Midterm Evaluation - Poverty-Environment Initiative - Phase 2 (ESIA, IPD, and NERI)

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Evaluation Plan:
2012-2016, Lao
Evaluation Type:
Mid Term Project
Planned End Date:
11/2015
Completion Date:
11/2015
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
5,000

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Title Midterm Evaluation - Poverty-Environment Initiative - Phase 2 (ESIA, IPD, and NERI)
Atlas Project Number: 00068327, 00068328 and 00068329
Evaluation Plan: 2012-2016, Lao
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 11/2015
Planned End Date: 11/2015
Management Response: Yes
Focus Area:
  • 1. Others
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Output 1.3. Solutions developed at national and sub-national levels for sustainable management of natural resources, ecosystem services, chemicals and waste
  • 2. Output 7.6. Innovations enabled for development solutions, partnerships and other collaborative arrangements
  • 3. Output 7.7 Mechanisms in place to generate and share knowledge about development solutions
SDG Goal
  • Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  • Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
SDG Target
  • 15.9 By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies and accounts
  • 16.7 Ensure responsive, inclusive, participatory and representative decision-making at all levels
Evaluation Budget(US $): 5,000
Source of Funding: UNDP/PEI Lao PDR
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
GEF Evaluation: No
Key Stakeholders: NERI, MPI for PEI Research; IPD, MPI for PEI Investment Management and DESIA, MONRE for PEI ESIA
Countries: LAO PEOPLE'S DEMOCRATIC REPUBLIC
Comments: The midterm evaluation is for the three projects of Poverty Environment Initiative. The field work of this midterm evaluation was done in October 2014 at the same time with the regional evaluation of PEI programme Phase I. The consultant was contracted by UNDP Laos to do the evaluation for PEI phase II of Lao. The report can only be ready in February.
Lessons
Findings
Recommendations
1

Immediately pit in place a success strategy if the current PEI STA is leaving at the end of 2015 to avoid project implementation disruption at theis critaical stage and to secure a smooth transition to possible next phase. 

2

Prioritise the finalisation and formal approval of all strategic developments and tools, in particular the national and provincial investment strategies and the investment compliance database. MPI managers should take the lead in ensuring that the required high-level consultations and endorsement of the national strategy takes place as soon as possible. MONRE managers should take the lead in ensuring the completion and formal adoption of all EIA/IEE technical tools. 

3

Design a financial sustainability strategy for investment compliance monitoring under the leadership of IPD and with the involvement of the Ministry of Finance. In the absence of a predictable and adequate budget for regular investment monitoring centrally and in the provinces the likelihood of investors' compliance with national legislation and contractual requirements is low. 

4

Provide support for the finalisation of a data sharing agreement between MoNRE (environment and social safeguards database) and IPD (investment compliance database). Clarify what information may be accessed by provincial authorities, other line ministries and by the general public. Provide support to ensure that the databases are populated with theinformationn collected through the monitoring processes and continue supporting joint monitoring efforts on the ground to ensure experience is gained and quality reports are proeduced, triggering actions or responses to ensure compliance. The proposed annual investment compliance report to the National Assembly would be very useful but in the absence of a database reporting system to reduce the burden of preparing such report it may not be feasible or sustainable. Ease of mandatory reporting is the most important incentive fore staff to mainatain the database. Adding geo-referencing capabilities to the database would be very useful. 

5

Continue building the baseline on both the quality of EIA for agriculture projects and the quality of the EIA report by government. Completing this work is important to help assess whether the government's capacity to approve good EIA has increased. 

6

Continue building the baseline information to assess changes/improvements on quality of investments and compliance. This involves continued support to build the capacities of NERI to conduct and disseminate high-quality policy-relevant economic research and analysis that considers social and environmental issues. The investment compliance database is a useful tool to access and manage data and information on investment but periodic in-depth analysis of cumulative impacts of investment in regions and sectors should be performed by NERI. 

7

Given the exponential growth of contract farming and its impact on local communiteis and the local environment PEI may continue helping the government to moniotr its effects particularly on women and disadvantage groups. 

8

Once the NIS is approved, assist the government to further identify and address conflicting mandates or gaps and prepare specific suggestions to revise the mandate of the entities involved up to the departmental level. 

