2007 – 2011 Country Programme Action Plan Between The

2007 – 2011 Country Programme Action Plan

Between

The Government of the Lao People’s

Democratic Republic

and

United Nations Development Programme (UNDP)

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List of Abbreviations and Acronyms

ADR Assessment of Development Results AFTA ASEAN Free Trade Area AHI Avian and Human Influenza AWP Annual Work Plans BDP Bureau for Development Policy CCA Common Country Assessment CCF Country Cooperation Framework CHAS Center for the Control of HIV/AIDS/STI COPE Cooperative Orthotic & Prosthetic Enterprise CPAP Country Programme Action Plan CPD Country Programme Document CPI Committee for Planning and Investment DAC Development Assistance Committee DDF District Development Fund EC European Commission FACE Funding Authorization and Certification of Expenditure FAO Food and Agriculture Organization FDI Foreign Direct Investment GIPA Greater Involvement of People Living with HIV/AIDS GMS General Management Support GPAR Governance and Public Administration Reform GRID Gender Resource Information and Development HACT Harmonized Approach to Cash Transfers HDI Human Development Index IF Integrated Framework IFF Integrated Framework Facilitator IFIs International Financial Institutions IGO Inter-governmental Organizations (including UN bodies) IMF International Monitory Fund IPS Integrated Package of Services ISS Implementing Support Service ITC International Trade Center IUCN World Conservation Union JMAS Japan Mine Action Service LBA Lao Bar Association LDC Least Developed Country LDPA Lao Disabled People’s Association LNCCI Lao National Chamber of Commerce and Industry LWU Lao Woman’s Union MAF Ministry of Agriculture and Forestry MIC Ministry of Industry and Commerce MICom Ministry of Information and Culture MDGs Millennium Development Goals MAG Mines Advisory Group MLSW Ministry of Labour and Social Welfare MOE Ministry of Education MOF Ministry of Finance MOFA Ministry of Foreign Affaires MOJ Ministry of Justice MOJ Ministry of Justice MOPS Ministry of Public Security

NA National Assembly NAHIC National Avian and Human Influenza Coordinating

Office NCAW National Commission for the Advancement of

Woman NCCA National Committee for the Control of AIDS NCCAB National Committee for the Control of Aids Bureau NDMC National Disaster Management Committee NDMO National Disaster Management Office NERI National Economic Research Institute NGO Non-Governmental Organization NGPES National Growth and Poverty Eradication Strategy NHDR National Human Development Report NPA Norwegian People’s Aid NRA National Regulatory Authority NSC National Statistic Center NSEDP National Socio-Economic Development Plan ODA Official Development Assistance OECD Organization for Economic Co-operation and

Development OSPP Office of the Supreme People’s Prosecutor PACSA Public Administration and Civil Service Authority PLWHA People Living With HIV/AIDs ROAR Results Oriented Annual Report RTM Roundtable Meeting RTP Roundtable Process SAI State Audit Institution SARS Severe Acute Respiratory Syndrome SBAA Standard Basic Assistance Agreement SDC Swiss Foundation for Mine Action SNV Netherlands Development Organization STEA Science, Technology and Environment Agency TWG Technical Working Groups UNCTAD United Nations Conference on Trade and

Development UNDAF United Nations Development Assistance Framework UNDG United Nations Development Group UNDP United Nations Development Programme UNFPA United Nations Population Fund UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development

Organization UNIFEM United Nations Development Fund for Women UNRC United Nations Resident Coordinator UNV United Nations Volunteer WFP World Food Programme WHO World Health Organization


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The Framework The Government of the Lao People’s Democratic Republic (the Lao PDR) and the United Nations Development Programme (UNDP) are in mutual agreement to the content of this document and their responsibilities in the implementation of the UNDP Country Programme in the Lao PDR. Furthering their mutual agreement and cooperation for the realization of the Millennium Development Goals and the United Nations Conventions and Summits to which the Government of the Lao PDR and UNDP are committed, including: The Millennium Summit and the Millennium Declaration, the Millennium Summit +5, and all the UN conventions to which the Lao PDR has acceded; Building upon the experience gained and progress made during the implementation of the previous Country Cooperation Framework (CCF) (2002 to 2006); Entering into a new period of cooperation (2007 to 2011); Declaring that these responsibilities will be fulfilled in a spirit of close cooperation; Have agreed as follows:

Part I. Basis of Relationship 1.1 Whereas the Government of the Lao PDR (hereinafter referred to as “the Government”) and the

United Nations Development Programme (hereinafter referred to as UNDP) have entered into a Standard Basic Assistance Agreement (SBAA) to govern UNDP’s assistance to the country, which was signed by both parties on 10 October 1988.

1.2 This Country Programme Action Plan (CPAP) for the Lao People’s Democratic Republic (PDR) reflects the development priorities set forth in the country’s recently finalized sixth 2006-2010 National Socio-Economic Development Plan (NSEDP) that has incorporated the National Growth and Poverty Eradication Strategy (NGPES), or Lao PRSP as well as the Millennium Development Goals (MDGs), the priorities identified in the United Nations Development Assistance Framework (UNDAF), and the mandate, corporate goals and comparative advantages of UNDP. Moreover, the CPAP also fully reflects the new UNDP programming and administration guidelines resulting from the UN Development Group simplification and harmonization initiative.

1.3 This CPAP, together with Annual Work Plans (AWP), concluded hereunder constitute together the project document as referred to in the SBAA (except where traditional project documents are required by financing partners.)


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Part II. Situation Analysis 2.1 This situational analysis is drawn from the in-depth analysis carried for the Common Country

Assessment (CCA) and the UNDP Country Programme Document (CPD). For more detailed information, refer therein.

2.2 The Lao People’s Democratic Republic (PDR) is a Least Developed Country (LDC) in the process of

becoming increasingly exposed and integrated to regional and world markets. Although it has no direct access to the sea, it is becoming increasingly “land-linked” through the development of large-scale transport infrastructure linking the Mekong sub-region. It is a sparsely populated and ethnically diverse country with 5.6 million residents, most of whom (80 percent) live in rural areas. The country has made steady progress towards its main aims of economic growth and poverty reduction: since the Asian economic crisis in 1997/1998 economic growth has averaged at six percent per annum; and the overall rate of poverty has fallen from 46 percent in 1992/93 to 34 percent in 2002/2003 (CPI-NSC 2005, Lao Poverty Trends 1992/3 – 2002/3). Although these trends are moving in the right direction, Lao PDR remains one of the world’s poorest countries and is ranked 133rd out of 177 countries according to the UNDP Global Human Development Index (HDI) in 2006. There are particular challenges relating to human resource development with only five percent of the population having completed secondary high school (Population and Housing Census 2005), and literacy rates ranging from 90 percent in Vientiane Capital to under 50 percent in certain remote provinces (LECS III). The Unexploded Ordnance (UXO), remnants from the Indochina war, continues to pose a major challenge for poverty reduction in rural areas, with access to land severely restricted. Human resource development and institutional capacity development are identified as important development needs of the country, in order for Lao PDR to effectively take advantage of potential development opportunities arising from regional and global integration.

2.3 Based on the holistic analyses of the country’s challenges contained in the CCA, the UNDAF for

2007-2011 identified the following three areas of focus for the UN in the Lao PDR: poverty reduction, social sectors, and governance. The CPD provides an additional situational analysis of main issues related to the UNDP programme, including poverty and inequity issues, UXO contamination, the financing for development and aid effectiveness, regional integration and trade, the Government’s public service delivery capacity, and the rule of law.

2.4 The first Millennium Development Goals (MDGs) Progress Report issued in January 2004 provides

the baseline data (1990) for measuring the MDGs and sets local goals and targets to enable the country to monitor progress towards the MDG up to 2015. The next MDG Report is planned for 2007. The “Lao Info” database, developed with assistance of an on-going UN joint project, provides important system support to maintain the MDG data and other key national indicators, and analyse implementation of the MDGs and the national plan.

2.5 The 2006-2010 NSEDP, approved by the National Assembly in June 2006, will form the basis of

future alignment of official development assistance (ODA) to the country. The Round-table Meeting (RTM) and its process meetings have been assisting the Government in coordinating and aligning ODA to the national plans and priorities. Following the RTM in September 2003, eight Government-Donor Sectoral and Cross-cutting Thematic Working Groups were established to facilitate dialogue on policy and aid coordination on the key sectors identified by the NGPES. The Government is committed to implementing the Paris Declaration on Aid Effectiveness, through the Vientiane Declaration signed on the occasion of the 9th RTM in November 2006 and participation in the global OECD-DAC surveys in 2007, 2008, and 2010.


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2.6 Regional integration and globalization have emerged as key priorities of the current five-year NSEDP. The third National Human Development Report 2006 (NHDR) examined the relationship between human development and international trade in the Lao PDR. The report points out that the country currently relies heavily on natural resource-based revenues. The export earnings from mining and hydroelectricity will raise national income and fiscal revenues, allowing the country to increase investment in education and health. However, excessive reliance on natural resources could confront the country with substantial risks and challenges, including adverse consequences for economic growth, employment generation, and environmental preservation. These challenges must be tackled before the so-called “Dutch disease” effects set in, eroding the competitiveness of the Lao economy. The NHDR recommends that the Lao PDR persevere with initiating and implementing strategic measures and changes that will promote economic diversification in sectors such as, agriculture, manufacturing, tourism, and garments. In this respect, the report underscores the necessity of, amongst other things, increasing investments in education and vocational training institutions, strengthening the sectors that will generate employment opportunities for the rural poor, women, and young people, and development of efficient and transparent mechanisms to manage government revenues and public expenditure.

2.7 The 2006-2010 NSEDP also emphasizes the central role of the domestic private sector and foreign

direct investment (FDI) in promoting broad based economic growth. Recent policy reviews indicate the importance of good governance as a precondition to fostering private sector development. The Government is in the process of formulating a Legal Master Plan which contains an evaluation and assessment of the current status of the legal system; an identification of objectives, guiding principles, and needs for its comprehensive development; and it proposes the broad outline of a Legal System Development Strategy. Additionally, the capacity of civil servants, particularly at the sub-national levels, also need to be strengthened, for the purposes of stronger public administration and efficient delivery of public services.

2.8 Building on the successful UN reforms on harmonized programming with the preparation of the

CCA & UNDAF, the UN Country Team in the Lao PDR will launch further reforms at the implementation level, in line with their commitments to the Rome and Paris Declarations. Part VI and VII describe these new procedures and modalities, which will also be comprehensively detailed in the Local Results Management Guide. The Harmonized Approach to Cash Transfers (HACT) is one of the reforms to be implemented by the UN Development Group Executive Committee Agencies (UNDP, UNICEF and UNIFEM). The HACT aims to simplify the financial reporting, assurance and auditing procedures undertaken by the implementing agencies. It will be introduced from 2007. The new HACT modality also aims to strengthen and support national public financial management systems, and towards this end capacity assessments of the implementing partners will be undertaken as part of the HACT Micro Assessments. Capacity development in the financial management area will become an integral part of UNDP’s assistance to the Government during the 2007-2011 Country Programme period.

Part III. Past Cooperation and Lessons Learned

3.1 In preparing for the present Country Programme, in 2006 a corporate country programme evaluation

called “Assessment of Development Results (ADR)” was organized by the UNDP Evaluation Office. The purpose of the ADR was to assess the intended and achieved results of UNDP’s programme during 2002-2006, as well as evaluate UNDP’s overall contribution to development results at the country level. The CPD refers to the major findings of the study. The present CPAP takes into consideration the key recommendations made by the ADR, as well as the


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recommendations from two outcome evaluations and 16 project evaluations conducted during the past five years.

