Lao PDR: National Road 13 Improvement and Maintenance Project (AIIB-000066)

Countries
  • Laos
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 1, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Lao PDR
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 128.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Campaign Documents
Other Related Projects
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 10, 2023

Disclosed by Bank Dec 30, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Asian Infrastructure Investment Bank
Pajnapa Peamsilpakulchorn
Project Team Leader / Infrastructure Sector Economist
Tel: +86 10 8358 0381
E-Mail: pajnapa.peam@aiib.org

World Bank
Sombath Southivong
Task Team Leader /Senior Infrastructure Specialist 4
Tel: +856 21 266 228
E-Mail: ssouthivong@worldbank.org

Borrower
Angkhansada Mouangkham
Deputy Director General, External Finance Department, Ministry of Finance
Tel: +865 21 412 142
E-Mail: angkhansada@yahoo.com

Implementing Agency (MPWT)
Pheng Douangngeun
Director General, Department of Road, Ministry of Public Works and Transport
Tel: +865 2055779188
E-Mail: pheng_dng@yahoo.com

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html.

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html.




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