Lao People’s Democratic Republic: Nam Ngum River Basin Development Sector Project

The need for ADB to be proactive and to keep an open dialogue with the government to minimize any delay in loan effectiveness. The PCR did not identify the reason for the long delay, nor did it mention any attempt by ADB to resolve any difficulty that was causing the delay. The Lao PDR is not a new borrower from ADB and is, therefore, generally familiar with the requirements of loan effectiveness, hence, potential problem caused by new procedure or policies of the government should have been identified during project preparation and measures to mitigate these should have been included.