Lao PDR Southeast Asia Disaster Risk Project: Project Stage: Implementation Management Team Leader(s): Brecht, Henrike; Mahul, Olivier; Stanton-Geddes, Zuzana Country: Lao PDR Key Project Data IDA Credit Project Number P160930 6120-LA Closing Date Oct 31, 2022 Number Counterpart Total Total Financing $31 million 0 $1.25 million Financing Disbursements Board Approval Date of Last April 2 – Mission Start Jul 6, 2017 January 21, 2019 Date Mission August 29, 2018 Date Effectiveness Last Site January 8-9, Mission End Oct 11, 2017 January 25, 2019 Date Visit Date 2019 Date . I. Introduction and Mission Objectives 1. The World Bank conducted an implementation support mission for the Lao PDR Southeast Asia Disaster Risk Management Project between January 21 and February 1, 20191, with the overall objective to follow up on the implementation progress. The specific objectives were to: a) Component 1, Integrated Urban Flood Risk Management: (i) advance the procurement of the Detailed Design and Supervision (DDS) firm; (ii) confirm the updated Environmental and Social Management Framework (ESMF), its associated budget and discuss the integration of gender aspects into the ESMF implementation; and (iii) agree on the Terms of Reference (TORs) for the national safeguards consultants. b) Component 2, Hydromet Modernization and Early Warning Systems: (i) present the findings of a recent World Bank policy note on the regional dimension of hydromet services; (ii) finalize the ToRs for the Forecasting Consultancy; (iii) enhance donor coordination; and (iv) finalize the specifications for hydromet stations. c) Component 4, Knowledge and Coordination: (i) Follow up on the procurement of key consultancies; (ii) join the second Steering Committee Meeting, and (iii) agree on the next steps. d) Component 5, Contingent Emergency Response Component: (i) finalize the ESMF Addendum for this component. 2. The mission met with representatives from the Department of Meteorology and Hydrology (DMH) of the Ministry of Natural Resources and Environment (MONRE), the Department of Planning (DOP) in the Ministry of Planning and Investment (MPI), the National Regulatory Authority for the UXO/Mine Action Sector (NRA), the Department of Waterways 1 The mission was led by Mrs. Henrike Brecht (Sr. Infrastructure Specialist and Task Team Leader) and comprised Makoto Suwa (Sr. Disaster Risk Management Specialist), Alice Soares (Sr. Hydromet Specialist), Chusit Apirumanekul (Sr. Hydromet Specialist), Alkadevi Patel (Sr. Social Development Specialist), Manida Unkulvasapau (Environmental Specialist), Khamphet Chanvongnaraz (Procurement Specialist), and Amphavanh Sisouvanh (Disaster Risk Management Consultant. 1 (DOW) the Environmental Research and Disaster Protection Division (EDPD) of the Public Works Research Institute (PTRI), and the Department of Public Works and Transport (DPWT) of the Ministry of Public Works and Transport (MPWT), as well as development partners. 3. The mission would like to thank the Government of Lao PDR (GoL) for the cooperation and hospitality extended during this mission. This Aide Memoire includes key findings and agreements with following annexes: Annex 1: List of People Met and Agenda; Annex 2 Component 2 - Hydromet Modernization and Early Warning Systems – Technical Details, Annex 3: Financial Management – Status of Fund Utilization. II. Summary of Key Issues 4. Overall progress: After a slower start, the project made good progress in the last six months. In the first year of implementation, the implementing agencies, none of which had experience with implementing IDA loans before this project, have made strides in improving their capacity in procurement, financial management, safeguards and technical aspects. Critical consultants for procurement and financial management are onboard across all components. International technical advisors, hired by DOW and DMH, are now supporting project implementation under Components 1 and 2. Civil works have started under Component 1 with a provincial office building being built. The World Bank policy note ‘Strengthening the Regional Dimension of Hydromet Services’ was disseminated and raised high-level interest in a potential regional project on improving regional coordination in this field. Lao PDR’s first map-a-thon was organized under the project as a step towards building an Open Street Map (OSM) volunteer community in the country. 