JFPR: 37651

ASIAN DEVELOPMENT BANK

GRANT ASSISTANCE
(Financed by the Japan Fund for Poverty Reduction)

TO THE

LAO PEOPLE'S DEMOCRATIC REPUBLIC

FOR THE

SOLID WASTE MANAGEMENT AND INCOME GENERATION FOR VIENTIANE'S

POOR PROJECT

December 2003
 CURRENCY EQUIVALENTS
(as of 4 December 2003)

Currency Unit - kip (KN)

KN1.00 = $0.0000961
$1.00 = KN10,406

ABBREVIATIONS

ADB – Asian Development Bank

AFD – Agence Française de Développement
AP – affected persons
CSPU – country strategy and program update
DANIDA – Danish International Development Agency
IEC – information, education, and communication
JICA – Japan International Cooperation Agency
JFPR – Japan Fund for Poverty Reduction
LWU – Lao Women's Union
PADETC – Participatory Development Training Center
PCU – project coordination unit
PPA – poverty partnership agreement
Sida – Swedish International Development Agency
UNDP – United Nations Development Program
VUDAA – Vientiane Urban Development Administration Authority
VUISP – Vientiane Urban Infrastructure Services Project
WMC – waste pickers' multipurpose center
WRC – waste recycling center

NOTES

(i) The fiscal year of the Government ends on 30 September.

(ii) In this report, “$” refers to US dollars.
MAP
 JAPAN FUND FOR POVERTY REDUCTION (JFPR)
JFPR Grant Proposal

I. Basic Data

Name of Proposed Activity Solid Waste Management and Income Generation

for Vientiane’s Poor
Country Lao People's Democratic Republic
Grant Amount Requested $1.0 million
Regional Project No
Grant Type Project

II. Grant Development Objectives and Expected Key Performance Indicators

Grant Development Objectives:
The proposed Project will improve the living conditions of the poor households and waste pickers in
Vientiane through an improved sanitary environment, better access to waste collection services, and
improved standards of living through acquisition of entrepreneurial skills. It will (i) improve and sustain
solid waste collection practices, transportation and disposal services in poor communities; (ii) build the
capacity to plan and implement sustainable community-based solid waste management; and (iii)
generate income and promote employment opportunities for waste pickers and poor households.

Expected Key Performance Indicators:

1. Approximately 14,200 people in 2,900 households in 10 communities will directly benefit from solid
waste collection, recycling, and processing.
2. An additional 20 tons waste/day will be collected through community-based mechanisms.
3. Skills training for 500 persons will enable them to increase earnings by 15%.
4. Improved occupational safety for 200 waste pickers and adequate sanitary practices in the municipal
landfill site, will be realized.

III. Categories, Amounts, and Percentage of Expenditures

Amount of Grant Allocated Percentage of
Category
($) Expenditures
1. Civil works 289,000 28.9

2. Equipment, furniture, and hardware 70,000 7.0

3. Goods and consumable supplies 79,000 7.9

4. Training, workshops, seminars 171,000 17.1

5. Consulting services 82,000 8.2

6. Project management and coordination 93,300 9.3

7. Other project inputs 129,200 12.9

8. Contingencies 86,500 8.7

Total 1,000,000 100.0

Incremental Cost (ADB) 44,000

2

JAPAN FUND FOR POVERTY REDUCTION

A. Other Data
Date of Submission of Application
Project Officer (Name, Position)
Project Officer’s Division, E-mail,
Phone
Other Staff Who Will Need
Access to Edit/Review the Report
JFPR Grant Proposal
Background Information
28 August 2003
Januar Hakim, Urban Development Specialist
MKSS, jhakim@adb.org, Tel. 632-6891
Gulfer Cezayirli, Senior Urban Development Specialist
Carmelita Vita, Associate Operations Analyst

Sector Social Sector

Theme Human Development
Name of Associated ADB- 1834-LAO (SF): Vientiane Urban Infrastructure and Services
Financed Operation Approved: 23 August 2001 in the amount of $25.0 million
Executing Agency Vientiane Prefecture

Grant Implementing Agencies Mr. Saisana Prathoumvan, Vice President

Vientiane Urban Development Administration Authority (VUDAA)
Hong Kha Road, Vientiane
E-mail: vuisp@laopdr.com
Fax No. (856-21) 212104
Tel. No. (856-21) 213842

Mrs. Bangon, President

Lao Women’s Union (LWU)
Phonxay Road, Vientiane

Mr. Sombath Somphone, Director

Participatory Development Training Center
180 Nakham St, Luang Prabang Road
Vientiane
E-mail: padetc@laotel.com
Fax No. (856-21) 215909
Tel. (856-21) 506941

B. Details of the Proposed Grant

1. Description of the Components, Monitorable Deliverables/Outcomes, and
Implementation Timetable
Component A
Component Name Solid Waste Infrastructure Improvements

Cost (US$) 185,900 (excl. contingencies)

Component Description This component aims to improve conditions at the municipal

landfill site at KM 18 (e.g., access road, pit excavations),
establish a waste pickers’ multipurpose center (WMC), which
serves as a training and reference center for waste pickers and
residents to increase income, promote occupational safety for
waste pickers and workers at the landfill site, and improve
management capability of the municipal landfill authority. The
WMC will provide a sorting area, recycling facilities, and
 3

training and administration rooms. There will be a full-time staff

to manage the WMC. The Government will set aside a land
area of approximately 1,000 square meters (m2). The dump site
will be improved by providing sanitary equipment and materials,
improving the access road, and adhering to sound landfill
sanitation practices. The Project will also consider site and
security control, slope stability, site drainage, water resource
protection, and improved regulation of waste-picking operations.
No additional land will be required.