3.2 The ADR, recognizing the relevance of the UNDP programme to the national needs, recommends

that the current UNDP programme profile (aid coordination, poverty reduction and MDGs, governance, environment, UXO clearance, and gender mainstreaming) be maintained.

3.3 In particular, it recommends that UNDP should continue to support the Government through its role

as the co-chair of the RTM process for aid coordination. Following this recommendation, the present CPAP strengthens UNDP’s support for national capacity building in aid coordination, resource mobilization, and aid management in line with the Paris Declaration on Aid Effectiveness, and introduces new support for capacity building in monitoring and evaluation of implementation of the five-year NSEDP and MDGs. Further need to improve monitoring and evaluation as a management tool, especially at the provincial level, will also be addressed.

3.4 As the ADR and Annual Review highlighted, during 2002 to 2006 UNDP has shifted its programme

focus from the rural and local development level to the national policy level. To date, much emphasis has been placed in developing the policy, legal and management frameworks for reform. Following the ADR assessment, UNDP will place greater emphasis on supporting the implementation of established policies, strategies, national plans, and enforcement of laws.

3.5 Recognizing the recommendation of the necessity of the Government’s ownership in reforms,

UNDP will continue to support the Government’s efforts in implementing its governance and public administration reforms for enhanced transparency and accountability for delivery of public services. In addition, UNDP intends to incorporate natural resource management through its governance window. The two outcome evaluations conducted - the legal sector review (2003) and the governance and public administration reform review (2006) - assisted the Government in developing the Legal Sector Master Plan with extensive consultations among legal institutions, and formulating the next generation of governance programme respectively.

3.6 Following the recommendations provided in the ADR, the CPAP contains UNDP’s continued

support to increase efficiency and effectiveness of UXO clearance by seeking alternative UXO survey-clearance technologies, facilitating dialogue between the Government represented by the National Regulatory Authority (NRA) for the UXO sector and its partners, and setting priorities to clear land for productive use in accordance with national poverty reduction and development priorities.

3.7 The ADR recommendation on gender mainstreaming has been incorporated by identifying UNDP’s

support for this area as one of the nine outcome areas in the present CPAP. UNDP will assist the Government in mainstreaming gender through implementation of the recommendations of the Gender Assessment Report & Gender Mainstreaming Strategy.

3.8 The ADR found that UNDP could have more impact on institutional capacity development. Various

project evaluations also show the need to formalize the mechanisms for undertaking capacity assessment of the implementing partners. In this respect, the HACT reform represents an important opportunity to formalize the capacity assessment mechanisms and introduce longer-term capacity building measures in the areas of public financial management.


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Part IV. Proposed Programme 4.1. UNDP Lao PDR’s Country Programme for 2007-2011 aims to support the country’s national

priorities as delineated in the sixth NSEDP 2006-2010, which incorporates the NGPES (Lao PDR’s PRSP), MDGs and the Brussels Plan of Action for LDCs. The programme is also guided by the national goal of uplifting the country from the status of a LDC by 2020. It seeks to respond creatively to the challenges and opportunities identified within the Common Country Assessment.

4.2. The UNDP Country Programme is guided by the implementation of the UNDAF priorities and

partnership strategies. It focuses on three key thematic areas: (A) Poverty reduction and equitable growth (including unexploded ordnance and environmental sustainability); (B) Cross cutting issues (including gender empowerment and HIV/AIDS); and (C) Good governance. The future areas of UNDP’s support for each of the thematic areas are grouped according to the expected CP outcomes.

A. Poverty Reduction and Equitable Growth 4.3. Support towards outcomes related to poverty reduction and equitable growth, as articulated in the

UNDAF (Outcome 1) and CPD, are to be undertaken through three main avenues: (i) Improved access to land and sustainable use of natural resources; (ii) Pro-poor planning mechanisms and harmonization of aid coordination and disaster management; and (iii) Equitable economic growth approaches and regional integration with a pro-poor focus.

More specifically, assistance will be provided as follows: Outcome 1: Improved access to land and sustainable use of natural resources 4.4. Significant UXO contamination still poses threats to physical safety and limits access to land needed

for agricultural activities and other socio-economic development activities. UNDP will continue its support to the Government in addressing this long-term humanitarian and development issue and to contribute to enhanced safety, awareness of risks and more land released and/or cleared of UXO for productive use under the supervision of the National Regulatory Authority (NRA) for the UXO Sector. The more specific deliverables of the UNDP’s assistance in this area are as follows:

(a) Full operationalization of the NRA whose responsibilities include oversight of UXO related

activities in accordance with national standards and socio-economic development priorities. The future UNDP assistance will support the implementation of the following activities:

• Improve coordination for the UXO Sector through enhanced sectoral and sub-sectoral

Technical Working Groups (TWG) together with strengthened information sharing mechanisms such as comprehensive and compatible data collection system and database, UXO sector website and forums. This should create a favourable environment and bring synergy through coordinated works of different operators;

• Set up and operate a regulatory framework for the UXO Sector including the production of necessary regulations, standards and procedures;

• Develop and operate a framework for better resource allocation including the development and implementation of risk management model, reviewing and revising national strategy for the UXO sector in order to integrate UXO operations more effectively into larger development work and to respond more quickly to the needs of the affected communities; and


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• Develop and operate a quality management system for the UXO sector in order to ensure that the Government’s regulations, standards and procedures are enforced and respected by operators.

(b) Strengthened capacity, efficiency and effectiveness of UXO Lao, the National UXO clearance operator, in order to speed up the release of land to cater to the demands of an increasing population. The future UNDP assistance will focus on supporting the 2006-2010 NSEDP by releasing more land for agricultural extension in poor districts as follows:

• Better target and prioritize in line with the NRA Guidelines; • Increase productivity and reduce costs through improved application of existing technology

and introduction of new technology; • Change and improve institutional operations systems from mine clearance to UXO clearance; • Introduce enhanced technical survey; and • Develop new approaches to ensure cleared (or released) UXO land is used in a productive

manner that leads to improved socio-economic benefits for local communities. 4.5. In undertaking the above activities, UNDP will work closely with the NRA for the UXO sector and

UXO Lao. UNDP will continue its cooperation and collaboration with donors to the UXO sector, NGOs such as Japan Mine Action Service (JMAS), Mines Advisory Group (MAG), Norwegian People’s Aid (NPA), Swiss Foundation for Mine Action (SFD), Cooperative Orthotic & Prosthetic Enterprise (COPE), Handicap International Belgium (HIB) as well as UN agencies such as UNICEF and WFP.

4.6. Assistance on energy and environment sub-component is geared towards enhancing capacities on

promotion of environmentally sustainable development through strengthened implementation of multilateral environmental agreements, national environmental and natural resource management policies, and an improved understanding on the role of environment in general in the poverty reduction. The strategies include: strengthening national capacities at central and provincial levels; advocating for an enabling policy environment; and developing partnerships for results through strengthened cooperation between agencies and different administrative levels. This programme component is linked to governance and crisis prevention components of the CP. Two CP outputs that are expected from UNDP’s assistance are as follows:

(a) The role of biodiversity, agrobiodiversity, land management and environment in general in the

livelihoods improvements and poverty reduction strengthened through enhanced knowledge and management capacity by the Government at all levels. The future UNDP assistance will support the initiatives in the area of:

• Strengthening the capacities of Government at central level, and in selected provinces, for the

conserving agrobiodiversity, understanding of the contribution of agrobiodiversity conservation to livelihoods and poverty reduction and mainstreaming agrobiodiversity conservation into the attainment of food security and livelihoods improvement as well as improving access to information on agrobiodiversity; and

• Enhancing the capacities on sustainable land management and drought preparedness in selected provinces including participatory adaptation and monitoring activities at local levels.

(b) Enhanced management capacity of the Government in meeting its international environmental obligations through strengthened implementation of multilateral environmental agreements and


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related national policies and legislation. The future UNDP assistance will support the initiatives in the area of:

• Strengthening the implementation of the convention on biodiversity and National

Agrobiodiversity Programme through enhanced institutional capacity to analyse policies, mainstream agrobiodiversity into national policies, and enhanced cooperation between the agencies working on the sector;

• Enhancing the understanding on linkages between climate change and the need for a balance between economic growth, socio-cultural development and environmental protection on selected sectors, and improving access to data on climate change through development of National Communication system on climate change and adaptation activities;

• Strengthening the capacities to implement and enforce the natural resource management legislation at the central level and selected provinces through formulation of a compliance strategy and provision of tools for implementing and monitoring at the local level; and

• Enhancing the government’s capacity to implement the multilateral environmental agreements in a coordinated manner through strengthening planning and administration capacities, enhancing understanding of linkages between the international agreements and national development strategies, and building awareness amongst government and the broader public about the agreements and Lao PDR’s responsibility therein.

4.7. The main partners in implementing the outputs will be ministries and agencies working on the

agriculture, biodiversity, land degradation and multilateral environmental agreements and related national legislation including Ministry of Agriculture and Forestry (MAF), Science Technology and Environment Agency (STEA), Ministry of Justice (MoJ) and their provincial and district level offices in selected provinces, with the participation of relevant other ministries, organizations and projects working on the area.

Outcome 2: Pro-poor planning mechanisms, harmonization of aid coordination and disaster management 4.8. The central and local level dynamics related to MDG-based development strategies, policies,

planning, implementation and monitoring that combine a pro-poor and equitable approach to the development processes, will be supported through UNDP’s strategic programme. UNDP’s programme will also continue to support initiatives that aim to improve the Government’s capacity to coordinate and manage aid effectively, and prevent and respond to natural disasters. Concrete initiatives will include:

(a) Support to the Lao Government in the implementation of the NSEDP including the constituent

poverty reduction strategy and the MDGs, and in monitoring and evaluating the results. This will be linked to the rollout of the regional “Integrated Package of Services” (IPS), which supports governments in undertaking MDG-based national planning. Specifically, future initiatives will assist the Government in the following areas:

• Incorporation of the poverty reduction and MDG priorities and programmes of the Sixth Plan

(2006-2010) in the annual plans and budgets of selected Ministries and three pilot provinces and implementing them;

• Enhanced capacities of the CPI and its key functionaries, selected Ministries and three pilot provinces for improved implementation monitoring, evaluation and reporting; and


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• Establishment of a research network comprising the National Economic Research Institute (NERI) and selected Ministries and Agencies to undertake policy research to support planning, monitoring and evaluation.

4.9. The main partners in implementing the above output would include the Committee for Planning and

Investment (CPI), the Ministry of Finance and the four core-ministries of Agriculture, Health, Education and Transport, NERI and other Research Institutions, Universities, Local authorities, other UNDP offices (UNDP Regional Centre, BDP MDG Group), and SNV. Other potential partners may include STEA.

