LA-Khammouane Development Project

closed

The objective of the Khammouane Development Project for Laos is to strengthen the planning process and public financial management associated with the decentralized delivery of services and infrastructure, including irrigation development, in Khammouane province. There are two components to the project. The first component is the local development and provincial capacity building. It will support Khammouane province to: (a) pilot and adopt more transparent and participatory procedures for public investment to improve rural livelihoods; and (b) strengthen key provincial departments to implement and sustain this approach. As a result, the provincial departments will be able to implement the new procedures and approaches adopted by the Government of Lao People's Democratic Republic (GoL). There are three subcomponents to the project. The first subcomponent is the District Development Fund (DDF). It will provide support to the province to develop and implement the DDF, as a more transparent and participatory way to finance investments in public infrastructure and service delivery with rural communities. The second subcomponent is the provincial capacity development. Finally, the third subcomponent is the component management. The second component is the support for irrigation development along Nam Theun 2 (NT2) downstream channel and lower Xe bang Fai River. The water to be discharged by the NT2 dam is an opportunity for increasing agricultural production during the dry season, but also poses a risk of increasing floods during the wet season. Given that the Nam Theun Power Company (NTPC) is constructing five outlets along the downstream channel to help the GoL to develop irrigation facilities utilizing discharge water from the NT2 hydropower station, this subcomponent would mainly support the GoL's effort to develop downstream irrigation. Further, as an alternative to protect livelihoods in the lower Xe bang Fai River from possible floods; this component will also support the rehabilitation of small pump-based irrigation facilities.