Monitorable Deliverables/Outputs
1. Improved access road within municipal landfill site, 600 meters
2. Construction of 250 m2 WMC equipped with furniture and
equipment and waste processing equipment
3. Improved working conditions and training for 200 waste pickers
and residents around the municipal landfill site
4. Improved capacity of municipal landfill site management

Implementation of Major Activities:
1. Improvement of municipal landfill site and working conditions,
procurement of civil works and equipment/supplies under
Vientiane Urban Development Administration Authority
(VUDAA) supervision.
2. Training and community organizing skills by Lao Women’s
Union (LWU) for a total of 6 months intermittently starting
August 2003
3. Dump site improvements starting from April 2004 for 3 months

Component B
Component Name Community-Based Solid Waste Management
Cost ($) 355,400 (excl. contingencies)
Component Description This component aims to enable communities to participate
actively in solid waste separation, collection, and recycling. A
community-based fee collection system will be introduced,
whereby the community will bear the cost of collection. This will
provide employment for the poorest of the poor where waste
collection services are absent and buildup of unhygienic waste
is becoming a serious problem. In addition, the Project will
provide waste transporters/carts, sanitation equipment and
materials, waste recycling centers (WRCs); and improve cart
access for waste collection. A prototype cart/waste transporter
for conditions where access is difficult will be developed and
tested. Three WRCs will be established. They will be
complemented by continuous improvement of public health, and
environmental sanitation by self-help groups in conjunction with
the secondary collection done by Vientiane Municipality and
Vientiane Urban Infrastructure Services Project (VUISP).

Actual site selection will be based on community willingness to

contribute resources. Communal transfer points and WRCs
may require land; affected persons (APs), indigenous
peoples/ethnic minorities and/or vulnerable groups will be fairly
treated subject to Asian Development Bank (ADB) resettlement
and other guidelines. APs will be identified during appraisal to
ensure that they are not adversely affected by and benefit from
the Project.
4

Monitorable Deliverables/Outputs 1. Improved and effective solid waste management systems,

whereby an additional 15–20 tons waste/day will be collected,
and 10 communal transfer points constructed
2. Segregation of solid waste at its source in pilot communities
3. Establishment of three WRCs
4. Additional 5 kilometers of improved cart access to households
5. Workshops and meetings conducted with communities to
disseminate and share information and experiences on waste
management programs, good health and proper hygiene
practices, and local sanitation ordinances
6. Video documentary (40 minutes)
7. Innovative waste transporter/cart design

Implementation of Major Activities: 1. Community organizing and mobilizing and setting up

community-based solid waste management systems in
selected communities will start March 2004 for a total of 12
months (intermittent), implemented by village committees.
2. Workshops and community meetings will be held at various
stages until project completion.
3. Design of prototype transporter will start April 2004 for 1
month, followed by mass production of transporters.
4. Improving access by carts/transporters will be done
continuously for 6 months starting October 2004.
5. WRCs will be tendered in July 2004 and constructed by
October 2004.

Component C
Component Name Income Generation and Entrepreneurship Development
Cost ($) 157,400 (excl. contingencies)
Component Description Main activities will comprise training and skills development in
waste recycling, marketing/entrepreneurship, composting
organic waste and vermiculture, and accounting/ bookkeeping.
Acquisition of information, education and communication (IEC)
materials already developed by other projects/ organizations
such as VUISP and United Nations Development Programme
(UNDP) will be made. In addition, in-kind grants will be
provided to assist the poor households/communities and
waste pickers in starting small-scale entrepreneurial activities.

Monitorable Deliverables/Outputs 1. Training of necessary skills and appropriate technologies for

500 people
2. Increased income for participant poor households and
wastepickers by 25%.

Implementation of Major Activities: 1. Civil society organizations will implement skills training
programs and income-generating activities from March 2004
for 30 months intermittently.
2. Training modules include waste recycling,
composting/vermiculture, and marketing and entrepreneurship.
 5

Component D
Component Name Project Management and Administration
Cost ($) 214,800 (excl. contingencies)
Component Description This component will support overall project management,
reporting, coordination; conduct monitoring and evaluation of
project benefits, and poverty impact survey 3 months before
project completion; and prepare project completion report.
Benchmarks for project performance will be established during
the inception mission to guide the monitoring process during
implementation. Other main activities include disseminating
and sharing information and experiences through various
media, facilitating stakeholder workshops, and policy dialogue
between the Government, civil society organizations, and
communities.

Monitorable Deliverables/Outputs 1. Project coordination unit (PCU) setup

2. Workshops at inception and midterm implementation; two ADB
project reviews each year
3. Quarterly progress and financial reports
4. Poverty impact assessment
5. Project completion report on the execution of the Project
6. Audited financial report

Implementation of Major Activities:
1. VUDAA, through PCU, will coordinate and monitor all activities
under each project component starting January 2004.
2. VUDAA will recruit an individual domestic consultant or an
international consultant from Southeast Asia for 18 person-
months of intermittent consulting services to provide technical
and other assistance in project management.
3. Quarterly progress and financial reports will be submitted to ADB
within 1 month of the end of each period.
4. Poverty impact assessment will be conducted by a local
research institute 3 months before project completion
(approximately September 2006).
5. A project completion report will be submitted to ADB within 3
months of project completion. Project accounts will be audited
by an independent auditor and certified copies of audited
accounts submitted to ADB no later than 6 months after the end
of each fiscal year.

