ADB, GEF, UNEP In collaboration with IGES …..

National Performance Assessment and Sub-regional Strategic Environment Framework in the Greater Mekong Sub-region

ADB T.A. No. 6289-REG

LAO PDR NATIONAL ENVIRONMENTAL PERFORMANCE

ASSESSMENT (EPA) REPORT

Prepared by Water Resources and Environmental Administration, Lao PDR

and Project Secretariat UNEP Regional Resource Center

For Asia and the Pacific

…… 2009

ForewordAs with its neighbors in the Greater Mekong Subregion, increased economic activity in Lao People’s Democratic Republic (Lao PDR) has had a negative impact on its rich natural resources. Forest, water and mining resources are the country’s key development assets, and yet these too are the most significantly degraded. This national environmental performance assessment (EPA) report is the country’s second attempt to systematically document and assess the measures the national stakeholders have taken in addressing Lao PDR’s environmental concerns and in achieving stated environment targets.

This EPA report is part of the National Performance Assessment and Subregional Strategic Environment Framework (SEF II) project spearheaded by the Asian Development Bank (ADB) and the United Nations Environment Programme (UNEP). The overall goal of SEF II is to promote sustainable Development in the Greater Mekong Subregion (GMS) by (i) helping individual governments to assess the progress of environmental management, (ii) promoting policy dialogue within the countries and the subregion, and (iii) stimulating greater accountability for better environmental management.

Based on extensive consultations with various stakeholders, seven environmental concerns were ranked as the most pressing: forest resources, water resources, threats to biodiversity, land degradation, inadequate solid waste management, inadequate hazardous waste management, and climate change. These priority concerns were assessed according to the pressure-state-response (P-S-R) model, which identifies the principal sources of pressure (P) on the variable under assessment, the resulting state (S), and the responses (R) adopted to influence the pressure and state. The report consists of three main parts. Part I consists of the Introduction and identification of the priority concerns chosen. Part II deals with past performance in the principal environmental concerns. Part III looks at factors affecting performance that cannot easily be assigned to any of the concerns selected in Part I. Part IV contains conclusions and recommendations.

The results and findings of this EPA report and the entire SEF II project is of great importance not just for Lao PDR, but also for the whole GMS. Expected outcomes of the exercise include enhanced institutional capacity for environmental performance assessment and environmental management as well as better understanding of environmental conditions, trends, and impacts. Overall, this will lead to informed decision-making and improved national planning for sustainable development.

Mrs. Viengsavanh Doungsavanh, Director General of Environment Department

Water Resources and Environment Administration (WREA) Prime Minister’s Office

Acknowledgment

LIST OF ACRONYMS

ADB Asia Development Bank

AQ Air Quality

DoE Department of Environment

EEA Environmental Education and Awareness

EIA Environmental Impact Assessment

EMP Environmental Management Plan

EOC Environment Operation Centre

EPA Environment Performance Assessment

EPF Environmental protection Fund

EPL Environnemental Protection Law

ERI Environment Research Institute

ESCC Environmental and Social Compliance Certificate

ESIA Environmental and Social Impact Assessment

FAO Food and Agriculture Organization

FRDF Forestry and Forest Resource Development Fund

GEF Global Environment Fund

GMS Greater Mekong Subregion

GHG Greenhouse Gases

IESE Initial Environmental and Social Examination

IGES Institute Goble Environment Strategies

ISP Integrated Spatial Planning

IUCN International Union for Conservation of Nature

LUPLA Land Use Planning and Land Allocation

MAF Ministry of Agriculture and Forestry

MDG Millennium Development Goal

MPI Ministry of Planning and Investment

MRC Mekong River Commission

MPTC Ministry of Public Works and Transportation

NAFRI National Agriculture and Forestry Research Institute

NAPA National Adaptation Program of Action for Climate

Change

NBCA National Biodiversity Conservation Areas

NEC National Environment Committee

NGO Non-Governmental Organization

NLMA National Land Management Authority

NUoL National University of Laos

NSC National Statistic Centre

NTFP None Timber Forest Product

OECD Organisation for Economic Co-operation and

Development

PEC Provincial Environment Committee

PFA Production Forest Area

SEM Strengthening Environmental Management Project

SEA Strategic Environmental Assessment

Sida Swedish International Development Cooperation Agency

STEA Science, Technology and Environment Agency

TA Technical Assistance

TWG Technical Working Group

UNDP United Nations Development Programme

UNEPRRC. AP Regional Resource Center For Asia and the

Pacific

UNFCCC United Nations Framework Convention on Climate

Change

UNICEF United Nations Children's Fund

WWF World Wide Fund

WHO World Health Organization

WREA Water Resources and Environment Administration

WQ Water quality

WQIag Water quality indices for agricultural uses

WQIhi Water quality indices for human impact

WQIal Water quality indices for aquatic life

Table of Contents

Foreword........................................................................................................................2Acknowledgment...........................................................................................................3Executive Summary.......................................................................................................8I. Introduction..........................................................................................................10II. Management of principal environmental concerns.................................................18

1. Deforestation........................................................................................................181.1 The Context....................................................................................................181.2 The State.........................................................................................................181.3 The Pressure...................................................................................................191.4 The Response.................................................................................................191.5 Conclusion......................................................................................................22

2. Water Quality.......................................................................................................222.1 The Context....................................................................................................222.2 The State.........................................................................................................232.3 Pressure..........................................................................................................252.4 Response........................................................................................................262.5 Conclusion......................................................................................................27

3. Threat to Biodiversity..........................................................................................273.1 The Context....................................................................................................273.2 The State.........................................................................................................273.3 The Pressure...................................................................................................293.4 The Response.................................................................................................313.5 Conclusion......................................................................................................32

4. Land Degradation.................................................................................................324.1 The Context....................................................................................................324.2 The State.........................................................................................................324.3 The Pressure...................................................................................................334.4 The Response.................................................................................................344.5 Conclusion......................................................................................................36

5. Inadequate Waste Management...........................................................................375.1 The Context....................................................................................................375.2 The State.........................................................................................................375.3 Pressure..........................................................................................................385.4 Response........................................................................................................395.5 Conclusion......................................................................................................41

6. Inadequate Hazardous Substance Management...................................................416.1 The Context....................................................................................................416.2 The State.........................................................................................................416.3 Pressure..........................................................................................................426.4 Response........................................................................................................436.5 Conclusion......................................................................................................43

7. Climate Change....................................................................................................447.1 The Context....................................................................................................447.2 The State.........................................................................................................447.3 Pressure..........................................................................................................447.4 Response........................................................................................................457.5 Conclusion......................................................................................................45

III. Environment and Economic development: Crosscutting issues in EPA...............463.1 Introduction........................................................................................................46

Economic Development and Environmental Issues.................................................463.2 Integration of Environmental Concerns into Economic Decision Making........523.3 Implementation Issues........................................................................................583.4 Environment and Civil Society..........................................................................593.5 Environment, Health & Safety...........................................................................593.6 Information Access and Stakeholder Participation............................................603.7 Environmental Awareness and Education..........................................................61

3.7.1 Environmental Awareness...........................................................................613.7.2 Environmental Education............................................................................61

IV. Conclusion and Recommendations........................................................................614.1 Forest..................................................................................................................614.2 Crosscutting Issues - Natural Resources............................................................614.3 Urban Environment............................................................................................624.4 Climate Change..................................................................................................62

Executive SummaryThe increasing pace of economic activity in Lao PDR during the last decade or so has inevitably had an impact on the country’s natural environment. The 2001 National State of Environment reports continuing deterioration of several key environmental parameters including forest cover, biodiversity, land management as well as urban environmental issues. The present document is a systematic assessment of the degree of success that national stakeholders have had in achieving stated objectives of environmental policy. The assessment is limited to seven environmental concerns identified as most pressing in Lao PDR and is backed by detailed and transparent statistical information.

Forest and water are key development resources for Lao PDR. Seventy percent of Lao PDR was under forest sixty years ago. In the course of the past three decades, much of existing accessible forest in Lao PDR was significantly degraded. The annual rate of deforestation averaged about 0.3% of the total country land area. Shifting cultivation and inappropriate farming practices in the uplands, over-logging, and absence of a well-developed forest management planning system were among the contributing factors. The government policy of land allocation to upland households has helped reduce the pressure on the forest resource especially during the last five years or so. The forest cover has stabilized around 41.5 per cent of the total land area but the quality of the remaining forest appears to be further deteriorating.

Lao PDR’s geography and topography creates wide variations in climate, soils, and ecological niches, leading to locally adapted and diverse biota. WWF identified 200 eco-regions worldwide and four of them are located in Lao PDR. However, the quality of Lao PDR’ forests and their potential for biodiversity conservation has been declining steadily during the past several decades. The Government, aided by the international community, has created the National Protected Area System. The degree of effective protection within the protected realm, however, is relatively low. This, plus the fact that not all of the designated protected areas were in good condition to start with, has lowered the effectiveness of the Government’s countermeasures. Related to forest and biodiversity protection is the issue of land degradation. Lao Government’s policies have contributed to reducing the extent of slash-and-burn farming but the long-term impact of these measures on the conditions of land is yet to be established.

Water may well be Lao PDR’s principal asset with a potential to support socio-economic development, especially the hydropower and irrigation sub-sectors. It also supports fisheries, a key source of livelihood and protein for the Laotian people. Aquaculture and capture fisheries have contributed significantly towards food security and income generation, especially in the rural areas where 85% of the population lives. Total fish output during the last decade comfortably outstripped the growth of the population. The sustainability of this achievement needs confirmation.

There has been a significant increase in the percentage of rural population with access to safe potable water between 2002 and 2004. Access in urban areas, on the other hand, has not kept up with the migration-assisted growth in urban population.

Solid waste management has improved in the principal towns of Lao PDR during the past decade. Information is insufficient to say how the rest of the country has performed. Management of hazardous waste has been handicapped by poor knowledge of the underlying situation. Thirty years after the end of hostilities in Indochina the problem of unexploded ordinance is far from solved despite steady efforts of the Lao authorities to deal with it.

Lao PDR does not contribute significantly to the overall quantity of greenhouse gas

emissions even though it is a net GHG emitter. Its ratification of the UNFCCC in January 1995 had primarily symbolic and political value.

I. Introduction

1. The state of Lao PDR’s environment and its changes present a number of challenges to the country’s authorities and its population. The 2001 National State of Environment, Lao Environment Monitor and first Environment Performance Assessment reports continuing deterioration of several key environmental concerns such as deforestation, Threat of biodiversity, land degradation , water resources, climate change, inadequate solid waste management and Inadequate hazardous substance management

2. Adequate understanding of the underlying trends, the principal factors that contribute to them and the impact of countervailing measures facilitate the formulation of effective responses.

3. The second of National Environment Performance Assessment is the latest present report in a series of environmental undertaken under ADB’s Greater Mekong Subregion (GMS) umbrella. Its aim is to go beyond simple exchange of environment-related data within GMS or more complete descriptions of the state of the environment of GMS member countries, the focus of earlier GMS projects and other donor-financed activities. Instead, the objective is to assess the performance of “environmental managers” in the most pressing areas of concern such as those mentioned above. In an interdependent economy, the category of “environmental managers” includes not only the country’s environmental authorities but also the mainstream line agencies and all those whose decisions have a bearing on environmental outcomes.

4. Supported by carefully constructed statistical indicators structured to fit a Pressure-State-Response (P-S-R) framework, an attempt is made to draw a broad picture of performance during the past decade and use it as a tool of learning, policy adjustment and public accountability. Performance is understood to be a comparison of outcomes against existing policy targets. The assessment looks at what has happened, not at what might happen in future. In principle, an Environmental Performance Assessment (EPA) can be undertaken at any scale (national, local, project, subregional). The present report is a second national EPA.

5. This EPA report has three main sections in addition to this introduction and an appendix linked to the text and containing the statistical information underpinning the assessment. Part II deals with past performance under principal environmental concerns. The selection of concerns for analysis was made early on in the project’s implementation. Part III looks at factors affecting performance that cannot easily be assigned to any of the concerns selected in Part I. Part IV contains conclusions and recommendations.

6. The report is intended not mainly for a specialized environmental audience but also for many others whose decisions and understanding of issues are vital for Lao PDR’s success in sustaining recent fast rates of economic growth and doing it with fewer adverse consequences for the country’s environment.

7. The EPA report was prepared under the guidance of senior staff of STEA, namely:

Mr. Noulinh Sinbandhit Vice President of WREA

Mrs. Viengsavanh Douangsavanh Director General of Environment Department, WREA and SEF II National Focal Point

Ms. Keobang A Keola, Acting Deputy Director General of WREA Cabinet , WGE

Mr. Singsavanh Singkavongxay Director of Environment Data Centre, and the National Project Coordinator, DoE/WREA

8. The principal author of the reports was: Mrs. Phetmany Sanasisane, Domestic Consultant on Environmental Issues

9. An EPA technical review panel was constituted for the Project. It consisted of:

Mr. Savanh Chanthakoummane Deputy Director of Forest Resource Conservation Division, DoF, MAF

Mr. Loankham Ansanavong Technique of Lao National Mekong Committee Secretariat, WREA

Mr. Chanto Milathtanapheng Director of Environment and Social Management Division, DoE, MEM

Mr. Thongsuay Phommakot Agriculture Land Research Centre, MAF

Mr. Sisouk Thoratha Vientiane Urban Development and Administration Authority (VUDAA)

Dr. Onchanh Keosavnh Deputy Director of ……Division, Department of Hygiene and Prevention, MOH

Mr. Siamphone Sengchandara Director of Climate Change Office, DOE, WREA

Mr. Singsavanh Singkavongxay Director of Environment Data and Information Management System, DOE, WREA, Project National Coordinator

Figure 1.1: Map of Lao PDR

The Approach 10. The pattern and urgency of environmental concerns varies from area to area and country to country. A prioritization of concerns is therefore needed to give the EPA a focus and stop it from becoming unnecessarily long. Following a wide-ranging internal consultation, the following eight concerns were chosen for the Lao National EPA out of a total of thirteen, i.e. (1) Deforestation, (2) Water resources (3) Threat to biodiversity, (4) Land degradation, (5) Inadequate solid waste management, (6) Inadequate hazardous waste management, and (7) Climate change.