4.10. (b) The alignment of external aid with MDG-based national plans and capacity development for

ODA management will be undertaken through UNDP’s strategic support to the Round Table Process (RTP). Lao PDR is one of the few countries in Asia where UNDP plays a key role in assisting the Government in the RTP. The RTP is expected to remain a primary function through which UNDP will support the Government in facilitating a strategic dialogue forum and aid coordination mechanism geared towards deliberating on key development agendas with bilateral and multilateral partners, in accordance with the Rome and Paris Declarations on Aid Effectiveness. Specific initiatives will include:

• Continuing strategic support to the RTP through the strengthening of dialogue mechanisms

and aid alignment, as facilitated through the joint government and donor sector working groups;

• Provision of policy advice and support to the Government on the enhancement of ODA effectiveness and effective aid coordination, including implementation of the Paris Declaration through the Vientiane Declaration on Aid Effectiveness to be accompanied by a national action plan and indicators; and

• Sustained capacity development of key counterparts in ODA management, monitoring and evaluation.

4.11. Main partners in the above-mentioned output would include the Department of International

Cooperation (DIC) at the Ministry of Foreign Affairs (MOFA), key line Ministries leading the Government-Donor working groups, and key bilateral and multilateral partners.

4.12. (c) Strengthening national capacities to undertake data collection, and strategic research and policy

analysis, is essential for improved advocacy and policy and strategy development, implementation and monitoring. UNDP will therefore work with the Government to strengthen data collection systems, research and analysis capacities, monitoring and evaluation tools and skills, and advocacy and dissemination strategies. The future UNDP assistance will support the initiatives in the areas of:

• Successful and seamless/regular production of the NHDR. Development of dissemination

strategies and advocacy tools for highlighting the main findings of the NHDR, and other research studies, to raise public awareness and integrating them into policy discourse. Capacity building for human development reporting through training of relevant staff and researchers;

• Strategic studies and policy-oriented researches on macro and microeconomic issues that serve to further the implementation of pro-poor strategies and the attainment of the MDGs;

• Support for development journals, and other advocacy initiatives, which aim to stimulate civil society dialogue and discussions on pertinent development topics within the Lao PDR;


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• Strengthening the capacity of the Government to monitor progress towards the MDGs and other MDG-related international programs of action including the Brussels Program of Action on LDCs and the Almaty Program of Action on Landlocked Developing Countries through production of MDG and other progress reports; and

• Support the monitoring of the implementation of the NSDEP and the MDGs, through development, implementation and expanded outreach of indicator database systems, including the software tool called “Lao Info”.

4.13. Main partners in the above mentioned outputs would include the Department of International

Organization (DIO) at Ministry of Foreign Affairs, NSC, CPI, NERI, relevant line Ministries and other UNCT members, especially UNICEF and UNFPA. Other potential partners may include STEA.

4.14. Lao PDR is known to be prone to disasters, including floods, draughts and epidemics such as avian

and human influenza (AHI). These disasters mostly affect poor rural communities whose livelihoods depend heavily on their agricultural activities. UNDP will, therefore, work with the Government to develop national and local capacities to better prepare for and respond to disasters as well as national capacity for aid coordination as follows:

• Support an assessment of national disaster response and preparedness capacity and

identification of capacity gaps; • Increase capacity of the Government for disaster management and coordination including

enhancing information collection and management mechanism; • Strengthen the legal and institutional framework, including the development of appropriate

policies, strategies and other plans for disaster preparedness and response; • Raise awareness for the importance of disaster reduction, preparedness and response among

the Lao population; and • Strengthen the national capacity for aid coordination in case of emergencies such as SARS

and AHI. 4.15. UNDP has a key role in the joint support to the Government in strengthening its national capacity

for aid coordination for AHI pandemic prevention and preparedness, preparation and implementation of multi-sectoral national preparedness plans, and support to the management and coordination of pandemic influenza related aid and efforts. The future support to the Government, international partners and the UN system will focus on the following:

• Support to the effective implementation of the National Avian Influenza Control and

Pandemic Preparedness Plan, in collaboration with Government and external partners, and to the development of a broader operational level multi-sectoral national Pandemic Preparedness Plan and particularly non animal-human health aspects;

• Strengthen the Government pandemic management and coordination capacity, including efficient donor coordination and broad information sharing and facilitation of a cross-sectoral focus; and

• Increased aid coordination capacity, including support to monitoring and mapping of financial aid and efforts with identification of financing gaps and overlaps.

4.16 In undertaking the above activities, UNDP will work closely with the National Disaster

Management Committee (NDMC) and the National Disaster Management Office (NDMO), the National Committee for Communicable Diseases and Control (CDC), the National Avian and


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Human Influenza Coordinating Office (NAHICO), which UNDP assisted the Government to establish in the past and continues to advice and support. UNDP under the leadership of the Resident Coordinator will continue to work closely with FAO, WHO, UNICEF, WFP, WB and ADB

Outcome 3: Enabled environment for growth with equity 4.17 The government has a clearly articulated policy on achieving pro-poor economic growth in order to

achieve the MDGs and graduate from LDC status by 2020. With Lao PDR’s imminent accession into regional and global trade agreements (eg, AFTA and WTO), ensuring that growth is inclusive and broad based is an increasingly important issue. UNDP’s programme during 2007 to 2011 will support initiatives in the areas of: (a) private sector development; and (b) policy advice and implementation support for Lao PDR’s accession to regional and global trade agreements.

4.18 (a) Private sector development is recognized as the engine of growth that is essential for poverty

reduction. The overall aim of the UNDP’s support to this area will be to contribute to an improved enabling business environment, accelerated growth and profitability of small and medium sized enterprises, and increased overall competitiveness of domestic private businesses on the regional and world market. The priority initiative is to strengthen the capacity of Business Member Organizations and this will be achieved through working with NERI and the Lao National Chamber of Commerce and Industry (LNCCI). Specific initiatives will include:

• Optimizing the use of research findings and recommendations in the areas of private sector development and the business enabling environment;

• Strengthening the capacities of national stakeholders including the chambers of commerce and industry and business associations so that they can become independent, self-reliant and self-financing organizations providing effective and income generating services to the business community; and

• Strengthening the capacities of chambers of commerce and industry and business associations to carry out advocacy on behalf of their members.

4.19 Implementing Partners for achieving this output will include NERI, CPI, LNCCI, NSC, relevant line

Ministries, UNIDO, and focus/target groups, including business organizations, and small and medium sized private entrepreneurs.

4.20 (b) Policy advice and implementation support related to the articulation and implementation of pro-

poor trade policies, including global and regional agreements such as the ASEAN Free Trade Area (AFTA) and accession to the World Trade Organization will be undertaken. Specific initiatives will include:

• The provision of policy advice and support to the Government, following the burgeoning

international trade and recent bilateral trade agreements; • Enhancing the capacities of key stakeholders, such as the Ministry of Foreign Affairs, in

effectively managing the process of international and regional integration; • Critically analyzing the impacts of AFTA and other Free Trade Agreements under

negotiation and exploring mechanisms to achieve maximum benefits from ASEAN economic integration and other aspects of ASEAN integration; and

• Support for aid coordination on trade related issues would be undertaken under the auspices of the Integrated Framework for trade-related technical assistance (IF), which will enable UNDP to work closely with the Ministry of Industry and Commerce in coordinating with other IF core agencies and donors in implementing prioritized initiatives, as articulated in the


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Diagnostic Trade Integration Study (DTIS) and the Action Matrix on trade-related technical assistance as well as the 3rd NHDR on International Trade and Human Development.

4.21 Implementing Partners include the Ministry of Industry and Commerce and IF core agencies - WB,

IMF, UNCTAD, ITC, and WTO and the partners including AusAID and EC. B. Cross-Cutting Issues: Gender and HIV/AIDS 4.22 Support towards outcomes related to gender and HIV/AIDS, as articulated in the UNDAF (Outcome

2) and CPD, are to be undertaken through two channels: (i) Strengthened capacity for policy and practice related to gender empowerment and poverty reduction; and (ii) Increased coverage of quality HIV/AIDS prevention, treatment, care and support, with a focus on vulnerable groups. More specifically, assistance will be provided as follows:

Outcome 4: Strengthened capacity for policy and practice related to gender empowerment and poverty reduction 4.23 A critical cross-cutting issue, gender, is mainstreamed within the scope and rollout of all programme

components of the CPAP. A detailed and thorough gender review of UNDP’s overall programmes and interventions was undertaken in 2005-06 in the areas of poverty reduction, governance, environment and unexploded ordnance. At a macro-level, this resulted in the identification of several strategic areas for gender mainstreaming in ongoing and planned activities. UNDP aims to implement a tailored project on Gender Empowerment for Poverty Eradication, which seeks to achieve three strategic outcomes:

• Strengthened capacity of select central and provincial Government actors to effectively

mainstream gender equality for poverty reduction into polices, planning, and development activities;

• Increased gender equality in participatory planning in select provinces, districts, and villages, local decision-making and development activities; and

• Formulation of strategic tools for pro-poor gender-sensitive planning, policy formulation and resource allocation geared towards strengthened the capacities of the Lao Women’s Union (LWU) and the National Commission for the Advancement of Women (NCAW) in the implementation of the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW).

4.24 Implementing Partners for the gender empowerment project include LWU, NCAW, NSC, UNDP’s

provincial GPAR programme and the Support to the Implementation of the NSEDP project, key line Ministries including the Ministry of Agriculture, the Dutch development agency, SNV, and the Food and Agricultural Organization (FAO).

Outcome 5: Increased coverage of quality HIV/AIDS prevention, treatment, care and support, with a focus on vulnerable groups. 4.25 Official incidence of HIV/AIDS remains low in the Lao PDR (estimated 0.08% HIV seroprevalence,

CHAS 2005). Nevertheless, rapid regional developments and cultural changes are being translated into increasing vulnerabilities. UNDP’s efforts in supporting a multi-sectoral response to HIV/AIDS are based on the full realization of GIPA (Greater Involvement of People living with HIV/AIDS) principles and have been programmed in conjunction with other agencies such as UNV. It is envisioned that such an approach will contribute towards the effective implementation of Lao PDR’s


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Strategic and Action Plan on HIV/AIDS/STI (2006-2010). During the last decade the Government of Lao PDR has clarified and developed its sectoral policies and plans for health and HIV/AIDS prevention and treatment, adopting key strategic and planning instruments such as the Health Strategy up to the year 2020, National Strategy and Action Plan on HIV/AIDS/STI, and the NGPES (which has since been fully incorporated within the NSEDP). UNDP’s overall strategy related to mounting a multi-sectoral response to HIV/AIDS is geared towards assisting the National Committee for the Control of AIDS (NCCA) and the Center for the Control of HIV/AIDS/STI (CHAS) in collaboration with the Food and Agriculture Organization (FAO), in the areas of:

• Strengthening HIV/AIDS responses that are being undertaken at the national level by

building leadership capacities and organizational effectiveness among key leaders, decision makers and opinion makers;

• Mainstreaming and integrating responses on HIV in different line Ministries through an effective advocacy and communication strategy that is developed and implemented at national and provincial government levels;

• Greater involvement of people living with HIV/AIDS (GIPA), community mobilization through voluntary action, and partnerships bringing PLWHA organizations and government together for a meaningful involvement of PLWHA; and

• Piloting a model mainstreaming initiative on HIV/AIDS within the Ministry of Agriculture and Forestry, with technical assistance provided by FAO, aimed at further replication and scaling-up by other line Ministries at a subsequent stage.

4.26 Implementing Partners include CHAS, NCCA, policy makers within select line Ministries, including

the Ministry of Defense, provincial authorities and committees for control of AIDS (from all provinces), and the Buddhist clergy. Key partners also include UNCT members such as UNV, UNICEF, WHO, UNFPA and UNAIDS.