2. Financing Plan for Proposed Project to be Supported by JFPR

Financier $
JFPR 1,000,000

Government 140,500

Communities 46,000

Total 1,186,500

Appendix 1 shows the fund flow arrangements.

6

3. Genesis
The Government of the Lao People's Democratic Republic through the VUDAA has requested
ADB in June 2003 to finance, through the Japan Fund for Poverty Reduction (JFPR) a grant
assistance to help the Government prepare an innovative environmental improvement project for
the poor in low-income areas in Vientiane, and at the same time generate income for poor
households.

A particular concern is the environmental hazards caused by uncollected solid waste and
unsanitary health habits, which work against the health and employment opportunities of the
poor. Of an estimated 220 tons of solid waste generated daily, only 80-100 tons are collected
and disposed of at the municipal landfill site. Further, waste collection services cannot reach
neighborhoods due to difficult road and access conditions. Ways must be sought to promote
better environmental hygiene and generate income for poor households through adequate waste
collection, transportation, recycling, and disposal. If nothing is done, problems of uncollected
solid waste will disrupt the city’s functions.

The Project is conceptually related to the VUISP. But where the major thrust of VUISP is to
provide physical infrastructure and environmental sanitation for poor communities, the proposed
Project focuses on income-generating activities through community-based solid waste
management.

4. Innovation
In the short term, the Project will promote innovative solid waste management practices. It will
facilitate the recycling of waste, provide poor households with necessary skills training on
appropriate technologies, and also generate additional income for waste pickers and
employment for poor households in the process.

In the longer term, the Project will promote a combination of a cleaner environment and income
generation through community-based efforts that will hopefully reflect a sense of ownership that
lasts beyond the project life. As solid waste management is regarded as the entry point for better
environmental practices, greater awareness of sanitary hygiene and development of skills for the
poor will be the ultimate long-term objectives.

The Project will include the design of an appropriate waste transporter that takes into account
the difficulties that communities face in accessing waste collection services (e.g., poor terrain,
flooding, surfacing material). A prototype waste transporter will be developed.

5. Sustainability
The Government is strongly committed to improving the environment in low-income areas in
Vientiane and increasing the income of poor households. To ensure sustainability, the Project
will (i) encourage self-help through community organizing, skills development, and incorporation
into mainstream economic activity, (ii) introduce a fee-based waste collection system? whereby
collection costs are borne by the community? that will be continued after the Project is
completed; (iii) encourage policy dialogue through discussions with various stakeholders, and
suggestions for appropriate local ordinances and regulatory mechanisms to ensure efficient
solid waste management; and (iv) dissemination of good practices with regard to environmental
hygiene and occupational safety. At the end of the Project, communities will have the capacity to
manage their solid waste. The Project will also be labor-intensive and require little investment in
expensive mechanical equipment.
 7

For environmental and social sustainability, resettlement and other social and other safeguards
that will be strictly adhered to will conform to relevant ADB guidelines.

6. Participatory Approach
Communities have been and will be continually consulted to gauge their interest, concerns,
suggestions, and commitment to ensure project ownership and involvement in designing and
implementing the Project. During appraisal, a community development specialist was engaged
and facilitated meetings with civil society groups, communities, and residents surrounding the
landfill site at KM 18 and several villages in Central Vientiane. A consultative workshop was
conducted during appraisal, cohosted by ADB and VUDAA. The Project will encourage
continuous dialogue and consultation during implementation through workshops and meetings.

Primary beneficiaries and other affected Other key stakeholders and brief description
groups and relevant description

1. Residents in poor communities in Vientiane
including Tongkhankam Nueua, Tongkhang
kam Tai, Dongpalane Tai, Hong Kha, That
Luang Tai, That Luang Kang, Siddam Douane,
and Nong Chan
2. Waste pickers operating in the municipal
landfill site in KM18
3. Vientiane Prefecture will benefit from
community assistance in collecting waste from
areas that were previously inaccessible.
4. VUDAA will benefit from improved sanitation
practices and future revenue sources.
1. Civil society groups will act as implementers of
various subcomponents.
2. Development partners, including UNDP, and
Danish International Development Agency
(Danida) (i.e., Vientiane Urban Environmental
Improvement Project) have been consulted on
several avenues of cooperation, such as the
use of IEC and relevant training materials to be
developed by UNDP and Danida-funded project.
3. Japan International Cooperation Agency (JICA)
implemented landfill guidelines and procedures
in the municipal landfill site (1992–1998).

7. Coordination
Representatives of Agence Française de Développement (AFD), JICA, Sida, and UNDP, and the
team leader of a Danida-funded project (Vientiane Urban Environmental Improvement) had been
consulted to discuss possible areas of cooperation and coordination. The landfill guidelines and
procedures implemented by JICA in KM 17 landfill site will be utilized in disposing of wastes in
the municipal landfill site. Several avenues for further cooperation have been identified, such as
the use of IEC and relevant training materials to be developed by UNDP and Danida-funded
projects. The proposed project components and activities are intended to complement, not
duplicate, the efforts of development partners.

8. Cost Table and Indicative Procurement Packages

The cost estimates are in Appendix 2.
Indicative procurement packages are in Appendix 3.

C. Linkage to ADB Strategy and ADB-Financed Operations

1. Linkage to ADB Strategy
The emphasis in the Lao Country Strategy Program Update (CSPU) 2003/2005 is to reduce
poverty through broad-based community participation and environmental improvements. The
poverty partnership agreement (PPA) emphasizes, among others, human resource
8

development and sustainable environmental management to achieve prop-poor sustainable

growth.
Document Number Date of Last Objective(s)
Document
Discussion
LAO CSPU Jul 2002 Poverty reduction through broadening community
2003/2005 participation and opportunities; environmental
improvements

LAO PPA Sep 2001 Pro-poor sustainable growth, social development, and
good governance and private sector development
through (i) rural development and market linkages, (ii)
human resource development, (iii) sustainable
environmental management, and (iv) regional
cooperation.

