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FROM NATIONAL WATER VISION
TO ACTION: A FRAMEWORK FOR
INTEGRATED WATER RESOURCES MANAGEMENT
IN THE LAO PEOPLE'S DEMOCRATIC REPUBLIC

by

Pholchaleun Nonthaxay
Director

Chanthanet Boulapha
Deputy Director

and Choung Phanrajsavong
Senior Adviser
Water Resources Coordination Committee Secretariat, Lao PDR
in cooperation with

Le Huu Ti
Economic Affairs Officer
Water Resources Section
Environment and Sustainable Development Division
United Nations Economic and Social Commission for Asia and the Pacific

and

Thierry Facon
Senior Water Management Officer
Regional Office for Asia and the Pacific
Food and Agriculture Organization of the United Nations

1. BACKGROUND

The World Water Vision process and the Second World Water Forum held in March 2000 have
generated a great deal of enthusiasm for better management of water resources in the region, as well as elsewhere. Building on this enthusiasm, a regional programme of cooperation involving FAO, UNESCAP, and selected countries in the region was launched in 2000 to promote the process of developing national water visions. In the initial phase of this programme that was implemented between 2000 and 2001, four country case studies were carried out in Southeast Asia with funding from FAO. Subsequently, a report containing the four country case studies and a synthesis of the related lessons was published (Le Huu Ti and T. Facon, 2001) and widely disseminated.

A second phase of this regional cooperation project was carried out between 2002 and 2003 involving three of the least developed countries in Southeast Asia, namely Cambodia, Lao People's Democratic Republic, and Myanmar.

This present report summarizes the results of previous studies related to the water resources management in Lao PDR and presents the findings of the Lao PDR country case study carried out as part of the second phase of the regional cooperation programme.

2. COUNTRY OVERVIEW

Lao People's Democratic Republic (Lao PDR) is a landlocked country with an area of 236 800
square kilometres, most of which is mountainous and about 47 percent is forested. The country has 16 provinces, one municipality and a special zone. Lao PDR has the third lowest population of the ASEAN countries. The estimated year 2000 population is 5 218 000, giving an average population density of 21 people per square kilometre. Population density ranges from 149 people per square kilometre in Vientiane Municipality to eight people per square kilometre in Xaysomboun Special Zone. In some of the mountainous areas the population is very scattered.

The Lao people include many ethnic groups with different customs and beliefs. These must be
taken into account in the socio-economic development of the country. The main impediments to
socio-economic development include a high illiteracy rate, high birth and infant mortality rates, low productivity, lack of experienced staff and skilled labour, and a legal and regulatory system that is still incomplete. However, Lao PDR has a high potential for socio-economic development owing to its abundant natural resources, especially water resources, which have yet to be exploited fully.

The agricultural sector is the foundation of the country's current socio-economic development. It accounts for the largest share of the country's foreign exchange earnings (40 percent), about 52 percent of the GDP, and 85.5 percent of the employment. The industrial and service sectors are in their infancy. However, hydropower is one of the main export sectors of the country and production for export is expected to double in the next ten years.

2.1 National policy and long-term goals of socio-economic development

a. National socio-economic development policy

This policy focuses on:

b. Long-term socio-economic development goals

The long-term socio-economic development goals of the country are to increase the national income and achieve a better living standard for the people, while protecting the environment and maintaining the culture of the Lao people.

To achieve the objectives of socio-economic development, the government has identified eight priority programmes as follows:

  1. Food production.
  2. Stabilization of shifting cultivation.
  3. Commodity production.
  4. Infrastructure development.
  5. Rural development.
  6. Human resources development.
  7. Services development.
  8. External economic relations.

2.2 Status of water and water resources management

a. Overview

Lao PDR has abundant water and water resources. The annual average rainfall is 1 650 mm ranging from 1 300 mm/year in the north, 1 500 mm/year in the central regions, to 2 000 mm/year in the south, whereas on the Boloven plateau it is 3 700 mm/year. The average flow from the tributaries of the Mekong river is 8 500 m3/second or 35 percent of the total flow within the Mekong river basin.

The abundant water resources in Lao PDR have the potential to support socio-economic development, especially the hydropower and irrigation subsectors. The hydropower potential of Lao PDR is large compared to other countries in the lower Mekong river basin, providing an opportunity to earn foreign income. The hydropower sector also has the ability to develop rapidly, indeed it has multiplied its production fivefold from 247 million kilowatt hours in 1976 to 1 187 million kilowatt hours in 1999 when it exported 473 million kilowatt hours. The government has given high priority to investment in the irrigation subsector since agriculture is the foundation of national economic development, is necessary for food stabilization and about 85 percent of the population lives in rural areas. From 1976 to 2000, the area of irrigated dry season rice increased from 2 700 ha to 110 000 ha. The irrigation subsector also significantly increased the average yield of rainfed paddy rice from 1.43 t/ha in 1976 to 3.27 t/ha in 2000. However, water resources development is still at a low level: irrigated area is only 20 percent of the national paddy area and hydropower production is still at two percent of its potential of 30 000 MW. Development in other sectors is still at a low level compared to hydropower and irrigation.

Although some advances have been achieved in the water sector, problems still remain. These include: unusual rainfall patterns in some years, high rates of evaporation, flood and drought in some of the main agricultural areas of the country; the impact of shifting cultivation on water resources (although this activity has been significantly reduced); and conflict of interests for management within the sector since most water subsector agencies are still responsible for regulation, management and service provision.

b. Water management activities

In order to achieve sustainable exploitation of water and water resources and to improve their management the following managerial, legal and institutional changes in the water sector have been made:

The Water and Water Resources Law (approved October 1996), the Environmental Protection Law (approved April 1999), and some Ministerial decrees and regulations have been approved. These latter regulations are to implement the Water and Water Resources Law and some other related laws.

The mandate of the Water Resources Coordination Committee (approved February 1999) established the Water Resources Coordination Committee within the Prime Minister's Office. The Committee is to provide advice to the government on matters related to water and water resources and to coordinate the planning, management, follow-up, inspection and protection of water and water resources aimed at their sustainable development and utilization in line with the government's socio-economic development policy.