5. Key priorities: High-value contracts, including the procurement of hydromet stations and three consultancy firms are being prioritized over the next months to increase disbursement while the detailed designs for the upcoming civil works under DOW are being developed. Under Component 1, the selection of the DDS firm is underway with the Request for Proposal issued and with an expected contract signing date in June 2019. A priority for DMH in the next months is advancing the selection of the System Integrator Consultancy, which is critical for establishing an integrated system bringing together various elements of the services network. Contract signing is expected in July 2019. The first premium payments for the Southeast Asia Disaster Risk Insurance Fund is expected by mid-2019. III. Main Mission Findings and Recommendations Component 1: Integrated Urban Flood Risk Management (US$13.5 million IDA Credit) 6. Implementation is considered satisfactory. The procurement for the hydrologic monitoring firm, office improvement for the DOW Project Management Unit (PMU) at KM3 Office in Vientiane Capital, and project vehicles was completed. New office construction for the Project Implementing Unit (PIU) at the DPWT Office in Oudomxay Province is underway and 30% completed. A National Environment and Social Safeguard Specialists are being hired to assist the DOW and the EDPD in Vientiane, and DPWT in Oudomxay Province. The international procurement specialist is onboard, and the contracting of a national procurement specialist is underway. 2 7. Subcomponent 1.1: Structural Investments: A hydrological monitoring firm was mobilized to record data throughout this year’s rainy season and is expected to complete the assignment by November 2019. The selection of the DDS firm to prepare a feasibility study, designs, bidding documents and construction supervision is under way, with firms shortlisted and the Request for Proposals issued. The selection is expected to be completed in June 2019. A resettlement committee and a grievance redress mechanism were set up. 8. Subcomponent 1.2: Non-structural Investments. This component focuses on piloting innovative approaches in sustainable urban design and the use of Information and Communication Technologies (ICT). The World Bank organized a map-a-thon as a first step towards building an Open Street Map (OSM) volunteer community in Lao PDR. OSM is a cloud-hosted geospatial database that is accessible to all citizens and government practitioners. Participants mapped road centerlines and building footprints in Oudomxay Province in support of the project’s objective to update the Oudomxay town master plan. A grant from the Global Facility for Disaster Reduction and Recovery in the amount of US$400,000 was mobilized to support the implementation of this component. Next steps include the development of a digital terrain model using either drones and a light-weight aircraft to inform the detailed designs. 9. Next Steps include (i) finalization of the DDS firm selection by June 2019; (ii) procurement of national procurement, environmental and social safeguards specialists by April 2019; (iii) completion of hydrological monitoring activities by November 2019; and (iv) preparation of TORs for non-structural investments by June 2019. Component 2: Hydromet Modernization and Early Warning Systems (US$10 million IDA Credit) 10. Implementation has advanced, with 15% of the component allocation disbursed. The recent procurement of key consultants will help to accelerate the implementation further. The WB is providing support through regular video conferences and frequent supervision and technical missions. Service Delivery: A Senior Expert for Service Delivery was selected in November 2018 to develop a strategic approach for strengthening the production and delivery of DMH services. The expert started the development of a Service Delivery Strategy (SDS) and has been assisting in enhancing public weather and hydrological services. The next priorities are the assessment of user satisfaction and the development of a TORs for public consultations. 11. System Integration: Sub-component 2.2. will integrate DMH’s multiple incompatible parallel systems developed under different projects, streamlining the process of collecting, analyzing, managing, modeling, forecasting and producing data and information services. The System Integration consultancy will harmonize these systems into a centralized Data hub. With the International Advisor’s support, the EOI evaluation is being revised, incorporating World Bank comments. The ToRs were reviewed again to ensure that they are focused, with tangible, achievable and clearly articulated tasks. Completing the selection of this consultancy is a priority as several downstream activities rely on its outputs. 12. Survey and Stations: DMH has completed the pre-site selection surveys and a firm is being contract to carry out a detailed topographical survey to support the modernization of the hydromet observation network by identifying appropriate locations and conceptual designs for hydromet stations civil works. The contract for the detailed survey and preparation of 3 engineering concept design is at the final negotiation stage and it is expected to be signed in February 2019. The World Bank will assist DMH in estimating the required operations and maintenance costs for the current and future systems based on WMO Guidelines. 