2. Linkage to Specific ADB-Financed Operation

Project Name Vientiane Urban Infrastructure and Services

Project Number Loan 1834-LAO(SF)

Date of Board Approval 23 August 2001

Loan Amount ($ million) 25.0

3. Development Objectives
The objectives of the Project are to improve the quality of life of the urban residents, especially
the poor and the disadvantaged, and to enhance urban productivity and economic growth in the
Vientiane urban area. The Project has two specific objectives: to support decentralization and
urban governance reforms and the process toward an autonomous, well-functioning, and self-
sufficient urban local government; and to target investments in infrastructure and services to
maximize the use of existing infrastructure.
4. Main Project Components
No. Component Name Brief Description
1. Citywide infrastructure and 1. Road improvement: road subprojects, rehabilitating
environmental improvements damaged roads, road surfacing, and developing new
secondary alignment
2. Drainage improvements: improving primary and secondary
drainage lines improvement and constructing new drain
sections
3. Solid waste management improvements: solid waste
collection vehicles and 50 containers; improving fleet use
efficiency, and increasing village contracts for solid waste
management (SWM)
4. Traffic management and road safety (Agence Française de
Développement [AFD]-financed)
5. Constructing VUDAA office building construction and
providing road and drainage maintenance equipment
2. Village area improvement (VAI) 1. Community infrastructure upgrading and sanitation services
in 50 urban villages
2. Community preparation and awareness campaigns
3. Capacity building and project 1. Infrastructure assistance and community-based project
implementation support implementation to facilitate legal reform and revenue
mobilization
2. Capacity building assistance for Urban Policy and
Institutional Reform
 9

5. Rationale for Grant Funding versus ADB Lending

The Project is conceptually related to the Vientiane Urban Infrastructure and Services Project.
VUISP has a village area improvement component, which includes solid waste improvements.
Whereas the major thrust of VUISP is physical infrastructure and environmental sanitation for the
poor communities, the proposed Project focuses on income-generating activities through
community-based SWM and specifically addresses income generation and direct interventions
to targeted beneficiaries to reduce poverty and provide service to areas that are not accessible.
The proposed Project will (i) focus on direct economic poverty reduction and thus give emphasis
to income generation for low-income neighborhoods and informal urban residents; and (ii)
address the sustainability of self-help and community-based efforts, which are not normally
financed under ADB loans.
D. Implementation of the Proposed Grant
1. Implementing Agencies
The schematic of implementation arrangements is in Appendix 4.

1. Implementing Agency
1. VUDAA will (i) implement, coordinate, and monitor all
activities under each project component; and (ii) be
responsible for closely monitoring activities and expenses
incurred by LWU and Participatory Development Training
Center (PADETC).
2. LWU was established in 1955, and over forty years later, its
membership expanded to 600,000. It has been noted for its
involvement in numerous projects promoting women’s
rights and advancement of Lao women of all ethnic groups.
In 1990, it provided support for Lao cotton and silk garments
production by Lao women, and has been a pivotal figure in
the Development Plan for Women of Laos (1995? 2000),
and in the facilitation of various gender mainstreaming
workshops.
For the JFPR Project, LWU will be responsible for
household/community mobilization, and conducting
workshops and meetings. However, the Project will engage
LWU as a civil society organization that does not specifically
target women. LWU (i) has been entrusted specifically with
the task of enhancing women’s role and status and actively
involving them in development; (ii) works in cooperation with
other ministries, state agencies, and international
organizations; and (iii) has a strong organizational network
at the village, national, and international levels. It has a
strong mobilization capacity.
3. PADETC, a local civil society organization, will implement
skills training programs and income-generating activities.
Founded in 1980 and registered under the Department of
Private Education in the Ministry of Education, it has four
operational units: training and development, appropriate
technology and microenterprises, media for developm ent,
and social marketing. In 2001, it received the Economic and
Social Commission for Asia and the Pacific (ESCAP)
Human Resources Department (HRD) Award empowering
the poor through human resource development. Its
operations are funded mostly by international organizations.
10
2. Risks Affecting Grant Implementation
Type of Risk Brief Description
Lack of commitment from Stakeholder commitment is
beneficiaries and imperative to the fulfillment of
stakeholders objectives and sense of ownership.
Objectives, activities, and impacts of
the Project should be clearly
explained and understood.
A possible risk of involving Children are human assets that
children in income-generating should not be deprived of education.
activities at the expense of
their education
Risk of adversely affecting Indigenous groups and/or ethnic
indigenous groups/ethnic minorities are vulnerable to
minorities environmental and social changes
and therefore should not be
adversely affected by the Project.
Construction of waste APs should be given fair
recycling centers may compensation and opportunity to
displace residents address grievance.
The Project may inadvertently Project should be viewed as a
institutionalize a dangerous, shorter-term poverty reduction
poorly managed dump site, intervention, but not detract from the
and push off any government longer-term need to properly upgrade
interest in developing a more the open/controlled dumpsite and
sustainable sanitary land fill mitigate the environmental and public
at proper standards. health threats that it likely poses on
workers, nearby communities and
the environment.
3. Monitoring and Evaluation
Key Performance Indicator Reporting Mechanism
1. Number of households and Progress reports
communities participating in solid Socioeconomic surveys
waste collection, recycling, and Poverty impact assessment
further processing of solid waste
2. Increased amount of solid waste Progress reports
collected and processed Government data
Poverty impact assessment
Measure to Mitigate the Risk
Involvement of key stakeholders
should be ensured during the
design and implementation stages.
The Government will provide further
guidelines on this matter and
should synchronize its actions with
those of key development partners
(United Nations Children's Fund
[UNICEF], World Health
Organization [WHO], etc.).
Inventory of indigenous peoples and
ethnic minorities should be made
and impacts analyzed thoroughly.
Negotiations, exchange and
donation of land for project
purposes are to be based on
consultations with APs, and should
be recorded in detail so that an
independent agency can verify the
process and ensure that the income
and livelihood of APs are not
severely affected by such actions.
Government assurance in writing
must be obtained with regard to its
resource and policy commitments
to uphold best sanitary landfill
practices as indicated by the JICA
project.
Plan and Timetable for M&E
Every 6 months
November 2006
Every 6 months
November 2006
 11