The mandate of the Lao National Mekong Committee has been updated (approved November 1999) and it is to formulate policy, strategic plans, water resources related development projects and programmes within the Mekong basin, taking into consideration the protection of the environment and ecological balance, and community participation. It also cooperates with other Mekong riparian countries,
various non-Mekong riparian countries and foreign donors. The Lao National Mekong Committee's aim is to ensure the fruitful implementation of water resources development projects within the territory of Lao PDR.

A policy identifying the different management responsibilities of central and district authorities has been adopted: The provincial level authorities are to undertake strategic planning; the district level authorities are to be responsible for planning and budgeting; and the village level authorities are to implement the plans.

A process of institutional review has been commenced to separate the regulatory, standard setting and management functions at the national level and improve the efficiency of management, development and social services.

A policy of public involvement in water resources management and development has been implemented. Examples include consultation on planning hydropower development projects and user involvement in rural water supply and small irrigation schemes.

Regulations and measures have been adopted to attract private participation and direct foreign investment in water resources development. There are several examples of such direct investment in the hydropower sector.

A draft decree on the water and water resources law is being prepared in order to clarify the responsibilities of agencies within the subsectors for managing, exploiting, using and developing water and water resources.

c. Institutional arrangements in the water sector

There are 12 agencies within the water sector and a further 10 agencies have a direct interest in it. These agencies and their responsibilities and roles are set out in Table 3.1. In this table the following definitions are used:

Regulator refers to a body that develops high level policy, defines the broad outcomes sought by the government for the management and use of natural resources, sets standards or performance targets, and audits and reports to the government on the performance of other bodies in meeting those standards or targets. It may also approve lower level policy and management plans developed by the manager.

Manager refers to a body that assesses the ongoing status and availability of natural resources, develops and coordinates the implementation of lower level policies that set out in more detail how the resources will be both protected and utilized, develops and coordinates the implementation of plans for the management of specific resources, grants rights (permits/licenses) to use the resources, sets the conditions for the access and enjoyment of those rights, and monitors, reviews and reports on the use of the resources.

Table 3.1     Organizations with a direct interest in the water sector

Organization

Function

Role

Science, Technology and Environment Agency, Office of the Prime Minister

Has overall responsibility for activities related to science, technology and the environment. Coordinates agencies related to research and management of scientific, technological and environmental affairs. Ensures Lao PDR is up to date in scientific and technological advancements. Regulates wastewater disposal.

Regulator

National Mekong Committee Secretariat, State Planning Committee

Coordinates international aid assistance associated with investigation and development of the water resources of the Lower Mekong river basin. Follows up, controls and supervises utilization of that aid and reports regularly on the outcome and execution of each project.

Manager

Department of Irrigation, Ministry of Agriculture and Forests (MAP)

Implements government policies, strategies and programmes related to the development and management of irrigation, drainage and rural flood control. Monitors and evaluates data and information on irrigation and reports on changing situations. Issues standards relating to irrigation survey and design.

Regulator/ Manager and Service Provider

Department of Livestock and Fisheries, MAP

Implements government policies, strategies and programmes related to the management of fisheries (and livestock). Monitors and evaluates data and information related to fisheries (and livestock) and reports on changing situations.

Regulator/ Manager

Department of Meteorology and Hydrology, MAP

Collects, evaluates and disseminates rainfall, evaporation, river height and flow information for the Lao hydrometeorology network.

Service Provider

Inland Waterway Division of Communication Department, Ministry of Communication, Transport, Post and Construction (MCTPC)

Manages the use of waterways for transport and ensures safe navigation via dredging and navigation aids. Responsible for riverbank and urban flood protection. Collects hydrologic and hydrographic data on Mekong river and main tributaries.

Manager and Service Provider

Department of Housing and Urban Planning, MCTPC

Responsible for formulating the urban water supply strategy, preparing the training programme on planning and management, drafting regulations and standards.

Regulator

Water Supply Authority, MCTPC

Assists the MCTPC on technical issues including detailed elaboration of strategic plan, directing the implementation of the water supply sector policy, strategy and development plan.

Manager

State Pnterprises Water Supply (Vientiane Municipality and Provincial Nam Papa)

Supplies water to urban locations (greater than 2 000 ha and density greater that 30 people/ha); Implements guidelines for drinking water quality (WHO); manages sewerage and drainage.

Service provider

Department of Plectricity (DOP), Ministry of Industry and Handicrafts (MIH)

Determines policies, plans, laws and regulations for developing and controlling the production and distribution of electricity. Reviews and evaluates power project proposals, contracts and agreements.

Regulator/ Manager

Plectricite du Laos (PDL) State-owned Corporation, MIH

Owns and operates main public sector generation, transmission and distribution assets. Undertakes project development and joint ventures.

Service Provider

Department of Industry, MIH

Determines policies, plans regulations and standards relating to industrial wastewater.

Regulator/ Manager

National Institute of Hygiene & Ppidemiology Rural Water Supply, Ministry of Health

Formulation of rural supply policy and strategy, responsible for developing water and sanitation services to non-urban locations. (Nam Sa-at)

Regulator/ Manager

Service provider refers to a body that provides local services relatedd to water, such as water supply, irrigation, information, technical and scientific expertise or advice on water issues, or government funding for users. Such bodies may construct, operate and maintain works to control the supply and delivery of the resource or a service (e.g. drainage) to a number of users. It may issue permits or licenses to users, but should be licensed by the manager if the body has responsibility for significant use of the water and water resources.

2.3 Policy on water and water resources

The objective of the Policy on Water and Water Resources is to ensure that the management, exploitation, use and development of water and water resources are sustainable, equitable, and support the goals of socio-economic development and environmental protection in Lao PDR.

This Policy specifically emphasizes cross-sector issues, which are important to present and future activities in the water sector. The policy does not discuss issues specific to a single water subsector and it is recommended that these issues be covered in subsector water policies. However, this policy is to be the basis for any policies developed for the water and water resources subsectors.

The Policy on Water and Water Resources addresses seven areas as follows:

a. Water and water resources management principles

Water and water resources management is to be undertaken by subsectors in order to be consistent with the policy of decentralization and to ensure coordination among the water and water resources subsectors and provincial authorities.

