                      Satisfactory

 Overall Implementation Progress (IP)                                     Moderately Satisfactory

 Overall Risk Rating                                                      Moderate




3. KEY ISSUES & STATUS


 3.1 Implementation Status and Key Decisions
   The grant letter agreement was signed in April 2024. Lao Airlines is proceeding with modernization of the passenger
   service system as a corporate priority. Expertise for planned technical assistance are under various stages of
   procurement.



4. SYSTEMATIC OPERATIONS RISK-RATING TOOL




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               The World Bank                                                       Implementation Status & Results Report
               Lao Airlines Sustainable Development Project (P181359)



                                                               Rating at Approval
Risk Category                                                  Approval Package - 03 Jan    Proposed Rating
                                                               2024

Overall                                                        Moderate                    Moderate




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                 The World Bank                                                                                             Implementation Status & Results Report
                 Lao Airlines Sustainable Development Project (P181359)



     5. RESULTS


      5.1 PDO Indicators



                                                   Baseline                    Actual (Previous)             Actual (Current)                Closing Period
               Indicator Name
                                             Value        Month/Year       Value              Date         Value            Date          Value        Month/Year
                                      -1,000,000.00      Dec/2023      2,680,000         06-Aug-2024 2,680,000         06-Aug-2024 0.00                Sep/2025
     Annual Airline business losses
                                       Comments on                      Financial results have not been converted to IFRS
     (Amount(USD))
                                       achieving targets
                                      0.00               Dec/2023      39.00             31-Mar-2024 39.00             31-Mar-2024 20.00               Sep/2025
     Asset utilization ratio
                                       Comments on                      FY24Q1 results
     (Percentage)
                                       achieving targets
     Digital systems                  Legacy PSS in      Dec/2023      Legacy PSS in     06-Aug-2024 Legacy PSS in     06-Aug-2024 Upgraded PSS        Dec/2024
     mainstreamed into                use                              use                           use                           operational
     operational and financial
     management processes
     (Text)



      5.2 Intermediate Results Indicators



                                                   Baseline                    Actual (Previous)             Actual (Current)                Closing Period
               Indicator Name
                                             Value        Month/Year       Value              Date         Value            Date          Value        Month/Year




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                   The World Bank                                                                                  Implementation Status & Results Report
                   Lao Airlines Sustainable Development Project (P181359)



     Medium-Term Debt                   No                Nov/2023     No                  06-Aug-2024 No      06-Aug-2024 Yes                Jun/2025
     Management Plan prepared
     (Yes/No)
          Business Cost -               14.30             Nov/2023     6.99                31-Mar-2024 6.99    31-Mar-2024 10.00              Jun/2025
          Administrative costs           Comments on                       FY24Q1 result
          per passenger                  achieving targets
          (Amount(USD))
          Sales and Revenue             0.09              Nov/2023     0.07                31-Mar-2024 0.07    31-Mar-2024 0.08               Jun/2025
          Management - cost              Comments on                       FY24Q1 result
          peer available seat            achieving targets
          kilometer
          (Amount(USD))
                                        63.00             Nov/2023     79.00               31-Mar-2024 79.00   31-Mar-2024 70.00              Jun/2025
               Aircraft load factors
                                         Comments on                       FY24Q1 result
               (Percentage)
                                         achieving targets
     SOE governance and                 No                Nov/2023     No                  06-Aug-2024 No      06-Aug-2024 Yes                Jun/2025
     enhanced capacity in
     financial reporting (Yes/No)
     Staff training on Sales            0.00              Nov/2023     0                   06-Aug-2024 0       06-Aug-2024 100.00             Mar/2025
     Strategy and new passenger
     service system (Number)
            Women trained on            0.00              Nov/2023     0                   06-Aug-2024 0       06-Aug-2024 30.00              Mar/2025
            sales strategy and PSS
            (Number)




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               The World Bank                                                                Implementation Status & Results Report
               Lao Airlines Sustainable Development Project (P181359)



  6. DISBURSEMENTS


   6.1 Cumulative Disbursements




   6.2 Disbursements (by loan)


  Loan/Credit/TF      Status        Original   Revised     Cancelled     Disbursed Undisbursed           % Disbursed      Historical
                                                                                                                          Disbursed

  TF-C3665            Effective        1.75         1.75         0.00        0.00            1.75                   0%          1.75



   6.3 Key Dates (by loan)


  Loan/Credit/TF        Status          Approval           Signing           Effectiveness          Orig. Closing    Rev. Closing

  TF-C3665              Effective     22-Apr-2024          22-Apr-2024       22-Apr-2024            30-Sep-2025      30-Sep-2025




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               The World Bank                                           Implementation Status & Results Report
               Lao Airlines Sustainable Development Project (P181359)




  7. RESTRUCTURING HISTORY




  8. ASSOCIATED OPERATION(S)

   There are no associated operations




Oct 04, 2024                                                                                          Page 6 of 6