C. Governance 4.27 Governance is directly linked to poverty reduction in that limited public resources must be used

effectively and efficiently to reach out to the poor. Importantly, in the transition to a market-based economy, the system of decision-making must be more community-based, transparent and accountable. For the past decade, the Government of Lao PDR has embarked on wide-ranging public administration reforms, designed to create an effective and efficient public administration, including the requisite institutional and legal framework. In 2003, the Government presented a policy paper on governance, indicating its intention to pursue an ambitious reform agenda in that area. The initial governance policy paper has evolved into a Strategic Plan on Governance (2006-2010) presented by the Government at the 9th Roundtable Meeting held in November 2006. The new strategic plan builds on the reforms outlined in the earlier policy paper, but additionally has set medium-term targets and benchmarks, against which progress may be more tangibly measured. The Strategic Plan has been formulated with a clear view towards contributing to the realization of the poverty reduction objectives set out in the NSEDP, and provides a comprehensive overview of major governance activities, including the four themes of public service reform, people’s participation, the rule of law, and sound financial management. These priority areas form the basis of UNDP’s ongoing support in the area of governance.

4.28 UNDP will continue its commitment to supporting government-led initiatives to ensure more

efficient, accountable and transparent policies and practices to protect the rights of citizens, especially the poorest and most vulnerable. UNDP support to promote improved governance will contribute to UNDAF Outcome 3 on strengthened capacities of public and private institutions to


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fulfill their duties and greater people’s participation in governance and advocacy for the promotion of human rights in conformity with the Millennium Declaration.

4.29 UNDP support to promote democratic governance will aim at producing the four critical CP

outcomes, which will be a system of governance based on key principles of accountability, transparency, participation and equity (including gender equality), and consistent with democratic principles and the rule of law.

Outcome 6: Greater people’s participation in and contribution to public policy, local development and nation building 4.30 To foster enhanced community and civil society participation in the planning, implementation and

monitoring of local development activities, UNDP’s assistance during the CPAP will support a variety of initiatives through:

• Expanding mechanisms and opportunities to convey the rights and interests of citizens,

(young people, women, ethnic peoples and other vulnerable groups in particular) to decision-makers, through relevant and meaningful public participation in the context of decentralized service delivery and access to justice

• Improving access to information on national policy and local development issues through for instance, capacity development for the establishment of community radio stations operated for and by local communities with a significant ethnic and/or poor population;

• Continuing to facilitate public participation, especially with vulnerable groups, in community and local development planning with support from UNV field workers as well as introducing participatory monitoring of public service delivery through the use of citizen feedback surveys; and

• Generating greater awareness of the role and potential contribution of national civil society associations (CSAs) working alongside the government towards poverty reduction. Given the newly emerging area of support identified by the Strategic Plan on Governance (2006-2010) and the limited capacity at the national level at present, UNDP will initially lead the technical assistance, in close collaboration with PACSA, the National Assembly and the Ministry of Justice. The support is aimed at sharing best practice experiences in CSA/Government collaboration and facilitating the development and passage of legislation enabling the establishment and effective functioning of national civil society organizations as partners in national development and realization of MDGs. To this end, UNDP will also support training and national capacity development to civil society associations, in particular those which have either demonstrated concrete achievements in poverty reduction and/or have the potential and commitment to do so.

4.31 Implementing Partners contributing towards this outcome area are likely to include PACSA, CPI, MOF, MOFA, State Inspection Authority, State Audit Office, MIC, MOJ, LWU, NCAW, among others (eg STEA). In addition, it is expected that stronger partnerships will be forged with other UN agencies such as UNICEF, UNV and UNCDF as well as with experienced International NGOs and, especially in support of the Lao Government’s efforts to enable greater civil society involvement in socio-economic development and nation building.

Outcome 7: Increased and more equitable access to justice and strengthened rule of law

4.32 Lao PDR has committed itself to becoming a “Rule of Law” state, which entails accelerated development of institutional capacities of the legal sector to improve the application of the law in an


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impartial, effective and predictable manner. Capacities for legal sector reform would need to be strengthened not just in the executive and judiciary, but also in the legislature, where laws are discussed and endorsed. Improved law enforcement mechanisms would aim, in particular, to build private sector confidence and stimulate growth, while at the same time, protect human rights and be in accordance with international treaty obligations of the Lao Government. UNDP interventions in this output area are expected to focus on:

• Continuing to support the consultative process towards finalization of the Government’s Legal Sector Master Plan and subsequently provide initial assistance for commencing implementation activities under the guidance of a multi-stakeholder secretariat, spearheaded by the Ministry of Justice;

• Supporting the preparation of a comprehensive Access to Justice (baseline) survey to ascertain the current extent of challenges and opportunities for accessing reliable legal advice and receiving fair judgments, especially for small businesses, poor people, women and other vulnerable groups;

• Strengthening opportunities for constructive and regular dialogue between the private sector and the Ministry of Justice, including prior consultation on draft legislation or proposed new regulations which are likely to have an adverse impact particularly on small and medium sized enterprises;

• Enhancing individual and institutional capacities within some of the key legal institutions, including the Ministry of Justice, the People’s Supreme Court and appellate courts, the Office of the Supreme People’s Prosecutor, the Ministry of Public Security, and the Lao Bar Association;

• Improving access to justice through public legal education campaigns and the successful establishment and operation of legal aid units which provide free or low cost legal advisory services for poor and vulnerable people, especially women and children; To this end, the role and capacity of lawyers will be strengthened (in numbers, criminal, civil and commercial legal knowledge, legal skills and professionalism) so that the LBA can function as an independent self regulatory professional organization.

• Expanding information dissemination and outreach efforts towards improved public awareness of and adherence to the most up-to-date laws, regulations and decrees; and

• Enhancing the protection of human rights in the administration of justice for all.

4.33 As noted earlier, meaningful reform of the legal sector also requires a proactive and well-functioning legislature. To this end, UNDP will continue to strengthening capacities of the National Assembly, including empowerment of the women’s caucus, to provide effective oversight and hold government agencies accountable for timely and predictable delivery of services and implementation of laws through:

• Enhancing the law-making skills of legislators and strengthening the Committee system with

clear guidelines and increased capacity of members over oversight; • Expanding the understanding of the duties, obligations and ethical conduct of National

Assembly members through the development of a standardized handbook and regular orientation sessions; and

• Improving effective representation of constituents through improved knowledge of parliamentarians about specific policy issues as well as areas such as the realization of MDGs and gender equality.


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4.34 Implementing Partners contributing towards the further development of the legal sector and adherence to the rule of law are likely to include MOFA, MOJ, MCI, Ministry of Public Security (MoPS), LWU, PACSA, NA, Office of the Supreme People’s Prosecutor, Supreme People’s Court, NCAW, LBA, LNCCI, and the Lao Disabled People’s Association (LDPA). Other potential partners may include STEA.

Outcome 8: Increased efficiency, effectiveness, transparency, and accountability of the public administration at both central and local levels

4.35 Enhancing capacities of central and local government agencies is crucial for effective and efficient decentralized planning, management and service delivery. Priority initiatives include: continued support to and consolidation of the national Governance and Public Administration Reform Programme (GPAR) at the central level and in selected target provinces and districts together with many partners, including the United Nations Capital Development Fund; and development of capacities and incentive structures to facilitate more effective fiscal management to enhance domestic revenue collection and strengthen public expenditure management. These initiatives, to a large extent, will be realized by:

• Supporting the implementation and regular monitoring of the Strategic Plan on Governance

(2006-2010) including targets and measurable indicators aligned with the NSEDP; • Sustaining the long-standing cooperation with the Public Administration and Civil Service

Authority within the Prime Minister’s Office on critical governance reforms at both central and provincial levels. Particular focus will be given to those reforms that reinforce the linkage between good governance and better service delivery in priority sectors, such as health, education, and agriculture;

• Extending closer cooperation and support to the Lao Government’s Public Expenditure Management Support Programme (PEMSP) by investing in capacity development within the Ministry of Finance, as well sharing lessons and good practice on decentralized fiscal management from pilot GPAR provinces, particularly Saravane which is pioneering the District Development Fund (DDF) mechanism in Lao PDR; and

• Leveraging the full potential of ICT to promote greater communication and efficiency in the civil service as well as empowering the public, particularly in remote regions so that they receive information on government policies, health, economic, and social issues, and are therefore better able to take informed decisions to improve their own lives.

4.36 It is recognized that strengthening of accountability, transparency and integrity in the management of public resources is arguably one of the most challenging areas of reform, but also one where capacity is weakest. Priority initiatives include support to a national code of conduct/ethics within the civil service and the implementation of anti-corruption legislation through the development of a national strategy and reforms in administrative systems, information dissemination, and participation of the public and law enforcement. It is also recognized that improving transparency and accountability will result in significant gains in terms of aid effectiveness and harmonization leading to greater confidence and progressive reliance on the Government’s own systems of public sector management. In this context, the anticipated support will be directed towards:

• Facilitating the establishment of a comprehensive civil service training curriculum, which

includes modules on appropriate codes of conduct/ethics, English language and ICT training as well as human resource management, including gender sensitivity, among others;


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• Supporting the set up and operationalization of the Personnel Information Management System (PIMS) to ensure the maintenance of accurate personal data regarding the status of civil servants function, benefits and entitlements so as to improve human resource management and promote greater transparency in recruitment, transfers and promotions;

• Strengthening the capacity of government institutions, including the State Audit Office, the State Inspection Authority and the OSPP to implement the provisions of the Anti-corruption law and investigate corruption effectively;

• Establishing the capacity of the OSPP in monitoring and inspecting the implementation of international legal instruments that Lao PDR is signatory to, including human rights treaties

• Working closely with the National Assembly, PACSA and the Ministry of Justice towards the development of legislation which promotes greater transparency and accountability to the public in terms of budgetary allocations at national and sub-national level; and

• Creating capacity within local communities to carry out basic audits/monitoring of expenditures allocated for the development of their own communities, through for example, the disbursement of block-grant facilities (e.g. DDF) in select provinces, including Saravane, Xieng Khouang, and Sekong for example.

4.37 Implementing Partners contributing towards this outcome area are likely to include the Office of the Governors in selected pilot and non-pilot provinces, PACSA, CPI, MOF, MOFA, MOE, MICom, MAF, OSPP, State Inspection Authority, State Audit Office, MIC, MOJ, LWU, Lao NCAW, among others.

4.38 In line with the Vientiane Declaration, UNDP will continue to contribute to the Government’s efforts in building national capacity for sound financial management - the fourth pillar of the governance policy - by addressing the capacity development needs identified by HACT micro assessments. Particular focus will be placed on application of the standard accounting system, auditing, procurement, and relevant human resource management and training with the long-term objective of channeling UNDP project funds through the Departments of Finance and Planning of respective national implementing partners. UNDP together with the Implementing Partners and UN agencies will draw up long-term capacity building strategy and action plan with the aim to increasingly support national systems. .

