Outline of the Project

Project Name

The Project for Improvement of Management Capacity of Water Supply Sector (MaWaSU 2)

Project Area

Vientiane Capital, Provinces of Luang Prabang, Khammouane and others

Duration of the Project

5 years (May 2018 – May 2023)

Executing Organization

Department of Water Supply (DWS), Ministry of Public Works and Transport (MPWT) of Lao PDR

Implementing Organizations

DWS of MPWT, Vientiane Capital Water Supply State Enterprise (NPNL), Luang Prabang Provincial Water Supply State Enterprise (NPLB) and Khammouane Provincial Water Supply State Enterprise (NPKM) as the pilot water supply state enterprises (WSSEs), Department of Public Works and Transport (DPWT) of Vientiane Capital, Luang Prabang, Khammouane and WSSEs and DPWTs of other provinces

Direct Beneficiaries

Staff of: DWS of MPWT; WSSEs (NPNL, NPLB, NPKM, and other provinces); and DPWTs of Vientiane Capital, Luang Prabang, Khammouane and other provinces

Indirect Beneficiaries

People living in the water supply areas of the pilot and other WSSEs

Overall Goal

The water supply sector management system and WSSE's capacity to achieve national goals is strengthened.

Project Purpose

The foundation necessary for strengthening the water supply sector management system and WSSEs' capacity is formulated.

Outputs

1. Transparency, accountability and governance (TAG) is enhanced in water supply sector institutions by improving administration of water supply service.
2. Capacity of WSSEs for planning, implementation, monitoring and evaluation of water supply projects is enhanced.
3. Technical standards necessary for water supply service are developed.
4. Operational capacity necessary for the WSSEs to implement the water supply service is enhanced.

Activities

Output 1

1-1.	Formulate Institutional Review Committee (IRC) to undertake the following activities and identify priority domains.
1-1-1.	Review the current capacities of DWS and DPWTs as well as the mandates of each organization defined by the laws and regulations to identify capacity gaps.
1-1-2.	Review the current institutional effectiveness in terms of TAG.
1-1-3.	According to the needs identified, undertake workshops to provide results of the review to IRC members and other concerned organizations.
1-1-4.	Based on the workshops, define the scope of a study which is necessary to detailed study regarging instition/governance and undertake the studies.
1-1-5.	Submit an Overall Institutional Development Strategy (OIDS) including recommendations to the concerned organizations.
1-1-6.	Select a priority domain which is effective to enhance TAG among identified domains in OIDS such as licensing, PPP, technical/financial monitoring of WSSEs and private water service providers.
1-2.	By initiative of DWS, the Priority Domain Task Team (PDTT) is formulated from all the stakeholder organizations, including the Ministry of Planning and Investment (MPI), Ministry of Home Affairs (MHA), Ministry of Finance (MOF), local governments to undertake the following activities.
1-2-1.	Review the current situations of the priority domain.
1-2-2.	Review the current mandates of laws and regulations regading the priority domain.
1-2-3.	Review the current institutional effectiveness in terms of TAG.
1-2-4.	According to the needs identified, undertake workshops to provide the results of 1-2-2 and 1-2-3 to PDTT members and other concerned organizations.
1-2-5.	Identify a scope of works which is necessary to study based on the workshops, and undertake the study.
1-3.	Formulate PDCDS.
1-3-1.	Make a draft of PDCDS.
1-3-2.	Discuss the draft among IRC.
1-3-3.	Undertake workshops for dissemination and feedback of the draft.
1-3-4.	Submit the final draft of PDCDS to DWS.
1-4.	By the initiative of DWS, the Fund Framework Committee (FFC) is formulated to consider operation and management of the fund by all the stakeholder organizations, including MPI, MHA, MOF, local governments to undertake the following activities:
1-4-1.	Define a scope of required capacities and its level for management of the fund.
1-4-2.	Extract lessons learned from pilot projects conducted in 2-2.
1-4-3.	Define key elements to achieve TAG.
1-4-4.	Define the scope of the study to establish the fund based on activities 1-4-1 to 1-4-3 and undertake specific target studies
1-4-5.	Design the complete procedures for the entire cycle of the fund management.
1-5.	Propose the funding mechanism.
1-5-1.	Define target level for urban self-sufficiency and rural subsidization.
1-5-2.	Study funding sources (donor, surcharge, government interest subsidy etc.).
1-5-3.	Define the scope and undertake studies including specific target such as financial simulation and risk analysis
1-5-4.	Propose an overall funding mechanism.
1-6.	Submit the fund plan.
1-6-1.	Combine fund framework and funding mechanism discussed on 1-4 and 1-5.
1-6-2.	Make a draft proposal for establishment of the fund.
1-6-3.	Discuss the draft proposal among all the stakeholders.
1-6-4.	Undertake workshops for dissemination and feedback of the draft proposal.
1-6-5.	Submit a final proposal to DWS as the fund plan.
1-7.	WSS, PWSS, WSG, and WSSY supported by MaWaSU are finalized and/or revised to be utilized.
1-7-1.	Current situation of WSS, PWSS, WSG, and WSSY are examined and evaluated.
1-7-2.	Necessary items to be revised those strategies and guidelines are identified to be practiced.
1-7-3.	WSS, PWSS, WSG, and WSSY are finalized and/or revised.