3. Number of persons/households Progress reports Every 6 months

provided with skills training and Socioeconomic surveys
with increased earnings after Poverty impact assessment November 2006
training

4. Physical and technical Progress reports Every 6 months

improvements at the landfill site Poverty impact assessment
November 2006

5. Financial progress Financial progress reports Every 3 months

4. Estimated Disbursement Schedule

Fiscal Year (FY) Amount (in $)
FY2004 579,135
FY2005 210,845
FY2006 210,020
Total Disbursements 1,000,000

E. Clearances
Director General of relevant regional department endorses the cleared JFPR grant proposal to the
Government of Japan, through the Office of Cofinancing Operations (OCO).

Cleared By Name/Division Comments

1. Director General of Rajat M. Nag, MKRD Cleared

the relevant regional
department

2. Director of the division Young Baek Lee, MKSS Cleared

in the relevant
regional department

3. Staff review 1. C. Andrews, RSAN Cleared

committee (SRC) 2. F. Choon, OGC
members 3. V. Diem, CTLA
4. G. Kim, MKOC
5. G. Cezayirli, MKSS
6. S. Kawazu, OGC
7. K. Sakai, MKRD
8. Z. Teng, COPP
9. P. Turner, MKOC
10. J. van Ommen, JFPR Consultant
11. X. Ye, MKSS

4. Other reviewers 1. R. Everitt, RSES Cleared

2. H. Maruyama, COCS
3. B. Coleman, MKGF
4. I. Simbolon, RSES
5. N. Rayner, ERD
6. K. Seetharam, OED
12

5. cc list Director General, MKRD

Deputy Director General, MKRD
Directors,
COCS/COPP/MKOC/RSAN/RSES
Assistant General Counsel
Assistant Controller, CTLA
Country Director, LRM
MKRD Lao Team

COCS = Consulting Services Division, COPP = Project Coordination and Procurement Division, CTLA = Loan
Administration Division, ERD = Economics and Research Department, OED = Operations Evaluations
Department, JFPR = Japan Fund for Poverty Reduction, LRM = Lao Resident Mission, MKGF = Governance,
Finance, and Trade Division, MKRD = Mekong Regional Department, MKOC = Operations Coordination Division,
MKSS = Social Sectors Division, OGC = Office of the General Counsel, RSAN = Agriculture, Natural Resources,
and Social Sectors Division, RSES = Environment and Social Safeguard Division.

F. Checklist

OCO will use the answers you provide to the following questions to evaluate the application’s eligibility for
funding. After answering “yes” or “no” to questions 1 to 7 below, refer to the section number in the
application where the question is fully addressed. DO NOT provide detailed description below, as details
should be included in the relevant sections of page 1 and sections B to D.

1. Does the application support activities that will assist the poorest and most vulnerable groups
eligible for JFPR funding?
Yes
Response is found in Sections B1 (Components B and C), B4, and C5

2. Do the proposed activities fit within at least one of the following basic purposes of the JFPR?
a. Support innovative social programs, which directly respond to the needs of poor and
vulnerable groups in recipient countries and have high potential for ameliorating their
destitute living conditions.
b. Provide relatively rapid, demonstrable benefits for affected populations through initiatives
and mechanisms with positive prospects for sustainability over the long term.
c. Provide direct assistance to programs designed and implemented by local populations,
civil society, and NGOs to facilitate their empowerment and enhance their participation in
the development process.
Yes
Response is found in Sections B1 (Components B and C), B4

3. Are the proposed activities designed and expected to be implemented with full participation by local
community groups and nongovernment organizations (NGOs)?
Yes
Response is found in Section B6

4. Do the activities support interventions that will have a catalytic effect or magnify the impact of ADB-
financed operation(s)?
Yes
Response is found in Section C5
 13

5. Does the application identify methods to monitor and evaluate outcomes, implementation progress,
and the impact of the grant on the beneficiaries?
Yes
Response is found in Section B1 (Component D)
6. Are Japanese NGOs participating in this JFPR activity?
No
Response is found in Section B7
7. Have Japanese aid agencies (e.g., JBIC, JICA) been consulted in developing the JFPR Project?
Yes
Response is found in Sections B6 and B7
Please confirm statements 8-16 below.