4.39 Primary counterparts in this area will be DIC/MoFA and all the national Implementing Partners of UNDP projects.

Outcome 9: Progressive realization of international treaty obligations, including protection of human rights, in accordance with the Lao Constitution and the Millennium Declaration

4.40 During the CPAP period (2007-2011), UNDP’s assistance will seek to enhance Lao PDR’s participation in key international treaties, including human rights instruments, translation of international obligations into national legislation and promote mechanisms and opportunities to convey the rights and interests of citizens to decision-makers, through meaningful public participation. The Government attaches high importance to its membership within ASEAN and to its standing among the global community as it aspires to become a “Rule of Law” state with national legislation and enforcement progressively being aligned with international legal obligations, including universal human rights standards. UNDP aims to continue supporting this initiative by:

• Raising awareness (within the Government and the public at large) about the importance of international law and human rights as a strategy and means to furthering Lao legal priorities and development objectives;


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• Capacity development to undertake more effectively tasks needed for implementation application and progressive realization of international treaties through for example, development programmes in the health, education, or housing sectors;

• Strengthening law enforcement in part through training programmes to ensure that all those involved with the enforcement of laws and the sanctioning of law-breakers comply fully with all applicable international standards relating to the enforcement of laws;

• Facilitating monitoring of implementation and enforcement of international laws and treaties (both by Government and by the public at large); and

• National reporting to treaty-bodies, to the international community and to the authorities and public in the Lao PDR.

4.41 Implementing Partners contributing towards realization of this outcome are likely to include MOFA, MLSW, MIC, MOJ, LWU, PACSA, selected provinces, NA, Office of the Supreme People’s Prosecutor, Supreme People’s Court, Lao NCAW, MOE, among others.

Part V. Partnership Strategy 5.1 UNDP will continue to work in close collaboration with its strategic partners for development

cooperation and will strive to strengthen and build on those partnerships. This includes developing further relationships with the Government, the UN Country Team (including the International Financial Institutions (IFIs), bilateral and multilateral donors, international Non-Government Organizations (NGOs), the private sector, and the academia, in support of the national goal of lifting the country from LDC status by the year 2020.

5.2 UNDP will continue to be a key partner in the UN program of reform at the country level, working

in close collaboration with the UN Country Team to implement the Secretary-General’s reform agenda. The development of strategic partnerships with a diverse range of stakeholders is central to enhancing and achieving development effectiveness.

5.3 In promoting the core principles put forward by the Paris and Vientiane Declaration on Aid

Effectiveness, UNDP will support the National Coordinator for Harmonization and Alignment, the Department of International Cooperation of the Ministry of Foreign Affairs, in planning, monitoring, and evaluating the implementation of the Paris Declaration in the Lao PDR. UNDP will also support the National Coordinator in implementing the Vientiane Declaration concluded on 29 November 2006 (localized Paris Declaration), including establishing a national action plan and relevant indicators, and monitoring progress to ensure producing results and mutual accountability between the Government and its development partners. UNDP will also support the Government in monitoring the implementation of the Paris Declaration through the scheduled OECD/DAC surveys in 2007, 2008, and 2010.

5.4 UNDP will continue to assist the Government in managing ODA and aid coordination based on the

national plans, priorities, and the ODA decree through the RTM process. The RTM and its process meetings will facilitate policy dialogue between the Government and its partners on alignment of aid to national plans and priorities, financial envelopes for financing development, capacity building of national institutions with an aim to use the national system for delivery of assistance, and harmonization of procedures. It will also serve as a catalyst for mobilization of funds to meet development objectives and reach realistic agreements between the Government and its development partners.


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5.5 UNDP will continue to support dialogue through coordination of the eight government-donor sectoral and cross-cutting themes working groups which were established based on the four key sectors of the NGPES (rural development, education, health, infrastructure) and four cross-cutting themes (macro economic group including private sector development and trade, governance, drug control, and UXO).

5.6 The UN Resident Coordinator and UNDP Resident Representative will ensure that UNDP’s

assistance be provided in line with the UNDAF and be monitored on an annual basis, together with the programmes of the UN Country Team. Key joint programming with the UN system organizations planned for this CPAP include: support for the Lao Info Database (UNICEF and UNFPA), Private Sector Development (UNIDO), and Multi-sectoral Approach to HIV/AIDS prevention (FAO and UNV), the Window II project under the Integrated Framework for trade-related technical assistance (IF core agencies), and Agro-biodiversity Programme (FAO).

5.7 UNDP will endeavor to broaden its partnership base including among civil society organizations;

focusing on those partnership groups where UNDP can contribute substantively and/or lead intellectually and that can help achieve results expected from the CPAP and the UNDAF. To this effect, it will be critical to enhance the effectiveness of existing partnerships, particularly those that promote the programmatic approach and that substantively contribute to UNDP’s programme activities. Some of our current partners include SNV, the National University of Lao, the Lao National Chamber of Commerce and Industry (LNCCI), Lao Bar Association (LBA), media and the Lao Women’s Union. UNDP will also give due attention enhancing partnerships with national and international actors at local levels and to supporting emerging national civil society organizations.

5.8 Over the next programme cycle, UNDP will expand its role as a global development network and

knowledge provider through establishing innovative and practical mechanisms to facilitate easier information exchange amongst government agencies, development partners and civil society in the Lao PDR and the wider region.

5.9 Partnerships also provide mechanisms for mobilizing additional resources to support the successful

implementation of the CPAP and meet other emerging national needs. Donors and civil society organizations will be requested to be involved early on in the preparation stage, provide critical inputs into this process based on national plans and priorities and the CPAP.

Part VI. Programme Management 6.1 The programme management arrangements during the programme cycle will respond to two key

drivers: United Nations reform principles and the Vientiane Declaration on Aid Effectiveness. At the time of preparing this CPAP, the Country Action Plan for implementing the Vientiane Declaration was being prepared; however, it is envisaged that UNDP, along with all Development Partners, will need to thoroughly review and revise its management procedures in order to make increased use of national systems.

6.2 The UNDP programme activities carried out under the CPAP, the term 'execution' refers to the

national overall ownership and responsibility for UNDP programme activities at the country level while the term 'implementation' refers to management and delivery of programme activities to achieve specified results including the procurement and delivery of UNDP programme activities, inputs and their use in producing outputs, as set forth in the Annual Work Plans (AWPs). The Programme will be nationally executed under the overall coordination of the Department of International Cooperation, Ministry of Foreign Affairs (DIC/MoFA). Government ministries, NGOs,


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IGOs, UN agencies including UNDP to implement project activities. The Government Coordinating Agency will nominate the Government Co-operating Agency directly responsible for the Government’s participation in each UNDP assisted AWP. The AWPs describe the specific results to be achieved and will form the basic agreement between UNDP and each Implementing Partner on the use of resources.

6.3 In programme design and implementation, UNDP works closely with key partners. The country programme builds on the United Nations reform principles and will increasingly build on the Vientiane Declaration, especially simplification and harmonization, by operating in line with the harmonized common country programming instruments such as the UNDAF results matrix, monitoring and evaluation, and programme resources frameworks in the CPAP and the AWPs. To the extent possible UNDP and partners will use the minimum documents necessary, namely the signed CPAP and signed AWPs to implement programmatic initiatives. However, as necessary and appropriate, project documents will be prepared using, inter alia, the relevant text from the CPAP, and AWPs. UNDP will sign the project documents with partners in accordance with corporate practices and local requirements. In line with the UNDG Joint Programming Guidance Note, the scope of inter-agency cooperation is strengthened to cultivate new programme and geographical convergence. 6.4 Atlas contributes to timely, efficient delivery of activities and effective financial monitoring to

manage projects and the UNDP programme. 6.5 All cash transfers to an Implementing Partner are based on the Annual Work Plans agreed between

the Implementing Partner and UNDP. 6.6 Cash transfers to an Implementing Partner are based on the AWPs agreed between the Implementing

Partner and UNDP and will follow the new HACT modality introduced in 2007. Cash transfers for activities detailed in AWPs can be made by UNDP using the following modalities:

• Cash transferred directly to the Implementing Partner on the basis of previously agreed

AWPs and subsequent amendments/revisions as applicable: o Prior to the start of activities (direct cash transfer), or o After activities have been completed (reimbursement);

• Direct payment to vendors or third parties for obligations incurred by the Implementing Partners on the basis of requests signed by the designated official of the Implementing Partner, along with supporting documentation as requested by UNDP; and

• Direct payments to vendors or third parties for obligations incurred by UN agencies in support of activities agreed with Implementing Partners.

6.7 Direct cash transfers shall be requested and released for programme implementation periods not

exceeding three months. Reimbursements of previously authorized expenditures shall be requested and released quarterly or after the completion of activities. The UNDP shall not be obligated to reimburse expenditure made by the Implementing Partner over and above the authorized amounts.

6.8 Following the completion of any activity, any balance of funds shall be reprogrammed by mutual

agreement between the Implementing Partner and UNDP, or refunded. 6.9 Cash transfer modalities, the size of disbursements, and the scope and frequency of assurance

activities may depend on the findings of a review of the public financial management capacity in the case of a Government Implementing Partner, and of an assessment of the financial management capacity of the non-UN Implementing Partner. A qualified consultant, such as a public accounting


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firm, selected by UNDP may conduct such an assessment, in which the Implementing Partner shall participate. The capacity assessments will determine the level of assurance activities required by the Implementing Partners and NGOs, recognizing that certain partners will require differing levels of assurance. Until such capacity assessments are conducted, “high risk” assurance procedures will be applied to Implementing Partners and NGOs.

6.10 Cash transfer modalities, the size of disbursements, and the scope and frequency of assurance

activities may be revised in the course of programme implementation based on the findings of programme monitoring, expenditure monitoring and reporting, and audit.

6.11 Resource mobilization efforts will be intensified to support the Results and Resource Framework

(Annex 1) and ensure sustainability of the programme. Project formulation and implementation may commence as long as adequate funds have been secured for the first 12 months and may be modified based on availability of additional donor funding. Further efforts will continue to be made towards mobilization of other resources in the form of cost sharing, trust funds, or government cash counterpart contributions to secure funding for the programme, as a whole.

6.12 AWPs will be produced during the last quarter of each calendar year providing detailed descriptions

of activities to be carried out in the following year, the responsible implementing institutions, timeframes and planned inputs from Government and UNDP. The consolidated AWP will be submitted for review by the Programme Boards comprising the National Coordinating Agency and UNDP.

6.13 Revisions to the approved AWP that involve significant changes, defined as requiring an increase of

15 percent or more in financial costs of activities or outputs of the project shall require the formal endorsement of the Project Board as signatories to the initial AWP. Revisions, which do not involve significant changes in the immediate objectives, activities or outputs of the programme, but are caused by the rearrangement of the inputs already agreed upon or by cost increased due to inflation, may be made to annual work plans and documented on file. Periodic reporting will be carried out by the Implementing Partners to ensure that Government and UNDP oversight of the programme and its components is consistent with the overall mission and vision of the UNDP support to the Government of the Lao PDR.

Part VII. Monitoring and Evaluation 7.1 Monitoring and evaluation of the CPAP will be undertaken in line with the UNDAF results matrix

(Annex 1) and monitoring and evaluation plan (Annex 2). The Government and UNDP will be responsible for setting up the necessary monitoring and evaluation mechanisms and for conducting reviews, in order to ensure efficient utilization of programme resources as well as accountability, transparency and integrity. The Implementing Partners will provide periodic progress reports specifying the achievements and results of their projects, outlining the challenges faced in project implementation as well as resource utilization as articulated in the AWP. The reporting will be in accordance with the procedures and harmonized with UN agencies to the extent possible.