11. The approach to assessing performance under each concern is anchored in a Pressure-State-Response model that logically links the sources of environmental problems (the “pressure” factors) with the resulting “state” of the variables of concern, and the policy and institutional “responses” intended to influence the pressure factors and through them, the state. Thus in dealing with surface water quality, for instance, different effluent discharges are the pressure factors, the concentrations of BOD, SS etc. are the state variables and the expenditure on wastewater treatment is one of the response factors. The desired values of the state variables typically (but not always) feature in governments’ plans and strategies. The assessment of performance is a matter of judging how successful the responses adopted have been in reaching the target values of state (and/or pressure) variables. The process is depicted in Figure 1.1 below:

Figure 1.1: Simplified Representation of a P-S-R Model (Hypothetical Example of Air Quality Management with Four Indicators of Performance, Highlighted in Green)

“Pressure” Factors (Indicator)

Number of vehiclesVehicle characteristicsType of fuelEstimated emissions of selected pollutionsOthers

“Sate” Factors (Indicator)

Concentrations of carbon monoxide

Concentrations of atmospheric lead

Others

“Response” Factors (Indicator)

Frequency of vehicle inspectionsFuel quality standardsExpenditure on traffic managementOthers

Unlike a state-of-the-environment reporting that tends to focus on the description of the environmental conditions in a given locality and on the underlying pressure factors, an environmental performance assessment (EPA) probes the effectiveness of the responses by environmental managers. It asks not mainly how well those in a position to influence environmental outcomes are doing.

12. In many situations, the number of pressure factors, state variables and types of responses will be large. Complex inter-relationships will often exist among them. Full analysis of each concern is demanding and many specialists devote their time to describe selected segments of the P-S-R “circle” (without necessarily using the P-S-R terminology). At the same time, there is a clear need for a simplified picture of “what is going on” if national environmental authorities are to communicate with others in positions of influence and the public at large. The simplification is a matter of selecting only the most telling of the P, S, and R factors and using them as indicators of past trends and through them performance. Inevitably, the simplification results in some loss of accuracy but provided care is taken, the essence of the message is not lost. The indicators become points of reference. Ideally, they remain in policy-makers’ sights for a long time supporting repeated assessments of performance (e.g. every 3-4 years)

The Assessment Method Used 13. At the same time, there is a clear need for a simplified picture of “what is going

on” if national environmental authorities are to communicate with others in positions of influence and the public at large. The simplification is a matter of selecting only the most telling of the P, S and R factors and using them to describe past trends, and through them, performance. The selected variables then become environmental indicators. Suitably analyzed, they then facilitate the assessment of performance.

14. The P, S and R indicators’ values are the raw material of the EPA. The statistical background of each indicator is summarized in indicator “fact sheets” and these are attached to the report to give the reader an opportunity to judge the underlying basis of the assessment. The assessment itself is a matter of rating (a) individual indicators and (b) the overall performance –an interplay of all indicators-- under the concern being studied. A rating structure has been developed for this purpose.

15. A double-word description is utilized to rate each indicator. The first word describes the magnitude of the indicator relative to some benchmark (such as an international standard, an average for several countries etc.). The second word describes the observed trend of the indicator value, as depicted by long or short-term historical data. The magnitude and the trend keywords are typically combined (e.g. “relatively poor and deteriorating”). In the case of baseline indicators with only one or few observations, the trend-keyword (and the “and” conjunction) is omitted. The descriptions applied to each class of indicators are contained in Tables 1.1 to 1.3 and the rating applied to each concern is given in Table 1.4.

Table 1.1: Rating Criteria Utilized to Assess State IndicatorsSTATE INDICATORS

To qualify the magnitude of the state indicator using the recommended keywords below, the values of the state indicator are compared against known benchmark figures. The national policy target for the indicator is one such possible benchmark. In many cases, a GMS average values or an international standard would be more suitable if the indicator is to tell us something about the relative performance of each GMS country. If no such figures exist, the magnitude keyword is omitted. The “poorness” or “goodness” of the magnitude is dependent on the interpretation of the indicator value. In some cases a high state indicator value is “good” (e.g. % forest cover); at other times a low value is preferred (e.g. # threatened species).

The trend of the State indicator is easy to rate as deteriorating, stabilizing or improving, provided it is based on long-term historical data. In other cases or for benchmark indicators, the indicator value may

not show any trend at all, in which case the trend keyword is left blank or specified as “Undetermined Trend”.

Relatively Poor and ….

Average and ... Relatively Good and ….

Unknown State and ….

As evidenced by an indicator value which is far below (or far above) the same indicator value for other GMS countries or far below (or above) other benchmark figures such as international standards or national targets

As evidenced by an indicator value which is close to the same indicator value for other GMS countries or within the range of other acceptable benchmark figures such as international standards or national targets

As evidenced by an indicator value which is far above (or far below) the same indicator value for other GMS countries or far above (or below) other benchmark figures such as international standards or national targets

This rating is used if the value of the indicator cannot be compared against the value of the same indicator in other countries or regions and there are no other benchmark figures, such as international standards or national targets

Deteriorating Stabilizing Improving Undetermined Trend As evidenced by a steady long-term deteriorating trend and with no immediate signs of improvement.

As evidenced by a steady long-term deteriorating trend but with short-term signs of leveling or even improvement, or a long-term level trend.

As evidenced by a long-term deteriorating trend but with sure signs of improvement based on more than one observation in the positive trend.

This rating is used if the selected indicator is inconclusive in terms of long or short-term trends or if the indicator is based on a single observation over time.

Table 1.2: Rating Criteria Utilized to Assess Pressure IndicatorsPRESSURE INDICATORS

There will always be some magnitude of pressure and the trend over time can simply be rated as increasing or decreasing. Qualifying the magnitude of the indicator value may at times be difficult, especially if the pressure indicator is unique to one country and no comparative figures are available from other countries. It is also unlikely that international benchmark figures will exist for pressure indicator. Judgment is required to rate the magnitude of unique pressure indicators.

The trend of pressure indicators should be easy to rate, provided that long-term historical data exists. If only one or few observations exist, the trend keyword can be left blank.

High and Medium and Low and Non-Comparable andAs evidenced by the value of an indicator which is much higher than the value of the same indicator in other GMS countries or much higher than other benchmark figures, such as international standards or national targets

As evidenced by the value of an indicator with a value more or less equal to that of other GMS countries or other benchmark figures such as international standards or national targets.

As evidenced by the value of an indicator which is much lower than the value of the same indicator in other GMS countries or much lower than other benchmark figures, such as international standards or national targets.

This rating is used if, through lack of comparative numbers or other information, an order of magnitude cannot be assigned to the value of the indicator.

Increasing Steady Decreasing (blank)As evidenced by a long-term trend of increasing pressure, with very little sign of relief or stabilization.

As evidenced by a long-term steady or near-constant pressure that shows no sign of increase or decrease in the past or future.

As evidenced by a long-term trend of declining pressure, with perhaps fluctuating short-term oscillations.

The keyword is left blank if there is only one observation, or if there is no observed trend over time in the indicator value.

Table 1.3: Rating Criteria Utilized to Assess Response IndicatorsRESPONSE INDICATORS

Since responses tend to be very diverse, there may be few benchmarks to rate the magnitude of response indicators other than the national targets for the indicator selected. Once more, judgment is required to rate the magnitude of unique indicators to say how “big” or “small” the response was.

Low and Average and Significant and Non-ComparableIf the magnitude of the response is significantly below the national target or below the average in other GMS countries or other comparable regions.

If the magnitude of the response is in line with national targets or the average responses of other GMS countries or comparable regions.

If the magnitude of the response exceeds national targets of the average of other GMS countries or comparable regions.

This rating is used (or the keyword left blank) if there are no data or information to compare the magnitude of the response with, or there are no other benchmark figures.

Sporadic Intermittent Consistent (blank)If the response has been irregularly applied over time with no set program or budgets to continue the response in the future.

If the response has not been consistently applied but there are programs and budgets to continue the application of the response in future.

If the response has been consistently applied, calibrated to the pressure, with plans to continue until the pressure has been reduced to a desired level.

The keyword is left blank if there is only one observation, or if there is no observed trend over time in the indicator value.

Table 1.4: Rating Criteria Utilized to Evaluate Performance Under Selected Priority Concerns

ENVIRONMENTAL PERFORMANCE

For purposes of communicating the EPA results, rating of performance under each priority concern is required. In this EPA, a star-rating system is used where any performance counts but with different levels of merit. The star-rating is based on what the indicators are saying, backed up by hard evidence presented in facts sheets, not on what a consensus view or expectations may be.

1-Star * 2-Stars ** 3-Stars *** Un-RatedIf the pressure continues to increase, the state continues to deteriorate and the response(s) do not appear to have any effect on the pressure or the state.

Additional criteria for 1-Star rating:

1) Reasonable targets have not been set or have not been met.2) International conventions have not been ratified or adhered to.3) No ongoing monitoring or data collection.

If there are signs that the responses will or have had an effect on releasing the pressure, even though the state does not yet show signs of improvement.

Additional criteria for 2-Star rating:

1) Targets have been set and generally met.2) International conventions have been or will be ratified and most of the reporting requirements have been met3) Plans exist for ongoing monitoring and data collection.

If there is clear evidence that the responses have reduced the pressure and/or there is a clear sign that the state is improving.

Additional criteria for 3-star rating:

1) Effective targets have been set and met.2) International conventions have been ratified and reporting requirements have been met.3) Ongoing monitoring and databases exist.4) Specific institutions with targeted roles and

If the trend in the state indicator cannot be explained by the pressures or the responses.

The label “un-rated” is a sign that we have failed to identify appropriate indicators backed by facts sheets, and/or have failed to apply the PSR model, and/or have failed to apply the PSR model to performance assessment.

4)No clear institutional role and responsibilities for environmental management of environmental concerns have been assigned or where they have been, no tangible progress has been achieved suggesting an appropriate response and non-achievement of the target.

4) Institutional responsibilities assigned though limited progress achieved due to weaknesses in institutional arrangements e.g. lack of coordination, duplication of roles, multiplicity of authorities etc.

responsibilities assigned. Institutional measures in place for the management of the concern e.g. EIA process, adequate budgetary and resources for environment monitoring, staff with appropriate technical skills and know-how, regular interaction with industry and NGOs on environmental management matters etc.

II. Management of principal environmental concerns 1. Deforestation 1.1 The Context 16. Lao PDR is rich of natural resources especially forest, water, and mineral

resources. The majority concern of deforestation are logging and unregulated commercial exploitation, population pressures, shifting cultivation, and unsustainable exploitation practices, forest coverage has shrunk from 70 percent of the total land area in 1940 to 41.5 percent in 2002 ………..2007.

17. Main issues of deforestation are1: High demand for wood and NTFPs in the markets of wood deficient neighboring

countries and countries in the region as well as the imposition of logging bans in some neighboring countries brought about high pressure on forest resources in Lao PDR.

Shifting cultivation practices and forest fires are still the main causes of forest degradation particularly in the north.

Unsustainable harvesting of production forest which occurs mainly in central and southern regions, and unsustainable management and use of allocated village used forests.

The decline in current forest with more than 20% of canopy density over the last few decades has resulted partly from necessary conversion of forestland for agriculture and infrastructure development.

1.2 The State

The Indicator: Forest Cover as percent of total land area 1940-2007

18. Forest cover, expressed as a percentage of total land area, was selected as the state indicator for forest resources.

Figure 2.1.1: Forest Cover as Percent of Total Land Area – 1940-2007

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19. It is shown that forest has been declined at an alarming rate as compared to an estimated 70% in 1940 to about 47% in 1982, to about 41,5% in 2002/03 (see Figure 2.1.1). At this rate, the forest cover would be approaching 30% by 2020.

1 Forest strategy to the year 2020, July 2005

Furthermore the definition of “current forest” with its 20% canopy (and up) is a soft one presenting a more favorable picture than might be appropriate.

1.3 The Pressure

The Indicator: Area under Shifting Cultivation 1996-2007

20. The area of shifting cultivation was selected as a pressure indicator. It is expressed as annual area under shifting cultivation, in hectares and also as a percentage of total land area, in term of numbers of villages, has been assigned annually by a national committee and progress is reviewed each year. While numbers have been impressive, there has not been systematic monitoring or assessment of impacts and anecdotal evidence indicates the effectiveness of these efforts and their impacts on local livelihoods have not always been in response with proclaimed objective.

21. The forests of Lao PDR have always been under pressure by people seeking more farmland or having no other survival alternatives than shifting cultivation. Figure 2.1.2 tracks the value of the indicator during 1996-2007. As can be observed the annual area under shifting cultivation declined from approximately 0.7% of the total land area in 1996 to approximately 0.2% of the total land area in 2004 and ….??% in 2007. The decline has been sharp since 1998.

Figure 2.1.2: Area under Shifting Cultivation – 1996-2007

22. Pioneering shifting cultivation area and number of households engaging shifting cultivation are reported from provinces on a yearly basic.

23. Upland rice planted area have gradually decreased from 179,000 ha in 1995 to 108,000 ha in 2006. Upland rice planted area is about 100,500 ha in 2007. More than 70 percent of total upland rice planted area spreads in Northern Provinces in 2007

1.4 The Response 24. Forest protection has long featured in Lao PDR’s policy. Part II article 9 of the

new Forest Law issues in December 24, 2007 had defined forestry in to three types such as: (1) Protection forest; (2) Conservation forest; and Production

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25. Prime minister’s order in September 22, 2008 on enhancement of management and business of forestry with objectives 1) To effective of implementation of forestry development strategy to the year 2020 mainly to increase forest cover into 70% of total Land area; and 2) Limited natural forest logging to GDP contribution and the natural forest will be close in appropriate time which focuses on management of abundant of forest and bio-diversity.

26. Instruction of Minister’s Agriculture and Forestry in October 01, 2008 on enhancement of management and conservation of National Biodiversity Conservation Areas.

27. In 2008 Government of Lao PDR had issued two new Laws such as Forestry and Wildlife.

28. GOL have established the Forest Development Fund (FDF) and the Environmental protection Fund (EPF) in 2005 in order to secure more stable funding source for sector management.