13. Forecasting: The mission’s review of the forecasting capability and processes at the DMH Forecasting Office confirmed the findings from the Senior Technical Expert for Service Delivery’s baseline assessment that strengthening the forecasting capacity is urgently needed. Priority actions include streamlining the different forecasting systems and visualization workstations provided by multiple donors and introducing standard operating procedures. A Senior Expert for Forecasting needs to be procured as soon as possible. ToRs and REOIs have been completed and received a no objection from the World Bank. 14. Capacity-building: 2019 priority activities are English language and basic computer skills training, building on the Food and Agriculture Organization (FAO) training activities under the Strengthening Agro-Climatic Monitoring and Information System Project. In addition to training by international consultants, the team will explore engaging the Thai Meteorological Department (TMD) to provide systematic twinning support for DMH technical capacity development. DMH will assign relevant staff to receive on-the-job training. In the next months, the World Bank will provide technical support on conducting a staff capacity and training needs assessment and share best practice and Guidelines on preparing Standard Operating Procedures (SOP) for monitoring and forecasting to service delivery, so a Capacity Development Plan can be prepared by June 2019. 15. Regional Coordination: The World Bank presented the key messages from the report on “Strengthening the Regional Dimension of Hydromet Services in Southeast Asia – A Policy Note with a Focus on Cambodia, Lao PDR, and Vietnam”, which was welcomed by the Lao Government. Upon request from the MONRE Minister, the World Bank will assist with developing a concept note for a high-level meeting involving Ministers from Lao PDR, Cambodia and Vietnam, and respective Directors-General of Hydromet Services, to address coordination. The meeting could be organized in association with, for example, an ASEAN event or other relevant regional meeting. 16. Donor Coordination: The mission advised DMH to provide strong Government leadership for coordination with the following partners: a) The FAO project on Laos Climate Services in Agriculture System (LaCSA) establishes agro-meteorological services for end-users. The DMH data management system to be established under the World Bank project will build on the LaCSA results. b) It is critical that the Project’s Concept of Operations (CONOPS) is aligned with the DMH master plan, which KOICA is helping to develop. CONOPS connects the master plan and detailed technical system design by describing the characteristics and the scope of the proposed DMH system. c) JICA has installed several Automatic Weather Stations (AWSs) and the Radar. The Radar is currently not functional, and DMH is in contact with JICA to address this issue. d) Fujitsu’s agreed to share the results of their pilot project on local wireless disaster administration systems, using ICT to facilitate hydromet data collection. Synergies will be sought, and lessons will be incorporated in the design of the World Bank activities. 4 17. Monsoon Forum: Recognizing that monsoon forecasts can enable early planning and action to mitigate the impacts of intra-annual variable monsoon rainfall, the project supports the improvement of the delivery of DMH’s annual Monsoon Forum, where DMH seasonal forecast is disseminated prior to the season starting. It was agreed that the next Monsoon Forum will be organized in the week of May 6, 2019. To adequately prepare for the forum, on-the- job training by key external experts on topics like long-range/seasonal forecast, seasonal hydrological forecast and better communication of probabilistic information will be organized. The World Bank will assist DMH to develop TORs for key experts. 18. Next Steps include (i) submit the EOI evaluation report for the System Integrator; (ii) issue the RFP for the System Integrator consultancy; and (iii) finalize the negotiations and contract with the survey firm. Component 4: Knowledge and Coordination (US$1.50 million IDA Credit) 19. Implementation Progress: The selection and contracting of key consultants including international procurement specialist and financial management; national coordinator and accountant was recently completed. The resulting better coordination and support across components are expected to accelerate implementation. Procurement of Auditor is on-going. Procurement of goods, including IT equipment and vehicle was completed, while office furniture is under process. The 2nd National Steering Committee Meeting was held on 24 January 2019. During the meeting, lessons learned from the project implementation so far were discussed and ways to accelerate the implementation were agreed upon. Concerns over the low-quality performance of the international procurement specialist were raised. As a result, MPI issued a letter of warning to the concerned consultant. 