7.2 The DIC/MoFA and UNDP will conduct annual reviews of the CPAP in the context of the UNDAF

in collaboration with other members of the UN Country Team. In addition to progress towards outcomes of the programme, the review will consider management arrangements and partners’ implementation of projects. The conclusions and recommendations from the annual review will enable the Government and UNDP to update the CPAP, review and finalize project revisions and AWPs for the following year and prepare a Results Oriented Annual Report (ROAR), and also satisfy


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any other reporting required by stakeholders. Ad-hoc monitoring will be carried out when required in coordination with key stakeholders where appropriate.

7.3 The CPAP will be subject to an evaluation within the last year of its cycle (2011). The Country

Programme evaluation will aim to assess the achievements of the programme against pre-determined targets and to provide data of strategic use in the design of the next Country Programme. The structure and standards of the evaluation will fit within the overall framework of the UDAF. The evaluation will be conducted by an independent agent to ensure the integrity of the findings.

7.4 Implementing Partners will work closely with UNDP to monitor all activities supported by cash

transfers and will facilitate access to relevant financial records and personnel responsible for the administration of cash provided by the UNDP. To that effect, they will agree to the following:

• Periodic on-site reviews and spot checks of their financial records by UNDP or its representatives;

• Programmatic monitoring of activities following UNDP’s standards and guidance for site visits and field monitoring; and

• Special or scheduled audits. UNDP, in collaboration with other UN agencies will establish an annual audit plan, giving priority to audits of implementing partners with large amounts of cash assistance provided by UNDP, and those whose financial management capacity needs strengthening.

7.5 To facilitate assurance activities, Implementing Partners and UNDP may agree to use a programme

monitoring and financial control tool allowing data sharing and analysis. 7.6 The audits will be commissioned by UNDP and undertaken by private audit services with

established track records in auditing UN supported programmes and projects. In line with HACT objectives that aim to strengthen and ultimately use national auditing bodies, to the extent possible, efforts will be made to involve officials from the State Audit Office to participate in the auditing of UNDP supported projects as a means of developing future capacity. The AWPs will include a provision for reasonable cost of such audits. Cash transfer modalities, the size of advances, and the scope and frequency of assurance activities may depend on the findings of the micro assessments and may be revised based on subsequent monitoring, spot checks, and audits.

7.7 Assessments and audits of non-government Implementing Partners will be conducted in accordance

with the policies and procedures of UNDP.

Part VIII. Commitments of UNDP 8.1 The indicative allocation of core resources for CPAP implementation will be US$10.2 million, and

the target for non-core resource mobilization will be US$44.5 million. 90 per cent of the core resources will be allocated to the implementation of CP outcomes whereas the remaining 10 per cent will be set aside as a programme reserve in order to respond, in a timely and flexible manner, to emerging needs that might arise during the implementation of the Country Programme. UNDP will work closely with the Government in identifying innovative project ideas in order to meet the non-core resource mobilization target. In addition, UNDP will make efforts in mobilizing additional resources from its global thematic trust funds to support the successful implementation of the CPAP, as well as emergency response and rehabilitation in case of natural disasters.


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8.2 At the request by the Government, UNDP will provide the following support services for activities in the CPAP:

• Policy advice through access to UNDP’s knowledge management system, the network of

UNDP country offices, including rosters of consultants and providers of development services;

• Identification of and assistance with and/or recruitment of project personnel; procurement of goods and services in accordance with the UNDP policies, procedures, rules and regulations;

• Identification and facilitation of training activities; and • Access to the support provided by the network of UN specialized agencies, funds, and

programmes.

8.3 UNDP will ensure coherence between the CPAP/AWP, UNDAF results matrix and MDGs, including M & E reporting. Through annual reviews and periodic progress reporting, responsibilities between UNDP, the Government and implementing partners will be emphasized.

8.4 In case of direct cash transfer or reimbursement, UNDP shall notify the Implementing Partner of the

amount approved by UNDP and shall disburse funds to the Implementing Partner within two weeks after receipt of satisfactory FACE, updated workplan as well as Work Plan Monitoring Tool.

8.5 In case of direct payment to vendors or third parties for obligations incurred by the Implementing

Partners on the basis of requests signed by the designated official of the Implementing Partner; or to vendors or third parties for obligations incurred by UNDP in support of activities agreed with Implementing Partners, UNDP shall proceed with the payment within two weeks.

8.6 UNDP shall not have any direct liability under the contractual arrangements concluded between the

Implementing Partner and a third party vendor. 8.7 Where more than one UN agency provides cash to the same Implementing Partner, programme

monitoring, financial monitoring and auditing will be undertaken jointly or coordinated with those UN agencies according to the HACT procedures.

Part IX. Commitments of the Government

9.1 The Government will honor its commitments in accordance with the provisions of the Standard Basic Assistance Agreement (SBAA) of 10 October 1988. The Government shall apply the provisions of the Convention on the Privileges and Immunities of the United Nations agencies to UNDP’s property, funds, and assets and to its officials and consultants. In addition, the Government will accord to UNDP and its officials and to other persons performing services on behalf of UNDP, the privileges, immunities and facilities as set out in the SBAA.

9.2 In case of Government cost-sharing through the CPAP, the following procedures will be applied:

i. The schedule of payments and UNDP bank account details. ii. The value of the payment, if made in a currency other than United States dollars, shall be

determined by applying the United Nations operational rate of exchange in effect on the date of payment. Should there be a change in the United Nations operational rate of exchange prior to the full utilization by the UNDP of the payment, the value of the balance of funds still held at that time will be adjusted accordingly. If, in such a case, a loss in the value of the balance of funds is


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recorded, UNDP shall inform the Government with a view to determining whether the Government could provide any further financing. Should such further financing not be available, the assistance to be provided to the CPAP may be reduced, suspended or terminated by UNDP.

iii. The above schedule of payments takes into account the requirement that the payments shall be

made in advance of the implementation of planned activities. It may be amended to be consistent with the progress of CPAP delivery.

iv. UNDP shall receive and administer the payment in accordance with the regulations, rules and

directives of UNDP.

v. All financial accounts and statements shall be expressed in United States dollars.

vi. If unforeseen increases in expenditures or commitments are expected or realized (whether owing to inflationary factors, fluctuation in exchange rates or unforeseen contingencies), UNDP shall submit to the Government, on a timely basis, a supplementary estimate showing the further financing that will be necessary. The Government shall use its best endeavors to obtain the additional funds required.

vii. If the payments referred to above are not received in accordance with the payment schedule, or if

the additional financing required in accordance with paragraph [vi] above is not forthcoming from the Government or other sources, the assistance to be provided to the CPAP under this Agreement may be reduced, suspended or terminated by UNDP.

viii. Any interest income attributable to the contribution shall be credited to the UNDP Account and

shall be utilized in accordance with established UNDP procedures.

ix. In accordance with the decisions and directives of UNDP's Executive Board regarding its Policy on Cost Recovery from Other Resources, the Contribution shall be subject to cost recovery by UNDP for two distinct cost categories related to the provision of support services, namely:

• Indirect costs incurred by UNDP headquarters and country office structures in providing General Management Support (GMS) services. To cover these GMS costs, the contribution shall be charged a fee no less than 5%]; and

• Direct costs incurred for implementation support services (ISS) provided by UNDP and/or an executing entity or Implementing Partner. As long as they are unequivocally linked to the specific programme/project, these costs are built into the project budget against a relevant budget line and, in the case of clearly identifiable transactional services, charged to the project/programme according to standard service rates.

The aggregate of the amounts budgeted for the CPAP, together with the estimated costs of reimbursement of related support services, shall not exceed the total resources available to the CPAP under this agreement.

x. Ownership of equipment, supplies and other properties financed from the contribution shall vest in UNDP. Matters relating to the transfer of ownership by UNDP shall be determined in accordance with the relevant policies and procedures of UNDP.

xi. The contribution shall be subject exclusively to the internal and external auditing procedures

provided for in the financial regulations, rules and directives of UNDP.


26

9.3 Mechanisms for participatory planning, monitoring and evaluation on the progress of the country programme involving civil society and other development partners will be implemented. The Government is also committed to organize periodic programme review, planning and joint strategy meetings and where appropriate, coordination of sectoral and thematic development partners groups to facilitate the participation of donors, civil society, private sector and UN agencies. In addition, the Government will facilitate periodic monitoring visits by UNDP staff and/or designated officials for the purpose of monitoring, meeting beneficiaries, assessing the progress and evaluating the impact of the use of programme resources. The Government will make available to UNDP in a timely manner any information about policy and legislative changes occurring during the implementation of the CPAP that might have an impact in co-operation.

9.4 A standard Fund Authorization and Certificate of Expenditures (FACE) report, reflecting the

activity lines of the Annual Work Plan (AWP), will be used by Implementing Partners to request the release of funds, or to secure the agreement that UNDP will reimburse or directly pay for planned expenditure. The Implementing Partners will use the FACE to report on the utilization of cash received. The Implementing Partner shall identify the designated official(s) authorized to provide the account details, request and certify the use of cash. The FACE will be certified by the designated official(s) of the Implementing Partner.

9.5 Cash transferred to Implementing Partners should be spent for the purpose of activities as agreed in

the AWPs only. 9.6 Cash received by the Government and national NGO Implementing Partners shall be used in

accordance with established national regulations, policies and procedures consistent with international standards, in particular ensuring that cash is expended for activities as agreed in the AWPs, and ensuring that reports on the full utilization of all received cash are submitted to UNDP within six months after receipt of the funds. Where any of the national regulations, policies and procedures is not consistent with international standards, the UN agency regulations, policies and procedures will apply.

9.7 In the case of international NGO and IGO Implementing Partners cash received shall be used in

accordance with international standards in particular ensuring that cash is expended for activities as agreed in the AWPs, and ensuring that reports on the full utilization of all received cash are submitted to UNDP within six months after receipt of the funds.

9.8 To facilitate scheduled and special audits, each Implementing Partner receiving cash from UNDP

will provide UNDP or its representative with timely access to:

• All financial records which establish the transactional record of the cash transfers provided by UNDP; and

• All relevant documentation and personnel associated with the functioning of the Implementing Partner’s internal control structure through which the cash transfers have passed.

9.9 The findings of each audit will be reported to the Implementing Partner and UNDP. Each

Implementing Partner will furthermore:

• Receive and review the audit report issued by the auditors; • Provide a timely statement of the acceptance or rejection of any audit recommendation to the

UNDP that provided cash; • Undertake timely actions to address the accepted audit recommendations; and


27

• Report on the actions taken to implement accepted recommendations to the UN agencies.

Part X. Other Provisions 10.1 This CPAP enters into force on the date signed by both Parties and in the case the CPAP is signed

on different dates, then it shall enter into force on the date of the later signature. The CPAP shall continue in force until 31 December 2011.

10.2 This CPAP supersedes any previously signed CPAP between the Government of the Lao PDR and

UNDP and may be modified by mutual consent of both parties on the recommendations of the joint strategy meeting.

IN WITNESS THEREOF the undersigned, being duly authorized, have signed this Country Programme Action Plan on

this day, 28 March 2007 in Vientiane, the Lao People’s Democratic Republic.

