Flood recovery efforts to get additional funding

The World Bank has approved additional funding for two Lao projects designed to build climate change resilient infrastructure and rehabilitate flood-affected areas of the country.
The office of the international financial institution in Laos announced yesterday that the additional concessional loan of US$50 million will come from a special Crisis Response Window allocation from the International Development Association (IDA).
The additional funding arrangement for the two projects was approved by the World Bank’s Board of Executive Directors on March 11. The fund is for the countries that are considered to be the world’s most in-need countries.

According to a media release from the World Bank Country Office in Laos, the first project to receive additional funding from the Bank will be the Lao Road Sector II Project.
This project will receive US$25 million in additional funds to support the repair of damaged roads. The project will be implemented by the Department of Roads, Ministry of Public Works and Transport.
Critical sections of National Road 13 will be rehabilitated, taking into account climate resilient improvements, and more effective maintenance through performance-based contracts.
The second project is the Lao PDR Southeast Asia Disaster Risk Management Project. This project will receive US$25 million in additional funds to support the rehabilitation of embankments, implemented by the Department of Waterways. Priority river infrastructure will be upgraded to best practice technical standards for flood protection.
“All parts of our country have suffered from the effects of last year’s heavy flooding, with loss of life, property, and livelihoods, as well as significant damage to public infrastructure,”  the Minister of Public Works and Transport said as quoted in the Bank’s media release.  
“The cost of disaster recovery and reconstruction is estimated at more than US$520 million. This additional financing from the World Bank will help us build better and more resilient roads, waterways, and embankments.”
The 2018 rainy season was unusually heavy, affecting more than 616,000 people and causing 56 deaths. Tropical Storm Son-Tinh in July, and Bebinca in August, caused widespread flooding across the country.
Southern Lao was further hit by the collapse of the Xe-Pian Xe-Namnoy dam in July. The government-led Post-Disaster Needs Assessment estimated the damages and losses, recovery cost, and overall impact on the economy. Total needs for disaster recovery are estimated at US$520.4 million.
“The IDA Crisis Response Window is a special pool of funds reserved for countries facing significant disasters,” World Bank Country Manager for Laos, Mr Nicola Pontara, said as quoted in the media release.
“Damages and losses from last year’s floods far exceeded the cost of other recent disasters, including 2011 Tropical Storms Haima and Nok-Ten, and 2009 Cyclone Ketsana. This additional funding will help close the recovery financing gap and make Laos’ infrastructure more resilient to future disasters.”

By Ekaphone Phouthonesy
(Latest Update April 5, 2019)