Output 2

2-1.	Review the current practice of the planning and supervision mechanism for implementing water supply projects, and prepare an implementation system of pilot projects.
2-1-1.	Under the initiative of DWS, set up Pilot Project Task Team (PPTT) consisting of DWS, DPWT and the WSSEs.
2-1-2.	PPTT discusses the roles, authorities and responsibilities of each agency concerning the implementation of water supply projects.
2-1-3.	PPTT (for application process for funds to be supported within JICA's project) discusses the procedures for the facility development: plan – assessment - implementation - monitoring – evaluation.
2-1-4.	PPTT prepares procedures for developing proposals.[1]
2-1-5.	PPTT prepares for briefing sessions for other WSSEs based on the procedure.
2-2.	Implement the pilot projects.
2-2-1.	Pilot Project Evaluation Committee (PPEC) holds briefing sessions for all WSSEs for application of finance.
2-2-2.	WSSEs applying for finance by the Project prepare and submit proposals to PPEC.
2-2-3.	The proposals for the pilot projects will be examined on the technical, financial, environmental and social consideration aspects.
2-2-4.	Financing is decided for the pilot projects that passed the review by PPEC.[2]
2-2-5.	WSSEs prepare for the design documents and the bidding documents for the implementation of the pilot projects in consultation with DPWT and submit them to PPEC.
2-2-6.	PPEC confirms the validity of the tender documents and approves them.
2-2-7.	WSSEs will conduct bidding using tender documents approved by PPEC in consultation with DPWT.[3]
2-2-8.	WSSEs prepare a bid evaluation report in consultation with DPWT and submit it to PPEC.
2-2-9.	PPEC approves the evaluation result of the submitted bid evaluation report.
2-2-10.	JICA Laos Office enters into a contract for the pilot projects.
2-2-11.	WSSEs carry out supervision for pilot projects in consultation with DPWT.
2-2-12.	WSSEs prepare certification documents verifying the invoices submitted by the contractors in consultation with DPWT and submit them to DWS.
2-2-13.	DWS and DPWT monitor the progress of the pilot projects and advise WSSEs as necessary.
2-2-14.	WSSEs prepare the project completion reports in consultation with DPWT and submit them to DWS.
2-2-15.	DWS approves the project completion reports.
2-3.	Review the system for implementing the pilot projects.
2-3-1.	Implement ex-post evaluation of activities of the1st batch. Regarding the series of pilot projects implemented in 2-2, PPTT will review the procedures, responsibilities, and give feed-back to the next pilot projects as necessary.
2-3-2.	PPTT reviews the implementation of the pilot projects in terms of TAG.

Output 3

3-1.	Standard Task Team (STT) is formed at DWS, DPW and WSSEs to consider and formulate technical standards.
3-2.	Priority for technical standards is determined.
3-3.	Based on the priority order, STT discusses and determines the scope of standards.
3-4.	STT formulates the draft standards.
3-5.	STT submits the draft standards to MPWT.
4-1.	Operational and training capacity in civil works, water quality, and financial management of the pilot WSSEs is improved.
4-1-1.	Specify the operational areas in civil works, water quality, and financial management which require capacity development.
4-1-2.	Evaluate the current capacity of the pilot WSSEs on the specified operational areas and determine the target level to be achieved during the Project.
4-1-3.	Trainers of specified area in 4-1-1 and 4-1-2 are selected by the each pilot WSSE and assessed their capacity.
4-1-4.	JICA Experts provides guidance to those trainers.
4-1-5.	Evaluate the capacity of the trainers of the pilot WSSEs.
4-2.	Discuss the roles of MPWT, DPWTs, and the pilot WSSEs for implementing DP, which is approved in the MaWaSU, and DP is implemented.
4-2-1.	DP is reviewed.
4-2-2.	Based on the review, DP is implemented.
4-2-3.	Evaluate contents of DP and compile the results of activities.
4-2-4.	Report on the result of dissemination activities to MPWT.
4-2-5.	Formulate a plan for implementation of the next plan, and the budget for the next plan is requested to MPWT and/or DPWTs.
4-2-6.	The activities from 4-2-1 to 4-2-5 will be continued according to the allocation of the budget.
4-3.	Activities of MaWaSU Sub-Committee are promoted.
4-3-1.	The pilot WSSEs review current situation of MaWaSU Sub-Committee.
4-3-2.	The pilot WSSEs hold the MaWaSU Sub-Committee six times a year.
4-3-3.	The pilot WSSEs review the MaWaSU Sub-Committee again and take action to improve the operation of the MaWaSU Sub-Committee.
4-4.	WSSEs prepare for the establishment of the Laos Water Works Association.

Inputs

Lao Side

1. Project personnel
   1) Project Adviser
   Advisor to the Minister of Public Works and Transport
   2) Project Director
   Director General, DWS, MPWT
   3) Project Manager
   Director of Water Supply Division, DWS, MPWT
   4) CPs
2. Land, buildings, facilities necessary for the implementation of the Project, including office spaces for Japanese Expert team and a meeting room at the DWS and the pilot WSSEs.
3. Running expenses.

Japanese Side

1. Japanese Experts

(1)	Long-term experts Chief Advisor Sub-Chief Advisor (water supply management) Project Coordinator
(2)	Short-term Experts 1) Institution 1 2) Institution 2 3) Financial Management 4) Design/Construction Management 5) Civil Works 1 6) Civil Works 2 7) Water Quality 8) Finance
(3)	Equipment
(4)	Training in Japan 1) Following six (6) courses are expected. a. Intuitional Reform b. Fund c. Development of Technical Standards d. Water Quality Management e. Civil Works f. Financial Management 2) Duration Approximately one (1) to three (3) weeks in each course 3) Participants Approximately six (6) members in each course.