For the Government of the Lao

People’s Democratic Republic

For the United Nations Development

Programme in the Lao People’s Democratic

Republic

Signature:

Signature:

Name: H.E Dr. Thongloun Sisoulith

Date: March 28, 2007

Name: Sonam Yangchen Rana

Date: March 28, 2007

Title: Deputy Prime Minister and

Minister of Foreign Affairs

Title: UN Resident Coordinator and

UNDP Resident Representative

Annex 1: CPAP RESULTS AND RESOURCES FRAMEWORK UUNNDDAAFF oouuttccoommee 11:: By 2011, the livelihoods of poor, vulnerable and food insecure populations are enhanced through sustainable development (within MDG framework)

Indicative Resources by Programme Component (per year, US$1,000)

UNDP programme component

Expected Outcomes Expected Outputs Annualized Output targets and indicators

Implementing Partners

2007 2008 2009 2010 2011 Total

Regular Resources

970 321 321 321 321 2254

Other Resources

1.1. Enhanced safety, awareness for risks and more land cleared for productive use under the supervision of the National Regulatory Authority for the UXO Sector

• Full Operationalization of the NRA • Strengthened capacity and increasd

efficiency and effectiveness of UXO Lao

Indicators • Decrease in the number of casualties

caused by UXO • Increase in the size of the land

released/cleared of UXO for productive use

NRA under the PMO, UXO Lao under the MLSW, JMAS, MAG, NPA, SFD, COPE, HIB and UN Agencies.

1.2 The role of biodiversity, agrobiodiversity, land management and environment in general in the livelihoods improvements and poverty reduction strengthened through enhanced knowledge and management capacity.

• Capacities of government at central level and in selected provinces strengthened for the conserving agrobiodiversity and mainstreaming agrobiodiversity conservation into the attainment of food security and livelihoods improvement.

• Capacities on sustainable land management, drought and flood preparedness enhanced through participatory adaptation and monitoring activities in selected provinces.

MAF, STEA, FAO

Crisis prevention and recovery & Energy and environment for sustainable development

Outcome 1: Improved and equitable access to land, markets and social and economic services, environmentally sustainable utilization of natural resources

1.3 Enhanced management capacity of the Government in meeting its international environmental obligations through strengthened implementation of multilateral environmental agreements and related national policies and legislation.

• Implementation of the convention on biodiversity strengthened through strengthened institutional capacity to implement the national natural resource legislation.

• Meeting the obligations for the UNFCCC strengthened through development of Second National Communication on Climate Change

STEA, MAF, MOJ

5072

4095

4095

4095

4095

21455

Regular Resources

755 375 375 375 375 2255

Achieving the MDGs and reducing human poverty Crisis Prevention

Outcome 2: Enhanced ownership and capacity for pro-poor planning, implementation and harmonized aid

2.1 Increased capacity at the central and local levels for MDG-based development strategies, policies, and planning that combine a pro-poor and equitable approach to

• Implementation of Lao PDRs sixth National Socioeconomic Development Plan carried out in an equitable and participatory manner and it reflects a strong pro-poor and MDG focus that prioritizes the monitoring of the NSEDP

CPI, NSC, NERI, MAF, MOH, MOE, MTCPC, Research Institutions, Universities, Local authorities, UN

Other Resources


29





2007 2008 2009 2010 2011 Total

development processes; and effective implementation of public investment programmes in poor areas

and central and provincial levels and invests in the capacity enhancement of local partners in undertaking the meaningful implementation of a MDG-based national plan (Regular and continued consultations held with development partners including private entrepreneurs, donors, academics etc; Development plans for 47 poorest and 72 poor districts prepared; Pilot initiatives developed and launched within provinces; Monitoring and implementation arrangements of the NSEDP strengthened Clear linkages with the ‘Integrated package of services’ for MDG-based national plans developed)

Agencies (UNDP Regional Centre, BDP MDG Group), SNV

and recovery

coordination, and disaster management

2.2 External aid aligned with MDG-based national development priorities and capacity for ODA management increased through the Roundtable Process.

• New programme for supporting the Roundtable Process in the Lao PDR formulated and implemented, geared towards ensuring the entrenchment of the overall tenets of the Paris Declaration on Aid Effectiveness within the harmonized programmes of donors and multilateral agencies; Analysis and impact assessment on ODA effectiveness undertaken; RTM forums and Sectoral Working Groups strengthened for better alignment of ODA with national planning goals, MDGs and annual budget priorities (Localised/Lao version of the Paris Declaration developed and adopted; ODA effectiveness study conducted and results widely disseminated; Regular/periodic Roundtable Meetings organized; Mechanisms for sustained dialogue through Government-Donor Sector Working Groups facilitated)

DIC (MoFA), Key Line Ministries leading Sector Working Groups, and key Multi- and Bi-lateral donors

200 514 514 514 514 2259


30





2007 2008 2009 2010 2011 Total

2.3 Increased capacity in disaggregated data collection and analysis, research, dissemination and utilization of data for improved advocacy, policy and strategy development, poverty reduction, labour market policy formulation and sustainable development

• National Human Development Reports researched and published while ensuring full national ownership at all levels; (NHDRs produced and published on a regular basis)

• Enhancement of the quality and quantity of key indicators disaggregated by sex, urban-rural, province, district and socioeconomic background through the furthering of the LaoInfo software package; sustained training of government officials carried out (Wide-based and public access to disaggregated datasets increased; Periodic and structured training programmes for government officials from across key line Ministries)

DIO (MoFA), CPI, NSC, NERI, UNICEF, UNFPA

2.4. Increased capacity within the Government to prepare and respond to natural as well as man-made disasters at all levels

• Increased capacity of the government for disaster management and coordination system

• Strengthened legal and institutional framework for disaster preparedness and response

• Awareness raised for the importance of disaster reduction, preparedness and response among the Lao population

• Continued cross-sectoral pandemic prevention and preparedness.

Indicators • Common United Nations/Lao

Government framework for comprehensive disaster management agreed and operationalized

• National Avian Influenza Control and Pandemic Preparedness Plan further developed and operationalized.

NDMC, NDMO, MLSW, UN Agencies

Regular Resources 370 112 112 112 112 82

0

Achieving the MDGs and reducing human poverty

Outcome 3: Enabled environment for growth with equity

3.1 Improved policy advice for the promotion of the domestic private sector with a focus on employment generation and

• Implementation of the UNDP-UNIDO joint initiative on domestic private sector development undertaken; Hurdles and opportunities related to the business

NERI, LNCCI, CPI, NSC, UNIDO, Bilateral partners, business Other Resources


31





2007 2008 2009 2010 2011 Total

pro-poor impacts of small and medium enterprises

entry and optimal functioning of small and medium scale enterprises identified and demand-driven research initiatives undertaken; Dialogue platform/s created to facilitate strategic discussions between the public and private sector (Research studies conducted to identify bottlenecks in the Lao domestic private sector; Discussion forum facilitated to enhance interactions between the state and the SME sector)

organizations, small and medium sized private entrepreneurs

3.2 Capacity built for service delivery and enhancement of negotiation skills and policy advice on trade and poverty policies, including global and regional agreements such as AFTA and accession to the WTO

• Development, formulation and implementation of an integrated ‘Action Matrix’-led programme for trade related technical assistance undertaken, under the IF Window 2 avenue. (Key partners identified for Window 2 programme and programme formulated and implemented)

• Policy advice provided for strengthening Lao PDR’s economic and social integration within the ASEAN framework, including AFTA (Strategic programme on ASEAN related issues formulated and implemented)

• Strategic policy advice provided for assisting the Lao PDR’s accession to international economic fora including WTO (Programme undertaken for critically identifying the benefits and minimizing the potential costs of Lao PDR’s accession to WTO)

MIC, MoFA (ASEAN Dept), IF partners (ITC, WB, IMF, UNCTAD), AusAID (as IFF), EC

1260 456 456 456 456 3086

UNDAF Outcome 2: Increased and more equitable access to and utilization of quality and prioritized social services

Regular Resources 100 50 50 20

0 Other Resources

Achieving the MDGs and reducing human poverty

Outcome 4: Strengthened capacity for policy and practice related to gender empowerment and poverty reduction

4.1 Strengthened capacity of selected central and provincial government actors to effectively mainstream gender equality for poverty reduction into polices, planning, and development activities

• Full implementation of the Gender empowerment for poverty reduction programme undertaken; Gender dimensions explicitly reflected in laws and policy decisions of the Government of Lao (Region and sector-specific engendered policies formulated and implemented)

LWU, NCAW, NSC, GPAR programme, SNV

SNV: in kind

292 292 292 292 1171


32





2007 2008 2009 2010 2011 Total

4.2 Increased gender equality in participatory planning in select provinces, districts, and villages

• Gender-sensitive participatory planning undertaken at central and decentralized levels and process documented by the Government (Planning guidelines published)

4.3 Strategic tools formulated for pro-poor gender-sensitive planning, policy formulation and resource allocation and the strengthened capacity of GRID Centres of the Lao Women’s Union as a gender mainstreaming resource

• Comprehensive Gender Mainstreaming methodologies developed and pilot-tested; Capacities of Gender Resource Information and Development (GRID) Centres enhanced (Gender Mainstreaming Toolkit developed; Strengthened GRID Centres set up as leading resources for gender equality in Lao PDR)

Regular Resources

200 25 25 25 25 30

0

5.1 Enhanced capacity among key decision-makers for coordination, leadership, management and implementation of an expanded national response.

• Implementation and rollout of the multi-sectoral programme on HIV/AIDS undertaken; Policy and decision makers trained in transformative methodologies for effective leadership on HIV/AIDS; Formulation, implementation and scaling up of breakthrough’ results initiated (Key decision makers from across identified line agencies trained; Breakthrough initiatives formulated and implemented by multi-sectoral and region-specific groups)

MoH, NCCAB, CHAS, UNV, UNAIDS, FAO, Line Ministries, UNICEF, WHO, UNFPA

Other Resources

Responding to HIV/AIDS

Outcome 5: Increased coverage of quality HIV/AIDS prevention, treatment, care and support, focusing on the most vulnerable groups as defined in the national strategy on HIV/AIDS/STI

5.2 Strengthened capacities of PCCAs and DCCAs for enhancing the prevention and care continuum in priority geographic areas

• Efficacy of provincial and district committees improved; Targeted skill development programmes undertaken for provincial and district personnel (Performance reports of provincial and local committees detailing delivery effectiveness registering improvements; Demonstrated skill enhancements as documented through improved organizational skills of staff)

326 326 326 326 1306


33





2007 2008 2009 2010 2011 Total

5.3 Enabling environment promoted for ensuring the Greater Involvement of People with HIV/AIDS (GIPA) within Lao PDR’s national response

• Empowerment of people living with HIV/AIDS (PLWHA) through the mobilization and inclusion of HIV infected and affected NUNVs at all levels of policy and decision making within the programme; Sustained training and skills-development of PLWHA undertaken, geared towards countering stigma and discrimination faced by PLWHA (Identifying and recruiting qualified UNVs who are infected/affected by HIV/AIDS; Placements of identified UNVs within key line Ministries and agencies on a demand-driven basis)

UNDAF Outcome 3: By 2011, strengthened capacities of public and private institutions to fulfill their duties and greater people’s participation in governance and advocacy for the promotion of human rights in conformity with the Millennium


60

Other Resources

Outcome 6: Greater people’s and community participation in and contribution to public policy, local development and nation building

6.1: Increased mechanisms and opportunities to convey the rights and interests of citizens, (vulnerable groups and women in particular) to decision-makers, through relevant and meaningful public participation

• Participatory monitoring and evaluation systems such as service delivery surveys/citizen report cards used more widely at central and local levels, including the provinces of Luang Prabang, Xieng Khouang, and Saravane

PACSA, CPI , MOF, MOFA, State Inspection Authority, State Audit Office, MIC, MOJ, LWU, NCAW, UNV

6.2: Strengthened community participation in the planning, management, implementation, and monitoring of gender-sensitive, local development activities

• Greater number and frequency of village/community meetings, involving the public, including women, youth and ethnic groups (disaggregated data)

PACSA, CPI, Provincial Governors offices and relevant line departments, UNV

6.3: Increased and more equal public access to timely and relevant information, especially in rural and remote areas and among poor, vulnerable populations, particularly women, youth, and children

• Increased proportion of media programming (radio, television and print) available to all citizens to enable them to participate and express themselves on the issues of concern to them (focus on vulnerable groups)

MIC, Khoun District Office, Xieng Khouang Province and other selected districts/provinces, UNESCO, UNV

80 875 875 875 875 3580


34





2007 2008 2009 2010 2011 Total

6.4: Greater appreciation of the role and contribution of national civil society associations (CSAs) working alongside the government towards poverty reduction

• Draft legislation prepared on the establishment and functioning of national CSAs;

• National sensitization workshops held for government and parliamentarians on best practice in engagement with CSAs as partners in delivering development results

• Capacity development undertaken to facilitate the establishment and effectiveness of a diverse range of civil society associations for national development

UNDP PACSA, CPI, LUSEA, selected INGOs


615

Other Resources

Outcome7: Increased and more equitable access to justice and strengthened rule of law.