29. Forest conservation and development are given increased attention by line ministries and local authorities compared to the previous plans. The forestation movement by the people has regained momentum, especially in the central provinces, such as Vientiane, Borikhamxay, Khammuane and Savannakhet Provinces. More specifically, many areas have combined forestation with the development of high commercial value industrial trees, such as teak in Luang Prabang, Sayaboury, Vientiane, Bokeo, Champasak, Bolikhamxay and Attapeu Provinces, and rubber in the provinces of Luang Namtha, Khammouane, Champasack, Saravane, Sekong, Attapeu, Bokeo and Oudomxay.

30. During 2001-2005, afforestation covered 91,000 ha, accounting for 91 percent of the target (target of 100,000 ha) while efforts were made on forest restoration on 481,000 ha.

The Indicator: Protected Forest as percent of total land area 1993-2007

31. Since 1993, Government of Lao PDR has established 21 National Biodiversity Conservation Areas (NBCAs) which cover approximately 15 percent of the total national land. This coverage is higher than the rate recommended by IUCN. In addition to the NBCAs, there are many Provincial and District Conservation Forests. In 2001, MAF issued the Regulation on the management of NBCA and Wildlife, which has provisions on zoning of village use areas for settlement and community development, forest for sustainable use, agriculture and forestry production, and socio-economic development.

32. Government established addition NBCA in 12/5/2008 in Bokeo province northern of the country with an area 136,000 hectare and 94% of forest

Figure 2.1.3: Protected Forest Area as Percent of Total Land Area – 1993-2008

In order to increase forest cover to achieve the government target by 2010 and 2020:

33. Production Forest Area: 8 PFAs officially established and delineated on the ground. Other 51 PFAs identified and to be officially established by 2010. 59 PFAs with total area of about 3.6 million ha.

34. Conservation Forest: 21 NBCAs and 2 Corridor areas officially established with total area of 3.5 million ha. Provinces and Districts established their Conservation Forest totaling 201 places and 1.4 million ha. Most of these are not delineated on the ground. Protection Forest: Protection Forests established by Provinces and Districts with total of 75 areas and 0.5 million ha, most of which are not delineated on the ground. Potential Protection Forests totaling 3.9 million ha identified.

Table 2.1.1: Potential protection total forests area in 1993-2008Year No. of NBCA Area (ha) % of protected Area with a total country Land area1993 18 2,979,700 12.58%1995 2 333,897 1.41%2000 2 77,170 0.33%2008 1 136,000 0.57%Total 3,526,767 14.89%

35. Regeneration and Development / Use of Forest Resources - In order to achieve the forest cover target of 53% by 2010 about 2.6 million ha of existing Unstocked Forests are to be regenerated to good forests.

36. Promotion of Commercial Tree Planting - GOL has a target of 500,000 ha for tree plantation area by 2020. Average annual planted area from FY 2000101 to FY 2004105 was 17,000 ha and it picked up to 35,000 ha in FY 2005106 due to increase in rubber tree and eucalypts plantations.

37. Tree plantation areas planned by foreign investors are 438,000 ha by 2010 consisting of 228,000 ha of rubber tree and 151,000 ha of industrial trees

38. Management and Processing of NTFP - Actual harvest volume of NTFPs is not known and ~icult to estimate due to lack of reliable data. (Indicator 5-1) - Several household level surveys show importance of cash income from NTFP sales in rural areas.

-

5.0

10.0

15.0

20.0

25.0%

of T

otal

Lan

d A

rea

1993 1995 2000 2008

NPAs Provincial PAs District PAs

39. In November 2008 the National Land Management Authority drafted the National land and natural resources utility

1.5 Conclusion40. Forest coverage has shrunk from 70 percent of the total land area in 1940 to 41.5

percent in 2002 and continues change, the result from people seeking more farmland.

41. Shifting cultivation has been the main driver of this change and shifting cultivation continued to exert major influence throughout the studied period. Inappropriate farming practices in the uplands (shifting cultivation or otherwise) and exploitative timber harvesting further contributed to the observed changes in the extent and quality of the forest cover.

42. Building on the policy of forest land allocation the Government has had some success in reducing the number of households practicing shifting cultivation. More forest was placed under the protected status. However, without additional budgets and strengthening of the capacity of local staff the change of the status alone is unlikely to result in the hoped-for degree of protection.

2. Water Quality 2.1 The Context 43. Lao PDR is abundant with water resources more than 32,000 cubic meters (cu

m) of fresh water available per capita; Lao PDR has the largest per capita water availability in Asia2. In 2000, the irrigation sector was the largest water consumer accounting for 82% of the total freshwater extraction, whereas the industry sector and domestic use accounted for only 10% and 8% respectively.

44. The Water Quality Monitoring Network in Lao PDR was started since 1985 and has 19 water quality monitoring stations on the Mekong main streams and its tributaries.

45. Urban area is of concern as they lie on the banks of the Mekong. Currently, Vientiane, a city of around 500,000 inhabitants, discharges its municipal sewage into the That Luang wetland a wetland that discharges into the Mekong River downstream of the city. This discharge is small and poses little immediate risk to the Mekong mainstream. However, development of Vientiane with substantial land reclamation in the That Luang wetland for urban purposes is a concern, and may pose greater threats to the Mekong mainstream in the future if it is not managed properly.

46. Other non-point sources include rapid expansion of caged-fish culture throughout the Mekong and its tributaries, discharge of human wastes from vessels plying the Mekong, especially tour boats in the middle reaches upstream from Luang Prabang (Lao PDR), and accidental spills from river boat traffic.

47. So far, aquatic ecosystem monitoring as a whole has been addressed in this lesson. However, water quality assessments are the type of monitoring program most often undertaken in terms of informing management decision making. A water quality assessment requires the gathering of physical, chemical and biological data on water as well as the drawing of conclusions that will be useful to resource management concerns.

2 Lao PDR Public Expenditure Review Integrated Fiduciary Assessment 15 May 2007 World Bank International Monetary Fund Asian Development Bank European Commission

48. Efficient use of water resources is a critical factor in realizing the government’s dual strategic objectives of poverty reduction and sustainable economic growth.

49. This has been recognized by the Government and reflected in its legislative and other measures aiming to encourage efficient management of water resources. Effective supply of water to target uses (be they agriculture, hydroelectricity generation or provision of water for household needs) is an essential element in any assessment of water resource management. By itself, water is valuable. Its value increases further when it can be efficiently supplied to the users and allocated to the highest value uses.

50. Lao PDR’s mountainous terrain is ideal for hydropower development, with total potential estimated at 18,000 MW on tributaries of the Mekong River, only 682.5 MW of which have been developed to date.

51. Agriculture was the largest user of freshwater accounting for 82% of total freshwater withdrawals in 2000, against 10% for the industry and 8% of domestic use.

52. By 2020 the Government aims to achieve 90% access to improved water supply, in both rural and urban areas, and 80% use of hygienic latrines. Before reaching this stage, efforts will be required to achieve the periodic targets set:

2005: 66% access to water supply and 47% latrines 2010: 75% access to water supply and 60% latrines 2015: 85% access to water supply and 70% latrines

2.2 The State 53. Lao PDR is favored by abundant water resources. About 35% contributes to

Mekong River annual flow and up to 60% of the flow during the wet season (MRC, 2005)

Table 2.2.1: Pattern of Water Distribution in the Mekong Basin

Country or Province

Yunnan Province,

PRC Myanmar Lao PDR Thailand Cambodia Viet Nam

Mekong River Basin

Catchment area as % of

MRB 22 3 25 23 19 8 100

Average flow (m3/sec) from

area 2,410 300 5,270 2,560 2,860 1,660 15,060

Average flow as % of total 16 2 35 18 18 11 100

Source: MRC, 2003. State of the Basin Report

Description Yunnan Province,

PRC

Myanmar Lao PDR Thailand Cambodia Viet Nam Mekong River Basin

Area ( km2 ) 165,000 24,000 202,000 184,000 155,000 65,000 795,000Area as % of total country land area 38 4 97 36 86 20

Area as % of Mekong river basin

21 3 25 23 20 8 100

The Indicator: Water Quality 2000-2005

54. In Lao PDR, surface water is the major water source for urban water supply, while groundwater is usually a main source for the rural population in lowland areas, particularly in the central and southern parts of the country, where the groundwater table is sufficiently high and of sufficient quality. In the upland areas, particularly the north and east of the country, water is usually supplied by gravity fed systems and springs, although this tends to be limited to communities living in remote areas.

Table 2.2.2: Water Quality IndicesWater quality indices for aquatic life (WQIal), human impact (WQIhi) and agricultural uses (WQIag) for main stream stations. Median values for 2000–2005. The colour of the values follow the respective WQ classes noted below.STATID Name River WQIal WQIhi WQIag

GeneralWQIag

Paddy riceWQIag

LivestockH011201 Luang Prabang Mekong 9,8 8,5 10 10 10H011901 Vientiane Mekong 9,7 8,5 10 10 10H013401 Savannakhet Mekong 9,9 8,9 10 10 10H013901 Pakse Mekong 9,9 8,9 10 10 10

Agricultural Uses

Table 2.2.3: Water Quality Indices

for aquatic life (WQIal), human impact (WQIhi) and agricultural uses (WQIag) at tributary stations. Median values for 2000–2005. STATID Name River Years WQIal WQIhi WQIag1

GeneralWQIag2

Paddy riceWQIag3 Livestock

H230103 Ban Hai Nam Ngum 1 9,5 9,2 10 10 10H320101 Se Bangfai Se Bangfai 6 9,8 9,2 10 10 10H350101 Ban Kengdone Se Bang Hieng 6 9,8 8,3 10 10 10H910108 Houay Mak Hiao Houay Mak

Hiao1 7,6 1,4 10 10 10

S= Secondary station

Class Name Index value

1 No restriction 8–10

2 Some restriction 7–8

3 Severe restriction <7

Aquatic Life

10 – 9.5

High Quality

<9.5 – 9

Good Quality

<9 – 7

Moderate Quality

< 7 Poor Quality

Human Impact

10 – 9.5 Not Impacted

<9.5 – 8.5 Slightly Impacted

<8.5 – 7 Impacted< 7 Severely

Impacted

2.3 Pressure

The Indicator: Pressure WQ 1990-2007

55. Using population statistics and data on urban sanitation coverage3 for year 2000 for the LMB (MRC, 2003), and person equivalent loads (load per capita: see box below) of BOD, TN and TP, total municipal waste load is estimated at 150,000–170,000 tonnes/year of BOD, 24,000–27,000 tonnes/year of total-N, and 7,200–8,100 tonnes/year of total-P.4 However, much of this load is not transported directly to rivers insofar as “black water” (human excreta) in many urban areas (e.g., most of Vientiane) is disposed through domestic septic/leaching systems or collected by truck from household holding tanks and deposited into municipal lagoons, and leaching pits (for grey water). Therefore, the actual municipal waste load discharged to rivers should be less than the estimated amounts.

Person equivalent loads

Substance g/person/dayBOD 30Total-P 2.4Total-N 8

Table 2.2.4: Use of fertilizers in the LMB, (MRC 2003).

Country Total t/year Total t/year Use in kg/ha/year Use in kg/ha/year1989 1999 1989 1999

Cambodia 3000 7900 0.1 2.1Lao PDR 3000 8100 0.4 8.5Thailand 818800 1801700 39.8 100.1Viet Nam 563000 1934600 88.2 263.2Total 1387800 3752300

56. There have been no studies of the effects of non-point source pollution on water quality. There is anecdotal evidence of mercury and cyanide usage in mining activities in some tributaries of the Mekong

57. At present, mining is intensive in parts of Lao PDR. There is currently no information on water quality resulting from extraction and processing of ores.

58. On the 20th of June, 2005, shortly after beginning operations, a cyanide spill occurred at the Phu Bia gold mine in Laos. The cyanide consequently killed fish in the nearby rivers.

(source: http://www.mpi.org.au/campaigns/cyanide/phubia_cyanide/)

59. In May 2006, 36 peoples were sick and fish death along Name Ngone was reported, result of Phu Bai gold Mining water treatment discharged

60. In 3 and 5 June 2008 chemical leakage from tracks along road

61. On 8-9 June 2008 fish death along Name Mo near by Phu Bai gold Mining

3 “Coverage” includes septic systems, pour/flush latrines, pit toilets as well as piped waste discharge (MRC, 2003)

4 The range of values is a result of varying estimates of urban sanitation coverage.

62. Currently, Vientiane, a city of less than 500,000 inhabitants, discharges its municipal sewage into the That Luang wetland a wetlands that discharges into the Mekong River some distance downstream of Vientiane. This discharge is small at this time and is not thought to pose any immediate risk to the Mekong mainstream.

63. On 4 November 2008 the fish death round 4-5 tones was reported by agriculture and forestry of Saysetha district through Souphab canal to Thatluang Swamp

2.4 Response64. The Government has taken the initial steps toward more integrated and holistic

water resources planning and management with the enactment of the Water and Water Resources Law in October 1996.

The Indicator: Response access to safe drinking water and Sanitation

65. A high proportion of the population throughout the country suffers from diseases related to deficiencies in water supply and sanitation. Nevertheless, there has been significant progress. Between 1990 and 2007 the proportion of the population with access to a safe source of water increased from 28 to 74% – though access varies considerably across provinces

66. A high proportion of the population throughout the country suffers from diseases related to deficiencies in water supply and sanitation (MDG, 2004). The National Socio-Economic Development Plan 1998-1999 set the target of 60-70% of the rural population having access to clean water by the end of the planning period. For the sake of perspective, the population served with improved water supply in all developing countries increased by 8% between 1990 and 2002 to a total of 1,044 million more people (586 million in urban areas and 459 million in rural settings). In Southeast Asia, no progress was made in terms of urban coverage due to rapid increases of population (+ 82 million), whereas in rural areas, the percentage of population served improved by some 5%. (+ 13 million). (WHO/UNICEF).