The relationships between processes for water and water resources development planning and
socio-economic planning, and the roles and responsibilities of the subsectors are to be clarified by approving regulations on water and water resource planning processes and methodologies.

Coordination arrangements are to be identified and established between water and water resource and land and forest subsectors of the economy to ensure the sustainability of water resources.

Coordination systems related to the management, development, exploitation and use of water are to be established among the water and water resource subsectors and among the different provinces to increase water use efficiency, and to ensure environmental sustainability.

The processes and methodologies for updating the Water and Water Resources Policy, the National Water and Water Resources Management Plan and other water source management plans are to be identified to ensure compatibility with changing socio-economic conditions and priorities for water use.

The responsibility for water and water resources in individual river basins must be assigned to existing organizations or to newly established organizations, which are to be designed to suit the location, size, human and social values, characteristics of the river basin and opportunity for development. The river basin organization must ensure that the local authority and community are appropriately involved and must report periodically on the status of the water and water resources to the Prime Minister's Office to ensure efficient management of water and water resources.

The decree to implement the water and water resources law must be urgently developed and must identify the process, methodologies and the sharing of responsibilities among the water subsectors and local authorities for implementing that law, including responsibilities for developing related regulations that may be required to avoid inefficient and unsustainable water resource development.

Drafting regulations and management of water resources must be included in the annual, five-year and long-term plans of the water and water resources subsectors and the Water Resources Coordination Committee. Budgets will be allocated for the activity of developing regulations.

b. Water resources management and development

With regard to planning and implementation of water resources development projects, each water and water resources subsector must coordinate their activities to take into account needs at the national and local level, issues of economic and financial efficiency, social equity, environmental impacts, and to allow the government to meet its international obligations.

National water resources development and management planning is to be prioritized and provide the basis for subsectoral and local water resource development projects. The national plans must include plans for emergencies, floods and droughts.

An integrated river basin management and development plan is to be developed for those sub-basins of the Mekong river and sub-basins of other rivers that are important for socio-economic development plans at the national and local level, or which have a high potential for water use conflicts. These integrated river basin management and development plans must include groundwater where appropriate.

Water resource development projects and water resource management plans must be coordinated with land and forest management plans. The public is to be involved in developing and implementing these plans. The environmental impacts of implementing plans are to be assessed.

Community benefit through the public involvement process must be taken into account when initiating water resource development projects and water resource management plans.

Ecosystems of rivers that have a high potential for hydropower and irrigation projects or for conflict over water use, are be analysed to enable the development of water quality and quantity standards necessary for the protection of the environment.

c. Public involvement

Public involvement in the management, development and protection of water and water resources will be promoted. This involvement will allow for differences in society, culture and customs of the ethnic groups.

Guidelines for the process and methodology of public involvement in planning, implementing and management of water source development projects will be developed.

The capacity and institutional strength of relevant organizations to implement policies for public involvement will be increased and awareness developed to achieve community ownership of water and water resources management, development and protection.

Information on water and water resources status and trends, and the subsectoral activities will be disseminated to the public to achieve effective management and protection of water and water resources.

Water users' education, which has been initiated in the irrigation, rural water supply, and fisheries subsectors, will be further developed and appropriately extended to other water subsectors. In collaboration with the education sector, the media and mass organizations, a programme of public awareness on the protection of water resources will be initiated.

d. Financial resources for water resource development and management

Regulations and methodologies will be used as necessary to ensure the economic efficiency of water resource developments and their environmental sustainability. Investment in the water and water resources subsectors will be promoted by giving high priority to hydropower, irrigation, urban and rural water supply. The efficiency of existing water resource developments and uses will be promoted by involvement of the beneficiaries in the management of water resource development projects and by implementing necessary regulations.

The selection of water resources development projects must take into account the readiness and, except in the case of projects for poverty alleviation, the ability of users to make a contribution. Management responsibility will be transferred to the direct beneficiaries of existing water resources development projects, where appropriate.

When initiating projects using state budgets, the source of funds for operation and maintenance, and the level of contribution by beneficiaries must be clearly identified in order to reduce the demand on the state budget.

Charges for water use should consider the capability of low-income families to pay. The structure of these charges should create economic incentives to increase the efficiency of water use and should generate sufficient revenue for management, operation and maintenance and allow eventual expansion of the supply system.

Each subsector will encourage direct private and foreign investment to reduce demands on limited public funds while using appropriate measures to ensure the nation benefits.

e. Water allocation, quality management and use

Water allocation, and the monitoring and management of water quality methods and systems must be developed through analysis, research and implementation in selected areas and gradually introduced throughout the country. The management of water use in the subsectors should be promoted by training and awareness of the users. License and water use fees and other measures should be introduced to increase water use efficiency.

Water allocation plans for water resources important for national and local socio-economic development plans, or which have a high potential for cross-sector conflicts over water use are to be developed as
a priority. Where water allocation plans have yet to be developed, guidelines and measures to share water equitably and minimize the effects of a crisis or emergency are to be developed.

Water allocation plans must take into account domestic uses, cultural and social activities, environmental protection and existing water users. The plans must also link with land and forest use management plans. The plans must identify the processes and the methodologies to modify and to update water allocation in order to adjust to changing conditions.

Water quality must be periodically monitored and waste disposal to rivers controlled by appropriate measures. Public awareness of the need to protect the riverine environment must be increased.

Protected areas are to be defined to ensure water quality and quantity for human consumption. Activities such as construction, manufacturing and use of land for any purpose will be prohibited in these areas.

Permits must be obtained for disposal of waste water and any use of water other than small-scale use. The permit must clearly identify the purpose of the use, or wastewater discharge and any conditions applying. A fee for the permit will be levied and will be based on the purpose, size, location of the use and disposal, duration and measures for protecting the environment and other water users.

Work plans of organizations responsible for the management, development, and exploitation of water and water resources must include activities for the promotion of effective water and water resources use and their protection.

f. Data and information management

Data and information collection, analysis, exchange and management must be coordinated and improved to reduce duplication and ensure accuracy and reliability of data and information.