8. Proposed JFPR activities are not eligible or cannot be funded under loans, or through other sources
of funding available to ADB.
Confirmed
9. Proposed JFPR activities are not being used to prepare projects or supplement existing project
preparation activities being funded through JSF or other project preparation fund.
Confirmed
10. The application does not include pilot activities that are not linked to ADB-funded operations in the
pipeline or under implementation.
Confirmed
11. The application includes an exit strategy or a mechanism to ensure long-term sustainability.
Confirmed
12. The legal status, financial soundness, track record, and arrangements for use and accounting of
grant funds have been checked for grants that are expected to be executed by community groups or
NGOs.
Confirmed
13. Where funding of incremental costs (staff or consultants) for grant preparation and/or
implementation is requested, a full justification is provided.
Not Applicable
14. The grant will not include study tours or foreign training.
Confirmed
15. The application does not include support for academic training, research work, and core program
activities of global/regional programs.
Confirmed

16. The director general and the director of the relevant regional department have endorsed the grant
activity.
Confirmed

Appendixes
1. Cost Estimates
2. Fund Flow Arrangements
3. Implementation Arrangements
4. Indicative Procurement Package
14 Appendix 1

FUND FLOW ARRANGEMENTS

1. To facilitate day-to-day local expenditures of the Japan Fund for Poverty Reduction
(JFPR) Project, the Asian Development Bank (ADB) will channel the JFPR funds directly to a
JFPR imprest account, which will be opened and maintained by the project coordination unit
(PCU) in Vientiane, at a bank endorsed by the executing agency (EA) and acceptable to ADB.
The EA and Ministry of Finance (MOF) will be kept informed by the PCU about all transactions,
and will receive copies of all financial statements and audit reports. The imprest account, which
will be managed by the PCU on the principle of cosignatory arrangement with Vientiane Urban
Development Administration Authority (VUDAA), will be based initially on the first 6-month activity
plan and related budget, and afterwards on the approved annual work plan and budget.

2. ADB will initially channel $100,000 to the imprest account as advance for day-to-day
project implementation during the inception period, and will replenish the fund every 3–6 months
based on replenishment requests from the PCU through the EA and in accordance with ADB's
statement of expenditures procedure. The statement of expenditures procedure will apply for all
payments and transactions under $10,000 to ensure speedy project implementation. Detailed
implementation arrangements, such as the flow, replenishment, and administrative procedures
will be established by ADB and the Government through the JFPR Letter of Agreement and
detailed in the project implementation manual. The schematic fund flow for the JFPR Project is
shown in Figure A1.
 Appendix 1 15

Figure A1: Schematic Fund Flow

Asian Development Bank

$1,000,000
ICB/ICQ/LCB/LCQ procurements $165,000
(e.g. equipment in bulk, etc.)

Component 1: Solid Waste $95,000 Project imprest account at $18,000 External Audits
Infrastructure Project Coordination Unit

Component 2: Community- $280,400 $186,800 Overall Management,

Based Solid Waste Coordination and Monitoring

Com ponent 3: Income Generation $157,400 $10,000

and Entrepreneurship Poverty Impact
Development Assessment

$86,500
Contingencies

ICB = international competitive bidding, LCB = local competitive bidding.

 COST ESTIMATES

16
Component 1 Component 2 Component 3 Component 4
Solid Waste Community-Based Income Project Management, Total
Project Inputs Management Solid Waste Generation and Administration, Input
Improvements Management Entrepreneurship Monitoring and Audit
Development

Appendix 2
1. Civil Works (incl. Waste pickers' multipurpose center,
recycling centers, upgrading of access road, pit excavation,
90,000 199,000 0 0 289,000
communal transfer points, cart access, technical surveys and
designs, and supervision of constructions)
2. Equipment, Furniture and Hardware: (e.g. compactors,
grinders, computers, communications devices, audiovisual 24,000 25,000 15,000 6,000 70,000
equipment, furniture, etc.)
3. Goods and Consumable Supplies (e.g. packaging material,
hardware and tools for training purposes, IEC materials, boots, 18,000 26,000 25,000 10,000 79,000
uniforms, stationery, fuel, chemicals, etc.)
4. Training, Workshops, Seminars (e.g., staff development,
participant training, technical training specialists, community
26,000 56,000 73,000 16,000 171,000
mobilizing and organizing, venue rental, travel, food and
accommodation for participants, and other related costs)
5. Consulting Services (e.g., for project management
0 0 0 82,000 82,000
consultant (18 person-months) and poverty impact assessment)
6. Project Management (including management of the PIU and
the specific components, wages for staff, per diem for
10,500 0 0 82,800 93,300
government staff and local volunteers, office equipment, rental,
O&M, and recurrent costs)
7. Other Project Inputs (For other specific project inputs that
cannot be included in any of the above categories, such as
17,400 49,400 44,400 18,000 129,200
specific livelihood development costs by specialized NGOs,
funds for establishing microfinance systems, etc.)

8. Contingencies (0-10% of total estimated grant fund)

18,100 33,600 14,600 20,200 86,500
Use of contingencies requires prior approval from ADB.
Subtotal JFPR financed 204,000 389,000 172,000 235,000 1,000,000
Government Contribution (e.g., salaries for government
counterparts; provision of project office; land acquisition for
69,500 23,000 6,000 42,000 140,500
buildings and constructions, participation in
workshops/meetings)
Other Aid Agency Contributions (e.g., costs for O&M,
livelihood skills development, infrastructure assistance,
0 0 0 0 0
technology assistance, specialized material and equipment
supply, etc.)
Community's Contributions (e.g., participation in all training
and community development; land development, and labor 0 39,000 7,000 0 46,000
contribution through food for work)

Total project costs 273,500 451,000 185,000 277,000 1,186,500

ADB = Asian Development Bank, IEC = information, education, and communication, NGO = nongovernment organization, O&M = operation and maintenance,
PIU = project implementation unit.
 DETAILED COST ESTIMATES
($)

Costs Contributions
Code Supplies and Services Rendered Unit Quantity Cost Total
Units Per Unit $ JFPR Government Other Donors Communities