9

The 8th NSEDP is to be outcome oriented. Research supported by PEI under component 5 has provided evidence that FDI performance significantly affects the development outcome of the NSEDP. Ideally, there should be one or more indicators relevant to P-E to specifically track FDI performance in the NSEDP M&E framework. The data to track the indicator(s) would be part of the DESIA/DPI environmental and social safeguards and investment compliance databases; therefore, no additional data would need to be collected. 

10

Intensify the delivery of training including by scaling up TOT in the pilot provinces and beyond. It was suggested that 3 regional hubs be created to expand the training effort. Co-financing and technical support from other development partners should be sought. A training strategy and detailed work plan should be developed and implemented if a PEI phase IIImaterialisee. A more robust method to assess the results of capacity building and trainng needs to be developed and implemented. 

11

Strengthen ownership of tools and processes among a critical mass of staff at IPD. The ability to update and adapt the tools on the basis of experience or for consistent with new legislation is an important component of PEI's sustainability.

12

Adjust as appropriate the component related to green growth investment profiles in the provinces. Explore the possibility of securing UNEP's technical and financial support for this activity to meet national stakeholders' demand for increased knowledge on green growth investment opportunities in various sectors, technologies, patents and legal issues, access to credit, fiscal incentives, among others. As a short-term measure, if the GEF small Grants Programme (SGP) reinitiates operation in Laos PDR, assess the opportunity to align the SGP national strategy to pilot community green growth and sustainable livellihood initiatives and negotiate their possible co-financing with PIP or other resource avalaiable to the Provicne. 

13

Expand the support to the NA for P-E mainstreaming and in particular assist the NA to implement third party verification of investment monitoring and compliance. This is a very promising avenue to improve te quality of investments and achieve high standards of investment management in Lao PDR. 

14

Strategically use the development of the new UNDAF cycle to enlist other UN agencies to help achieve some of the P-E outcomes in the 8th NSEDP

15

Enhance communications, in particular dissemination of research results. The PEI Lao website requires an update to ensure all recent publications and communications materials are posted. 

16

Make strategic use of the Programme Board, with more frequent and focused meetings to clear bottlenecks and address implementation challenges. 

17

The work to upgrade the MPI website needs to be completed. This website is up but still having incomplete information on the investment process which may have a negative repercussion on potential investors's interest. English test editing is needed. 

18

Develop an exit/sustainability strategy in parallel with the development of a subsequent Phase 3 (2016-2020). Such a strategy should clearly identify the key drivers that would lead to the desired impacts of the programme in Lao PDR. The development process of the new ProDoc needs to reassess whether the risk and assumptions identified in the Phase II Prodoc still hold. The RRF for the next Phase should commit IPD and DSEIA to specific targets in terms of quality investment and enforcement of investment agreements.

19

Describe in one document the entire set of processes and tools related to FDI management with a summary of their status and further action to ensure all processes are operational. It was difficult for the evaluator to have a full appreciation of progress and the effectiveness of the system being put in place in the absence of such document. The document would also be useful to share the LAO PDR experience with other countries. PEI's website, with the authorization of the Lao PDR Government, may include a section showcasing a selection of tools that may have broader applicability and enabling visitors to download the tools for use or modification. 

20

Continue the work on corporate social responsibility. This is an important topic that would reinforce the work done on improving the quality of FDI. The main investors in the country are from neighbouring nations where few companies have probably been exposed to CSR approaches. UNDP and UNEP HQ and regional offices may be called upon to provide support. 

21

The PEI modus operandi in Lao PDR offers a foundation to implement the new directives for UNDP programming at country level, breaking the silos and strengthening inter-disciplinary work to support the government address priority development challenges. This could inform the processes in other UNDP COs. At the same time PEI's implementation in Lao PDR offers a good example of how UNEP can deliver its services at country level in a more effective manner. 

22

Improving FDI management performance in the entire region is important to avoid investors moving into countries where standards for investments and compliance are low. The PEI regional team should explore whether it can further expand its support in this field to other countries or Develop Strategic Partnerships ,with organisation in the region to address this transboundary aspect. 