20. Next Steps: (i) finalize procurement of the Internal Auditor Firm; (ii) define priorities and prepare ToRs for a consultant firm for mainstreaming strategic guidelines into policy and decision-making framework; (iii) develop an M&E framework; and (iv) prepare a concept note for a proposed international study tour to learn about innovative urban flood risk management, water-sensitive urban design and nature-based approaches. Component 5: Contingent Emergency Response Component (US$0) 21. ERM and ESMF Addendum: The ERM was completed. Following the discussions during the mission in August 2018, in line with the requirements for preparation for CERC activation, an ESMF Addendum was prepared which supplements the existing Project’s environmental and social safeguards instruments. IV. Safeguards 22. Under Component 1, the mission agreed to DOW and EDPD’s proposal to update the ESMF so that it is consistent with the institutional changes within MPWT and MONRE. It was agreed that gender aspects will be integrated into the planning, implementation, and monitoring and evaluation of safeguard performance. EDPD and the MPWT gender team will assign staff from the gender team to actively participate in the ESMF implementation process. It was also agreed that a National Environmental Safeguard Consultant will be mobilized to assist EDPD and DOW in Vientiane, while a National Community Engagement Consultant will be mobilized to assist DPWT in Oudomxay province, focusing on community engagement and implementing the Resettlement Action Plan (RAP), Ethnic Group Development Plan (EGDP), 5 and social aspects. It is expected that the second safeguard training will be conducted in June 2019 when the DDS firm is contracted focusing particularly on social aspects, including the preparation of the RAP and the EGDP. A workshop on local community engagement will also be initiated. 23. Next steps include (i) DOW and EDPD to submit the final draft TORs for the two national safeguard consultants to World Bank’s no objection by end of February 2019; (ii) DOW and EDPD will speed up the mobilization process to have the consultants on board in May 2019; (iii) EDPD will strengthen its safeguards team by formally incorporating one or two staff members from the MPWT gender team and ensuring their active participation in the ESMF implementation; and (iv) DOW and EDPD will submit a plan for the next environmental and social safeguard training by end of March 2019. 24. Under Component 2, all civil works contracts should include specific requirements for the contractor to comply with the project’s environmental code of practice (ECOP). This is necessary for mitigating potential negative impacts during construction, particularly ensuring the environmental health and safety of workers and local communities. DMH agreed to share a draft standard contract that is expected to be applied to the construction of the proposed stations and buildings for the Bank’s review. 25. UXO Clearance: UXO surveys, clearance and certification are required for the installation of the 70 hydromet stations to be installed with World Bank financing. DMH will hire a UXO Clearance firm to conduct technical surveys of the proposed 70 sites. The firm will obtain the clearance certificate from the NRA. 26. Next Steps include (i) hiring of a firm to prepare the bidding documents and technical specification for hiring a UXO clearance firm; (ii) contract a firm to conduct the surveys, using the Shopping procurement method; and (iii) the contracted UXO firm will seek a UXO clearance certificates from the NRA. 27. Under Component 5, it was agreed to simplify the processing of the CERC by not financing any activities related to dams and reservoirs. These prerequisites were reflected in a negative list in the project’s ESMF. EDPD agreed with the revisions to the ESMF Addendum. 28. Decree on Environmental and Social Impact Assessment (ESIA): The promulgation of an ESIA decree has reached the final stage of Government approval. The signing of the decree by the Prime Minister is expected in 2019. Moreover, a law promulgated by the Ministry of Agriculture and Forestry in 2018 on the allocation of landscape and occupation may affect the compensation procedures and requirements to be applied under the project. These anticipated changes in legal framework will be monitored and communicated to the detailed DDS firm and the safeguards consultants once recruited. . V. Procurement 29. The performance in procurement is considered moderately satisfactory. As of January 30, 2019, contractual commitments amount to US$1,663,800 with 15 months elapsed since project effectiveness. 