Method of
Amount Amount Amount Amount Amount
Procurement
Component A. Solid Waste Infrastructure Improvements Subtotal: 255,400 185,900 69,500 0 0

1.1 Civil Works Subtotal: 154,500 90,000 64,500 0 0

1.1.1 Design and construction of WMC square meter 250 150 37,500 30,000 LCB 7,500 0 0
1.1.2 Upgrading of access road in landfill area meter 600 70 42,000 35,000 LCB 7,000 0 0
1.1.3 Landfill operations/pit excavation subproject 3 25,000 75,000 25,000 LCB 50,000 0 0

1.2 Equipment, Furniture, and Furnishing Subtotal: 24,000 24,000 0 0 0

1.2.1 Compactor unit 4 2,000 8,000 8,000 DP 0 0 0
1.2.2 Mixer/grinder unit 2 2,000 4,000 4,000 DP 0 0 0
1.2.3 Computers, communication equipment lumpsum 1 8,000 8,000 8,000 DP 0 0 0
1.2.4 Furniture lumpsum 1 4,000 4,000 4,000 DP 0 0 0

1.3 Goods and Consumable Supplies Subtotal: 18,000 18,000 0 0 0

1.3.1 Small tools, gears, boots, uniforms lumpsum 1 8,000 8,000 8,000 DP 0 0 0
1.3.2 Chemicals, fuel, etc. lumpsum 1 10,000 10,000 10,000 DP 0 0 0

1.4 Training, workshops, seminars Subtotal: 31,000 26,000 5,000 0 0

1.4.1. Waste pickers organizing lumpsum 1 5,000 5,000 5,000 0 0 0
1.4.2 Skills training month 6 3,000 18,000 13,000 5,000 0 0
1.4.3 Staff development lumpsum 1 5,000 5,000 5,000
1.4.4 On-site workshops session 15 200 3,000 3,000 0 0 0

1.5 Consulting Services Subtotal: 0 0 0 0 0

1.6 Management and Coordination Subtotal: 10,500 10,500 0 0 0

1.6.1 Component 1 - (1 Staff) person-month 30 200 6,000 6,000 0 0 0
1.6.3 Operational Costs month 30 150 4,500 4,500 0 0 0

1.7 Other Project Inputs (NGO costs) Subtotal: 17,400 17,400 0 0 0

1.7.1 Component 1 - (3 Staff) person-month 18 800 14,400 14,400 0 0 0

Appendix 2
1.3.3 Operational Costs month 6 500 3,000 3,000 0 0 0

Component B. Community-based SWM Subtotal: 417,400 355,400 23,000 0 39,000

2.1 Civil Works Subtotal: 254,000 199,000 20,000 0 35,000

2.1.1 Waste recycling center (WRC) unit 3 25,000 75,000 75,000 LCB 0 0 0
2.1.2 Recycling banks unit 30 300 9,000 9,000 CP 0 0 0
2.1.3 Communal transfer points unit 10 2,000 20,000 15,000 CP 0 0 5,000

17
2.1.4 Walkway upgrade/cart access subproject 10 15,000 150,000 100,000 CP 20,000 0 30,000
2.2 Equipment, Furniture and Furnishing Subtotal: 27,000 25,000 2,000 0 0

18
2.2.1 Pushcarts/waste transporters unit 100 120 12,000 10,000 DP 2,000 0 0
2.2.2 Compactor unit 3 2,000 6,000 6,000 DP 0 0 0
2.2.3 Mixer unit 3 2,000 6,000 6,000 DP 0 0 0
2.2.4 Furnishings for WRC lumpsum 3 1,000 3,000 3,000 DP 0 0 0

Appendix 2
2.3 Goods and Consumable Supplies Subtotal: 30,000 26,000 0 0 4,000
2.3.1 Trash bins unit 1000 10 10,000 8,000 DP 0 0 2,000
2.3.2 Plastic bags/liners (colored) lumpsum 1 10,000 10,000 8,000 DP 0 0 2,000
2.3.3 Gears, hand tools, uniforms lumpsum 1 10,000 10,000 10,000 DP 0 0 0

2.4 Training, workshops, seminars Subtotal: 56,000 56,000 0 0 0

2.4.1 Community organizing location 10 2,000 20,000 20,000 0 0 0
2.4.2 Skills training month 12 3,000 36,000 36,000 0 0 0

2.5 Consulting Services Subtotal: 0 0 0 0 0

2.6 Management and Coordination Subtotal: 0 0 0 0 0

Other Project Inputs (NGO Costs, Prototype

2.7 Subtotal : 50,400 49,400 1,000 0 0
Development)
2.7.1 Component 1 - (4 Staff) person-month 48 800 38,400 38,400 0 0 0
2.7.2 Operational Costs month 12 500 6,000 6,000 0 0 0
2.7.3 Waste transporter prototype design & development lumpsum 1 6,000 6,000 5,000 1,000 0 0

Component C. Income Generation Subtotal: 170,400 157,400 6,000 0 7,000

3.1 Equipment, Furniture and Furnishing Subtotal : 20,000 15,000 5,000 0 0

3.1.1 Training equipment, machines and tools lumpsum 1 20,000 20,000 15,000 DP 5,000 0 0

3.2 Goods and Consumable Supplies Subtotal : 26,000 25,000 1,000 0 0

3.2.1 IEC materials (production and translation) lumpsum 1 11,000 11,000 10,000 DP 1,000 0 0
3.2.2 Supplies, chemicals, fuel lumpsum 1 15,000 15,000 15,000 DP 0 0 0