Water related data collected by government agencies shall be considered as the property of the state and be accessible to agencies in the water resources subsectors and other stakeholders under the terms stipulated in the regulations.

Regulations and data use fees will be developed and implemented, taking into consideration objectives for widespread data dissemination, cost recovery, sustainability and expansion of the data collection network.

Data necessary for the management and development of water and water resources that are important for national and local socio-economic development plans or that have a high potential for cross-sector water use conflict should be collected and analysed.

g. Capacity building and human resources development

Management and technical staff at all levels should be encouraged to continually upgrade their capacities through various means to be specified in human resources and capacity building plans, appropriate to the mandates of each organization and the responsibilities of each officer. The plans will also indicate actions to improve working procedures, regulations, and guidelines to improve the efficiency in implementing government policy.

The plans will emphasize the urgent necessity to implement laws, decrees, regulations for the integrated and sustainable management and development of water resources.

They will include prioritized actions to strengthen institutions at provincial and district levels to increase their efficiency in implementing decentralization policy that specifies a strategic role for provincial authorities, a planning and budget role for district authorities, and an implementation role for village authorities.

Water resource development plans or projects should consider the ability of the line agencies to implement projects and must include human resource development and capacity building to improve the effectiveness in implementing projects or plans.

3. NATIONAL WATER VISION AND THE FRAMEWORK FOR ACTION

3.1 Vision statement of the water sector

On the basis of previous studies and also in line with the experiences from the World Water Vision
process at the global and regional levels, including advice provided by the Southeast Asia Technical Advisory Committee of the Global Water Partnership, the following vision statement was discussed and adopted at the Consultation Workshop on Programme For Action of the Water Sector organized by the Water Resources Coordination Committee on 25 March 2002 in Phonsavanh, Xieng Khouang Province, Lao PDR.

“To Achieve the Coordinated Development and Management of Water and Water Resources for the Health, Wealth and Happiness of the People”

Also on the same occasion, it was felt necessary to address the priority goals of the socio-economic development process of the country as reflected in the following overall target for the water sector:

“To contribute effectively to the national programme of poverty alleviation and the socio-economic development objective of liberating the country from the status of least-developed country”

3.2. Approach in preparing the Programme For Action in the water sector

a. Coordination with other line agencies

As a coordinating agency without a management role in any specific water subsector, the Water Resources Coordination Committee works closely with all water related line agencies in the preparation of the Programme For Action and also gathers inputs from other institutions that have an interest in the management of water resources through consultation meetings. The main role of the Water Resources Coordination Committee here is to consolidate in a single document the strategy and the programme for action of line agencies that were formulated independently with no institutionalized coordinating mechanism.

Basically, the Programme For Action prepared by the Water Resources Coordination Committee for
the Consultation Workshop covers four main aspects of water resources management: (1) development; (2) management; (3) regulation and legislation; and (4) conservation/protection.

The Programme For Action for the water sector presented hereunder was based on the results of the Consultation Workshop and should only be considered in the context of the workshop. The view and ideas expressed by participants do not necessarily represent those of their agencies.

b. Choice of targets

The planning time horizon for short-term targets is 2005. This date coincides with the time frame of the national socio-economic development plan. The proposed short-term targets of each water subsector Programme For Action are based on the respective five-year plan targets.

At this stage there is no documented long-term sector plan beyond the five-year plan. Therefore, the targets proposed for the long-term Programme For Action are rather an indication of what the participants from each subsector consider as appropriate based on their own experiences and their views regarding the subsector strategy. No common time frame could be decided because water subsectors have different time horizons for strategic planning. Therefore, the date for the long-term target could vary from year 2010 to year 2020.

The meeting agreed that subsector targets should be rearranged under the following headings as deemed appropriate:

  1. Access to safe water for urban communities.
  2. Access to safe water for rural communities.
  3. Irrigated agriculture for increasing food production.
  4. In-land fishery sector.
  5. Hydropower production.
  6. The management of water resources.

Although this set of targets is not comprehensive, it does reflect the main activities in the water sector for the forthcoming years.

Participants to the Consultation Workshop included senior government officials from central and provincial water-related agencies. Most participants had been involved in drafting the water sector policy decree to implement the Water and Water Resources Law and in formulating the sector vision.

3.3 Programme For Action

a. Access to safe water for urban communities

  1. Current situation

Major water supply targets and the Programme For Action in urban communities are shown below:

  1. Targets
  1. By 2005, 60 to 62 percent of the urban population will have access to clean water and by 2020, 80 percent of the urban population will have access to clean water.
  2. By 2005, average unaccounted-for water of all urban water supply facilities countrywide will be reduced to around 20 percent.
  3. By 2005, the tariff structure of newly funded projects will take into account the loan covenants and the affordability for the most disadvantaged consumer group.
  4. The implementation of the ongoing decentralization programme will be reinforced.
  1. Short-term Programme For Action
  1. Construct new water supply systems for 12 small towns (population of more than 4 000 or density of more than 30 persons/hectare) that have highest priority in the investment programme of the water supply sector.
  2. Extend the water supply system in Vientiane and rehabilitate the water supply system in Savannakhet town, the second most populated town of Lao PDR.
  3. By 2005, strengthen the Water Supply Authority so that it can perform as Executing Agency for six to eight projects per year with an average project cost of US$1 500 000.
  4. Develop a Lao PDR urban water tariff policy for a high quality, sustainable and affordable level of service.
  5. Conduct capacity building for provincial water supply utilities, especially focussing on technical and financial management operations and corporate planning.
  1. Long-term Programme For Action
  1. Provide clean water to about 90 to 100 small towns, rehabilitate and extend the water supply systems in all the 16 remaining provincial capitals.
  2. Strengthen the regulatory function of the Water Supply Authority.

b. Access to safe water for rural communities

  1. Current situation
  1. The responsibility for development and management of rural water supply facilities is under the National Centre for Environmental Health and Water Supply (commonly referred to in Lao PDR as Nam Sa-at — meaning Clean Water), Department of Hygiene, Ministry of Health;
  2. The strategy of Nam Sa-at stresses the principle of ownership and participation of the beneficiaries, strong organization at grass root level and benefit evaluation and monitoring.
  3. About 52 percent of the population has access to clean water.
  1. Targets

Targets for 2005 include:

  1. Clean water supply will be provided to 60 percent of the rural population.
  2. Good service will be delivered to the new water supply schemes.
  3. The quality of rural water supply schemes will be enhanced technically and in terms of sustainability.
  4. Water quality control and surveillance will be in place and functioning.

