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Laos

Local Development

PROGRAMME PROFILE (1)
Project/Programme Title Saravane Governance & Public Administration Reform & Decentralised Service Delivery Project (GPAR-SP)
Status & Cycle Ongoing 2005-2009
Total Costs/Funding (US$ m) Funding sources JOINT PROJECT RESOURCES PARALLEL
UNCDF UNDP TOTAL
UNCDF 2.0   2.0  
UNDP   0.54 0.54  
EC   0.63 0.63  
TOTAL 2.0 1.17 3.17  
Context, Strategy & Opportunities
  • UNCDF was invited to support one of the UNDP-supported GPAR Programme provincial pilot projects; GPAR-SP thus designed by UNCDF with a view to piloting improved District-level PEM and financing, thereby to help GoL implement its stated policy of empowering Districts as "budgeting units",

  • Broader context is that Lao struggling to reform its inter-governmental fiscal relations policy framework

Government Execution Partners
  • Province and District governments

  • Public Administration & Civil Service Agency (PACSA) - Prime Minister's Office

  • Ministry of Finance

Local Area & Coverage
  • 8 Districts (Saravane Province)

  • 310,000 persons

Reviews & Evaluations
  • 3 technical review missions

  • TPRs 2006 & 2007

  • MTE planned end 2007

Main Policy Impact & Other Achievements to Date
  • Local PEM innovations backed by Province decree

  • The LDP has already demonstrated a viable local participatory planning system, managed through District admin teams

  • Growing policy interest in the district development fund mechanism within PRSP/NSEDP

  • Involvement negotiated within sub-national component of the PEMSP run by Ministry of Finance

  • Support to World Bank replication & technical partnership

Main Challenges
  • Weak central support and direction and hesitant policy drive

  • Districts not fully engaged in implementation

Key Next Steps
  • Technical review/support mission

  • Use Saravane team to support other Provinces

  • Organise MTE



PROGRAMME PROFILE (2)
Project/Programme Title Governance & Public Administration Reform for Strengthening Basic Service Delivery: District Development Fund component (GPAR/SBSD: DDF)
Status & Cycle Starting - 2007-10
Total Costs/Funding (US$ m) Funding sources JOINT PROJECT RESOURCES PARALLEL
UNCDF UNDP TOTAL
UNCDF 0.7   0.7  
UNDP   0.9 0.9  
Luxembourg 3.3 0.7 4.0  
SDC   3.5 3.5  
WB       3.0
Funding gap     1.15  
TOTAL 4.0 5.2 10.3 3.0
Context, Strategy & Opportunities
  • Broader context is that Lao struggling to reform its inter-governmental fiscal relations policy framework and also to improve service delivery as key plank of current NSEDP and PRSP

  • UNDP has prepared a new phase of the broad GPAR programme focussing on service delivery - the DDF component will strengthen this by providing specific focus on local financing and PEM innovations, building on and replicating ongoing work in Saravane

  • Basic DDF block grant piloting to be broadened with some work on conditional recurrent budgets in key sectors, & social protection.

  • Broadening the innovation platform from 1 to total 5+ Provinces will greatly boost the scope for upstream policy work, especially with MoF on their PEMSP.

  • Design of WB-funded "clone" (parallel funding) of DDF in Khammouane province, with technical support from UNCDF (and future MoU).

Government Execution Partners
  • Province and District governments

  • Public Administration & Civil Service Agency (PACSA) - Prime Minister's Office

  • Ministry of Finance

Local Area & Coverage
  • 4 Provinces (Sekong, Xiengkhouang, Borikhamxay, Houaphane)

  • 0.9 million pop

Reviews & Evaluations N/A
Main Policy Impact & Other Achievements to Date
  • JP Cost-sharing arrangements concluded

  • World Bank replication of DDF model in Khammouane & Phongsaly provinces

  • EC interest to co-fund DDF for upland areas

Main Challenges
  • Uneven local implementation of policy - eg on village clusters (and associated relocation of settlements)

  • Integration of DDF within wider, diffuse programme

Key Next Steps
  • Hire ITA & team

  • Sensitise new Provinces, develop MoUs, ToT, etc.

  • Launch Province "PERs" with MoF

UNCDF Contacts for Loa PDR

Mr. Gerry O'Driscoll
International Technical Specialist
gerry.odriscoll@uncdf.org

Mr. Thilaphong Oudomsine
Programme Officer
thilaphong.oudomsine@undp.org

Mr. Phiphob Luangsivilay
Programme Assistant
phiphob.luangsivilay@undp.org

UNCDF Regional Office for Asia

Local development

Ms. Jill Engen
Regional Technical Advisor
jill.engen@uncdf.org

Ms. Suela Krifsa
Regional Portfolio Specialist
suela.krifsa@uncdf.org

Last Updated: July 14, 2009

UNCDF in Laos
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May 25, 2010: Developing new solutions for poverty reduction: a lesson from the District Development Fund in Laos

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