17 out of 63 (27%) of planned procurement packages have been processed. Details for each component are listed in the table below. Category Total Planned Total Total % 6 packages during Awarded completed period packages Component 1 Goods, Works and Non-CS 9 3 33% Consulting Services 10 1 10% Component 2 Goods, Works and Non-CS 17 6 35% Consulting Services 10 3 30% Component 3 Goods, Works and Non-CS 2 0 0% Consulting Services 6 0 0% Component 4 Goods, Works and Non-CS 3 1 33% Consulting Services 6 3 50% Total 63 17 27% 30. Next Steps: The Bank will conduct the first procurement post review for this project in February 2019 and the key findings from the post review will be shared with the agency through a separate follow-up letter. VI. Financial Management 31. The performance in Financial Management (FM) is rated as moderately satisfactory. A number of key actions, recommended during the last mission, were implemented, including (i) completion of the FM Manuals by all implementing agencies; (ii) submission of the interim financial reports (IFR) for the first semester of 2018; (iii) hiring of local FM Specialists to support the Project; and (iv) finalization of Annual Work Plans and Budgets for 2019. 32. Disbursement: As of 18 February 2019, disbursement is 3.59% and 15.01% for IDA 61200 and TA5033 respectively. Project activities are expected to accelerate in the coming months since implementing agencies, all of them new to World Bank procedures, have familiarized themselves with the loan requirements and have hired key project personnel to advance the project implementation. 33. Next steps include for MPI to finalize the recruitment of Auditors; All implementing agencies are reminded to: a. Report on expenditure made from the designated account every 3 months as required in the Disbursement Letter. b. Ensure timely preparation of Interim Unaudited Financial Report (IFR) in the format agreed with the Bank 45 days after the end of each semester. A copy of the IFR should also be submitted to the DOP of MPI for consolidation. The IFR for the semester that ended December 31, 2108 was due on February 15, 2019, and it was received from all four implementing agencies. c. The first project audit report covering the period from project effectiveness to 31 December 2018 and management letter is due for submission on 30 June 2019. d. Submit the annual work and financial plan covering calendar year 2020 by October 2019. 7 VII. Summary of Agreed Actions Actions Responsibility Deadline Component 1: Integrated Urban Flood Risk Management Submit technical evaluation report for the DDS DOW April 10, 2019 firm Finalize procurement of the national procurement and environmental and social safeguards DOW April 2019 specialists Complete hydrological monitoring activities DOW November 2019 Prepare draft TORs for non-structural DOW June 2019 investments Submit TORs for two national safeguard DOW and EDPD March 1, 2019 consultants to World Bank for clearance Strengthen EDPD’s Environmental and Social EDPD March 1, 2019 team by formally incorporating 1-2 staff from the MPWT gender team Submit a plan for the next Environmental and DOW and EDPD March 2019 Social safeguard training to be conducted Component 2: Hydromet Modernization and Early Warning Systems Monthly calls on implementation status Next call scheduled WB and DMH on March 5 Submit the revised EOI evaluation report for the DMH February 25, 2019 selection of the System Integrator consultancy Issue RFP for the System Integrator consultancy DMH March 1, 2019 to shortlisted firms Initial estimation of O&M requirements for the DMH with WB March 30, 2019 observation system support Develop a ToR for conducting user satisfaction DMH with Senior survey and contracting a firm Technical Expert March 15, 2019 on Service Delivery Conduct a staff capacity and training needs DMH with WB March 30, 2019 assessment support Develop a training plan for the next one year based on the assessment above, focusing on DMH March 15, 2019 English language and basic computer skills Issue a Request for Expression of Interest DMH with WB Feb 20, 2019 (REOI) for the Senior Forecasting Expert support Develop ToRs for short term training for the DMH with WB March 15, 2019 preparation of the next Monsoon Forum support A concept note for a high level meeting / launch of a policy note on the regional collaboration in WB and DMH March 20, 2019 hydromet for Laos, Cambodia and Vietnam Draft International Competitive Bidding (ICB) documents for hydromet equipment for World DMH March 30, 2019 Bank review and no objection 8 Preparation of Standard Operating Procedures DMH and WB June 2019 Component 3: Financial Planning for Disaster Resilience Mission to be conducted from March 11-15 Component 4: Knowledge and Coordination Finalize procurement of Audit Firm DOP April 15, 2019 Identify priorities and prepare ToR for mainstreaming strategic guidelines into policy DOP May 30, 2019 and decision-making framework 9 Annex 1: Mission schedule and persons met Mission Schedule Time Meeting Person/Position