38193THE WORLD BANK IN ssue No. 1 (September - October 2006) www.worldbank.org/lao LAO PDR Sustain Growth Improve Social Outcomes Develop Capacity and Partnerships Support Nam Theun 2 Implementation September - October 2006 Issue No. 1 EFFORTS TO COMBAT AVIAN FLU BEGIN The Government of Lao PDR (GoL) received US$8 million in grants from the World Bank as part of the international support for the National Avian Influenza and Pandemic Preparedness Plan. The World Bank support comprises funds from the International Development Association (US$4 million), the Japan Policy and Human Development co-financing window (US$2 million), and the Avian and Human Influenza Facility (US$2 million)-a multi-donor trust fund administered by the World Bank and backed by eight donors including the European Commission. The Government of Lao PDR has prepared the National Plan in collaboration with development partners, and has been guided by global strategies put forward by the World Health Organization, the Ministers of the Lao Government, Heads of Food and Agriculture Organization, and the World Organization for International Agencies and Ambassadors Witnessed the Grant Signing Animal Health. The Plan includes activities with short and medium- term actions. The fund will support the government's strategies on avian influenza "The measures that Government of Lao PDR is which include planning an animal health system, disease putting in place will help not only to protect the surveillance, response measures during an outbreak, diagnostic lives and livelihoods of this nation's population procedures and curative services. The funds will be used to spread against Avian and Human Influenza but will also information about the disease to the public, improving their improve the country's resilience to similar threats awareness and preparedness, for programme coordination and to that may emerge in the future." Ian Porter, World improve the regulatory framework. In response to the first outbreak in Bank Country Director for South East Asia. 2004, the Government took measures to contain the outbreak including culling of poultry in the effected areas as well as raising the public's awareness on how to prevent and protect themselves from this deadly disease. Recently, Prime Minister Bouasone Bouphavanh, issued an order to ministers and head of organizations to strengthen their readiness be ready, and urged all agencies to cooperate and coordinate in controlling and preventing the disease. Global Sharing of Experiences Representatives from Government health organizations and media from countries that have been affected by outbreaks of bird flu were connected via a video conference on IN THIS ISSUE Tuesday, September 26, 2006. They discussed ideas about how to deal with the virus and their challenges and achievements. Dr. Anothay Kongsayasak, Director of Center for Highlight of the Month: Information and Education on Health, Ministry of Health, presented the Government's "Efforts to Combat 1 communication plan on avian flu as well as the establishment of the National Information, Avian Flu Begin" Education and Communication (IEC) Taskforce. The Taskforce has defined the roles and - Sustainable Mining: 2 responsibilities of each agency that will prevent and cope with the disease during an Assesses Options outbreak. The presentation also covered the progress made since the implementation of - Youth Forum Discussed 2 the first phase of the National Campaign on Avian and Human Influenza. The First Phase Educational Opportunities of the campaign focuses on prevention and protection, and is currently being conducted - Trade Reforms Taking 2 country-wide via media organizations, and includes workshops, games, dramas, TV spots, Shape leaflets and posters. The Second Phase of the campaign is currently being implemented. - Gender Equality 3 "Protect Yourself Posters" - Nam Theun 2 Hydro 3-4 Phase II of National Campaign's Main Focus Project Gains Momentum Scale-up IEC materials for the provinces; - Publications of the 4 Outreach through schools; Month More media activities; - Upcoming Events 4 Social mobilization through the mass organizations (Lao Women's Union); Use of drama and story telling to raise issues through different media including puppets, live theatre and radio. 1 Issue No. 1 (September - October 2006) www.worldbank.org/lao Sustainable Mining: Assessing Options The sustainability of the mining sector was the focus of discussions at the Stakeholder and Investor Consultation Workshop held in Vientiane on September 26-27, 2006, organized by the Department of Geology and Mines. The workshop focused on the final draft of the "Sector Plan for Sustainable Development of Mining in Lao PDR," which aims to improve the understanding of the current status of the Lao mining industry and to identify issues in order to formulate a sector plan for sustainable development. The study is being undertaken by consultants from Mitsui Mineral Development Engineering (MINDECO), funded by the Japan Trust Fund administered by the World Bank. Girls discussed their interest in preserving Lao culture through art, music and education The sector study forecasts that over the next 20 years, mining could produce total revenues of theme "Creating a Better Future for Us: Issues and about US$1-2 billon and employ about 15,000 Opportunities", young people created their own agenda workers. The study also highlights the potential of for the two-day forum including issues, concerns, interests the mining sector's contribution to economic and challenges for discussion as well as proposed