Targets for 2025 include:

  1. Clean water supply will be provided to more than 80 percent of the rural population.
  2. Investment by the beneficiaries in the rural water supply and sanitation sector will be increased.
  1. Short-term Programme For Action
  1. Implement the strategy of institutional strengthening at the central, provincial, district and village levels.
  2. Develop planning, budgeting and financial management skills.
  3. Establish a management information system.
  4. Improve the coordination and the participation of the stakeholders in the planning, implementation and management of rural water supply schemes.
  1. Long-term Programme For Action
  1. Set up and gradually strengthen the three Regional Centres for Rural Water Supply and Sanitation.
  2. Develop and implement a programme of devolution of the management to the regional level.

c. Irrigated agriculture for increasing food production

  1. Current situation
  1. The irrigation sector is one of the highest priority sectors of Lao PDR and accounts for 40-50 percent of the public investment in the agro-forestry sector.
  2. Almost all the irrigated area is used for rice cultivation.
  3. The existing irrigation schemes cover about 36 percent of the agricultural land.
  4. Obstacles to efficient irrigation are the poor management of irrigation schemes and the fluctuating and low prices of agricultural goods, which discourage investment in the irrigation sector.
  1. Target
  1. By 2005, the irrigated area will be increased to cover 50 percent of the agricultural land.
  2. By 2020, the irrigated area in the rainy season will be increased to cover over
    80 percent of the agricultural land and the dry season irrigated area to cover over
    50 percent of the agricultural land.
  3. Irrigation efficiency will be gradually improved.
  1. Short-term Programme For Action

In order to achieve the above-mentioned targets, the programme for action up to 2005 will focus on:

  1. Expanding water user associations;
  2. continuing implementation of the Irrigation Management Transfer to Beneficiaries programme;
  3. improving and developing small irrigation schemes by communities;
  4. building capacity at all levels, especially the communication skills of grassroots organizations, and the management and technical capacity of water user associations;
  5. improving the efficiency of existing schemes in order to make them more attractive to beneficiaries prior to management transfer; and
  6. improving the hydro-meteorological network for more reliable planning of medium and large schemes.

d. In-land fishery sector

  1. Current situation
  1. Traditionally, fish has been the main source of animal protein for the population of Lao PDR, especially in the rural communities where more than 50 percent of the people rely on living aquatic resources for their dietary protein.
  2. Capture fishery and aquaculture are the second occupation of over 80 percent of the rural population.
  3. In 2001, fish accounted for about seven to eight percent of the GDP. This amounted to approximately 73 000 tonnes, of which 60 percent is from aquaculture.
  4. Recent studies of the fishery sector indicate that the demand for fingerlings in 2000 was about 500 millions and the supply was around 185 millions.
  1. Targets
  1. The demand for aquatic animal products is expected to increase from 14 kg/head/year in 2001 to 16 kg/head/year in 2005 and 23 kg/head/year in 2020, resulting in a total demand of 91 000 tonnes and 187 000 tonnes in 2005 and 2020 respectively.
  2. As capture fisheries has limited potential, fish production through aquaculture and enhanced fisheries will be increased.
  3. Research and development work related to the production of some pangasias and ornamentals for both the domestic and export markets will be undertaken.
  1. Short-term Programme For Action
  1. Continue the assessment of Mekong fisheries organized by the Mekong River Commission.
  2. Strengthen fisheries information systems.
  3. Promote the aquaculture of indigenous fish species.
  4. Develop reservoir fisheries.
  5. Strengthen measures to eliminate the use of illegal and destructive fishing gear.
  1. Long-term Programme For Action
  1. Increase supplementary food supplies to the urban communities by promoting
    peri-urban semi-intensive aquaculture with attention to aquatic animal health and good management practices.
  2. Gradually integrate sustainable aquaculture farming into agricultural mixed farming, generating new employment.
  3. Decentralize fisheries management.

e. Hydropower sector

  1. Current situation
  1. Lao PDR has an abundant hydropower potential of about 30 000 MW, far beyond the domestic demand. So far, only about 1.8 percent of this has been developed.
  2. Because of rugged and mountainous terrain, remote areas cannot be reached by electric grid and as a result have to import electricity from neighbouring countries.
  3. The export of hydropower energy is one of the important sources of Lao foreign exchange earnings.
  4. The government has encouraged private investment in the sector, particularly in large hydropower schemes for energy export.
  1. Targets

Short-term targets

  1. The production of electricity will be increased by 3.7 percent per year, and electricity will be supplied to over 40 percent of villages.
  2. The policy of decentralization of the electricity sector together with the enhancement of the regulatory function of the Electricity Department will be implemented.

Long-term targets

  1. Ninety percent of the population will have access to reliable electricity.
  2. A country-wide grid from the north to the south will be constructed.
  1. Short-term Programme For Action
  1. Develop small and medium hydropower schemes for supplying those areas far from the electric grid and areas currently importing electricity.
  2. Extend the electric grid, focussing on areas with high economic development potential and major towns.
  3. Carry out pre-investment studies of major schemes for energy support.
  4. Finalize the formulation and initiate the implementation of the decree on the creation of funds for the protection of watersheds through the contribution of the revenue from hydropower projects.
  1. Long-term Programme For Action
  1. Develop large schemes for export and domestic consumption of electricity.
  2. Expand the energy exchange with neighbouring countries.
  3. Continue to promote private participation in the hydropower sector.
  4. Strengthen the institutions and the human resources for the implementation of the decree on the creation of funds for watershed protection.

f. Cross-sectoral issues in water management

  1. Recent achievements
  1. Integrated water resources development planning of Nam Ngum river basin, one of the major rivers in Lao PDR, has been carried out thanks to the technical assistance of ADB.
  2. A decree to implement the Water and Water Resources Law has been approved by the government.
  3. The policy on the water sector has been approved by the State Planning Committee.
  4. The Water Sector Profile, the Draft Vision, and the Strategy of the water sector have been drafted.
  1. Major targets

Short-term targets

  1. The decree widely disseminated and effectively applied (as mentioned in item 2 above).
  2. Integrated water resources management will be implemented in one of the river basins.
  3. The Water Resources Coordination Committee will be further strengthened so that it has an actual role in the ongoing activities of the water sector.

