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Lesson
It is essential to carefully study and consider less socially and environmentally disruptive options in investment decision making in hydropower. Possible alternatives in future cases, for example, could include river offtake, run of the river, small decentralized hydro systems, and backup from solar and wind power. The choice should be made through a participatory assessment that gives the same weight to social and environmental dimensions as to technical and economic aspects.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
Biodiversity conservation in the context of hydropower projects requires an approach whereby “conservation forest” is balanced with “production forest” as a source of income for affected people. To date, ADB, the World Bank, and international organizations consider many of the village forest activities as failures (e.g., trees are being cut down to the roots) with government advisors having little understanding of forestry practices in relation to biodiversity conservation and sustainable practice.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
Overly prescriptive approaches limit the scope for adaptive management of livelihood restoration programs for project-affected people. Clear recognition of the many risks associated with implementing a complex project in partnership with a relatively inexperienced and limited-capacity government led to a concerted effort to “get everything right,” as it were, before the project even started. That is reflected in the negotiation of a comprehensive and highly detailed concession agreement, a 1,362-page legal document.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
It is important to avoid overly ambitious objectives in project design. The enhancement of biodiversity conservation in NNT-NPA was an overly ambitious objective. The area to be protected involved the entire watershed and an area downstream. Its size challenged the capability and capacity of a number of agencies to plan, implement, and sustain conservation requirements.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
A large, complex development project requires a commensurate and substantive long-term commitment. The exceptionally long preparation and implementation periods (2003–2019) were essential to provide sufficient time for analysis, appraisal, and supervision of a complex project and ensure an eventually successful outcome in a high-risk context.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
Quality project sponsors are essential for success, but their limitations and country capacity constraints also need to be considered. The selection of a well-qualified developer as the primary equity holder in the NTPC consortium appears to have played a major role in the efficient construction and operation of the dam and power facilities with very modest cost and time overruns.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
IFI collaboration can yield a major developmental contribution with a high-risk project in a limited-capacity country. The close and effective collaboration of ADB, the World Bank, and other IFIs from an early stage provided the necessary confidence for the private sector to undertake a pioneering, complex, and large-scale project in a limited-capacity country. Although the total IFI loans and guarantees were modest in scale, the independent evaluation team established that they had been a necessary requirement for the international dollar financiers to extend loans to NTPC.

Project Number: 37734-013, 37910-014
Project Name: Greater Mekong Subregion - Nam Theun 2 Hydroelectric Project
Report Date:
Lesson
The move of smallholder farmers toward commercialization requires tailored infrastructure. The NRSLLDP, through the VIF, supported CDD-related infrastructure (such as village meeting halls) at the provincial, district, and local levels. Livestock development and commercialization endeavors, on the other hand, will require new infrastructure to address impediments such as access to water, animal shelters, medicinal supplies, cold-chain, access roads, and market infrastructure.

Project Number: 35297-013
Project Name: Northern Region Sustainable Livelihoods Through Livestock Development Project (A Joint Evaluation)
Report Date:
Lesson
Sustainable access to savings and credit is essential. In the future, savings and credit instruments should be designed around actual farmer needs in terms of timing, amount, duration and repayment and collateral requirements. A key decision for IFAD, ADB, and the government will be to agree on a partner—for example, the Bank of Laos—to implement the rural finance component of the NSLCP transparently and professionally.

Project Number: 35297-013
Project Name: Northern Region Sustainable Livelihoods Through Livestock Development Project (A Joint Evaluation)
Report Date:
Lesson
LPGs can be a conduit to share experiences, exchange knowledge, and gain access to inputs and improved market opportunities and prices. Unfortunately, the NRSLLDP was rather short-sighted and did not seek to develop groups to access or provide benefits to farmers throughout the production chain (from inputs, to husbandry, to selling). The project also dropped the access-to-market component.

Project Number: 35297-013
Project Name: Northern Region Sustainable Livelihoods Through Livestock Development Project (A Joint Evaluation)
Report Date:
Lesson
The transition to commercial agriculture requires extensive training and empowerment of smallholder farmers. The NRSLLDP aimed to provide farmers with animals to be integrated into their semi-subsistence livelihoods. These additional animals were stores of wealth that were sold occasionally to smooth consumption (e.g., school fees) or support other investments (e.g., motorbikes). With a commercialized approach, the focus is on maximizing a stream of income over a sustained period. This will require substantial changes in the production, marketing, selling, and reinvesting cycle.

Project Number: 35297-013
Project Name: Northern Region Sustainable Livelihoods Through Livestock Development Project (A Joint Evaluation)
Report Date:
Lesson
The community-driven development approach is effective. Although it seems self-evident, this fundamental lesson is often overlooked and needs to be reiterated. Community involvement in planning and responsibility for O&M is a practical and cost-effective way of managing such small-scale systems. The government-enabled community ownership and capacity building approach employed by the project will be useful in other efforts to scale up agricultural development, for example in improving rural health, water supply and sanitation, and education.

Project Number: 34188-013
Project Name: Northern Community-Managed Irrigation Sector Project
Report Date:
Lesson
Sustainable O&M and water provision are crucial. Sustainable O&M that guarantees water provision is an incentive for farmers to remain members of WUAs. Farmers tend to withdraw from WUAs if their fields do not receive adequate water flows. Without water delivery to their fields, there was no incentive for farmers to work on land conversion and therefore some refused to invest their resources in converting undeveloped land to paddy fields, which would have increased the irrigated area under the project.

Project Number: 34188-013
Project Name: Northern Community-Managed Irrigation Sector Project
Report Date:
Lesson
Irrigation infrastructure should be built to last. Frequent damage to irrigation facilities caused by flooding and landslides is a big threat to the sustainability of infrastructure improvements. Considering the poor watershed management in the areas surrounding subprojects and incompatible land uses (e.g., hilly land corn farming above the irrigated rice fields), the construction of irrigation infrastructure needs to improve. Preventive and protective measures need to be taken to guard against recurring intense rainfalls and extreme weather events.

Project Number: 34188-013
Project Name: Northern Community-Managed Irrigation Sector Project
Report Date:
Lesson
Clear horizontal and vertical roles for urban sector agencies are important under a multisector approach. A multisector approach in the urban sector is readily implementable in the Lao PDR, because, for the most part, subsectors are within the mandate of the ministry responsible for urban development and its provincial branches. The approach can be enhanced further with the inclusion of urban transport in urban projects. This would not be difficult, given the mandate of MPWT/DPWT.

Project Number: 33432-013
Project Name: Vientiane Urban Infrastructure and Services Project
Report Date: