The requirement for counterpart funding to finance land acquisition and resettlement (LAR) should be clearly communicated to government counterparts during project preparation. Due to delayed and inadequate counterpart funds, particularly to support LAR, works were begun in several subprojects even before compensation payments were completed. This comprised noncompliance to ADB safeguards and caused the suspension of works in pertinent subprojects. Although counterpart funds from the provincial government did eventually materialize, clarity on this requirement should have been better communicated and commitment secured during project preparation. This would have prevented unnecessary complications in safeguards implementation, which contributed to further delays in the project.
Greater Mekong Subregion East-West Economic Corridor Towns Development Project