Long-term targets

  1. Integrated water resources management will be practiced in the most important river basins.
  2. All fundamental regulations for the implementation of the Water and Water Resources Law will be formulated.
  1. Short-term Programme For Action
  1. Coordinate the implementation of integrated water resources management in the Nam Ngum river basin.
  2. Prepare regulations on water management required for the implementation of integrated water resources management in the Nam Ngum river basin.
  3. Strengthen the Water Resources Coordination Committee focusing on the coordination function at river basin level.
  4. Undertake a programme of public awareness on the protection and conservation of the water resources.
  1. Long-term Programme For Action
  1. Expand the practice of integrated water resources management to other river basins.
  2. Further strengthen the Water Resources Coordination Committee in order to be able to perform effectively its role as apex body for coordination and regulation in the water sector.

4. IDENTIFICATION OF PRIORITY ISSUES IN INTEGRATED WATER RESOURCES MANAGEMENT

In order to promote integrated water resources management, a national workshop was held from
17-18 October 2002 in Keo-Oudom, Vientiane Province, attended by 41 participants from various ministerial and provincial agencies and mass media organizations. A specific aim of the workshop was to identify issues and perspectives in the management of water resources of various sectors in the country. It was also expected that the workshop would come up with priority recommendations on integrated water resources management. On the basis of previous studies, it was decided to focus the discussion on four key areas:

The following issues were recommended as priority issues that need to be addressed for successful implementation of integrated water resources management in the country.

4.1 Policy and legislation issues

The Draft Water Sector Policy Framework should be updated to include:

  1. The protection and control of water pollution;
  2. impacts of physical infrastructures on natural water channels;
  3. international cooperation on the management and use of international rivers;
  4. protection from the harmful impacts of natural calamities involving water; and
  5. legal measures and incentives to protect water and water resources.

Moreover, it was felt that the updated draft policy framework should be discussed in detail with all concerned, submitted to the higher authority for approval and used as a basis for preparing a detailed water policy.

4.2 Management issues

As regards the water subsectors, priority should be given to:

  1. Formulating a policy on decentralization specifically for the water sector — this should set out clearly the role, the function and working procedures of central and provincial line agencies;
  2. formulating a policy on meteoro-hydrological data collection, management and sharing;
  3. setting up a coordination mechanism between the Water Resources Coordination Committee and the Lao National Mekong Committee;
  4. formulating a fishery subsector policy;
  5. reviewing the prevailing policy on water users in the irrigation subsector;
  6. preparing regulations for the water supply subsector;
  7. establishing water standards for use in different water subsectors; and
  8. formulating a policy for managing and protecting groundwater resources.

All participants recognized that the enforcement of the Water and Water Resources Law and related regulations is still very weak and that there is an urgent need for improvement, starting with the broad dissemination of information and the preparation of education and public awareness programmes. Most participants identified that one of the major issues is the lack of a strong and effective regulatory institution in most, if not all, water subsectors.

Most of the competition or conflict related to water use has been solved at operational level by local authorities. There is no institutionalized mechanism for solving water use competition and conflict. Several examples were given by participants. Project planning has been carried out in isolation and therefore has sometimes led to water use conflicts not only between different users, but also between users of the same subsectors. These two issues should be addressed as soon as possible as serious conflicts on water use, especially in the dry season, may occur in the future.

As regards the sharing and management of data collection, most participants expressedthat the problem is not only the lack of data, but also the lack of management of existing data. Sometimes data is kept with individuals and not with the organization, and access to data depends on having a good connection or relation with a particular individual. Sometime, data is given free of charge, thus there is no sharing of the cost of data collection, processing and storing. This issue needs to be discussed and a clear policy on data management needs to be formulated.

4.3 Public awareness issues

The workshop expressed support for the Draft Public Awareness Programme prepared by the Water Resources Coordination Committee Secretariat in consultation with line agencies concerned, which proposed to focus on:

4.4 Capacity building issues

The participants considered the need for training on a number of topics, as follows:

Highest priority was given to training and capacity building in the fields of policy and regulations. This opinion reflects well the present situation of the water sector. It is clear that the water sector in the country still lacks policies and regulations on cross sectoral as well as subsectoral matters. Training on public participation, gender issues and conservation of the environment was also considered to be important.

5. FORMULATION OF THE WATER VISION TO ACTION PLAN

On the basis of the experiences related to the establishment of the framework for action in association
with the Southeast Asia Technical Advisory Committee of the Global Water Partnership as well as the findings of the first phase of the FAO-UNESCAP Regional Cooperation Project, the following four themes were identified as priority activities required for the realization of the Lao National Water Vision as part of the national socio-economic development process:

  1. Water for people: poverty reduction and rural development.
  2. Water for nature and economic development.
  3. Pilot river basin management.
  4. Establishment of a framework to turn the national water vision into reality.

The above four themes were adopted for consideration by four working groups for the round-table workshop on the formulation of the national water vision to action plan, jointly organized by the Water Resources Coordination Council Secretariat in cooperation with UNESCAP and FAO in Vientiane from 18-19 December 2002. The main findings are summarized below.

5.1 Water for people: Poverty reduction and rural development

Under this theme, three priority objectives from several objectives of water resources development for rural development and poverty reduction were selected as follows:

In order to create a conducive environment to achieve the above objectives at the national level, the working group suggested the following measures:

The working group also identified the following most common issues faced in achieving the three above priority objectives:

The working group identified the following agencies to be the key actors for the respective three priority objectives: (1) Ministry of Agriculture and Forestry, (2) Ministry of Public Health, and (3) Ministry of Industry and Handicrafts. They also recommended the following priority actions to be taken for the three priority objectives:

In order to help monitor progress in the implementation of priority activities, the working group identified key indicators and proposed targets, based on previous studies.