67. The UN Millennium Development Goal related to this indicator is stated as “Halve, by 2015, the proportion of people without sustainable access to safe drinking water and sanitation.” Stated differently using the baseline figure of 28% for 1990, this would translate to a target 74% of the total population. The Lao government however, through The National Strategy for the Rural Water Supply and Environmental Health Sector, has a more ambitious goal which aims to achieve by 66% in 2005, 75% in 2010, 85% in 2015 and 90% in 2020 for access to improved water supply, in both rural and urban areas. The figure below shows the proportion of the population with access to safe drinking water

1990 1995 2000 2005 2007 2010 Target 2015 TargetProportion of population using an improved drinking water source (%)

28 52 66 74 75 85

Proportion of population using an improved sanitation facility (%)

29 37 47 49 60 70

Source: Population Census (1995), National Centre for Environmental Health and Water Supply

Budget: Table 2.2.5: Expenditure on Improved Water Supply – 2001-2005

2001 2002 2003 2004 2005 Total Foreign aid expenditure on urban water supply projects (USD thousand)

4,906.7 11,239.3 10,346.1 1,574.4 - 26,492.1*

Government budget expenditure on urban water (Mill. Kip)

35.0 45.0 49.0 28.8 -

157.8*

Foreign aid expenditure on rural water supply projects (USD thousand)

25,631.8 58,199.0 71,009.0 54,566.0 61,450.0 270,855.8

Government budget on rural water supply (Mill. Kip)

409.0 1,020.0 1,224.0 1,440.0 1,728.0 5,821.0

Source: MCTPC/DOU, 2001 Investment planning for the year 2001-2005 and CPI 2004 National Socio-Economic Development Planning 2004-2005

2.5 Conclusion 68. In general water quality in Lao PDR, there is still good for using, both quantity

and quality. However for the future there will be something for protecting it for next generation to use for improve living condition and for improving economic of the country for reduce poverty, to achieve the goal of the strategic plan on 2020. Water quality is one important for monitoring and management of water resources. Poor water quality will be affected to human health, and will affect the income of the family, when someone in family gets sick. Protect water quality will be lead to protect water resources and will be save environmental condition.

3. Threat to Biodiversity 3.1 The Context 69. Lao PDR is predominantly mountainous, and this creates wide variations in

climate, soils, and ecological niches, leading to locally adapted and diverse biota. High endemism in Lao PDR is partly a consequence of its geography and location as a small landlocked country bordered by mid-sized mountains to the North and East, and by the Mekong river delta to the South and West. WWF has identified 200 eco-regions worldwide and four of them are located in Lao PDR.

70. Large areas of Lao PDR have been designated as wildlife and flora sanctuaries and gazetted as Protected Areas (at national-level, provincial and district levels). The country’s diverse ecological habitats contain at least 10,000 species of mammals, reptiles, amphibians, birds, freshwater fish, insects, and vascular plants.

3.2 The State

The Indicator: State Threat species 1990-2007

71. The number of nationally threatened species expressed as a percent of globally threatened species was selected as the state indicator and this same indicator has been developed for the other GMS countries. The indicator is based on the latest 2004 IUCN “Red List of Threatened Species” but only for threatened mammals, birds, reptiles, amphibians and fish. Plant species, for which the

evaluation work has only just begun in the IUCN Red List, are excluded from the indicator. Threatened species are those which have been classified as “critically endangered”, “endangered” or “vulnerable” on the IUCN Red List. Extinct species, least risk species or species with data deficiencies are excluded.

72. The 2004 IUCN Red List provides objective information on the threat status of an unprecedented number of species. This assessment presents analyses at a range of geographical scales and from ecological and geopolitical perspectives, examines the nature and impact of threats, and outlines current and potential conservation measures.

73. Further information on the value and interpretation of this indicator is detailed in the corresponding fact sheet. The results of 2004 online interrogation are captured in Figure 2.4.1 below:

Figure 2.3.1: Threatened Species as Percent of Global Threatened Species – 1996-2007

74. As can be observed from figure 2.3.1 above, Lao PDR is a tentative sanctuary to approximately 1.6% of the globally threatened species. This standing includes approximately 3.1% of globally threatened mammals, 2.1% of globally threatened birds, 4% globally threatened reptiles, and less than 1% of globally threatened fish or amphibians.

75. The rise in the share of globally threatened species from 0.54% in 1996 to 1.56% in 2004 is not indicative of a loss of biodiversity from 1996 to 2004; it more indicative of to the progress of the evaluation work by IUCN biologists. The 0.54% value in 1996 is based on the first version of the IUCN 1994 Red List at which time only 60% of the relevant mammals had been evaluated, few reptile and fish species had been evaluated and at which time amphibians and birds were not part of the equation. The relevant amphibians and birds were in fact not evaluated until 2003.Therefore the indicator value and trend before 2003 has very little meaning.

76. Now that the indicator value is inclusive of all threatened species types, the future value of the indicator will be more indicative of the trend in the loss of biodiversity in Lao PDR. It is not expected to vary dramatically from the 2004 figures. It may artificially rise if new globally threatened species also have sanctuary in Lao PDR; it may artificially fall if new threatened species have sanctuary outside of

Lao PDR. There is already evidence of this artificial fall in the reptile species after year 2000. While the indicator serves well to measure Lao PDR’s share of a global priority, only changes in the status of individual species, which are detailed in the fact sheet, can be utilized to measure progress at the national level.

77. The IUCN database has provided some insight as to the major threats relevant to the threatened species in Lao PDR. Loss of habitat is the dominant threat for 35% of the threatened species but harvesting is a close second at 24%. Therefore societal responses which deal with the hunting and gathering of these threatened species may be of equal importance as those societal responses which attempt to protect their habitat.

78. The database has also provided some insight as to what are the habitats of those species relevant to Lao PRD and what are the major threats to those threatened species.

79. Forests were cited as the dominant habitat for approximately 40% of threatened mammals, birds and amphibians but loss of wetlands and grasslands are also identified as important habitat. Loss of shrub lands and artificial/terrestrial habitats, which include arable land and pasture land, may also be critical habitat for some of Lao PDR’s threatened bird species. Therefore societal responses which attempt to protect non-forest areas may be of equal importance.

80. As of 2004, 48 species were listed as vulnerable, 21 as endangered and 12 as critically endangered. Any future decrease in the level of endangerment of these species or the removal of the species from this threatened is indicative of progress in conserving biodiversity; any future increase in the level of endangerment will be a negative indication of progress.

81. None of Lao PDR’s share of the globally threatened species is endemic to Lao PDR and therefore Lao PDR alone is not solely responsible for its 1.6% share of globally threatened species. However for 8 of the threatened species, Lao PDR and one of its GMS neighbors (mainly Viet Nam) share the total responsibility. It was also been observed that 28 of Lao PDR’s current 81 threatened species are endemic to GMS.

82. Lao PDR’s 1.6% of globally threatened species ranks lowest amongst the six GMS countries. Reptiles species are the largest contribution to Lao PDR’s share of the threatened species, as is the case for all other GMS countries. While half of these reptile species are endemic to the GMS and sometimes one neighboring country, none are endemic to Lao PDR.

83. The key message from the related indicator fact sheet is that, as of 2004, Lao PDR could be providing sanctuary to approximately 1.6% of the globally threatened species. And as with other GMS countries as a whole, reptile species are the largest contributing factor to the overall number of threatened species in Lao PDR. Loss of forest habitat is the most cited threat but loss due to hunting and gathering is also significant as are other habitats such as wetlands and grasslands.

3.3 The Pressure

The Indicator: Ration of Natural Forest to Plantation Forest 1976-2007

84. As can be observed from Figure 2.4.2, the ratio of natural forest area to plantation forest area declined from 25:1 in 1980 to 5:1 in 2002. In other words, there was 25 times more natural forest than plantation forest in 1980 and in 2002, there was only 5 times more natural forest than there was plantation forest.

During this 22-year period, this is the result of 608,000 ha decline in natural forest area combined with a 1,492,000 ha increase in the area of plantation forest.

85. The plantation has sharply increased since 1995. However, the plantations established are, to a great extent, characterized by low growth rate and productivity due to poor planning, low quality plating stocks used planting. If this trend of people involvement in planting is to be encouraged and further promoted it is imperative that productivity in tree planting be improved, and appropriate processing technologies and attractive market outlets for smaller size timber from plantation be made available.

86. Problems and conflicts concerning use of village land and forests have been increasingly reported including unauthorized logging by outsiders or sometimes by villagers themselves for infrastructure development, conversion into commercial plantations without sufficient consultation and compensation, privatization of village land by powerful people, depletion of NTFP resources and hardship on poorer segment of villages and so on. In order to avoid these problems and conflicts and to contribute to the GOL top priority policy of poverty eradication, actions stated above need to be accelerated towards community based management of land and forest resources5.

Figure 2.3.2: Ratio of Natural Forest to Plantation Forest – 1976-2002

87. The area of natural forest, in varying stages of degradation, has been declining in relation to the areas of plantation forest. The exact extent and quality of plantation forest remains subject to significant uncertainty. Despite that, the overall relationship between natural and plantation forest is one of a comfortable surplus of the former over the latter for the time being.

3.4 The Response

The Indicator: National Protected Area as Percent of Total Land Area 1993-2007

88. GOL is committed to protect NBCAs and bio-diversity as seen in recent PM

5 Forestry Sector Development Report for 2006/07(draft)

Orders and preparation of the Wildlife Law. With much less international support for NBCA management than several years ago, GOL established two important funds to continue NBCA management. They are the Forestry and Forest Resource Development Fund (FRDF), main source of which is logging related fees, and the Environmental Protection Fund (EPF) with ADB and World Bank finance. FRDF has started disbursement of fund to selected Provinces for management of NBCAs. EPF focuses on the NBCAs surrounding Nakay Nam Theun areas.

89. Hin Nam Nor NBCA has been proposed as a Trans-boundary World Heritage together with Phonya-Kebang National Park of Vietnam and a dialogue for cross-border cooperation in management of the two areas is initiated.

90. Eco-tourism in NBCA, a potential approach of Integrated Conservation and Development, has been promoted and eco-tourism development plans are formulated for 5 NBCAs including Nam Ha, Phou Khao Khuay, Phou Hin Poun, Nam Kading and Xe Pian.

91. The progress of expanding the NBCAs system is summarized in Figure 2.3.3 below which shows that the protected area have not expanded much after 1993. This initial 1993 allocation however corresponded to 12.6% of the total land area and exceeded the recommendation by the IUCN that 10% of the total land area be allocated to biodiversity conservation and protection.

Figure 2.3.3: National Protected Area as Percent of Total Land Area – 1993-2007

92. Base on IUCN recommendation that each country allocates 10% of its total land area to biodiversity conservation and protection. The Lao system of national protected areas exceeds this amount by 4.3% percent of the total land area.

3.5 Conclusion 93. Normally, In Lao PDR is a tentative sanctuary to approximately 1.6% of the

globally threatened species. There is loss of shrub lands and artificial/terrestrial habitats, which include arable land and pasture land, also be critical habitat for some threatened bird species. Any future decrease in the level of endangerment of these species or the removal of the species from this threatened is indicative of progress in conserving biodiversity; the GOL top priority policy of poverty eradication, actions stated above need to be accelerated towards community

based management of land and forest resources and has been conduced committed to protect NBCAs and bio-diversity as seen in recent PM Orders and preparation of the Wildlife Law.

4. Land Degradation 4.1 The Context 94. Lao PDR is predominantly rural and has about 5.9 million ha of potentially

cultivable land (FAO 2000), of which 800,000 ha are cultivated for rice or secondary crops under lowland, terrace - and upland shifting cultivation systems. Pastureland makes up another 15% of the cultivable land. Upland areas, defined in Lao PDR as landscapes with a slope greater than 12 percent, cover between 80 to 85 percent of the country’s area. Shifting cultivation is common in most of the hills and mountainous areas in the northern and central eastern part of the country.

95. Land degradation takes several forms, such as nutrient depletion, structural decline and compaction, biological decline, chemical deterioration (e.g. salinization), and soil erosion. All of these are present in Lao PDR. Tropical forest soils, especially on steep slopes, are particularly prone to degradation once the forest cover is removed. Most land degradation in Lao PDR is associated with shifting cultivation, particularly in areas where population pressure has led to a significant decrease in the rotation period or where traditional lowland farmers encroach on neighboring uplands to make up for low and often declining yields on their lowland paddy fields.

96. There are other problems not normally associated with land degradation. One is the degradation or outright loss of land due to unexploded ordinance. This topic is covered in greater detail in the section dealing with the management of hazardous substances. Here it is a simple reminder of this factor and its importance in the Lao context.

4.2 The State

The Indicator: Sedimentation Load in Selected River 1989-2007

97. The overall state of land resources, especially its vulnerability to erosion, can in principle be established by reference to sediment loads recorded in the rivers of the relevant watersheds. The indicator, needless to say, is not ideal but it could provide a partial idea of the underlying situation. Leaving out the Mekong itself the conditions of which are affected by factors extending well beyond Lao PDR, the time series of selected sedimentation readings is summarized in Table 2.4.1 below.

98. The concentration of suspended sediment seem to be decreasing over time with a significant drop in 1995 corresponding to the construction of a new dam in the Mekong River tributaries.

Table 2.4.1: Sediment Load in selected Rivers

RiverSedimentation loads (mg/l, max. in rainy season)

1989 1990 1992 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mekong River at LuangPrabang 300 1.48 680 1.19 2.676 2.379 2.07 1.457 1.11 1.06 1.01 761 582 3.55

Mekong River at Vientiane 1.73 1.88 786 3.01 5.211 2.415 1.97 1.796 1.34 1.44 1.09 874 776 3.2

Mekong River at Savannakhet           1.752 1.87 1.565 1.33 1.42 1.05 914 824 1.2

Mekong River at Pakse 296 1,052 300 376 2.753 2.284 1.58 1.431 1.27 1.28 982 977 779 1.48

Nam Ou at Had Yang Village 3.49 528 108 341 1.677 1.01 1.23 615 719 690 803 722 727 2.87Xebangfai River at Sebangfai Village 142 330 89 201 -453 506 897 1.084 868 741 994 507 500 510Xebanghieng River at Kengdonh Village 312 428 518 420 1.659 -963 1.91 1.139 957 855 930 599 669 1.26

Xedonh River at Xelabam Dam 480 382 290 350 627 371 282 1.134 849 759 883 835 608 854

Xedonh at Souvvannakhily 221 384 2.25 470 304 196 191 192 191 184 174 182 189 167

Nam Lik at Thalath 254 346 241 315 1.073 570 1.16 465 619 583 808 511 488 546

Nam Ngum at Nam Ngum Dam 1 21 34 60 10 22 28 32 30 65 59 106 83 162 327

Sources: MRCS, 1995; Irrigation Department, MAF, 1997,Phaivanh.Vilachit (NAPA 2006)

4.3 The Pressure 99. It is accepted in Lao PDR and other GMS countries that deforestation is the

precursor of land degradation. The pattern of deforestation was discussed earlier under “forest resources”. The rate of deforestation correlates well with indicators of land degradation as measured, for instance, by the changes in the soil loss per ha. In principle, therefore, the rate of deforestation could be used as a proxy for land degradation. To the extent that deforestation is driven by population growth, population growth could also be used as an indicator of pressure leading to land degradation.

