Country Program PresentationApril 2015

Laos ICOSEA Hub –

Hanoi, Vietnam

  2005 2007 2010 2013

Human Dev. Index 0.51 0.53 0.549 0.569

Agriculture value added (% of GDP) 36.2 34.9 32.7 26.5

GNI per capita 472 887 1123 1661

Total population (million) 5.88 6.21 6.44 6.77

Rural population as % of population 73 69 67 64

Poverty rate based on population 30.7 27.6 26 23.2

Main crops production: rice, soybeans, sugarcane, corn, tobacco

Nutrition facts: high malnutrition rate (40%), particularly in rural areas

Population density – Economic Indicators(source: WB, UNDP)

Poverty rate and Poverty density

Share of Agriculture in GDP

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

800

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

GDP per capita (USD)Agriculture contribution to GDP per capita (USD)Agriculture contribution to GDP per capita (%)

IFAD funded operations

Portfolio

Closed Loans   Active Loans   Pipelined Loans

(1980-1985) Casier-Sud Pioneer Agricultural Project

(2009-2016) Sustainable Natural Resource Management and Productivity Enhancement Project

GAFSP (2016-2020): Global Agriculture and Food Security Program - 30 million USD

(1984-1986) Agricutural Production Project

(2011 - 2017) Souum Son Seun Jai - Community based Food Security and Economic Opportunities Programme

Livestock project (2016-2020) (with ADB) - 10 million USD

(1988-1992) Rural Credit Project

(2013-2019) Southern Laos Food and Nutrition Security and Market Linkages Programme

(1991-1997) Xieng Khouang Agricultural Development Project

(2006-2014) Rural lovelihoods Improvement Programme in Attepeu and Sayabouri (2007-2013) Northern Region Sustainable Livelihoods through Livestock Development Project

Timeline overview –COSOP (2011-2015), (2016-2020)

Projects 2005 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Rural livelihoods Improvement Programme in Attepeu and Sayabouri

Northern Region Sustainable Livelihoods through Livestock Dev ProjSustainable Natural Resource Management and Productivity Enhancement Project

SSSJ Project

FNML

Pipeline - GAFSP

Pipeline - Livestock program

Active projects – main components

Project names   Cost and Beneficiaries   Project components

(2009-2016) Sustainable Natural Resource Management and Productivity Enhancement Project

Total project cost: US$ 37.8 millionTotal IFAD financing: US$ 15.0 millionDirectly benefiting 11,250 householdsCofinanciers: ADB

(i) Capacity building for agriculture and natural resource sector management

(ii) Implementation of agricultural activity and commercialization subprojects

(iii) Project management

(2011 - 2017) Souum Son Seun Jai - Community based Food Security and Economic Opportunities Programme

Total project cost: US$ 19.3 millionTotal IFAD financing: US$ 14.0 millionDirectly benefiting: 17,000 households Cofinanciers: Gesellschaft fur Technische Zusammenarbeit, World Food Programme

(i) Integrated farming systems(ii) Links to markets

(2013-2019) Southern Laos Food and Nutrition Security and Market Linkages Programme

Total: project cost: $18.82 millionTotal IFAD financing: IFAD Grant: $9.72 million, ASAP Grant: $5.0 millionDirectly benefiting: 10,500 householdsCofinanciers: Government of LAO PDR, Banking and Private Sector, Beneficiaries

(i) Food Security and Pro-Poor Market Access

(ii) Inclusive Rural Finance Support(iii) Institutional support(iv) Smallholder Adaptation for

Climate Change Component (New Component)

Active projects – SNRMP

•Program Target group: 11,250 households would benefit from the project

•The main target group comprises two primary sub-groups: (i) poor farming households with proximity to markets (primary in the lowlands; and (ii) poor farmers in upland areas (mostly ethnic minority communities practicing shifting cultivation)

* Total: project cost: $37.8 millionIFAD financing: $15 millionADB: $20 million Government of Laos: $2.8 million

Active projects – SNRMPComponents and Sub-components

A.Capacity Building in Sector Management

B.Agricultural Productivity and Commercialization Subprojects

C.Project Management

Active projects – SNRMP (cont)Component A – Capacity Building in Sector Management