23

Explore how to take advantage of new opportunities emerging from the National Assembly strategic Support Project under the Governance Unit of UNDP to mainstream P-E in other aspects of the government agenda, for example, issues related to public participation, decentralisation, information disclosure, access to justice, including an effective system for presenting grievances and for redress in cases where there have been serious negative impacts on communities from private investments. 

24

While consolidation is the priority, the next phase could explore addressing the "general business" investments managed by Ministry of Industry and Commerce because these could have a major impact. Currently there are no guidelines for these investments and contracts are almost non-existent. 

25

Future evaluations of PEI in Lao PDR to interview national and foreign investors to consider the private sector perspective

1. Recommendation:

Immediately pit in place a success strategy if the current PEI STA is leaving at the end of 2015 to avoid project implementation disruption at theis critaical stage and to secure a smooth transition to possible next phase. 

Management Response: [Added: 2016/12/01]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
1.1 Hiring a local technical advisor and coordinator to continue supporting project implementation
[Added: 2016/12/01]
UNDP CO 2015/01 Completed The project activities have been managed well and are on track
1.2 Hiring the CTA to provide support to document the result of PEI and prepare draft PEI Phase 3 document, as well as to facilitate and support preparation of the PEIo Donor Steering Committee Meeting to showcase of PEI Lao PDR in investment management for quality investment.
[Added: 2016/12/01]
UNDP CO 2016/03 Completed The draft PEI Phase 3 project documents were shared with the government counterparts for comments and finalisation. In 2017 UNDP CO and government counterpart will focus on using this document for the resource mobilisation.
2. Recommendation:

Prioritise the finalisation and formal approval of all strategic developments and tools, in particular the national and provincial investment strategies and the investment compliance database. MPI managers should take the lead in ensuring that the required high-level consultations and endorsement of the national strategy takes place as soon as possible. MONRE managers should take the lead in ensuring the completion and formal adoption of all EIA/IEE technical tools. 

Management Response: [Added: 2016/12/01]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
2.1 PEI to provide comments on draft PISs to facilitate the provincial consultation on the draft strategies for consideration of approval by the provincial governor
[Added: 2016/12/01]
UNDP CO, PEI and IPD team 2016/08 Completed Two PIS (Savanakhet and Saravanh ere approved. Three round of revision of the draft for four PISs for Houphanh, Oudomsay, Vientiane and Phongsaly were done. The final dfrafts are now available for DPIs at the provincail level to use for consultation and consideratoin of the provinceal fovernors in the four provinces.
2.2 UNDP to send a letter to IPD on supporrt from PEI in developing the NISs has been done properly, and asking IPD to contine taking the lead in revising, improving and submitting to MPI for approval and consideration
[Added: 2016/12/01]
UNDP CO 2016/05 Completed A tter from UNDP to IPD was sent and PID DF and DDFs are now working on the imporvment of draft NIS.
2.3 Continues working wit IPD team and IT firm to improve, test, train and link IPD database with other minister's database.
[Added: 2016/12/01] [Last Updated: 2016/12/18]
UNDP CO, IPD 2016/12 Completed Training on the application of database for government representative from 18 DPIs Provinces was organized in August 2016. The database is now functioning and the baseline data function is 100% working, while the reporting and monitoring function still to be fixed. The project was completed linking selected attributes with the DESIA Database. History
2.4 Follow up with DESIA team on the official signing on all EIA/IEE technical tools.
[Added: 2016/12/01] [Last Updated: 2017/03/14]
UNDP CO 2017/01 Completed The documents were signed in January 2016 History
3. Recommendation:

Design a financial sustainability strategy for investment compliance monitoring under the leadership of IPD and with the involvement of the Ministry of Finance. In the absence of a predictable and adequate budget for regular investment monitoring centrally and in the provinces the likelihood of investors' compliance with national legislation and contractual requirements is low. 