100. However it is shifting cultivation that may well be the most potent of the land degradation forces (but others such as inappropriate farming practices in general or clearing of forest for perennial crops should not be dismissed). For that reason, in this EPA, we have returned to the estimates of the number of upland households engaged in shifting cultivation as our pressure indicator.

101. Farmers are increasingly clearing fields in young re-growth forest and are unable to employ adequate fallow periods. The consequent soil erosion and proliferation of weeds and pests (e.g. insects and rodents) result in low yields. The cycle of degeneration that is forcing farmers to cultivate smaller and less productive fields is truly a poverty trap. In the uplands of Lao PDR today many shifting cultivators are experiencing increased poverty and uncertain prospects.

102. With increased development efforts being directed at the uplands in the 1990s, the area under shifting cultivation decreased to 176,605 ha (267,274 households) in 1996 and to xxxxx ha (14,400 households) in 2007.

103. The principle driver of change in the transformation of land use is large influxes of regional investment from China, Thailand and Vietnam for large scale industrial projects such as hydropower and mining. In addition cross-border trade and markets have become critical factors, as regional and domestic traders are taking advantage of the strategic position of the northern uplands as a production base for agricultural products in demand (Zola 2008). This trend is reflected in an increasing diversification away from upland rice and specialization into a limited number of marketable annual and perennial cash crops such as maize and rubber and other commercial tree crops. The transition to these crops has introduced changes in land use practices some of which are detrimental to the environment, and also to soil and water quality, ie, mono-cropping, increasing use of pesticides/herbicides, and down-slope cultivation. There are also implications for food security as the dependency on cash crops increases and traditional upland rice cultivation decreases.

104. Agricultural Land Concessions and Contract Farming In the northern uplands rubber is the main commercial permanent crop on which attention is being

focused as China seeks to supply an expanding need for natural rubber. Unlike the southern provinces, there are considerably fewer concessions than contract farming arrangements. Contract farming is more significant in the north because there was official consensus reached in October 2005 among three northern provinces to avoid concessions and promote smallholder contract farming. In addition, smallholder rubber planters wishing to retain access and control over agricultural lands, resisted becoming involved in concessions (Weiyi Shi 2008).

105. Land Issues: There is inconsistent interpretation between investors and the Lao government about land allocation. Land disputes and land grabbing occurs because of overlapping land designations. A study by NAFRI in 2007 revealed the main land issues arising from the expansion of rubber were increasing land conflicts, decreasing forest cover, and reduction in livestock grazing land areas. Land suitability guidelines were also not being applied for both farmer and company plantings.

The Indicator: Number of Upland Household Engaging Shifting Cultivation 1995-2007

Figure 2.4.1: Number of Upland Households Engaged in Shifting Cultivation – 1995-2007

0

50,000

100,000

150,000

200,000

250,000

300,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

No.

of h

ouse

hold

4.4 The Response (should be clear with the PMO declaration in June 2008 )

106. The main move forward effect has come from the implementation of five major GOL policies to alleviate poverty and improve management of natural resource in up-land areas: 1) Shifting cultivation stabilization 2) Eradication of opium production 3) Land use planning and land allocation and 4) Village consolidation 5) Increasing forest cover.

The Indicator: Number of Households under the LUP/LA Programs 1995-2007

107. The policy was translated into a Land Use Planning (LUP) and Land Allocation (LA) program that resulted in issuance of land occupancy entitlement

to upland households and communities. Land allocation was combined with the mapping of land use and preparation of a national soil map. The implementation of the LUP/LA program produced the results summarized in Figure 2.4.2:

Figure 2.4.2: Number of Households under LUP/LA program – 1995-2007 and planning to 2010

0100,000200,000300,000400,000500,000600,000700,000800,000

1995-96

1996-97

1997-98

1998-99

1999-2000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Hous

ehol

ds

-

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

Area

in h

ecta

res

Households (cumulated) Areas cumulated (ha) new

108. While the Land Law provides for the adequate allocation of farming land to families, the land and forest allocation and focal area development programmes have caused a reduction in the amount of upland agricultural land available to families for rotational cultivation (NSC-ADB 2007). In addition, the policy to increase forest cover and the associated national level forest category zoning program have potential to reduce the availability of village production areas if such macro zoning is not accompanied by village land use planning to assess village land requirements for livelihood activities.

Table 2.4.2: Policy, Objectives and Approach AdopedPolicy Program Purpose/Objectives Approach Adopted1995-96: The Focal Site Strategy (Rural Development Programme)

Poverty alleviation in remote rural areas, food security, commercial agricultural production, eliminate shifting cultivation, and improve access to development services.

Consolidate scattered and remote villag-es to areas where services could be better provided, typically the lower lying areas with road access

1989: Village re-location and Consolidation

Poverty alleviation in remote rural areas, food security, commercial agricultural production, eliminate shifting cultivation, and improve access to development services.

Prepare district re-location plan, eg, Phonesay District in Luang Prabang 72 villages to 41 by the year 2005;merge villages to a size of 50 HHs; provide services at new sites

1989: Shifting Cultivation Stabilisation - Elimination Program

Eliminate shifting cultivation practices (recent focus on “pioneer” SC cultivation); poverty reduction in focal zones of 47 poorest districts; environmental protection

Forest and land allocation; promotion of “permanent occupations”; commercial cropping integrated with upland rice based systems

1995-96: Village Land Use Allocate forest and Delimit village boundaries;

Planning and Land Allocation

agricultural land for villagers use; contain and reduce shifting cultivation; stabilize agricultural practices

delineate land use zones, allocate family agricultural parcels, land use contracts, prepare village land use agreements

2007: The Program for Sustainable Forest Management

Increase forest cover from 41% to 53% by 2010 and 70% by 2020; sustainable forest use and management; protect wildlife, protect watersheds

Integrated Watershed Management approach; Programs and actions under the Forest Strategy to 2020; classifying National Conservation, Production and Protection forest areas nation-wide

4.5 Conclusion

State Pressure Response

109.

110. The state of land resources, especially its vulnerability to erosion, can in principle be established by reference to sediment loads recorded in the rivers of the relevant watersheds. However, The concentration of suspended sediment seem to be decreasing over time with a significant drop in 1995 corresponding to the construction of a new dam in the Mekong River tributaries.

111. Farmers are increasingly clearing fields in young re-growth forest and are unable to employ adequate fallow periods. The consequent soil erosion and proliferation of weeds and pests (e.g. insects and rodents) result in low yields. The cycle of degeneration that is forcing farmers to cultivate smaller and less productive fields is truly a poverty trap. In the uplands of Lao PDR today many shifting cultivators are experiencing increased poverty and uncertain prospects. There is inconsistent interpretation between investors and the Lao government about land allocation. Land disputes and land grabbing occurs because of overlapping land designations. A study by NAFRI in 2007 revealed the main land issues arising from the expansion of rubber were increasing land conflicts, decreasing forest cover, and reduction in livestock grazing land areas.

112. The GOL policies to alleviate poverty and improve management of natural resource in up-land areas: 1) Shifting cultivation stabilization 2) Eradication of opium production 3) Land use planning and land allocation and 4) Village consolidation 5) Increasing forest cover. The policy was translated into a Land Use Planning (LUP) and Land Allocation (LA) program that resulted in issuance of land occupancy entitlement to upland households and communities.

5. Inadequate Waste Management5.1 The Context 113. Lao PDR has been growing in tourism and industrial sector, also will

contribute to increased waste production, including the both liquid and solid waste. Current and anticipated environmental impacts of tourism and prioritized actions and tourism development alternatives, which occurs pollution issues, are dominated by Vientiane Capital City, VUDAA and Ministry of Health, especially waste disposal and sewage treatment. Waste service faces insufficiency of funds

and equipment compounded by poor maintenance and displays poor area coverage.

114. The main issues of waste management in the town, Lao PDR are: Higher population growth rate than the national average, signifying rural to

urban migration and meet the demands of production, consumption and exports, contributing to economic growth, the expansion of employment and the improvement of the people’s welfare.

In the all District in Lao PDR, the main issues was uncontrolled waste collection storage which is not balance for waste generation and transportation of waste available to landfill.

Normally during the dry season, a large problem of the waste generated is burnt. Throughout the year, much waste is dumped in local water courses including the Mekong River. In most settlements, the solid waste that is collected is deposited in uncontrolled open dumps that are a significant environmental, aesthetic and health hazardous.

5.2 The State

115. About 73 percent of population lives in rural areas. Since 1995 there has been a substantial movement from rural to urban areas across all provinces. In 1995, 83 percent of the population lived in rural areas. This trend to move to cities has been particularly strong in provinces such as Borikhamxay, Vientiane Capital, Xayaboury and Xiengkhuang, but slow in Oudomxay (no such movements), Luangnamtha, Huaphanh, Saravane, and Sekong. There is a positive correlation between high population increase and movements to cities, which suggests that internal migration plays an important role.

The Indicator: Percentage of Collected Waste 1989-2007

116. Vientiane Capital had the highest proportion in urban areas about 82 percent and Saravane the lowest, about 9 percent (see table 5.2.2). The Landfills in Vientiane Capital had been extend to km 32 in the new landfills that is better than existing landfill and four secondary towns notwithstanding, collection in four towns is limited to accessible areas and profitable target group such as household and market highest waste generation (NSC.gov.la).

117. The landfill in Pakse use for 5 years, since 1997 established and useable started on 2000, this project received construction Grant from NORAD WAY and UNDP. But now, this landfill had been use up already. Waste management in Pakse was collecting waste to landfill, in urban area waste collected average 27 tons/day. The significant landfill is 17 locations in Sanasomboun Districts of Provincial UDAA office is responsibility and date for using on 1999, area is 13.5 ha. (Provincial UDAA office, 2008).

Table 2.5.1: Landfills in Urban area 1998 - 2008

Vientiane Capital Luang Prabang

Thakhek Savannakhet Pakse

Km 18 Km 32

Date started 1998 2008 2002 2000 2000 2000

Site area 62 ha 750 ha 15 ha 9 ha 13.5 ha 13.5 ha

Disposal area 28 ha 100 ha 3.5 ha 2.2 ha 4 ha 2.2 ha

Source: MCTPC/UNDP/NORAD LAO/96/006: Solid Waste Management and UVDAA office 2008.

118. The generation of waste is required for waste management which started for both productions to disposal area and already designed the quantity and other characteristic of wastes. Expanding urban populations, poor collection, and largely inadequate disposal facilities are compounding the level of pollution. Current development trends have spurred the urbanization process due to expanded industry and tourism sectors in the urban centres, combined with rural to urban migration. Such growth is known from experiences all over the world to lead to an exponential increase in urban environmental problems and stress the cultural fabric of the ethnically diverse country.

119. The amount of waste in urban area were five main cities have been number of inhabitants in urban, waste generated by household waste (ton/year), waste generation per capita (kg/week) and other waste (ton/year). In Vientiane 2007, waste had been collected waste from urban area was volume of waste around 19,635 ton/year (waste collection service free: 1 ton = 15,000 kips), in second ….

Table 2.5.2: Amount of Urban Waste in Lao PDR’s Five Main Cities - 2007

City No. of inhabitants

Household waste

Tons/year

Waste generation per capita

Kg/week

Other waste

Tons/year

Vientiane 321,984 19,635 5.44 13,010

Luang Prabang 73,883 8,000 3.88 1,100

Thakhek 82,476 5,400 2.84 1,100

Savannakhet 113,915 8,400 1.61 1,200

Pakse 75,890 5,700 1.73 9,000

Source: MCTPC/UNDP/NORAD Lao 96/006, 2002. Solid Waste Management in Secondary Urban Centres of Lao PDR and

5.3 Pressure

The Indicator: Urban Population 1995-2007

120. In year 2003 to 2008 the population in Lao PDR is growing and urban lifestyles increase the volume of waste. About xxxx% of the total population lived in urban areas. However, urban population has been growing rapidly, mainly as specific of Project Development and migration to towns during in the past decade (see Table 5.3.1).

Table 2.5.3: Urban Area and Population

Province Urban area Population

1995 2003 2007

Vientiane Capital city 288,999 300,804 321,984

Phongsaly Phongsaly 5,145 5,183 23,786

Bolikhamxay Pakxanh 13,325 18,660 42,261

Savanakhet Savannakhet / Kaisone phoumvihan

63,610 63,634 113,915

Luangnamtha Luangnamtha 13,079 16,205 47,187

Oudomxay Xay 15,016 22,389 67,817

Bokeo Houixai 12,030 13,757 58,821

Luangphabang Luangphabang 38,416 40,797 73,883

Huaphan Xamneua 11,693 15,391 54,318

Xayabouly Xayabouly 20,013 22,622 74,413

Xiengkhouang Pak 20,950 29,641 69,120

Vientiane Pro. Thoulakhom 10,583 10,459

Khammouane Thakhek 30,142 33,107 82,476

Saravane Saravane 12,051 13,651 90,014

Sekong Lamam 7,243 9,112 28,954

Champasack Pakse 45,439 48,218 75,890

Attapeu Xaysettha 10,758 10,809 29,688

Source: ADB/MCTPC, 2003. Lao Urban Data Book, National Statictical Office. 1995. 2007

5.4 Response

The Indicator: Expenditure on waste management 1989-2007

121. The waste management in Lao PDR is improved more than past. In 2004, had been conducted the regulation on Waste Management in location of Public Health Service is conducted by Ministry of Public Health, this regulation refer to waste management, waste minimized, Health safety and

122. Policy and/or Draft Regulation on Waste Management from VUDAA: After the party of Lao Government had been new mechanism on Socio-Economic Development the Government need to development in Urban area and have been specific such as waste management, raining discharge, wastewater treatment System, Public Garden Construction, Green Urban area and these had been before 1 Vientiane Capital, 4 districts for secondary town (Luangprabang, Thakak, Kaisonephomvihan and Pakse) have been provide town infrastructure development, In the present have been developing in the small towns include 10

Districts within the project have been divide 3 zones such as zone 1 included 4 Districts (Somneua, Paek, Pakse and Vangvieng), zone 2 included 3 Districts (Nam Tha, Xay and Phongsaly) zone 3 included 3 Districts (Houaysai, Xayabouri and Saravanh). If these projects will be complete that mean waste management will be control as well in 10 Districts.