Sub-components

TARGET(Design Doc)

ACHIEVEMENT (to date)

Land evaluation capacity building

-digital map preparation and interpretation skills in MAF, NAFRI developed,- participating PAFOs by providing GIS equipment, training PAFO staff in GIS information management procedures, procuring digital data sets to facilitate the preparation of land suitability and land use maps at district level- a resource mapping office together with ‘ground truthing’ of interpreted data sets

Environment and social safeguards requirements

-approving investment proposals for addressing overall feasibility, social and environmental safeguards and appraisal techniques-training for the technical line agencies at provincial and district levels provided

Investment appraisal

- capacity building increased for staff of the Department of Planning at MAF at the national level and DPI and concerned line agencies in the provinces.

Producer association sustainability

- support for the development, operations, management, and monitoring of farmer groups, comprising technical training in their functional responsibilities, in group management and maintenance, in accounting and book keeping and participatory monitoring of their impact.

Policy development

- capacity of MAF’s policy development agencies (Dept. of Planning in MAF, Policy Research Centre in NAFRI, etc.) to prepare policy alternatives enhanced

Active projects – SNRMP (cont)Component B – Agricultural Productivity and 

Commercialization Subprojects

TARGET(Design Doc)

ACHIEVEMENT (to date)

The Project will fund a number of small and medium sized development subprojects that will replicate or expand previously implemented development initiatives. Subprojects will have their own impact consistent with the provincial and national development objectives

Active projects – SNRMP (cont)Component C – Project Management

TARGET(Design Doc)

ACHIEVEMENT (to date)

The Project will be managed by a Project Management Office within the Planning Department of MAF.

The Provincial Project Office will maintain an administration office, manage day-to-day project affairs at the provincial level and report to the Provincial Coordination Committee

Active projects – SSSJ

* Program Target group: 17,000 rural households in 225 poor upland villages in Northern Sayabouri and Oudomxay

* Total: project cost: $19.3 millionTotal IFAD financing: IFAD DSF Grant: $13.9 million, World Food Program: $3.7 million,GIZ: $0.4 millionGovernment of Laos: $0.8 million,Beneficiaries: $0.3 million

Active projects – SSSJ (cont)Components and Sub-components

A. Integrated Farming Systems

B. Links to Market

Active projects – SSSJ (cont)Component A – Integrated Farming Systems

Sub-components

TARGET(Design Doc)

ACHIEVEMENT (to date)

Improving upland conservation and production systems

- Support to production systems- Support to farmers’ organisations- Agricultural extension activities will be undertaken - Nurseries will be established at the district and village levels -Livelihood Initiative for Nutrition-Climate risk management strategies-Pilots on accessing degraded forest land for setting up community-based leasehold forestry:-Carry out 10 pilots on communal land tenure-Cascade training by international and local consultants to all main partners in programme implementation

Livestock development

-improved poultry husbandry for the highly vulnerable-market-oriented poultry production-improved pig husbandry

Water management

-Micro-irrigation schemes- Village drinking water supply schemes

Active projects – SSSJ (cont)Component B – Links to Markets

Sub-components

TARGET(Design Doc)

ACHIEVEMENT (to date)

Village-access roads

- The programme will finance the costs of construction, including the costs of survey, design, construction labour and contractors, supervision and the cost associated with establishing and training the VRMGs. - The programme will also finance the cost of international TA, training for DPWT staff, equipment and staff operating costs etc. The existing staff should be able to handle the proposed programme spread over the nine districts.