7.1: Enhanced institutional capacity development of the legal sector to improve the application of the law in an impartial, effective and predictable manner, particularly for women, low-income households and vulnerable groups

• Legal Sector Master Plan finalized, with costing completed, resources mobilized, and implementation underway, including legislation developed and adopted to enable the establishment of national civil society institutions as partners in rural and urban development. In addition, a legal and regulatory framework is strengthened to enable pro-poor private sector development, focusing on small and medium-sized enterprises;

• Strengthened role and capacity of

lawyers to provide free and/or low-cost services to the poor through intensified support to the LBA towards the successful establishment and functioning of legal aid units, based on a comprehensive assessment on access to justice;

MOFA, MOJ, MICom, MOPS, LWU, PACSA, NA, Office of the Supreme People’s Prosecutor, Supreme People’s Court, NCAW, LBA, LNCCI, LDPA

7.2: Strengthened oversight functions of the National Assembly in holding government agencies accountable for improved performance, including more timely and predictable delivery of services and implementation of laws

• Increased capacities of 109+ National Assembly members to debate, analyse and pass/amend as well as ensure enforcement of national laws by the executive, which are consistent with international treaty obligations, where applicable.

1034 1034 1034 1034 4138


35





2007 2008 2009 2010 2011 Total

Regular Resources

1240 250 250 250 250 2

240

Outcome 8: Increased efficiency, effectiveness, transparency, and accountability of the public administration at both central and local levels.

8.1 Strengthened capacities of central administration (PACSA) for decentralized planning, management & service delivery

• National civil service training curriculum developed & implemented nationwide (ensuring CEDAW principles included)

• Establishment of provincial citizen information centres containing information on laws and policies, but also on budgetary allocation, public expenditure, audit results, & procurement contracts;

• Personnel Information Management System (PIMS) set up to ensure the maintenance of accurate personal data regarding the status of civil servants function, benefits and entitlements so as to improve human resource management and promote greater transparency in recruitment, transfers and promotions

PACSA, CPI, MOF, MOFA, MOE, MOFA, MOE, MIC, MAF, State Inspection Authority, State Audit Office, MIC, MOJ, LWU, Lao NCAW, State Inspection Authority, State Audit Office, MIC, MOJ, LWU,

Other Resources

8.2: Strengthened capacities of provincial and district administrations for decentralized planning, management & service delivery

• Greater awareness and access by communities to the Village/Community Development Funds (disaggregated data) initially in provinces including Saravane and Sekong, but gradually extending to the poorest districts

• Enhanced capacities within the Office of the Governor and selected line departments within the provinces of Luang Prabang, Khammouane, Xieng Khouang, Saravane and Sekong, among others resulting in higher levels of service delivery in the areas of agricultural extension, primary health, and education.

PACSA, CPI, Provincial Offices of the Governor and line departments of finance, health, education, agriculture, and construction, district, kum-ban and village administrations, UNV and UNCDF

8.3 Strengthened capacities of UNDP Implementing Partners to effectively plan, manage, implement and monitor ODA, including strengthened capacities of Financial Departments to manage ODA.

• The national mechanism for ODA results-oriented planning, management, implementation, monitoring and evaluation will be strengthened through enhancement of national operational capacities in the area of financial management and audit, procurement, human resource management, monitoring and evaluation of implementation of development assistance.

DIC-MOFA

1675 1675 1675 1675 6700


36





2007 2008 2009 2010 2011 Total

8.4 Ministry specific Gender policies and plans, and/or have formulated/ implemented as per NCAW (2006-10)

• Gender-sensitive HRM policies implemented and enforced;

• Increased proportion of women represented in public institutions and benefit from training and capacity development activities


70

Other Resources

Outcome 9: Progressive realization of international treaty obligations, including protection of human rights, in accordance with the Lao Constitution and the Millennium Declaration

9.1: Key international treaties, including Human Rights instruments, are acceded to, effectively transformed into national legislation, and increasingly observed, enforced, and monitored by appropriate government bodies

• Increased number of awareness/training workshops held in the field of international law, with a particular focus on developing government capacities to meet the challenge of fulfilling their duties to respect the basic human/developmental rights of citizens in the area of education and justice, in particular.

MOFA, MLSW, MIC, MOJ, LWU, PACSA, NA, Office of the Supreme People’s Prosecutor, Supreme People’s Court, Lao NCAW, MOE

40 200 200 200 200 840

Total resource for Lao PDR (2007-2011): Regular: $10,115,448 Other: $44,536,552 Total: $54,652,000


37

Annex 2: Evaluation Plan for the Lao People’s Democratic Republic (PDR) Programming Cycle: 2007 – 2011 Date: 1 January 2007

Evaluation Title

Partners (joint evaluation)

MYFF Goal CPD or CPAP Outcome Evaluation Completion Date

Key evaluation stakeholders

Resources for Evaluation and Sources of Funding

Mandatory Evaluation? (Y/N)

Status* Reports uploaded in ERC? (Y/N)

UNDAF Evaluation UNDAF Mid-term Evaluation

UNCT Three UNDAF Outcomes 2008 UNCT and partners of joint programmes

$50,000 UNRC budget?

Yes

UNDAF Evaluation UNCT Three UNDAF Outcomes 2010 UNCT and partners of joint programmes

$50,000 UNRC budget?

Yes

UNDP Assessment of Development Results (TBC)

UNDP Evaluation Office

Nine country programme outcomes of UNDP CPD

2011 (before preparation for the CPD for 2012-2016)

Government offices/development partners

UNDP EO budget Yes

Macro Assessment (HACT)

UNCT with a consultant

A desk review on the public financial management capacity

2010 (in conjunction with CCA)

Line ministries/WB/ADB/IMF

Cost-sharing among UNDG ExCom agencies

Yes

Outcome Evaluations UXO partners/GEF

MDGs and Poverty Reduction

1. Improved and equitable access to land, markets and social and economic services, environmentally sustainable utilization of natural resources

2009 National Regulatory Authority (NRA) UXO Lao Science, Technology, Environment Agency (STEA)

$ 60,000 TRAC Yes UNDAF Outcome 1: By 2011, the livelihoods of poor, vulnerable and food insecure populations are enhanced through sustainable development (within Millennium Development Goals framework)

The donor community

Partnership 2. Enhanced ownership and capacity for pro-poor planning, implementation and harmonized aid coordination, and disaster management

2007 Dept. International Cooperation/Ministry of Foreign Affairs (MoFA)

TRAC Yes


38

UNIDO Integrated Framework (IF) core agencies

MDG and Poverty Reduction

3. Enabled environment for growth with equity

2009 Ministry of Industry and Commerce (MoIC) Committee for Planning and Investment (CPI) ASEA Dept./MoFA National Tourism Authority Lao National Chamber of Commerce and Industry (LNCCI) Committee for Planning and Investment (CPI)

TRAC Yes

FAO Gender Mainstreaming

4. Strengthened capacity for policy and practice related to gender empowerment and poverty reduction.

2008 Lao Women’s Union Luang Prabang Province

TRAC Yes UNDAF Outcome 2: Increased and more equitable access to and utilization of quality and prioritized social services

UNAIDS FAO

5. Increased coverage of quality HIV/AIDS prevention, treatment, care and support, focusing on the most vulnerable groups as defined in the national strategy on HIV/AIDS/STI

2008 NCCA NCCAB

TRAC Yes

SIDA EC SDC Irish Aid

Governance 6. Greater people’s and community participation in and contribution to public policy, local development and nation building

2010 PACSA TRAC Yes

Finland EC

Governance 7. Increased and more equitable access to justice and strengthened rule of law.

2008 Ministry of Justice National Assembly Supreme Court Office of Public Prosecutors

TRAC Yes

SDC EC Irish Aid

Governance 8. Increased efficiency, effectiveness, transparency, and accountability of the public administration at both central and local levels.

2009 PACSA Provinces of Luang Prabang, Xieng Khouan, Sekong, Saravane, and Khammouane Ministry of Finance

TRAC Yes

UNDAF Outcome 3: By 2011, strengthened capacities of public and private institutions to fulfill their duties and greater people’s participation in governance and advocacy for the promotion of human rights in conformity with the Millennium

Finland Governance 9. Progressive realization of international treaty obligations, including protection of human rights, in accordance with the Lao Constitution and the Millennium Declaration

2008 Ministry of Foreign Affairs

TRAC Yes


39

Project Evaluations (all project evaluations should be during Mid CPAP implementation (2009) to assess how the component (output) is contributing to its outcome, whether adjustment is needed or not UXO As required by

donors Crisis Prevention CP Outcome 1 TBC UXO Lao TRAC and cost-

sharing

NRA Australia New Zealand

Crisis Prevention CP Outcome 1 TBC NRA TRAC and cost-sharing

Agro-biodiversity GEF Environment CP Outcome 1 TBC Ministry of Agriculture and Forestry

TRAC and GEF

MEA GEF Environment CP Outcome 1 TBC STEA TRAC and GEF Integrated Framework Window II

IF Core Agencies, esp. ITC

MDGs and Poverty Reduction

CP Outcome 3 2009 MoIC CPI/NERI NTA

IF Trust Fund

Private Sector Development

UNIDO MDGsamd Poverty Reduction

CP Outcome 3 2008 CPI NERI LNCC MoIC

TRAC and UNIDO funds

Legal Sector Reforms EC Finland SIDA

Governance CP Outcome 7 2009 MoJ, OSPP, SC, NA, MOFA, Police

TRAC and cost-sharing

National Assembly EC Governance CP Outcome 7 2009 National Assembly TRAC and cost-sharing

GPAR (all GPARs together as one project)

SDC Irish Aid

Governance CP Outcome 8 2009 PACSA and provinces concerned.

TRAC and cost-sharing

Other Evaluations

* Status of the evaluation: Pending, Initiated, or Done

Documents

2007 – 2011 Country Programme Action Plan Between The