For agricultural development, indicators will be based on expected increases in incomes of the targeted areas. For the pilot area in the northern part of the country, GDP per capita is proposed to increase from the current level of US$240 to US$500/yr in 2010. For this purpose, it is expected that the Ministry of Agriculture and Forestry, provincial authorities and the Ministry of Trade will play the key roles.

Detailed activities to be carried out within the time frame up to 2010 would include the following:

For the supply of drinking and domestic water, it was proposed that the number of people with access to water would increase from the current level of 52 to 60 percent in 2005 and 80 percent in 2020. To achieve this, the Ministry of Public Health and the Clean Water Authority would need to undertake the following priority activities:

With the development of small hydropower potentials, it was expected that 20 percent of the households in the North would be provided with electricity from hydropower by 2010. It was proposed that the key agencies, namely the Ministry of Industry and Handicrafts, Water Resources Coordination Committee and Science, Technology and Environment Agency, would undertake the following priority activities:

The working group also identified major existing programmes that may have complementary roles in achieving the three above-mentioned objectives as follows:

In promoting coordination for agriculture and rural development, the working group recommended the following key functions be played by the Water Resources Coordination Committee:

With regard to with these coordinating functions, it was recommended that the following priority activities be undertaken by Water Resources Coordination Committee:

5.2 Water for nature and economic development

Considering different opportunities, the rich resources and the strategic geographical location of the country, the working group recommended the following priority objectives for economic development and nature conservation:

In view of the limitation in financial and human resources faced by the country, it was recommended that strategies to achieve the above three priority objectives would involve the establishment of
a conducive environment and mobilization of financial resources for the development of tourism,
water-borne transport and conservation of water resources.

Apart from the lack of financial resources, major issues faced in the development process for the three priority objectives were identified as follows:

The working group identified the following agencies as the key actors in the implementation of the above strategies: Ministry of Industry and Handicrafts, the Lao Tourism Authority, Ministry of Communication, Transport, Post and Construction, Ministry of Agriculture and Forestry and Committee for Planning and Cooperation.

The following priority courses of actions were recommended for the establishment of a conducive environment for the development of these areas: law and feasibility studies, water resources conservation activities, investigation of potential tourism sites, survey and inventory of islands and rapids, and mobilization of funds.

In order to help monitor progress towards achieving the above priority objectives, the following indicators and targets were suggested:

It was recommended that a mechanism with tools and capacity for monitoring and reporting of progress be set up, especially with respect to the mobilization of financial resources to complement the limited budgetary resources of the government and the process of capacity building and technology transfer.

The following priority activities were identified:

In reviewing the current conditions, several lessons were drawn from problems with the existing development coordination mechanisms, particularly with respect to the availability of sufficient water to meet all purposes. For example, in Nam Kor in Udomxay Province water shortages, especially for irrigation and water supply, were caused by poor planning and coordination. Nevertheless, it was found that several existing coordinating mechanisms could coordinate among the agencies concerned, such as the unit which provides training on tourism services or the committee for improvement in navigation. However, these mechanisms would need to be strengthened to overcome problems caused by the lack of water utilization regulations, especially detailed regulations for subsectors, and the lack of sufficient technical capacity.

The supporting roles of the Water Resources Coordination Committee were recognized in the following priority functions: basin planning, establishment of regulations for river basin management, and establishment of river basin organizations. It was recommended that the Water Resources Coordination Committee carry out the following priority activities: establishing models for river basin management, promoting capacity building and assisting in fund raising.

5.3 Pilot river basin management

At the beginning of the working group discussions, the primary concern with respect to the management of river basins was to ensure sustainable development of their natural resources. Interaction with the other working groups revealed also the needs for poverty eradication and for economic development. The working group therefore recommended the following priority objectives for river basin management:

  1. To ensure the sustainability of river basin management.
  2. To harmonize the relationship between humankind and nature.
  3. To develop optimally the river basin's resources.

Given the rich potential for water resources development in many parts of the country, particularly the northern, central and southern regions, several candidate river basins could be selected for the pilot study. Among these river basins, the Nam Ngum river basin was adopted as the basis for discussion and the priority strategies recommended under this theme included the following:

  1. Improving the enforcement of existing laws and regulations (Water Law, Environmental laws, etc.);
  2. establishing a River Basin Coordination and Management Committee; and
  3. mobilizing financial support from government and donors.

It was suggested that the following issues should be accorded priority so as to ensure effective introduction of integrated water resources management:

The working group identified the three key agencies which would play central roles in successful river basin management: the Water Resources Coordination Committee, the Science, Technology and Environment Agency, and the Ministry of Agriculture and Forestry. The following priority actions were recommended to be undertaken by these agencies:

In order to monitor the improvement in water resources utilization effectiveness for the three priority objectives in the pilot river basin (Nam Ngum), the working group recommended the following indicators and targets:

  1. Water quantity for use during the dry season will be increased by ten percent by ten years;
  2. the number of conflicts in the use of the river basin's water resources will be reduced by
    70 percent in five years; and
  3. incomes will be increased by 10 percent per annum over a five-year period.

In the above context, independent mechanisms for monitoring will be required and the following agencies were recommended to accept responsibility in this area. The Department of Meteorology and Hydrology was recommended to be responsible for monitoring of the flow conditions and to report to responsible agencies and the government. A River Basin Coordination and Management Committee was recommended to be established so as to monitor progress in reducing the number of conflicts in water utilization and in improvement of the socio-economic conditions of the people in the river basin and to report to the provinces and the government. The working group recommended the following priority activities to be undertaken by the key actors in this theme: detailed studies (including discussion and data collection), detailed and coordinated planning (participatory approach) and implementation (including resources mobilization).