123. In currently, there are not waste management regulations. However, the basic body of environmental law includes references to waste management. This includes:

The National Constitution (1991, Art. 17): All Lao citizens must protect the environment and natural resources: land, subterranean, forests, fauna, water resources and atmosphere.

The Environmental Protection Law (1999, Chapter 3, Art. 23 Prevention Measures and Pollution Control.) “All kinds of littering are forbidden. It is required to allocate waste disposal sites, and to separate waste before its disposal. Technologies for waste treatment, recycling of waste into production, and reuse must be supported. It is forbidden to import, transport, and move any kind of hazardous waste through land, water and sky border of the Lao PDR.”

Decree on the Implementation of the Environmental Protection Law (2002, Chapter 4) Article 14: Environmental Quality Standard and Article 15 Protection and Pollution Control

124. This table 2.5.4 had been known total funding from the Government, Foreign funded projects and included International Organization expenditure on waste management in Lao PDR.

Table 2.5.4: Expenditure on waste management in Lao PDR, 1997-2008

Location 1997 2000 2001 2002 2003 04-05 2006 2007 2008

Government budget (WREA, MPWT, MoH, MoI, SWMVT), operating and capital expenditure (million Kip)

120 200 70 68 140 1,575 103,186 9,585 141,600

Foreign funded projects

(million $)5.6 - 7.3 4.5 2.5 - - - -

1. UNDP Sihom (million $)

- 4.7 - - - - - - -

2. Vientiane Integrated (ADB) (million $)

- - 0.01 0.005 0.105 - - - -

3. SWM for Vientiane Poor ADB/UNDP (million $)

- - - - - 1.0 - - -

4. EPF Environment Protection Fund

- - - - - - - 26,912 94,337

5. New landfill in Vientiane, million $, (Lak 32)

- - - - - - - - 1,322

Source: MCTPC/CHUP/SWM.VT, 2001. Investment planning for the year 2001-2004

5.5 Conclusion 125. In the urban area of Lao PDR. There are limited environmental and social

safeguards concerning handling of waste, no regular covering with soil, no leachated control, and the site is adjacent to agricultural land. The landfill is accessible to scavengers an animals. Rudimentary recycling is undertaken for plastics, paper, and metals. At the recycling area an unpleasant smell is produced. Growth population, industries, and many projects development that issues also generated and increase of waste.

6. Inadequate Hazardous Substance Management6.1 The Context 126. In Lao PDR, The use of hazardous substances is not separated from two

main categories of waste is insufficient safeguards general waste and hazardous substance, but just in collected waste by Vientiane capital service must be being to understand about separation waste (general waste and hazardous waste) that It accepts domestic, construction, industrial and hospital waste, and provides separation for hospital waste within fenced compound. In Vientiane 1997, only 5 percent of urban households were served by a waste collection system and only 10 percent of the waste generated was estimated to be collected

127. The main issues for hazardous substance such as: Any people do not understand about separated waste and collected

information on hazardous substance, Lack of more information support budget about hazardous substance that

is difficult for any NGOs.

6.2 The State

The Indicator: Percentage of Waste Category in each level of health care facility / Number of incidents

128. In year 2006-2007, Department of cleansing and disease control, Ministry of Health is cooperated and supported budget by World Cleansing Organization (WCO) to conduct survey on health care disposal area in waste management. The type of waste and category is different charteristics and not good for waste management that is negative impact on environment and health care.

129. The location of health care waste service system, thought the information about state of waste management in health care disposal site service included quantity of waste generated per year, per bed (hospital) in country area, that do not have health care waste and no monitor that one issues for insufficient information, lack of information update, after that had not much information to support short term and long term on Action Plan in Ministry of Health.

130. xxxx

Table 2.6.2: Number and type of Accident

Year Sources TonsLeakage Fire Explosion Total

AgricultureIndustryMiningOther

131. Hazardous chemicals of concern include heavy metals such as mercury, lead, cadmium, arsenic, chromium, copper, and zinc as well as persistent organic pollutants (POPs) such as dioxins and furans, polychlorinated biphenyls (PCBs), and various pesticides and herbicides that are now banned globally. At present their environmental impact is still poorly understood in Lao PDR. STEA initiated an inventory of hazardous chemicals in December 2003, and the National Hazardous Chemicals Strategy and Action Plan is currently being revised.

132. xx

6.3 Pressure

The Indicator: Volume of import / Amount of Hazardous subsistence utilized 1991-2008

133. This is summary of output from survey project as divided six main sections in below: In health care service area is included the target (Provincial hospital, District

hospital, Health care office, Pharmacy shop and Private clinic). Quantity of waste management in all target health care facilities: 1. Average

of waste (mean) 39.38 kg/day, quantity of mini. waste is 0.02 kg/day, quantity of Max. Waste is 700 kg/day, standard of waste potential: 107.03 kg/day and percentage of waste for each as 26.67% of health care waste, 67.53% of general waste and 5.8% of waste recycle.

134. The volume of import Hazardous subsistence have been collection, there very difficult to collection data because each sector concerned do not collect and/or statistics of amount of import Hazardous subsistence. There are three main classifies as follow 1. Hazardous chemical support to Hospital, 2. Hazardous chemical support to Mining, and 3. Hazardous chemical support to Agriculture sector.

135.

Table 2.6.2: Hazardous

subsistence type

Ton

1990 1995 2000 2005 2006 2007 2008

6.4 Response

The Indicator: laws, regulations…..

136. The policy of waste management on obsolete pesticides is generally addressed under Ministry of Agriculture. However, there is not specific waste management for obsolete POPs pesticides. Obsolete pesticides waste disposal

in general has been specified in article 34 and 35 and article 38 of the Agriculture Law dated 10/10/1998.

137. The waste management rating system in all target health care facilities. The situation of waste management in all target health care disposal area is very low. Waste minimization rating system in all target health care facilities. Summary of quantity about 2/3 of waste minimization health care facilities, Policy, regulation, Management Plan include annual budget to provide waste management in target health care facilities is limitation.

138. Key point of basic Strategies of MOH as below:

To Promote Sector-Wide Coordination at National, Provincial and District Levels;

To Reform the Health Financial System and to Strengthen the Financial Management Capacity of MOH, PHO and DHO;

To Improve the Quality of Health Worker Training especially of Nurses and to Allocate and Motivate Well-Trained Health Workers in Districts and Health Centres;

To Build the System and Capacity of Health Management in Decentralised Contexts;

To Implement Efficient and Effective Infectious Disease Control; To Implement the PHC Approach to Strengthen District Health Systems; To Operate Central and Provincial Hospitals Efficiently; To Increase the Availability and Affordability of Essential Drugs and to Promote

Rational Drug Use.

6.5 Conclusion

139. Thus the waste from hospital and health care waste is almost hazardous waste such as chemical substance, heavy metal waste, infected waste, and etc. The employment is related to waste management in health care disposal area, in each area is not volume of waste collected and no record about person accident, no record for some person death from health care disposal site area.

7. Climate Change7.1 The Context 140. As a result of past emissions of carbon dioxide (CO2) and other greenhouse

gases (GHGs), the world is now on course for future climate change. This year’s Human Development Report identifies 2ºC as the threshold above which irreversible and dangerous climate change will become unavoidable. It also explains why we have less than a decade to change course and start living within a sustainable global carbon budget identified at 14.5 gigatonnes of CO2 (Gt CO2) per annum for the remainder of the 21st Century. Currently, emissions are running at twice this level. If these trends continue, the carbon budget will be set for expiry during the 2030's, setting in motion processes that can lead to temperature increases of 5ºC or above by the end of this century roughly similar to temperature changes since the last ice age 10,000 years ago.

7.2 The State 141. With 0.1% of the world's population, Lao People's Democratic Republic

accounts for 0.0% of global emissions - an average of 0.2 tones of CO2 per person.

142. High-income OECD countries meanwhile lead the league of "CO2

transgressors". With just 15% of the world’s population, they account for almost half of all emissions. If the entire world emitted like High-income OECD countries -an average of 13.2 tones of CO2 per person, we would be emitting 6 times our sustainable carbon budget.

143. Lao People's Democratic Republic has signed and ratified the Kyoto Protocol. As a non-Annex I Party to the Protocol, Lao People's Democratic Republic is not bound by specific targets for greenhouse gas emissions.

Table 2.7.1: Carbon dioxide emissions

Total emissions(MtCO2)

CO2

emissions annual

change (%)

CO2 emissions share of world

total (%)

Population share (%)

CO2 emissions per

capita(tCO2)

CO2 emitters 1990 2004 1990-2004 1990 2004 2004 1990 2004Lao People's Democratic

Republic0.2 1.3 32.4 0.0 0.0 0.1 0.1 0.2

source: http://hdrstats.undp.org/countries/country_fact_sheets/cty_fs_LAO.html

7.3 Pressure 144. Lao PDR is highly dependent on natural resources for its prosperity, including

agriculture, forest resources, and water resources. As the likely transition in climate change has a physical impact on these resources, there will similarly be a large impact on the socioeconomic situation of the country. As a result, it is very important that appropriate adaptation measures are designed to minimize these consequences. The country is currently considered to have a low adaptive capacity to respond to climate change impacts.

7.4 Response 145. Industrial development over the last century has led to a significant increase

in emissions of carbon dioxide, methane and other carbon based gases. This harmful trend has largely been traced to the use of fossil fuels, decomposing organic matter and the continued destruction of forests. The rise in emissions of these so-called Greenhouse Gases (GHG) results in a gradual increase in global temperatures, leading to changes in the environment including increased desertification and rising sea levels across the globe In 1992, the Rio Earth Summit began to address the issue of global climate change. The United Nations Framework Convention on Climate Change (UNFCCC) was drafted, and many countries pledged to act against the possible future threat by decreasing GHG emissions. This pledge was reiterated at the Kyoto conference. Because of its low population and relative lack of industrial activity, Lao PDR does not contribute significantly to the overall quantity of greenhouse gas emissions. Thus, its ratification of the UNFCCC in January 1995 had primarily symbolic and political value. Signatories committed themselves to the following: preparing a National Inventory of GHG sources and sinks; identifying, examining and prioritizing GHG mitigation options; formulating GHG mitigation strategy and a National Implementation Plan; and preparing a National Communication.

146. The NAPA formulation is to identify priority activities and urgent actions needed by Lao PDR to improve their ability to cope with, and enhance resilience to, current climate variability and extremes, and consequently, the effects of future climate change

Expenditure:Name of project Budget Executing

AgencyNational Greenhouse Gases Inventory Project

(GEF): US $ 413,000 1997-2004 STEA

Lao PDR National Adaptation Program of Action for Climate Change (NAPA)

(GEF): US $ 200,000 2004-2006 STEA

7.5 Conclusion 147. Lao PDR is a minor “player” in the global climate change development.

Nonetheless its net contributions to GHG emissions were not negligible in recent years, mainly on account of widespread practice of slash-and-burn farming and a widespread use of fuel wood. The responses of the Government rightly targeted the principal sources of emissions (slash-and-burn).

III. Environment and Economic development: Crosscutting issues in EPA 3.1 Introduction

Economic Development and Environmental Issues 148. During the period from 2000-2006 the general economic growth rates

measured in terms of GDP have increased from 5.8% in 2000 to 8.3% in 2006. Agriculture has remained the main economic sector with “crops” as the dominant sub-sector although the growth rate in the agricultural sector has dropped from 4.9% in 2000 to 2.9% in 2006, far below the general trend.

149. The industrial sector has been the main contributor to the growth in GDP with growth rates climbing from 8.5% in 2000 to 17% in 2006 and in actual figures (constant 1990 prices) increasing with 271 billion LAK from 2000 to 2006 compared to 119 billion LAK in the agricultural sector. The industrial sector has been responsible for 51% of the total overall growth in GDP 2000-2006.

150. The service sector has showed a steady increase in growth rate and the sector has maintained its position representing 25-26% of the total GDP throughout the period.

Figure 3.1.1: GDP at constant 1990 prices [source: National Statistics Center]

Figure 3.1.1 shows GDP at constant prices 2000-2006 by economic sector and Figure 3.1.2 presents the growth rates by sector. Figure 3.1.3 presents the contribution of each sector in percent of the total GDP 2000-2006.

Figure 3.1.2 GDP growth rates 2000-2006 [source: National Statistics Center]

GDP at Constant 1990 Prices

0.0

100,000.0

200,000.0

300,000.0

400,000.0

500,000.0

600,000.0

700,000.0

800,000.0

2000 2001 2002 2003 2004 2005 2006

Mill

ion

LAK

Agriculture

Industry

Services

Importduties

GDP Growth Rates per Sector

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

2001 2002 2003 2004 2005 2006

% G

DP

Gro

wth

Agriculture % Growth Industry % Growth Services % Growth Total % growth year on year

Figure 3.1.3 Percent of GDP per sector 2000-2006 [source: National Statistics

Center]

151. The GDP figures for 2007 has not been officially released at the time of writing this report, but according to the World Bank’s Economic Monitor Lao PDR, April 2008, the 2007 growth rate is estimated at 7.5% and projected to rise to 7.9% in 2008.