Management Response: [Added: 2016/12/01]

Agreed but not be able to implement in Phase 2 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Consult with IPD management team if the regular monitoring could be implemented as parted of the implementation of order 13/PM.
[Added: 2016/12/01]
UNDP CO 2015/06 Completed IPD has requested budget for MPI for 100,000,000 kip to implement Order 13/PM in monitoring the investment project, and this will also implement as part of their provincial monitoring mission.
4. Recommendation:

Provide support for the finalisation of a data sharing agreement between MoNRE (environment and social safeguards database) and IPD (investment compliance database). Clarify what information may be accessed by provincial authorities, other line ministries and by the general public. Provide support to ensure that the databases are populated with theinformationn collected through the monitoring processes and continue supporting joint monitoring efforts on the ground to ensure experience is gained and quality reports are proeduced, triggering actions or responses to ensure compliance. The proposed annual investment compliance report to the National Assembly would be very useful but in the absence of a database reporting system to reduce the burden of preparing such report it may not be feasible or sustainable. Ease of mandatory reporting is the most important incentive fore staff to mainatain the database. Adding geo-referencing capabilities to the database would be very useful. 

Management Response: [Added: 2016/12/01] [Last Updated: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
4.1 Hiring a local consultant to assess the functioning of the database, what attribute to be lined with MONRE and other ministries and finalizing the data linkage between DESIA/MONRE and IPD/MPI. 
[Added: 2016/12/01]
UNDP CO, IPD 2016/05 Completed Assessment of the effective functioning of database and which attribute to be linked with MONRE and other selected ministries was completed. Linking data with MONRE was completed.
4.2 Consult with IPD team on the limitation and role of different users at IPD and DPIs levels and work with IT to define condition for accessing to the database information.
[Added: 2016/12/02]
UNDP CO, IPD 2016/06 Completed Acces to database by provincial authorities has been defined .
4.3 Closely work with IPD team and DPIs to populate data, deliver training and populate the baseline data during the training to ensure completion of baseline data populated in the database.
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO, IPD 2016/12 Completed Baseline data of the Investment Projects approved at the central and 18 DPIs were completely populated. Training was organized in late August 2016.IPD has been closely working with IT firm and fixing the database. History
4.4 Work with DPIs to identify and select projects at the provincial level and provide financial support and deliver a training to guide DPIs in conducting and leading the join investment monitoring and the provincial levels.
[Added: 2016/12/02]
UNDP CO, IPD 2016/09 Completed Criteria were provided to DPIs to select the problematic investment project for monitoring mission. Issues base approached was applied in selecting the project to monitor. Training was provided and come up with list of compliance to be monitored IPD and DPI was completed monitoring missions.
4.5 Support IPD to enforce the annual investment reporting template through support preparation of issuing the notification to investor and informing provincial and relevant agencies at provincial and national levels to apply this new annual investment template. This will also facilitate information to be populated in the investment compliance database.
[Added: 2016/12/02]
UNDP CO, IPD 2016/08 Completed Official letter of notification using the new annual reporting templates was issuesd by MPI. Information was posted on the IPD website, Facebook, Vientiane Time and Vientiane Mail newspaper. The letter was CCd DPIs 17 provincial and relevant agencies at national level.
5. Recommendation:

Continue building the baseline on both the quality of EIA for agriculture projects and the quality of the EIA report by government. Completing this work is important to help assess whether the government's capacity to approve good EIA has increased. 

Management Response: [Added: 2016/12/02]

Agreed but cannot implement in Phase 2

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To include this activties in the draft PEI phase 3 project docuemnts in close consultation wht the government counterpart.
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO 2016/12 Completed Discussion with DESIA was made and we acknowledge that the development of the baseline is not a priority of the DEISA. History
6. Recommendation:

Continue building the baseline information to assess changes/improvements on quality of investments and compliance. This involves continued support to build the capacities of NERI to conduct and disseminate high-quality policy-relevant economic research and analysis that considers social and environmental issues. The investment compliance database is a useful tool to access and manage data and information on investment but periodic in-depth analysis of cumulative impacts of investment in regions and sectors should be performed by NERI. 