3.3 Training, workshops, seminars Subtotal : 80,000 73,000 0 0 7,000

3.3.1 Training packet: waste recycling packet 16 2,000 32,000 30,000 0 0 2,000
3.3.2 Training packet: marketing and entrepreneurship packet 6 2,000 12,000 11,000 0 0 1,000
Training packet: composting & vermiculture packet 10 2,000 20,000 18,000 0 0 2,000
Training packet: book keeping/accounting packet 8 2,000 16,000 14,000 0 0 2,000

3.4 Consulting Services Subtotal : 0 0 0 0 0

3.5 Management and Coordination Subtotal : 0 0 0 0 0

3.6 Other Project Inputs (NGO costs) Subtotal : 44,400 44,400 0 0 0

3.6.1 Component 1 - (4 Staff) person-month 48 800 38,400 38,400 0 0 0
3.6.2 Operational Costs month 12 500 6,000 6,000 0 0 0

Component D. Project Management and Administration Subtotal : 256,800 214,800 42,000 0 0

3.1. Equipment, Furniture lumpsum Subtotal : 12,000 6,000 6,000 0 0

3.2. Goods and Consumable Supplies lumpsum Subtotal : 10,000 10,000 0 0 0

3.1 Training, workshops, seminars Subtotal : 16,000 16,000 0 0 0
3.1.1 Workshops/seminars session 4 1,500 6,000 6,000 0 0 0
3.1.2 Video documentary lumpsum 1 10,000 10,000 10,000 0 0 0

3.2 Consulting Services Subtotal : 82,000 82,000 0 0 0

3.2.1 Project management consultant person-month 18 4,000 72,000 72,000 0 0 0
3.2.2 Poverty impact assessment person-month 2 5,000 10,000 10,000 0 0 0

3.3 Management and Coordination Subtotal: 118,800 82,800 36,000 0 0

3.3.1 Component 1 - (4 Staff) person-month 36 800 28,800 28,800 0 0 0
3.3.2 Travel and Per diem 36 500 18,000 18,000 0 0 0
3.3.3 Operational Costs 36 2,000 72,000 36,000 36,000 0 0

3.4 Other Project Inputs (Specify) Subtotal: 18,000 18,000 0 0 0

External audit reports report 6 3,000 18,000 18,000 0 0 0

Components A to D = Subtotal Subtotal: 1,100,000 913,500 140,500 0 46,000

Contingency (Max 10% of Total JFPR
100,000 86,500 9,500 0 4,000
Contribution)

TOTAL Project Cost Total: 1,200,000 1,000,000 150,000 0 50,000

Appendix 2
19
20 Appendix 3

INDICATIVE PROCUREMENT PACKAGES

Contract
Number of Mode of Responsible
No. Item Amount
Contracts Procurement Agency
($)

A. Civil Works

1. Waste Pickers Multipurpose Center (WMC) 1 37,500 LCB VUDAA

2. Access Road and Landfill Excavation 1 117,000 LCB VUDAA

3. Waste Recycling Center 3 75,000 LCB VUDAA

4. Walkway Upgrading/Cart Access/CTP 10 140,000 CPa VMC

B. Equipment
1. WMC Equipment, including Furniture,
Computers, Compactors, Grinders, etc. 1 37,000 DP VUDAA
2. SWM Equipment, including Pushcarts, Trash
Bins, Compactors, Hand Tools, etc. 1 28,000 DP LWU
3. Training Equipment, Various Electrical and
Hand Machines, Light Construction
Equipment, etc. 1 25,000 DP PADETC

C. Supplies
1. SWM Supplies, including Plastic Bags,
Chemicals, Containers, etc. 1 10,000 DP VUDAA

Total 19 469,500
CP = community participation in procurement, CTP = communal transfer point, DP = direct purchase, LCB = local
competitive bidding, LWU = Lao Women's Union, PADETC = Participatory Development and Training Center, SWM
= solid waste management, VMC = village management committee, VUDAA = Vientiane Urban Development
Administration Authority.
a
Eligibility criteria for community-based projects: (i) does not exceed contract limit of $15,000; (ii) benefits targeted
beneficiaries, address community needs; (iii) demonstrates adequate capacity to execute the project; (iv) labor-
intensive construction, simple scope of works; (v) willingness of communities to participate and provide in-kind
contributions; (vi) community to sign a legally binding contract; and (vii) realistic implementation to be prepared.
 Appendix 4 21

IMPLEMENTATION ARRANGEMENTS

Vientiane Prefecture

Executing Agency Steering Committee

Vientiane Prefecture
Ministry of Finance
MCTPC
CPC
PMU VUDAA Project DPA
VUISP Coordination Unit
(PCU)

Implementing Agency Independent Poverty

Impact Assessment

Solid Waste Community-based Income Project

Infrastructure Solid Waste Generation and Management
Improvements Management Entrepreneurship and
(LWU) (LWU) Development Administration
(PADETC)

Dump Site
Community Waste Administrative
Improvements
Organizing Recycling/Composting Management and
Coordination

WMC Solid Waste Entrepreneurship

Management Skills Training Workshop/Training

Management
and Training Access
Improvement
and Civil
Works

CPC = Central Planning Committee, DPA = Department of Public Administration, LWU = Lao Women's Union,
MCTPC = Ministry of Construction, Transport, Post, and Communications, PADETC = Participatory Development
Training Center, PCU = Project Coordination Unit, PMU = Project Management Unit, VUDAA = Vientiane Urban
Development Administration Authority, VUISP = Vientiane Urban Infrastructure Services Project, WMC = waste
pickers’ multipurpose center.