The working group reviewed existing programmes related to integrated water resources management, especially those related to subsectors, such as national Water Resources Development Programmes on Hydropower, Irrigation and Water Supply as well as those initiated by the Mekong River Commission. The working group therefore recommended possible improvement measures for coordination such as clear, related government policies, laws, regulations and decrees and the creation of effective River Basin Organizations. The important roles of the Water Resources Coordination Committee to coordinate with the ministries concerned and of the Lao National Mekong Committee to develop policy, laws, regulations including establishment of River Basin Organizations were recognized. The working group recommended the following priority activities of the Water Resources Coordination Committee to support progress in river basin management at the national level: capacity strengthening, plans of action, financial resources mobilization.

5.4 Establishment of a framework to turn the national water vision into reality

The working group focused its discussions not only on the detailed activities of turning the national water vision into reality, but also and mainly on the framework to create the right conditions for all key stakeholders of the water resources sector to play appropriate roles in the realization of the national water vision. For this purpose, the working group recommended the following three priority objectives:

It was interesting to note that all participants from the line agencies expected the Water Resources Coordination Committee Secretariat to play the key role in the realization of the national water vision. The participants also recognized the importance of such a principal role in the implementation of fundamental and cross-cutting activities, such as training and capacity building, enhancement of public awareness and public participation. These fundamental activities are necessary in view of the following priority issues identified by the working group:

In order to help monitor the implementation of coordinated activities towards achieving the priority objectives, the working group identified the following indicators and targets:

  1. Sustainable development — it was considered necessary to develop indicators to reflect the overall quality of watersheds in the long run. In the short-term, the working group recognized that the water quality should be a priority indicator for monitoring to ensure the current good conditions are maintained.
  2. Clearer water resources policy — it was recommended to monitor the number of conflicts in water utilization or violations against the law and to reduce the number of conflicts or violations by half in five years.
  3. The mobilization and utilization of resources — the working group proposed to make an inventory of current resources allocation and investment in the water sector and recommended to prepare a strategy to increase annual financial resources and to improve allocation among the subsectors to ensure effective support to the national socio-economic development process
    and sustainable development. It was recommended that resource mobilization be doubled in five years.

For proper monitoring and reporting, the working group suggested the use of the existing mechanisms as follows:

  1. Science, Technology and Environment Agency and Water Resources Coordination Committee to monitor and report on water quality and Water Resources Coordination Committee to develop indicators for watershed quality.
  2. Water Resources Coordination Committee to set up and monitor a programme to reduce the number of violations against the law or conflicts in water utilization.
  3. Either the Water Resources Coordination Committee or a new mechanism to monitor financial resources allocation and utilization for the water sector.

In support of the above programme, the working group recommended the following priority activities to be undertaken by the Water Resources Coordination Committee:

  1. Water Resources Coordination Committee to implement the plan of monitoring of changes in water resources, including the new indicators of watershed quality and report the results to the government.
  2. Water Resources Coordination Committee to compile a record of the number of conflicts and violations and write a report on these with suggestions for improvement.
  3. Water Resources Coordination Committee to compile a record of the resources allocated to the water subsectors and to consult with all subsectors to prepare the strategy or plan to strengthen resource mobilization and utilization.

Among the priority activities, it was recommended that attention be paid to help increase financial resources with the contribution from government, donors and all people, and to help adequate allocation to all subsectors.

In reviewing existing key programmes related to the above-mentioned priority objectives, the working group identified the following obstacles in the implementation of the programmes:

  1. Sustainable development: Lack of good coordination among subsectors concerned, including between Water Resources Coordination Committee, Science, Technology and Environment Agency, Ministry of Agriculture and Forestry and Ministry of Public Health; lack of sufficient number of capable technical staff; and administration system is not strong enough;
  2. Clear water policy: Water utilization regulations are not clear and not complete; and responsibility sharing in monitoring of subsectors is not clear;
  3. Fund raising and utilization: insufficient budgetary resources; and inadequate contributions from water users.

The working group discussed intensively the role of the Water Resources Coordination Committee in the creation of an effective framework for the realization of the national water vision and recommended that it should:

  1. Assist in promoting the action plan;
  2. act as a neutral coordinator among subsectors;
  3. act as a neutral coordinator for cooperation with international agencies, including fund raising; and
  4. assist in the coordination for allocation of budgetary resources to satisfy the real needs.

Similarly, the working group also identified priority activities of the Water Resources Coordination Committee and water subsectors as follows:

  1. Establishment of a system for monitoring and assessment of water resources development;
  2. establishment of strong regulations for water utilization; and
  3. establishment of a system for monitoring and data collection and exchange.

The working group also recommended the following activities to be undertaken by all water-related agencies and stakeholders:

  1. Human resources development in water sector should be improved and strengthened;
  2. improvements in coordination and corresponding implementation procedures;
  3. promotion of public participation in planning and implementation;
  4. enhancement of public awareness on impacts of water utilization; and
  5. increased cooperation with international organizations for more technical and financial assistance.

6. CONCLUDING REMARKS

During the past three years, important progress in the improvement of water resources management
in the Lao PDR has been made, especially following the establishment of the Water Resources Coordination Committee. The most important achievements were related to the coordination of activities and the increase of interest and attention by the government and the donor community in the management of water resources. Among these achievements was the development of the national water vision and the related change in perception of key water resources stakeholders on the need for better coordination. These changes enabled the round-table workshop on turning the national water vision into action to introduce a more centralized approach to coordination in the realization of the national water vision. As can be seen from the discussion of the four working groups in Section 5, all participants recognized the importance of the coordinating role of the Water Resources Coordination Council in the promotion of integrated water resources management at the national and river basin levels. This change in perception made it possible to introduce a two-pronged approach in the realization of the national water vision:

  1. Overall approach: Water Resources Coordination Committee to undertake the programmes related to the framework of turning the national water vision into reality and the implementation of the pilot river basin management.
  2. Sectoral approach: Related subsectoral agencies to undertake priority activities related to the programmes on poverty mitigation and rural development, and economic development and nature conservation.

REFERENCES

Le Huu Ti and Thierry Facon. 2001. From Vision to Action: A Synthesis of Experiences in Southeast Asia. The FAO-ESCAP Pilot Project on National Water Visions. RAP Publication 2001/06, Bangkok.

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