growth, while underscoring the importance of solutions. As a result of this event, a booklet containing environmental and social safeguards. issues raised and discussed, and actions and solutions proposed will be developed to help shape participating agencies' activities, strategies and policies. Three priority Nearly 50 participants discussed prospects and challenges areas have been identified by this group of young people, for the mining sector, policy considerations, roles and namely access to education, vocational training, and the responsibilities of government institutions, assessment of desire for a mobile library. Follow-up actions are under geological data, and coordination among government, discussion with stakeholders. donors and the private sector, among other topics. Presentations were combined with discussion sessions Trade Reforms Taking Shape that gave participants an opportunity to make recommendations and work in coordination with other International agencies joined the Lao government in agencies. The final report is expected to be completed by highlighting the importance of exports as a key driver for the end of the year. economic growth and poverty reduction at the Validation Workshop held in Vientiane on September 12, 2006. The "The work that has been done is very important for us and purpose of the workshop was for the government and for other donors since it allows us to look at the status of development partners to review the Diagnostic Trade the mining sector, identify the needs, and where we can Integration Study and the `Action Matrix' and to mobilize come in. This is not a document that will stay on the shelf, resources for its implementation. it is the base of our roadmap for helping Lao PDR effectively explore and further expand its mining "The government has set a GDP growth target of 7.5 sector," said Craig Andrews, World Bank Lead Mining percent from 2006 to 2010 and export growth target of Specialist at the conclusion of the workshop. 18 percent per year is planned for labor intensive and higher value added products. The Government Youth Forum Discusses Educational considers the private sector as key driver in reaching Opportunities this target" Dr. Nam Viyaket, Industry and Commerce Minister. A two-day Open Space Forum was held in Vientiane on September 9-10, 2006. The Open Space was a joint The validation workshop is part of the Integrated initiative of the Ministry of Labor and Social Welfare and Framework for Trade related technical assistance - a multi- the World Bank with the support of UNICEF, Save the agency, multi-donor programme that assists the least Children Australia/UK, INGOs and local private sector. developed countries in expanding their participation in the Open Space, a forum where people self-manage their global economy, thus enhancing their economic growth agenda based on what they feel passionately about, and poverty reduction strategies. The aim of the provided a stage and a sense of freedom for over 160 framework is to mainstream trade policy into national disadvantaged youth from villages around Vientiane to development and poverty alleviation strategies to make discuss, share and talk about challenges and issues that are important to them and their future. Under the guiding sure that the lowering of barriers to international trade and investment plays an effective role in national development 2 Issue No. 1 (September - October 2006) www.worldbank.org/lao plans. It is expected that the framework will assist Lao "This Gender Profile is a significant document which will PDR in addressing the supply-side constraints and help policymakers, planners as well as technical experts ultimately mainstream the trade policy to national growth understand more clearly the gender situation. It is also an and poverty alleviation strategies in order to achieve the important source of information for implementing the government's goal to graduate from least developed Government's gender mainstreaming strategy into any country status by the year 2020. project, at any level, in Lao PDR," said Mme. Sisay Leudedmounsone, President of the Lao Women's "We hope that the Government will highlight trade in Union. the final version of its new National Socio-Economic Key findings: Development Plan (2006-10), and articulate public policies and investments to promote trade, growth, A large gap in the availability of gender information economy, and reduce poverty." Joint Donor presented a challenge in compiling a comprehensive Statement by Alistair Maclean, Australian profile Ambassador to the Lao PDR. High levels of maternal mortality and low levels of education among some groups of women. Gender Equality High illiteracy rates especially among ethnic minorities The Lao PDR Gender Profile has compiled information on the current status of women to support the government's Nam Theun 2 Hydro Project Gains gender mainstreaming strategy. Addressing gender issues Momentum to improve social outcomes is a top government priority and a key objective of the World Bank's Country The World Bank released on November 3 the latest semi- Assistance Strategy for Lao PDR. annual update on the implementation status of the Nam Theun 2 (NT2) Hydroelectic project in Lao PDR, prepared jointly with the Asian Development Bank (ADB). Nam Theun 2 is a US$1.45 billion, 1,070 megawatt hydropower project in Lao PDR that aims to generate revenues for poverty reduction efforts and environmental protection. The report, to the World Bank's and Asian Development Bank's Board of Directors, notes that construction is