The economic growth sectors are:

- The Mining sector has grown from almost nothing in 2000 to become a dominant growth sector with 86.9% increase in value of GDP in 2006 and the sector is now responsible for more than 50% of the total export value of Lao PDR. The sector is dominated by two large foreign owned operations (Lane Xang Mineral Ltd and Phubia Mining). The sector is expected to continue to grow significantly. There are several large mineral resources under exploration including a large bauxite deposit in Champassak and the expectations are that within the coming 6-10 years there will be 15 more gold mines, 10 more copper mines and 10 more iron mines – all of them large operations.

- Manufacturing has shown a steady high growth rate (8.1% in 2006) and the garment industries in particular are responsible for 15% of the total export.

- The Construction sector has doubled its contribution to GDP from 2000-2006. This growth has been driven by large investments in hydropower, mining and infrastructure projects and the growth is expected to continue.

- Crops and especially coffee are important agricultural sectors. Coffee exports have doubled from 2004 to 2007 and coffee’s share of agricultural GDP is close to 20%. Maize and sugar cane are some of the other emerging export commodities.

- Tourism and Hotel and Restaurant services sector has increased its contribution to GDP considerably closing in on the Forestry sector and on the same level as electricity (2006). It is now one of the fastest growing sectors

Percent of GDP per Sector

53 51 50 49 47 45 43

23 24 25 26 27 29 32

25 25 25 26 26 26 26

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004 2005 2006

Year

% o

f Tot

al G

DP

Agriculture Industry Services

with 15-22% growth rates only surpassed by the mining and construction sectors.

- Electricity or hydropower sector is an emerging growth area. As of May 2008 there are 9 plants in operation in Lao PDR with a total installed capacity of 700 MW. There are 7 projects under construction with a total installed capacity of 2,250 MW and they will all be in operation by 2010. It is further expected that from 2009-2015 an additional 19 electricity power generation projects will be under construction. In total the Department of Energy Promotion and Development lists 75 projects in their power development plan. This means that on top of the projects mentioned above there are 40 projects under consideration. [source: www.poweringprogress.org] The existing and planned hydropower projects 2008-2013 are presented in the figure below.

Figure 3.1.4: Electricity power generation projects in Lao PDR

Hydropower Projects In Lao PDR

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013Year

No.

of P

roje

cts

Under ConstructionIn Operation

- Plantations are another emerging growth area. There is an increasing interest in concessions from foreign investors in rubber, eucalyptus, bio-fuel crops and other industrial tree plantations.

152. The recent year’s economic growth should be seen in the context of the Socio-Economic Development Plan, which has guided the nation’s economic development with a focus on commercial agriculture, hydropower and mining. It is characteristic for the top growth sectors mining and hydropower that they are based directly on natural resources and therefore bound to certain geographical locations often in mountainous forest or rural parts of the country. The development of these growth sectors requires large investments in infrastructure, supply of utilities and availability of skilled labor and various service industries. However, although especially mining and hydropower sectors are boosting the GDP, these sectors are not the big job creators and much of the demand for skilled labor in these sectors has so far been covered by expatriates. The necessary auxiliary services, hardware and constructions are also to a large extent imported or created and delivered by foreign companies.

153. The development of the hydropower and mining sectors poses great potential for economic development, but also many challenges and risks. The hydropower mining sectors are different in the sense that the hydropower sector at least in principle is based on a renewable resource, water. Mining on the contrary is based on extraction of nonrenewable resources, minerals. The wealth from

minerals extraction should be seen as coming from consumption of assets or capital rather than from generation of income and the challenge for the government is therefore to ensure that the earnings from the sale of the assets are converted into income generation. The experience from other countries is that one of the keys to this is investment in education and building up a skilled and diversified domestic workforce. Another challenge comes from the “resource pull effect” generated by the expansion of these natural resources exploitation sectors. How this will affect other sectors is uncertain, but combined with the recent sharp appreciation of the kip against the US dollar other sectors may suffer setbacks (manufacturing, agriculture), because domestic labor and materials are likely to become more expensive, export commodities are likely to become less competitive in price and imported goods are generally likely to become more competitive. However, the natural resources exploitation sector holds good opportunities for revenue collection because it is based on non-moveable assets and therefore less sensitive to taxation.

154. The recent rise in food prices has generally affected the urban population more than the rural due to the fact that the rural population to a certain degree is self-sufficient with food and the local rural economy is less dependent on global or regional market fluctuations. However, this may very well change significantly in tune with the commercialization of agriculture and expansion of plantations.

155. The development of commercial agriculture including mono crop plantations is growing fast in some parts of the country. The demand and prices for agricultural products are up, but there are limiting factors such as poor infrastructure, availability of land and lack of proper storage facilities and other related services. Mono crop plantations are to a large extent driven by foreign investments under various schemes including land concessions granted to the investor and the so-called 2+3 scheme where the farmers provide the land and labor and the investor provides the technology, training and market. The commercialization of agriculture parallel with a fast growing economy may lead to growing urban population and shortage of cheap labor in the rural areas. There may be a trend towards larger farm units and change of agricultural technology and products. We are likely to see a more mechanized agriculture, use of more chemicals (fertilizers and pesticides) and more dependent on irrigation and seasonal hired labor. We are also likely to witness commercialization of other sectors, which traditionally have served the village level economy and self sufficiency on household and village level. The fishery sector holds considerable commercial potential both in the domestic market and for export. The so-called Non Forest Timber Products (NFTPs) is another hitherto untapped commercial growth area.

156. Parallel with the economic challenges and opportunities that the hydropower, mining, commercial agriculture and plantation sectors present, there are equally compelling challenges in terms of nature conservation, protection of the environment and livelihood of people directly or indirectly affected by the development of these sectors.

157. Characteristic for these sectors is their dependence on water and large land areas. They therefore often compete for the same land and water resources and there is a clear tendency towards increasing pressure on land and water allocations and rights.

Agriculture, Plantations and Environment158. The potential environmental impacts are serious and manifold. The pressure

on land for commercial agriculture and plantations may result in encroachment of natural forests and conversion of traditional agricultural land. The changes in land use are likely to cause increase in runoff, erosion and sedimentation and the changes in agricultural production methods are likely to cause water pollution from use of fertilizers and pesticides.

Hydropower and Environment159. Big hydropower dams and reservoirs change the hydrology and water quality

of the river system in which they are located. If not removed before inundation the decomposing flooded biomass in the reservoir will cause poor water quality for many years and generate green house gasses. The demand for electricity will govern how the dam is operated and the river flow will change accordingly. Generally the river flow will change from fast flowing water to lake like conditions upstream the dam and normal flood and dry season hydrological patterns will be evened out on a yearly basis through suppression of flood peaks in the rainy season and evening out the flow during the dry season, whereas there is likely to be more erratic peak and lows on a daily basis. These changes in hydrology and water quality will affect the animals and plants living in the water as well as the people living in the riparian zone up and downstream the dam. The impact on fish is one of the single most important environmental issues of hydropower development in Mekong and its tributaries in Lao PDR.

160. It is very important for hydropower dams that the hydrological balance in the catchment area of the dam is maintained. Therefore changes in land use e.g. from forest to plantation is not welcome. Many hydropower dams actively support conservation of forest in the reservoir catchment area, but the consequence is also that the catchment area becomes a no development area and that the pressure for land increases in other areas.

Mining and Environment161. Mining operations in Lao PDR are mostly open pit mining. Mining in this form

completely changes the landscape and land use of the area where the minerals are extracted. Mining consumes large quantities of water, energy and hazardous chemicals and the waste rock disposal sites are often huge deposits containing materials that have the potential for developing acidic drainage. Consequently mining potentially encroach forest areas and impact on biodiversity, cause chemical pollution of soil and water and thereby affect terrestrial and aquatic animals and plants. Mining is incompatible with agriculture, plantations and hydropower even long time after mining operations have seized.

Urban Environment162. Whereas there are increasing efforts towards strengthening the

environmental management of the expanding hydropower and mining sectors, the urban environmental management has not received the same attention. The urban environment is undergoing changes from predominantly rural settings to a more and more urban environments with trade and commerce, small businesses and a growing industrial sector all mixed with residential areas. This transformation is happening very fast and the legal framework, planning, awareness and enforcement is still weak and environmental issues in many urban areas are often dealt with in the same way as in a rural village. Urban environmental management needs to be dealt with as an integrated part of urban development planning and should be part of provincial and district level Integrated Spatial Planning (see also Section Integration of Environmental Concerns into Economic Decision Making). The problem is not only the general lack of proper urban environmental management services such as waste

collection/disposal and sanitation. These services are of course important, but have to be part of development of overarching urban development strategies, plans and regulations for urban layout and zoning, infrastructure and services, building constructions and pollution control and enforcement.

Tourism and Environment163. The tourism industry has experienced rapid growth and is believed to hold

considerable potentials for further development. The tourism industry is very much dependent on a tranquil and clean environment and on the existence of unspoiled pristine nature. The tourism industry itself also puts pressure on and impacts nature and environment. The future growth and development of the tourism industry in Lao PDR therefore has to go hand in hand with nature conservation and urban environmental management. The challenge is to ensure that some of the money that tourists use in the country and pay as tourism levies is channeled back into environmental protection and nature conservation.

164. In the context of these opportunities for economic growth and challenges in terms of social and environmental impacts, the Government of Lao PDR is faced with a daunting task of enabling lasting economic development combating poverty by attracting responsible and accountable investors and traders and at the same time building up a strong, authoritative and respected environmental management administration capable of ensuring good integration of environmental, social and economic dimensions, setting and controlling fair and firm environmental requirements and responding effectively to environmental problems.

165. Faced with these challenges the Lao Government has taken a number of important initiatives as follows:

1. Integrating environmental concerns into economic development decision making;

2. Developing the policy and legal framework for sound environmental management;

3. Building-up capacity in environmental management and enforcement of environmental legislation;

3.2 Integration of Environmental Concerns into Economic Decision Making166. The past 2 years has seen several efforts towards strengthening integrated

planning. Characteristic for these efforts are that they are based on the spatial dimension as the fundamental arena for planning. Thus, WREA has spearheaded two pilot projects in Integrated Spatial Planning on provincial level, first in Oudomxay and as of writing this report in Champassak. The Integrated Spatial Planning process is based on a common overarching vision and development strategy for a certain administrative area, in this case a province and the districts within that province. The vision and development strategy is formed through a process of analyzing the potentials and problems in each area and for every sector and interest. Conflicting or competing interests are then identified, balanced and/or integrated.

167. The ISP is a regulatory instrument to integrate and balance competing or conflicting interests and thereby guiding public and private investments and government policies from all sectors and interests in one shared desired direction.

168. Parallel with this the National Land Management Authority is developing a national land use master plan, which maps out the desired future land use in general terms.

169. The Ministry of Planning and Investment with support from GTZ has demonstrated integrated area based development planning at district and village level. The planning has been carried out in two districts in Luang Namtha and one district in Xayaboury Province.

170. The introduction of spatial planning as an instrument for integration of environment and development comes at a crucial time for the country with many large development projects in the pipeline and with an emerging transformation of the rural economy.

171. The main recommendations and lessons learned from these new planning approaches point in the same direction and include the following:

Planning should be based on the spatial dimension and should involve all sectors in an integrated process;

Development of strategies and strategic thinking is a crucial part of the planning process, which is often underestimated and rather weak;

The planning process is time consuming and requires technical and financial support in terms of training, data collection, data analysis, mapping and map production, printing and dissemination;

Integrated Spatial Planning needs to be linked to government (central and local) budget planning;

Integrated Spatial Planning has the potential for guiding and directing public and private investments, sector development planning, urban planning and environmental management;

Integrated Spatial Planning is probably the single most important planning instrument both on national and local level;

On provincial and district level the integrated planning process works well among government organisations, but involvement of the private sector and the public in general needs to be further developed;

Table 3.2.1: Policy and Legal Framework for Environmental Management in Lao PDR since 1994

Title National Agency First National Environmental Action Plan (1994) STEA

Draft National Resettlement Policy for Major Projects (1997) CPI, STEA

Draft Public Involvement Guidelines CPI, STEA

Sector Strategy & Guideline National Framework - Rural Water Supply & Environmental Health Sector

MPH

Water Sector Strategy and Action Plan 1999-2004 WRCC/PMO

Strategic Vision for the Agriculture Sector until 2010 DoF/MAF

Forest Vision for 2020 DoF/MAF

Hydropower Development Strategy DoE/MIH

5th National Socio-Economic Development Plan (2001) CPI

Agriculture Master Plan DoA/MAF

Power Sector Environment Policy DoE/MIH

Social Impact Statement for Electricity Projects DoE/MIH

Agriculture and Forestry Sector Development Plan MAF

Draft National Environmental Quality Monitoring Program (NEQMP) 2003-2010. Final Consultation Workshop, Vientiane, March 24, 2003.

ERI/STEA

Draft Policy on Resettlement STEA

National Biodiversity Strategy and Action Plan, years 2010 and 2020. June 2004. DoE/STEA

National Strategy on Environment Education and Awareness to the years 2020 and Action Plan for the years 2006-2010. June 2004

STEA

National Environmental Strategy years 2010-2020, August 27, 2004 STEA

National Growth and Poverty Eradication Strategy (NGPES) September, 2003 MFA

National Policy on Environmental and Social Sustainability of the Hydropower Sector, 2005 PMO/CPI/MEM

172. The tables below present the major environment and environment related policies and legal framework in Lao PDR.

173. Since the adoption in 1999 of the Environmental Protection Law (EPL), there have been a number of developments in Lao PDR, not least being the increases in economic development and consequent demographic changes outlined in the previous Section. Further, The National Strategy and Environment Action Plan for the Years 2006-2010 has established as one of its priority actions, “To reform institutions to ensure their appropriateness for effective environmental management and monitoring.” In addition the need for clear and transparent legislation is implicit in the rules of the WTO which Lao PDR has applied to join.

174. WREA has identified a number of problems with the implementation of the law, which is now nearly ten years old. Thus, a review of the law is timely and WREA is undertaking a critical review and a major makeover and renewal of the legislation.

175. The main targets of the revision of the environmental legislation include the following:

Clarify roles and responsibilities of different authorities and eliminate overlaps. There are a number of overlaps in competencies and responsibilities between WREA and line ministries leading to some uncertainties as to who should be the lead authority for which aspects of environmental protection and regulatory control.