Management Response: [Added: 2016/12/02]

Partially agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
6.1.1 Baseline information on the quality investment and compliance to be monitored through enforcemation of the annual reporting template 6.1.2 Capacity building for IPD is needed in order to be able to analyse the change of the investment management and developing state of investment report for LAO PDR
[Added: 2016/12/02]
UNDP CO, IPD 2016/08 Completed The annual investment reporting has been enforced through official announcement of the MPI in begining of Aug 2016.
6.2 In the future there is a need for PEI to facilitate the engagement of the academic research institute to implement the demand driven research in collaboration with NERI. This might be proposed in the next phase of the PEI programme.
[Added: 2016/12/02]
UNDP CO 2016/12 Completed Draft PEI phase 3 project document was developed and shared with government for comments. Capacity building of NERi is included as well as continues the work on the demand driver research. However, PIO still explores possibility to engage with academic and research institute to conduct priority research for the government as a baseline for future investment management.
7. Recommendation:

Given the exponential growth of contract farming and its impact on local communiteis and the local environment PEI may continue helping the government to moniotr its effects particularly on women and disadvantage groups. 

Management Response: [Added: 2016/12/02]

Partially agreed. 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Recommend to IPD and DPIs to consider selecting investment project that engage the contract farming practice to be monitored as part of the joint provincial monitoring mission and implementation of the order 13/PM
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO, IPD 2016/12 Completed The project selected the problematic project which also including the agriculture sector. The monitoring missions in six target provinces were completed in Nov 2017. History
8. Recommendation:

Once the NIS is approved, assist the government to further identify and address conflicting mandates or gaps and prepare specific suggestions to revise the mandate of the entities involved up to the departmental level. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Continue supporting IPD in order to enable them to improve and finalise the draft NIS
[Added: 2016/12/02] [Last Updated: 2018/07/23]
UNDP CO 2017/12 Completed Series of internal and external consultation meeting on draft National Investment Strategy were conducted in 2017 and 2018. It is uder final review and consideration for approval by Minister of Ministry of Planning and Investment. History
9. Recommendation:

The 8th NSEDP is to be outcome oriented. Research supported by PEI under component 5 has provided evidence that FDI performance significantly affects the development outcome of the NSEDP. Ideally, there should be one or more indicators relevant to P-E to specifically track FDI performance in the NSEDP M&E framework. The data to track the indicator(s) would be part of the DESIA/DPI environmental and social safeguards and investment compliance databases; therefore, no additional data would need to be collected. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Review the indicators relevant to quality investment in the 8th NSEDP as well as the M&E Framework to strengthen those indicators.
[Added: 2016/12/02]
UNDP CO 2015/12 Completed Indicators relevant to quality investment were improved following the comments from PIO team. The new indicators related to the quality of investments and natural resources management can be seen in the latest version of the 8th Plan M&E framework and read as below: i. % of public investment projects approved by National Assembly that were subsequently implemented; ii. % of investment projects deemed to require EIA/IEE/ESIA/SIA by MoNRE/DESIA that have been evaluated against social and environmental criteria: public infrastructure investment projects, concessions, special Economic Zone (SEZ) projects; iii. % of investment projects that have undergone a financial assessment: public infrastructure investment projects, concessions, special Economic Zone (SEZ) projects; iv. % of investment projects that have undergone an economic assessment: public infrastructure investment projects, concessions, special Economic Zone (SEZ) projects.
10. Recommendation:

Intensify the delivery of training including by scaling up TOT in the pilot provinces and beyond. It was suggested that 3 regional hubs be created to expand the training effort. Co-financing and technical support from other development partners should be sought. A training strategy and detailed work plan should be developed and implemented if a PEI phase IIImaterialisee. A more robust method to assess the results of capacity building and trainng needs to be developed and implemented. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To be considered to include in the activities of PEI phase 3 if it will be materialised
[Added: 2016/12/02]
UNDP CO 2016/12 Completed Scale up the PEI approach has been discussed and is included in the PEI Phase 3 draft proposal
11. Recommendation:

Strengthen ownership of tools and processes among a critical mass of staff at IPD. The ability to update and adapt the tools on the basis of experience or for consistent with new legislation is an important component of PEI's sustainability.