Participants Venue Monday, January 21, 2019 9:00-10:00 Internal Team Meeting Makoto, Alice, Mimi, WB Office – Confirmed Chusit 2nd floor meeting room 10.00-11.00 Kick-Off Meeting with DMH Makoto, Alice, Mimi, DMH Confirmed Chusit, DMH team 11:00-12:00 Discussion on the establishment of the DMH team, Makoto, DMH 14:00-15:00 baseline based on assessment of current Alice, Mimi, Chusit Confirmed capacities of DMH – 15.00-16.30 Discussions on the work plans for DMH DMH Team, Makoto, DMH Confirmed consultants Alice, Mimi, Chusit Tuesday, January 22, 2019 9.00-12.00 Discussion on Service Delivery Strategy DMH team, WB team DMH Confirmed 14.00-15.30 Discussions on the development of the Henrike, Alice, Makoto, DMH Confirmed CONOPS Chusit, Mimi, DMH team 15.30-16.30 Discussions on the sustainability of Henrike, Alice, Makoto, DMH Confirmed investments and potential development of Chusit, Mimi, DMH team a business plan Wednesday, January 23, 2019 10.00 a.m. DMH follow up on FM, procurement, and Henrike, Khamphet and WB office-1st Confirmed safeguards WB staff floor meeting room Confirmed Preparation for Monsoon Forum DMH team, Henrike, WB office-2nd Alice, Makoto, Chusit, floor meeting Mimi room Afternoon Meeting with FAO Henrike, and WB team DMH Confirmed Thursday, January 24, 2019 9.00-10.00 NRA Discussion on UXO clearance Manida, Chusit, Mimi DMH Confirmed 14.30-15.30 Meeting with ADB on hydromet Henrike, and WB team ADB’s office Not Available engagement – Mr. Vanthong Friday, January 25, 2019 9.00 am. Meeting with DRM-C2 project WB team and DMH DMH Confirmed Coordinator 13.15 Wrap Up meeting Henrike, MONRE- Confirmed Chaired by H.E. Mr. Sommad Pholsena, Viengsompasong and WB PMO -Teuk MONRE team and DMH Hoi building 2nd 15.00 p.m. Briefing with Nicola/Nounou Henrike WB office List of People Met Names Title Organization H.E. Mr. Sommad Pholsena Minister MONRE 10 Mrs. Bouakham Soulivanh Acting Director General Planning and Cooperation Department, MONRE Mr. Khanmany Khounphonh Director General Department Meteorology and Hydrology, MONRE Mme. Outhone Phetluangsy Deputy Director Department Meteorology and Hydrology, MONRE Mr. Viengxai Manivong Project Coordinator Department Meteorology and Hydrology, MONRE Mr. Bounteum Director of Water Forecast Department Meteorology and Sisouphanthavong Division Hydrology, MONRE Mr. Vansath Secretary to Minister MONRE Mr. Suvanakone Keoduangded Technical of Legislation and Department Meteorology and IT Division Hydrology, MONRE Mr. Boonsouly Chittanon Project procurement specialist DRM- C2 Ms. Minsa Sorthipmany Project -FM DRM-C2 Mr. Vanthong ADB Ms. Monica Petri Project Manager FAO (Strengthening Agro-climatic Monitoring and Information System) Mr. Liko Solangkoun National Coordinator DMH Consultant Mr. Vilaisack Quality Management Officer National Regulatory Authority for VONGSAYACHAN, UXO/Mine Action in Lao PDR (NRA) Mr. Phommachanh UXO Survey and Clearance National Regulatory Authority for Khammanichanh Officer UXO/Mine Action in Lao PDR (NRA) Mrs. Haleh Kootval Service Delivery Consultant DMH 11 Annex 2: Component 2 - Hydromet Modernization and Early Warning Systems – Technical Details 34. Implementation has advanced in the past months. Procurements of key consultants are completed which is expected to further speed up the implementation. The Component disbursement to date is 14.9 %. World Bank’s continued implementation support is required to ensure smooth implementation. Regular video conferences to discuss the progress are suggested and frequency of the supervision and technical missions will be increased during the next year to support the implementation of key priority activities. Subcomponent 2.1: Strengthening Early Warning Systems and Service Delivery Systems 35. Service Delivery: The main focus of the subcomponent is to strengthen the production and delivery of DMH services. To develop a strategic approach, a Senior Technical Expert for Service Delivery position was selected in November 2018, to assist DMH to: (i) develop the Service Delivery Strategy (SDS); (ii) enhance its public weather and hydrological services as per the SDS; (iii) develop and implement pilot impact-based forecast and warning services for selected provinces; (iv) develop and implement a User-based Assessment programme to evaluate user perception and satisfaction with DMH products and services; (iv) develop a concept of the user interface platform (UIP) for a National Framework for Climate and Hydrological Services for Lao PDR, and a concrete roadmap and plan for its implementation. The consultant is expected to conduct her second mission during March 2019 to (i) continue the assessment of user satisfaction with DMH products and services and develop TORs for a firm to carry out a public consultation; and (ii) start the development of the SDS. Sub-component 2.2 Modernization of the Observing, Forecasting and Communication Systems 36. System