Lao PDR: Connecting Remote Communities to Basic Services

Published: Fri, 18 Sep 2009 20:46:27 GMT

People living in two of Lao PDR’s poorest and remotest provinces—Oudomxay and Phongsaly in the North—were frequently unable to travel to their provincial capitals during the rainy season. Large townships lacked even basic water and sanitation facilities.


Working closely with local authorities and communities, IDA supported the design of well-focused rural development interventions tailored to the needs and circumstances of each province.

The Provincial Infrastructure Project set out to provide year-round access to the provincial capitals and several districts, improve town and rural water and sanitation systems, and strengthen provincial administrative capacity to rehabilitate critical infrastructure. A multisectoral approach was encouraged for improving transport and water supply in the two provinces while building administrative and technical capacity consistent with the national strategy for decentralization of planning and administrative responsibility to sector-based provincial units.


Feeders to major roads linking the provincial capitals to the national network were upgraded to all-weather status, improving access and cutting travel times for local people and commercial traffic, while new infrastructure improved access to potable water in the city and countryside alike and public information outreach raised awareness of the importance to health of good hygiene. Local participants have developed key skills needed to carry out and manage infrastructure improvements.

Highlights:
- By the end of 2007, approximately 317 kilometers of provincial roads were rehabilitated along two stretches of national road, bringing major benefits to local residents as well as to travelers and merchants.

- The trip from Muang Xay to Muang Pakbengk now takes 2.5 hours to complete instead of 10.

- A cable ferry across the Ou River in 2005 improved road linkage between Phongsaly Province and neighboring Vietnam, more than doubling the annual traffic to 5,475 vehicles during the first year of operation.

- The Boun Neua airstrip in Phongsaly Province was restored with a new runway in 2002, giving small planes and helicopters access to the area in the event of an emergency.

- Muang Xay Urban Water Supply (Nampapa) was outfitted with new infrastructure—including a treatment plant with increased capacity, a river intake to boost pumping volumes, and a clean storage reservoir with a bulk flow meter— to bring water that meets World Health Organization standards to 19,330 people and a hospital in the township.

- Muang Khoua Nampapa is receiving water that meets World Health Organization standards through a new treatment plant and reservoir and an improved pipeline network that serves 2,376 residents.

- Rural water supply schemes are servicing more than 71,000 people in 193 villages in both provinces, while educational outreach and small investments are improving sanitation.

- Overall health behaviors have improved (for example survey interviews report more than 60 percent of respondents in Oudomxay and 54 percent in Phongsaly now practice safe hand washing).

- A total of 143 training courses in a range of subjects—from road design to procurement and bid preparation, to contract supervision and quality control, to English language skills—were provided to 1,930 participants, including 78 who received bachelor’s degrees and three who received master’s degrees in either commerce, engineering, or English. Such skills have allowed provincial agencies to take a more active role. For instance, the staff of the Phongsaly Planning Department now prepares quarterly financial management reports and audits project accounts.


-IDA financed US$27.94 million of the US$30.18 million total project cost.
- A 2004 Public-Private Infrastructure Advisory Facility (PPIAF) grant of US$430,000 supported an assessment by the Ministry of Public Works and Transport (MPWT) of diverse management models in the region.
- A US$35,000 grant in 2006 from the Output-Based Aid Facility supported the drafting of model management contracts pegged to performance standards and implementation of transparent bidding processes, facilitating efforts by 21 small towns to obtain piped water for the first time. The Bank is also undertaking a more comprehensive sectoral study, coordinated with the IFC and WSP, to help shape a future national water supply and sanitation strategy while continuing to support provincial integration of rural and urban programs.
- As part of its National Transport Strategy, the Ministry of Public Works and Transport has prepared a National Rural Transport Policy to provide a framework for maintaining provincial, district and rural roads through a fund replenished by road user fees, which grew out of a two-phased Road Maintenance Program supported by IDA.


To meet critical infrastructure challenges at the provincial and rural levels, subnational support is needed for decentralization to work effectively. A strategic framework for water and sanitation improvements and provincial development plans are still missing. Vast areas of the country, including poor provinces such as Hoaphan and Sekong, are still not covered by the Bank or any other donor. The central and provincial governments confront a difficult challenge in financing and implementing road maintenance in the medium term. The Road Maintenance Fund into which road user fees flow is in place to help bridge the gap, but implementation and management capacity still needs to be developed. Resources are also needed to expand quality basic services through community-based participatory planning and management to ensure greater access by the poor and vulnerable.


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