Management Response: [Added: 2016/12/02]

Agreed 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Work with DOP to finalize the green growth criteria guideline
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO, IPD 2018/12 Completed The exist plan and sustainability plans were update in consultation with the government counterpart and submitted to PEI Regional team in Nov 2016. History
12. Recommendation:

Adjust as appropriate the component related to green growth investment profiles in the provinces. Explore the possibility of securing UNEP's technical and financial support for this activity to meet national stakeholders' demand for increased knowledge on green growth investment opportunities in various sectors, technologies, patents and legal issues, access to credit, fiscal incentives, among others. As a short-term measure, if the GEF small Grants Programme (SGP) reinitiates operation in Laos PDR, assess the opportunity to align the SGP national strategy to pilot community green growth and sustainable livellihood initiatives and negotiate their possible co-financing with PIP or other resource avalaiable to the Provicne. 

Management Response: [Added: 2016/12/02]

Agreed that we have to adjust activities related to green growth 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Work with DOP to finalise the green growth criteria guideline
[Added: 2016/12/02] [Last Updated: 2018/07/23]
UNDP CO 2017/12 Completed Series of internal and external consultation of the draft green growth criteria guideline were conducted in 2017 and 2018. The report has been revised and at the final stage to report to Minister of the Ministry of Planning and Investment for final review and approval. History
13. Recommendation:

Expand the support to the NA for P-E mainstreaming and in particular assist the NA to implement third party verification of investment monitoring and compliance. This is a very promising avenue to improve te quality of investments and achieve high standards of investment management in Lao PDR. 

Management Response: [Added: 2016/12/02]

Agreed 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To be included in the EI phase 3 project documents and partner with the government counterpart and NA to mobilise the resource for PEI phase 3.
[Added: 2016/12/02]
UNDP CO 2016/12 Completed If PEI Phase 3 could mobilise the resources, PEI will continue support the third party monitoring of the NA. This has been included in PEI phase 3 draft proposal.
14. Recommendation:

Strategically use the development of the new UNDAF cycle to enlist other UN agencies to help achieve some of the P-E outcomes in the 8th NSEDP

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Link the PEI with the new UNDAF and UNDP CO CPD
[Added: 2016/12/02]
UNDP CO 2016/12 Completed Link PEI with UNDP Strategic plan, CPD and UNDAF and 8th NSEDP
15. Recommendation:

Enhance communications, in particular dissemination of research results. The PEI Lao website requires an update to ensure all recent publications and communications materials are posted. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Posted PEI NERI research in the IPD, UNDP CO website to facilitate accessible to the research. Update project brief.
[Added: 2016/12/02] [Last Updated: 2017/03/14]
UNDP CO, IPD 2017/03 Completed DG of IPD has agreed to post the NERI research in the IPD website. History
16. Recommendation:

Make strategic use of the Programme Board, with more frequent and focused meetings to clear bottlenecks and address implementation challenges. 

Management Response: [Added: 2016/12/02]

Partially agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Organise annual review meeting and combine with the board meeting will be organized.
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO, IPD 2017/01 Completed Annual review meeting will be organized on 13th Jan 2017, which has reconfirmed by the government. History
17. Recommendation:

The work to upgrade the MPI website needs to be completed. This website is up but still having incomplete information on the investment process which may have a negative repercussion on potential investors's interest. English test editing is needed. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Update IPD website by posting information related to investment approval process eg. OSS guidebook, etc.
[Added: 2016/12/02]
IPD 2016/12 Completed OSS was posted in the IPD website which consists of information on investment approval process and other relevant procedures.
18. Recommendation:

Develop an exit/sustainability strategy in parallel with the development of a subsequent Phase 3 (2016-2020). Such a strategy should clearly identify the key drivers that would lead to the desired impacts of the programme in Lao PDR. The development process of the new ProDoc needs to reassess whether the risk and assumptions identified in the Phase II Prodoc still hold. The RRF for the next Phase should commit IPD and DSEIA to specific targets in terms of quality investment and enforcement of investment agreements.

Management Response: [Added: 2016/12/02]

Agreed 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To upgrade exit plan as well as finalising the PEI phase 3 project documents for resource mobilisation in 2017
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO, IPD 2016/12 Completed Exist and Sustainability plans were developed and submitted to PEI Regional Team for consolidation in the Global exist and sustainability plans. History
19. Recommendation:

Describe in one document the entire set of processes and tools related to FDI management with a summary of their status and further action to ensure all processes are operational. It was difficult for the evaluator to have a full appreciation of progress and the effectiveness of the system being put in place in the absence of such document. The document would also be useful to share the LAO PDR experience with other countries. PEI's website, with the authorization of the Lao PDR Government, may include a section showcasing a selection of tools that may have broader applicability and enabling visitors to download the tools for use or modification. 

