DATA SHEET
LAO PEOPLE'S DEMOCRATIC REPUBLIC
Lao Road Sector Project (P102398)
Transport and ICT Global Practice
East Asia and Pacific Region
.
Report No:
91240 v2
.
Basic Information
Project ID:
P102398
Lending Instrument:
Specific Investment Loan
Regional Vice President: Axel van Trotsenburg
Original EA Category: Partial Assessment (B)
Country Director:
Current EA Category:
Partial Assessment (B)
Global Practice Director: Jose Luis Irigoyen
Original Approval
Date:
26-Jul-2012
Practice
Manager/Manager:
Michel Kerf
Current Closing Date:
30-Sep-2017
Team Leader:
Sombath Southivong
Ulrich Zachau
.
Borrower:
Government of Laos
Responsible
Agency:
Ministry of Public Works and Transport
.
Restructuring Type
Form Type:
Restructuring
Level:
Short Form
Decision
Authority:
Country Director Approval
Level 2
.
Financing ( as of 03-October-2014 )
Key Dates
Project
Ln/Cr/TF Status
P102978
IDAH7890
Approval
Date
Signing
Date
Effectiveness Original
Revised
Date
Closing Date Closing Date
Effective 26-Jul-2012 8-Aug-2012 23-Aug-2012 31-Dec-2018 31-Dec-2018
Disbursements (in Millions)
Project
Ln/Cr/TF Status
P102978
IDAH7890
Currency Original Revised Cancelled Disbursed Undisbursed
Effective USD
21
21
0.00
12.939
%
Disbursed
8.166
61
.
Policy Waivers
Does the project depart from the CAS in content or in other significant
respects?
Yes [ ]
No [ X ]
Does the project require any policy waiver(s)?
Yes [ ]
No [ X ]
A. Summary of Proposed Changes
The project restructuring aims to reallocate SDR 1.17 million (or US$ 1.8 million equivalent) from the
disaster contingency fund (Category 3) to finance cost overruns for upgrading National Road 6A (NR6A)
and the financing gap for the repair of sections of National Road 1B (NR1B) damaged due to flash flood
during last rainy season. The reallocation table can be seen in the Restructuring Paper and in the draft
notification letter to the Minister of Finance.
B. Project Status
Progress towards achievement of the Project Development Objective (PDO) is on track and rated
satisfactory. Upgrading of two main national corridors (National Roads 1B and 6A) is practically
completed and travel times have been reduced by 50% and 40%, respectively. A total of 1,448 Km of
provincial roads has been maintained (20% of the total provincial road network) and institutional
strengthening activities and training on safeguards, technical, procurement and financial management are
progressing as planned. However, the progress made so far is at risk due to: (i) cost overruns in the
improvement of NR6A caused by contractual price adjustments and additional quantity of road work; and
(ii) localized damage on NR1B resulting from unexpected severe rains, flash floods and landslides in
2013. Overloaded vehicles have compounded the damage. MPWT has instructed Phongsaly province to
reinstate axle load control on NR1B to avoid further deterioration and has mobilized a contractor to carry
out routine maintenance for the completed road sections using budget from government Road
Maintenance Fund.
C. Proposed Changes
Reallocations
Explanation: The proposed reallocation is necessary to (i) cover cost overruns incurred during the
upgrading of NR6A in the amount of USD 376,900; and (ii) cover the costs of repairing sections of NR1B
damaged by unexpected severe rains and landslides in the amount of USD 1.4 million. The road sections
remain economically viable in spite of the additional cost. The reallocation will not affect the project
result framework and will not require any change in safeguards instruments applied under LRSP. The
changes will ensure the successful and timely completion of the project, and the achievement of the PDO,
which remains highly relevant.
Loan No. Currency Current Category of
Allocation
Expenditure
Current
Proposed
IDAXDR
(1) Works
H7890
(a) under Part 1(a) except for Part
6,800,000
7,970,000
1(a)(i) of the Project
(b) under Part 1(b) except for Part
1(b)(ii) of the Project
2,000,000
2,000,000
180,000
70,000
(2) Consultants’ services, goods and
Incremental Operating Costs, for Part
1, Parts 2 (a)(ii), 2(b) and 2(c) and Part
3(a) of the Project
-
-
XDR
(3) Eligible Goods and Works,
Consultants’ services, and Incremental
Operating Costs under Part 3(b) of the
Project
1,060,000
0
XDR
(4) Consultants’ services, goods
Incremental Operating Costs, and
Training and Workshop for Part 1,
Part 2 and Part 3(a) of the Project
3,960,000
3,960,000
XDR
Total:
(c) under Part 3(a) of the Project
14,000,000