According to the AIIB website, the objective of the project is "to improve road conditions, road safety and the climate resilience of National Road 13. The road design will also be strengthened to meet ASEAN standards." The National Road 13 (NR13) North-South corridor (1,500 km) links the northernmost province of Luang Namtha (bordering China) through the capital city of Vientiane and all the way to the southernmost province of Champasak (bordering Cambodia).
The Project consists of the following components:
Component 1: Road Improvement and Maintenance. This component will finance road improvement, maintenance and land acquisition required for road works, including: (i) upgradation of 18 km of road section from Sikeut to Songpeuay Market (km 12 to km 31) from 2 to 4-lane road; (ii) improvement of 38 km of road section from Songpeuay Market to Phonhong (km 31 to km 70) along the existing 2-lane road; and (iii) land acquisition required for road works.
Component 2: Supervision and Capacity Building. This component will support supervision of road improvement during construction and post-construction period, environment and social monitoring, capacity building on OPBRC, traffic safety enhancement and preparation for future investments on other sections of NR13.
Component 3: Project Management. This component will support project management, including project management consultancy, monitoring and evaluation, financial audits, training, vehicle and
office equipment and incremental operating costs.
The project will be co-financed with the World Bank and will apply the World Bank's Environmental and Social Safeguard Policies. According to the AIIB's Project Summary Information, this project will trigger the World Bank's Safeguard Policies that are triggered under the proposed Project are Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Physical Cultural Resources (OP/BP 4.11) and OP4.12 Involuntary Resettlement.
The main social issues identified by initial bank documents are:
"The Project will result in land acquisition, disruption of agricultural and lvelihood activities, and relocation of residential and commercial structures, primarily due to the upgrade from 2 to 4-lanes. The Project’s main social issues relate to the impacts of land acquisition, disruption during construction (restrictions on access to properties/schools and other buildings along the alignment, interruptions to water and power supply) as well as the potential influx of workers. The ethnic groups who live in villages along the route, may be disproportionately impacted."
The Project implementation period (Start Date - End Date) will be August 2018 – May 2023.
The estimated date of board consideration is in September 2018.
AIIB loan: $40 million USD
World Bank IDA credit: $40 million USD
Nordic Development Fund: $9 million USD
Government of Lao PDR: $38.5 million USD
Asian Infrastructure Investment Bank
Project Team Leader / Infrastructure Sector Economist
Tel: +86 10 8358 0381
Task Team Leader /Senior Infrastructure Specialist 4
Tel: +856 21 266 228
Deputy Director General, External Finance Department, Ministry of Finance
Tel: +865 21 412 142
Implementing Agency (MPWT)
Director General, Department of Road, Ministry of Public Works and Transport
Tel: +865 2055779188
ACCOUNTABILITY MECHANISM OF AIIB
In addition, the AIIB has a Project-affected People’s Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, the exact scope and function of its Project-affected People’s Mechanism are yet to be finalized.