Integration: DMH is running parallel systems developed under the framework of multiple projects. These investments were supported through bilateral support from development partners and focus on separate elements of the hydromet infrastructure, without making systemic changes to the entire national system, partly due to incompatibility and interoperability of the systems. This subcomponent focuses on the integration of such systems and streamlining the process of collecting, analyzing, managing, modeling, forecasting and producing data and information services. The System Integration consultancy plays a critical role in harmonizing DMH’s systems and in integrating them into a centralized Data hub, which will in turn improve the quality of DMH’s products and services. Supported by the International Advisor, the EOI evaluation was completed, with the evaluation report under review by the World Bank. In parallel, the ToRs need to be carefully reviewed again to ensure that the ToRs are focused and key tasks are tangible, achievable and clearly articulated. Completion of the selection of the System Integrator consultancy is a priority for coming months with several downstream activities relying on the outputs from this consultancy. 37. Survey and Stations: The Project finances 35 hydromet stations and the Mekong Integrated Water Resources Management (M-IWRM) Project finances 35 hydromet stations. The detailed topographical survey, jointly financed and procured by this Project and M-IWRM projects, will provide a significant contribution to the modernization of the hydromet observation network, by identifying appropriate locations and conceptual designs for civil works for hydromet stations. Pre-site selection surveys were completed by DMH for all 70 stations, while the detailed survey will be carried out by a firm. The contract for the detailed 12 survey and preparation of engineering concept design for hydromet sites is at final negotiation stage, with the contract expected to be signed in February 2019, and works expected to start from March 2019 onwards. See safeguards section related to UXO clearance. Related to operation and maintenance (O&M) costs, the World Bank would assist DMH to estimate the required O&M costs, based on experiences in other WB projects and WMO Guidelines. 38. Forecasting: Quick review of the forecasting capability and processes at the DMH Forecasting Office by the mission reconfirmed the urgent need for strengthening forecasting capacity, which underpins the majority of the DMH’s current and envisioned service portfolio. This observation is also confirmed in the findings from the baseline assessment conducted by the Senior Technical Expert for Service Delivery. Different systems and visualization workstations provided by multiple donors are being used in an incoherent and inconsistent manner. Streamlining the forecasting process and the introduction of standard operating procedures are the among the priority actions to strengthen the forecasting capability of DMH. As a next step, the procurement of a Senior Expert for Forecasting needs to be completed as soon as possible to immediately start the activities on the forecasting aspects. 39. Capacity-building: The mission agreed that priority activities for 2019 would be English language and basic computer skills training, as basis for technical training. These efforts should built on the recently completed and on-going training activities under the Food and Agriculture Organization (FAO) project “Strengthening agro -climatic monitoring and information system.” It was also agreed to explore the possibility of engaging Thai Meteorological Department (TMD) to provide systematic twinning support for DMH capacity development on the technical aspects, in addition to the training provided by international consultants. One of the advantages of such an arrangement with TMD is the low language barrier for DMH staff. It was agreed that DMH will assign relevant staff to receive on-the-job training. It was agreed that the World Bank team will provide technical support to DMH to conduct a staff capacity and training needs assessment based on experiences in other WB projects and WMO Guidelines within the next few months, so that a Capacity Development Plan can be prepared by June 2019. The World Bank will also share best practices and Guidelines for the preparation of Standard Operating Procedures (SOP) related to monitoring, forecasting to service delivery. 