moving forward with improved alignment with environmental and social mitigation measures. However, the report also stresses the importance of continued focus on the implementation of local livelihood programs and continued monitoring of environmental impacts. The Update benefited from recent visits from a World Bank technical team, the Environmental and Social Panel of Experts and the Lender's Engineer. (L-R) Mme. Bundith Pathoumvanh, Vice-President of Lao Women's Union; Mr. Ian Porter, WB Country Director; Mme. Sisay Leudedmounsone, President of Lao Women's Union, Mr. Patchamuthu Illangovan, WB Lao PDR Country Manager The World Bank is committed to helping governments identify constraints and barriers to gender equality and assist in removing them. "Our support to the Lao Women's Union in the preparation of this Gender Profile which identifies the constraints, barriers, and specific issues, is a first step in fulfilling this commitment," said Ian Porter, World Bank Country Director for South East Asia. Further research and improving the knowledge of government officials for gender mainstreaming, targeted socio-economic development for the rural poor, promoting small and medium-sized enterprise, and addressing issues of gender-based violence and human trafficking were District Working Group reviewing compensation recommended. payments with villagers of Ban Lao 3 Issue No. 1 (September - October 2006) www.worldbank.org/lao "We are very engaged in this supervision process," said World Bank Country Manager for Lao PDR, Patchamuthu Illangovan. "We are working closely with the Government of Lao PDR, the Nam Theun 2 Power Company (NTPC), the Asian Development Bank and other financing institutions, to ensure that this project meets its development objectives of social and environmental protection, as well as generating revenues to achieve poverty reduction in the country." In the Nakai Plateau, the area where the reservoir is being formed, nearly 600 households from eight villages have moved into their resettlement sites. Among other things, the resettled villagers have been provided with pumped water supplies, schools, health programs and rice and protein supplements, and are taking part in the construction of their new houses while participating in livelihood restoration programs. The livelihood programs are designed to advance activities in areas such as forestry, fishery, livestock, non-farm employment, education and health, thereby raising the income of villagers living in the project area. The report urges closer monitoring of these programs in order to address issues early on and to quickly resolve any grievances. Main Highlight of the Update: Lao PDR has maintained relatively stable macroeconomic conditions with growth expected to reach 7.5 percent in 2006 Public Expenditure Management Strengthening Program is progressing well. Physical implementation of the project is on track and construction is better synchronized, with environment and social mitigation measures. The Nakai resettlement has gained momentum and nearly 600 households have moved into their new sites. The livelihood program development is beginning to show progress but requires close monitoring. Pilot programs in 21 downstream villages are being implemented. In response to compensation issues that have been raised in villages in the Project Lands, NTPC and the Government are reviewing the payments. The International Advisory Group has been strengthened and cooperation among international financial institutions has been described as `exemplary'. Capacity development is viewed as a priority and NTPC has mobilized additional expertise in rural and social development and environmental protection. The Government's Watershed Protection Management Authority (WMPA) is performing well, and its continued efforts to strengthen capacity are recognized by all. Options for additional biomass clearance in the future reservoir are being reviewed as a priority. Salvage logging has begun. For more information including Frequently Asked Questions, visit www.worldbank.org/laont2 UPCOMING EVENTS Events Venue/Province Date Sustainable Forestry for Rural Development Project (SUFORD): Supervision Mission Vientiane/Field Visits Oct. 23-Nov. 12 Poverty Reduction Fund: Supervision Mission Vientiane/Field Visits Nov. 1-7 Provincial Workshops on Economic Analysis of Projects Conducted by National Houaphan, Xieng Khuang Nov 13-17 Economics Research Institute (NERI) Attapeu, Xekong Nov. 20-24 Land Titling Project: Supervision Mission Vientiane/Field Visits Nov. 15-22 Financial Management Training Simplified Disbursement and Agreements Lao Plaza Hotel Nov 16-17 Poverty Reduction Support Operation 3 (PRSO 3): Preparation Mission Vientiane/Field Visits Nov. 15-18 Nam Theun 2: International Financial Institutions Review Mission Khammouane Nov. 20-25 9th Round Table Meeting Don Chan Palace Nov. 28-29 PUBLICATIONS OF THE MONTH Lao PDR Gender Profile Executive Summary Full Report World Development Report 2007 "Development and the New Generation" Website Report Overview Full Report For more information about the World Bank Monthly Newsletter Doing Business "How to Reform" Website Report Overview please contact: Governance Indicators 2006 Website Ms. Viengsamay Srithirath Communication Assistant Semi-Annual Update on Nam Theun 2 ­ available from November 8, 2006 at www.worldbank.org/laont2 Email: vsrithirath@worldbank.org 4 The World Bank Office Lao PDR: Patou Xay Nehru Road, P.O. Box 345, Vientiane, Tel: (856-21) 414 209, 450 010; Fax: (856-21) 414 210; Website: www.worldbank.org/lao