Management Response: [Added: 2016/12/02]

Agreed 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Discussed with IPD to post all investment management tools developed with support from PEI in the IPD website
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO 2016/12 Completed Several investment management tools and investment promotion were posted in the IPD website already. E.g. One Stop Service Guidebook, Visa Application Procedures, Cost of Doing Business, Investment Profiles, Investor Annual Reporting Templates, etc. and Web based Concession Compliance database and Investment Application Tracking system are now accessible via online website with limited user accessible. History
20. Recommendation:

Continue the work on corporate social responsibility. This is an important topic that would reinforce the work done on improving the quality of FDI. The main investors in the country are from neighbouring nations where few companies have probably been exposed to CSR approaches. UNDP and UNEP HQ and regional offices may be called upon to provide support. 

Management Response: [Added: 2016/12/02]

Agreed 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Work with IPD team to continue testing the SCR reporting template and encourage investors to use it
[Added: 2016/12/02] [Last Updated: 2017/03/14]
UNDP CO, IPD 2017/12 Completed The report was tested with a private company and to be further modify History
21. Recommendation:

The PEI modus operandi in Lao PDR offers a foundation to implement the new directives for UNDP programming at country level, breaking the silos and strengthening inter-disciplinary work to support the government address priority development challenges. This could inform the processes in other UNDP COs. At the same time PEI's implementation in Lao PDR offers a good example of how UNEP can deliver its services at country level in a more effective manner. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Maintain partnerships with other development partners to work together in support the government address priority development challenges.
[Added: 2016/12/02]
UNDP CO 2016/12 Completed UNDP has developed partnership with other UN agencies and international organizations within the country and at the regional and HQ levels to support the government in different priority development challenges such as UNEP, UNCDF, FAO , WB, WHO, ABD
22. Recommendation:

Improving FDI management performance in the entire region is important to avoid investors moving into countries where standards for investments and compliance are low. The PEI regional team should explore whether it can further expand its support in this field to other countries or Develop Strategic Partnerships ,with organisation in the region to address this transboundary aspect. 

Management Response: [Added: 2016/12/02]

Agreed 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Regional team also supports the implementation of their countries in this region in improving FDI, which replicate some of the work of PEI Laos in PEI Myanmar.
[Added: 2016/12/02]
PEI Regional team 2016/12 Completed Some of PEI Lao activities were replicated in PEI Myanmar such as database, financing model, model of contracts.
23. Recommendation:

Explore how to take advantage of new opportunities emerging from the National Assembly strategic Support Project under the Governance Unit of UNDP to mainstream P-E in other aspects of the government agenda, for example, issues related to public participation, decentralisation, information disclosure, access to justice, including an effective system for presenting grievances and for redress in cases where there have been serious negative impacts on communities from private investments. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To discuss with the UNDP Governance Unit to learn more about their project activities and identify the area for collaboration
[Added: 2016/12/02] [Last Updated: 2017/03/14]
UNDP CO 2017/02 Completed Governance has agreed to collaborate with Environment Unit whenever they have a training related to the environment management issues History
24. Recommendation:

While consolidation is the priority, the next phase could explore addressing the "general business" investments managed by Ministry of Industry and Commerce because these could have a major impact. Currently there are no guidelines for these investments and contracts are almost non-existent. 

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To identify opportunirty to build partnerships with Ministry of INdustry and Commerce in the next phase of PEI in close consultation with IPD team
[Added: 2016/12/02] [Last Updated: 2017/03/14]
UNDP CO 2017/12 Completed The main focal point for the project will still be IPD History
25. Recommendation:

Future evaluations of PEI in Lao PDR to interview national and foreign investors to consider the private sector perspective

Management Response: [Added: 2016/12/02]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Not possible to do during PEI Phase 2. If PEi phase 3 will materialise, engaging the private sector in the PEI evaluation will be considered.
[Added: 2016/12/02] [Last Updated: 2016/12/18]
UNDP CO No due date No Longer Applicable N/A History

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