40. Regional Coordination: Based on needs assessment, the Capacity Development Plan can include modalities of engaging with WMO Regional Training Centres, other National Hydrometeorological Services, etc. Regional coordination and support from neighboring countries (e.g. Vietnam and Thailand) were considered as a good approach to strengthen DMH’s capacity. This is aligned with the recommendations described in the World Bank policy note “Strengthening the Regional Dimension of Hydromet Services in Southeast Asia – A Policy Note with a Focus on Cambodia, Lao PDR, and Vietnam”. The World Bank was asked to assist with the organization of a high-level meeting (in association with e.g. an ASEAN or any other relevant meeting) with the participation of the Ministers from Lao PDR, Cambodia and Vietnam, and respective Directors-General of Hydromet Services, to address these issues. Such meeting would take place in 2019. 41. Donor Coordination: There are significant opportunities and needs for coordination with ongoing activities of FAO, KOICA, JICA and Fujitsu. Strong Government leadership is required for development partners’ coordination. The mission advised DMH and the International Advisor to closely coordinate with these organizations. 13 a) FAO: In addition to capacity building, the above-mentioned FAO project is establishing the “Laos Climate Services in Agriculture system (LaCSA),” which aims to archive and process agro-meteorological and climatological data for the production and dissemination of agro-meteorological services for end-users. This could be complementary to the planned activities on the data management system and climate services under this Project. Upon the completion of LaCSA, a review is needed to ensure that the technical design of the DMH data management system will consider LaCSA results. b) KOICA is supporting the development of a DMH master plan as the high level strategic plan. It is critical to ensure the good alignment of the Master Plan and the Concept of Operations (CONOPS) to be developed under this Project. CONOPS is a document describing the characteristics and the scope of the proposed DMH system (of subsystems) and its formulation is normally informed by the strategic plan. In this way, CONOPS connects the master plan and detailed technical design of the system. c) JICA has installed several Automatic Weather Stations (AWSs) and the Radar. The Radar is currently not functional, and DMH is in contact with JICA to address this issue. d) Fujitsu is piloting the use of ICT to facilitate the collection and dissemination of hydromet/ DRM data under the “local wireless disaster administration system” project. The results of this small-scale pilot project are expected to be shared with stakeholders. 42. Monsoon Forum: Intra-annual variability of monsoon rainfall has great impacts on the outputs of various socio-economic sectors in Laos. The provision of information on the anticipated performance of a forthcoming monsoon season is critical for early planning and actions in given sectors. In past years, DMH has been organizing a Monsoon Forum to disseminate their seasonal forecast before the season starts. This Project supports the improvement of the delivery of the Forum. It was agreed that the next Monsoon Forum will be organized during the week starting on May 6, 2019. DMH sees that as an excellent opportunity to showcase and raise visibility of DMH services. Adequate preparation needs be done in a timely manner: leading to the preparation of the Forum, on-the-job training will be organized for April 22 to May 3 2019, bringing a few key external experts on topics such as long-range/ seasonal forecast, seasonal hydrological forecast and better communication of probabilistic information. The World Bank will assist DMH with the development of TORs for key experts. 14 Annex 3: Financial Management, Status of Fund Utilization/Disbursement Against Allocation as of 30 January 2019 IDA 6120: Amounts in SDR WA in process for Amount Loan Withdrawn Disbursement Utilization Particulars submission to WB undisbursed from allocation (a) from Bank (b) Rate 1 Rate 2 (c) the Bank (a-b-c) G, W, CS, NonCS, T&W and OC under Part 1 9,850,000 3,308 - 9,846,692 0% 0% G, W, CS, NonCS, T&W and OC under Part 2 7,300,000 - - 7,300,000 0% 0% Premia under Part 3.2 3,650,000 - - 3,650,000 0% 0% G, W, CS, NonCS, T&W and OC under Part 4 1,100,000 58,311 - 1,041,689 5% 5% Emergency Expenditures under Part 5 - - - - - - Designated Account-A MPWT - 271,206 - (271,206) - - Designated Account-B MONRE - 194,709 - (194,709) - - Designated Account-C MOF - - - - - - Designated Account-D MPI - 90,422 - (90,422) - - Total 21,900,000 617,957 - 21,282,043 2.82% 0.28% 1 Disbursement rate is the rate of the amount of withdrawal applications paid by the Bank divided by the loan amount. 2 Utilization rate is the rate of the amount of withdrawal applications paid by the Bank (net of the Designated Accounts) and those in process, divided by the loan amount. TFA5033: Amounts in USD WA in process for Amount Loan Withdrawn Disbursement Utilization Rate Particulars submission to WB undisbursed from allocation (a) from Bank (b) Rate 1 2 (c) the Bank (a-b-c) G, W, CS, NonCS, T&W and OC under Part 3.1 1,000,000 - - 1,000,000 0% 0% Designated Account MOF - 150,098 - (150,098) - - Total 1,000,000 150,098 - 849,902 15.01% 0.00% 15