Improving access to markets

Support to farmers’ organisations Access to market and technical informationDelivery of technical supportEstablishment of processing groupsPublic-Private Partnerships (PPPs) between farmers’ organisations and traders/exportersWarehouse receipts and access to storage facilitiesImproving access to finance through the village banking system

Active projects – FNML

•Program Target Group: 10,500 households in 175 poor upland villages in target areas

* Main target group: Population of 175 target villages

*Secondary target group: The private buyers of the target products, Smallholders in the target areas

* Total: project cost: $18.82 millionTotal IFAD financing: IFAD DSF Grant: $9.72 million, ASAP Grant: $5.0 million,Government of Laos: $0.54 million,Private sector and Partner Banks: $1.48 million,Beneficiaries: $0.53 million

Active projects – FNML (cont)  Components and Sub-components

A. Food Security and Pro-Poor Market Access

B. Inclusive Rural Finance Support

C. Institutional Support

D. Smallholder Adaptation for Climate Change Component (SACCC) (New Component)

Active projects – FNML (cont)  Component A - Food Security and Pro-Poor Market 

AccessSub-

componentsTARGET(Design Doc)

ACHIEVEMENT (to date)

Preparatory activities

Market identificationCalls for proposalsVillage selection and capacity building at district levelImplementation arrangements.

Village Programming

Livelihood analysis and PLUPFarmers’ groups established and supportedImplementation arrangements.

Business Partnership Development

Business partnership developmentAn upscaling/extension of successful BPs might be envisaged after the mid-term reviewLegal assistance will be provided by village-based legal volunteers who were trained by GAPE, a Pakse-based NGO providing legal protection supportEach BDO will monitor BPs falling into his/her value chain and will collect data that will be updated on a yearly basis to assess investment impactImplementation arrangements

Food and Nutrition Security

Sustainable agriculture intensification: Nutrition enhancement will be addressed through awareness-raising on good nutrition practices, District Teams, Village Nutrition FacilitatorsClean water accessLand tenure securityInnovation through farmersImplementation arrangements

Active projects – FNML (cont)  Component B - Inclusive Rural Finance Support

Sub-components

TARGET(Design Doc)

ACHIEVEMENT (to date)

Group lending to farmers groups and Enterprise credit to value-chains

adequate training in accessing necessary financing to improve capacity to market and successfully sell products are given to farmers

Building the capacity of partner banks

Technical assistance, banking and specialized technological training in agricultural and agribusiness lending technologies are provided to partner banks

Investment matching grants

Grant financing by a donor to supply the necessary seed capital to launch joint business initiatives, which assists at least 50 applicants. The matching grant facility will be disbursed on a demand basis, but will follow a phased approach, whereby ten villages will be targeted in each programme year

Active projects – FNML (cont)  Component C - Institutional Support

Sub-components

TARGET(Design Doc)

ACHIEVEMENT (to date)

Value chain linkages through regular interaction between stakeholders

Annual meetings of value chain stakeholders for the main key products over the programme area are promotedPolicy researches are carried outImplementation modalities: format, organisation, agenda development and facilitation of the value chain multi-stakeholders’ platforms

Implementation capacity and system development

Monitoring, knowledge management and communicationSupport to programme implementation: a Programme Regional Coordination Office (PRCO) in Attapeu to ensure programme coordination, manage support that will encompass more than one district, and to backstop districts and provinces in the planning, implementation, monitoring and evaluation and knowledge management related to programme activities

Active projects – FNML (cont)  Component D – Smallholders Adaptation for Climate 

Change (new)

Sub-components

TARGET(Design Doc)

ACHIEVEMENT (to date)

Enabling environment for climate change adaptation

Community-based Adaptation Investment Plans

Attepeu&Sayabouri

NRSLLDP SNRMP SSSSJ FNML -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Approved amount Disbursement amount

Disbursement (cumulative)– active projects

Disbursement per year – active projects

2010 2011 2012 2013 2014 up to 15/04/2015

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Attepeu&Sayabouri NRSLLDP SNRMPSSSJ FNML

Annual Performance Based Ratings

2010 2011 2012 2013 20140.00.51.01.52.02.53.03.54.04.55.0 4.8

3.7 3.8 3.8

4.2

4.2

4.2 4.34

4.1

Portfolio average PSR ratings

Laos

Annual Performance Based Ratings

20102011

20122013

2014

00.5

11.5

22.5

33.5

44.5

5

NRSLLDP

RLIPAS

SSSJP

FNML

SNRMPE

PSR ratings - Projects

NRSLLDP RLIPAS SSSJP FNML SNRMPE

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