Strengthen environmental monitoring and inspection. The provisions in the law regarding environmental monitoring and inspections need to be strengthened to clarify the respective responsibilities of project owners and the environmental inspectors. The revised EPL needs to give clear responsibility for monitoring state of environment and monitoring (inspecting) development activities to ensure that they are complying with their Environmental Management and Monitoring Plan and Environmental Compliance Certificate.

Provisions on Climate Change. The revisions to the EPL are expected to include provisions on climate change to bring the law in line with the Climate Change Conventions.

Revision of the Environmental Impact Assessment Regulation. One of the main tools for environmental protection in the law is the Environmental Impact Assessment (EIA) which ensures that the environmental impacts of a

proposed development project are taken into account before allowing that project to go ahead. The revised regulation is proposed to include social assessment. It will clarify the assessment, review and approval process and set clear thresholds for which projects have to undertake simplified assessment process (Initial Social and Environmental Examination) and which have to go through the full Environmental and Social Impact Assessment process.

Strategic Environmental Assessment. There are now increasing calls for Strategic Environmental Impact Assessment (SEA) which seeks to ensure that environmental impacts are taken into account in the development of policies and plans at national and provincial levels. It is proposed to include the legal requirements for SEA in the revised Environmental Protection Law.

International Conventions and Agreements. Lao PDR has ratified a number of International Conventions and Agreements which are relevant to the environment, and are currently considering ratification of a number of others. The Law will require revision to give the correct legal basis for their effective implementation.

Develop decree/regulation on Hazardous Substances Develop decree/regulation on Industrial Waste Management Develop decree/regulation on Environmental Standards. The Current EPL

enables all sectors and all levels to set environmental quality standards. The revised EPL should make it clear that there will be national standards and that these will be set by WREA. WREA has drafted a comprehensive set of environmental quality and emission standards, which is currently being reviewed by concerned authorities. An implementation decree/regulation will be developed in 2009.

Develop decree/regulation on Urban Environmental Management.176. The revision of the environmental legislation is planned to be completed in

2009. Other important environment related laws under revision are the Mining Law and the Law on Foreign and Domestic Investment.

Table 3.2.2: Environment-Related Laws of Lao PDR

Legislation and key ministry responsible Scope Key Contents Forestry Law (1996) Ministry of Agriculture and Forestry 24/2007

Principles, regulations and standards for the use of forest lands and resources Promotes the conservation and rehabilitation of forest resources Defines roles and authorities of forest management and inspection organizations.

GoL is responsible for administration and allocation of natural forests and forest lands. Approval from authorized agency is required for individuals and organizations to possess and use natural forests Individuals and organizations have obligation to preserve forest resources including water sources, marine animals and wildlife

Water and Water Resource Law (1996) WRCC, MAF

Management, exploitation, development, and use of water and water resources with the aim to protect and sustain them.

MAF is responsible for the survey and inventory of water resources Scale of water use is classified into small, medium and large. Permit is required for medium and large scale.

Land Law (1997) MAF, MIH, MCTPC, MIC, MND, MoInt, MF

Rules on management, protection and use of land. All individuals and organizations have obligation to

protect the land to ensure that there is no soil erosion, soil degradation and negative impact on the natural or social environment

Mining Law (1997) MIH/DGM

Mining and processing of minerals for local consumption and export

Licensees have obligations to preserve and restore the land utilized during mining and to rehabilitate the land after mine closure and to guarantee that the project shall have no serious negative impacts.

Environmental Protection Law (1999) STEA/DoE

Principles, rules and measures to manage, monitor, restore and protect the environment, natural resources and biodiversity Ensure the sustainable socioeconomic development.

All persons and organizations residing in Lao PDR have an obligation to protect the environment. STEA is responsible for overall environmental oversight and coordination Each sector responsible for development projects shall issue its own regulations for EIA, based on general EIA regulation issued by STEA

Industrial Law (1999) MIH/DOI

Establishment and management of business in industry and handicraft sector

All businesses shall ensure the protection of the environment in accordance with EPL. Wastes shall be treated in accordance with the relevant MIH waste discharge regulations

Electricity Law (1997) MIH/ED

Standards of electricity administration, production, transmission, distribution, management of electricity exports arid imports

Operation of electricity production shall begin with a survey and project output and shall include the construction and expansion of the facilities, which ensure that such economic enterprise does not damage the environment, ecological system, living conditions, and natural habitat of wildlife:

Agriculture Law (1998) MAF/DoA/NAFRI/ NAFES

Principles, rules and measures for implementing and managing of agricultural production, to conserve agriculture to ensure that agriculture commodity production has no adverse environmental impact

Urban Planning Law (1999) MCTPC/DoU

Principles, regulations and actions regarding management, land use, and building construction at the national and local levels. To ensure conformity of actions with the government policies and regulations.

MCTPC, in collaboration with concerned field offices and local authorities, is responsible for the investigation, design and submission of the plans to the government for consideration and in some cases to the National Assembly for approval.

Road Law (1999) MCTPC/DoT Principles, rules and measures for

managing, using, planning, surveying, and construction of roads. Road safety, including environmental protection. Objective of ensuring sustainability of seasonal traffic.

The Law promotes investment in road construction and repair and provides for favored tax treatment of investors under linked to the Investment Promotion Law

Hygiene, Prevention and Health Promotion Law (2001) MPH

Principles, rules and measures related to public hygiene and health promotion

Every Lao citizen, irrespective of ethnicity, sex, age and socio-economic status, or religious beliefs has the right to obtain health care, participate in the practices of hygiene, disease prevention and health promotion

Aquatic and Wildlife Law 24/2007

Law on Livestock and Veterinary 2008

Capacity Building in Environmental Management and EnforcementCapacity building is here understood as comprising institutional, policy and human resources capacity.

177. On national level environmental issues are coordinated through the National Environment Committee, NEC which convenes twice a year. The NEC has members from all concerned ministries and is chaired by the Deputy Prime Minister. The secretary is the Director General of Department of Environment in WREA.

178. WREA is today the main environmental authority in Lao PDR. Its history goes back to the early 90’s when the Government of Lao PDR embarked on a longsighted plan to build up an environmental administration. In 1993, the Science Technology and Environment Agency (STEA) was established followed by the promulgation of the Environmental Protection Law (1999), Regulation on Environmental Impact Assessment (2002) and the establishment of the National Environment Committee (2003) to ensure better inter-ministerial coordination on environmental matters.

179. In May 2007, STEA was dissolved and the Water Resources and Environment Administration, WREA was formed together with Provincial Water Resources and Environment Offices, PWREOs. This new Administration brings together the environment departments form the former STEA, the Water Resources Coordination Committee, the Lao National Mekong Committee Secretariat and the Meteorology and Hydrology Department from Ministry of Agriculture and Forestry in one administration.

180. WREA belongs to the Prime Minister’s Office and is comprised of the following departments:- Cabinet;- Department of Water Resources;- Department of Environment, DOE;- Environmental and Social Impact Assessment Department, ESIA Dept;- Department of Meteorology and Hydrology;- Water and Environment Research Institute, WERI;- Secretariat of the Lao National Mekong Committee;

WREA is represented at local level through the following offices/units:- Vientiane Capital/Provincial Water Resources and Environment Offices;- Municipality/District Water Resources and Environment Units;

The Department of Environment, DOE is comprised of the following divisions:- Division of Planning and Cooperation- Policy and Legal Division- Pollution Control, PC, Division- Environmental Promotion Division- Environmental Data and Information Management, EDIM, Division

The Water and Environment Research Institute, WERI is comprised of the following “centres”:

- Water and Environment Research Centre;- Environmental Quality Monitoring Centre, EQMC;- Remote sensing Centre;

- Biodiversity Centre;

181. A very important part of WREA’s functions is to administrate the ESIA procedures and review ESIA documents and issue Environmental Compliance Certificates. The economic growth and increase in large development projects has put strong pressure on WREA to be able to fulfil its mandate. The increase in workload in terms of reviewing EIA reports is illustrated in Figure below.

Mining, Industy, Infrastucture and Hydropower Porjects In Lao PDR

0

5

10

15

20

25

30

35

1994 1996 2001 2002 2003 2004 2005 2006 2007 2008

Year

No

of P

roje

cts

Figure 3.2.1: Mining, Industry, Infrastructure and Hydropower Project

In 2008 WREA therefore established the Environmental and Social Impact Assessment Department, ESIA Dept. The structure of the ESIA Department is indicated in Figure below.

Director GeneralESIA Dept

Deputy DGof ESIA Dept

Deputy DGof ESIA Dept

Deputy DGof ESIA Dept

Planning and

FinanceDivision

Law and Information

Division

Center forESIA in Energy

Sector

Center for ESIA in

Infrastructure and Public Investments

Centre forESIA in

Agriculture and Forestry Sector

Center for ESIA in

Mining and Industry Sectors

Director GeneralESIA Dept

Deputy DGof ESIA Dept

Deputy DGof ESIA Dept

Deputy DGof ESIA Dept

Planning and

FinanceDivision

Law and Information

Division

Center forESIA in Energy

Sector

Center for ESIA in

Infrastructure and Public Investments

Centre forESIA in

Agriculture and Forestry Sector

Center for ESIA in

Mining and Industry Sectors

Figure 3.2.2: Structure of the ESIA Department in WREA182. The four “Centres” are the operational arm of the department. They are each

responsible for review of Environmental and Social Impact Assessment (ESIA) documents and for conducting compliance inspections within their designated sector(s). Each of the four “Centres” will establish Environmental Monitoring Units, EMUs and Social Monitoring Units, SMUs.

183. There are currently 73 officials including the leadership in the department. Within the coming two years the plan is to increase the staffing to 99 officials.

184. WREA has recently developed a 5 year capacity building program for the ESIA Dept aiming at strengthening; building capacity and supporting the establishment of the new ESIA Department. A very important part of this is to prepare and make the administration ready for its coming roles and responsibilities in the revised environmental legislation.

185. The department includes a centre for disclosure of environmental information to the public. This is an important step towards providing easy access for interested and affected people to ESIA documents and other environmental information.

186. WREA is receiving substantial donor support for capacity building mainly from Sida, ADB, World Bank and UNDP. Although WREA will continue to rely on donor support for capacity building in the coming years WREA is developing instruments for obtaining funds from development projects that eventually will help the administration become self reliant.

3.3 Implementation Issues 187. As indicated in the previous section the capacity of WREA, which is the main

environmental authority in Lao PDR to enforce environmental regulations has been strengthened during the past few years. On local level the Provincial Water Resources and Environment Offices have also been strengthened, but they are still not on par with fulfilling their roles and responsibilities.

188. Some of the main reasons for the weak enforcement of environmental legislation lie in the legislation itself. This includes overlapping responsibilities and jurisdictions, weak sanctions, lack of standards and giving the sector ministries the power to enforce environmental legislation on their own development projects. As indicated in the previous Section these shortcomings are the target of the ongoing revision of the environmental legislation. However, there are also other constraints that have to be overcome before enforcement can become effective. These include continue to build technical and managerial capacity in WREA and the PWREOs, provision of technical tools, equipment and facilities, ensuring sufficient budgets, and raising environmental awareness among private and public enterprises and the general public

189. Of particular concern is the enforcement of the 2005 Decree on Resettlement and Compensation, which assigns the regulatory mandate for resettlement to WREA. This is a new task for WREA, which has been given special attention in the said 5 Year Capacity Building Program for the ESIA Department.

3.4 Environment and Civil Society 190. The concept of civil society in the sense of un-coerced collective action as

opposed to the structures of the state is not well understood in Lao PDR where the Communist Party represents all society, civil or otherwise. That does not mean that elements of civil society are altogether absent. International and local NGOs have operated in Lao PDR for a long time and some have seen their role as much more than gaining access to development aid. Among encouraging examples of NGOs’ role in the environmental domain is the Sustainable Agriculture Forum (SAF), an autonomous coalition of international non-government organizations (NGOs) and Lao development workers who are promoting sustainable agriculture, community forestry and other environmentally sound and participatory approaches to rural development in Lao. SAF was founded in March 1991 by a group of Lao development workers employed by

international NGOs who had programs in rural development in the country. SAF is affiliated with

191. The South East Asian Sustainable Agriculture Network (SEASAN), and is informally connected to several other regional networks. Most of forest-related activities supported and implemented by NGOs have been coordinated by SAF staff. Similarly, with CUSO and Canada Fund support, the Department of Forestry introduced participatory rural appraisal (PRA) techniques for collecting information on existing community-based models of forest management throughout the country. Currently there are close to two dozens international NGOs with their local partners active in various aspects of natural resource management in Lao PDR.

192. More recently, international and local NGOs have been actively involved in the discussion about the environmental impacts of the Theun Hinboum and Nam Theun 2 hydropower projects. Although at times heated (especially on the international NGO side), the discussions has had the result of forcing the project proponents to ensure high quality of environmental safeguards built into the projects.

3.5 Environment, Health & Safety 193. Lao PDR has the largest per capita volume of renewable water resources in

Asia. The MICs survey in 2006 showed that about 58 percent of the total population had access to safe water, 83.8 percent in urban, 54.5 percent in rural with road access and 35.5 percent in rural without road access areas. 59.2 percent of population of central region used improved drinking water, so as compared to 57.3 percent in the north of region and 56.5 percent in the southern region. 45.0 percent of the population of Lao PDR is living in households using improved sanitation facilities. This percentage is 83.4 in urban areas and 38.4 in rural with road access and 15.7 in rural without road access areas.

194. In fact, in certain areas of rural and remote areas, villagers may have to travel up to 1 or 2 kilometers to get water, which is often of low quality. The majority has no latrines, resulting in the use of fields, marshes, and watercourses for disposal of human wastes.

195. All provincial capital towns currently have or are in the process of constructing a piped water supply system to distribute treated water. Over 60 percent of the households are connected to the system.

196. Vientiane Capital City is presently establishing sewage system, the country’s first. On-site wastewater disposal and treatment facilities, mainly septic tanks, are often poorly designed, constructed and maintained and therefore perform badly. In addition, discharges from some major industrial and mining establishments are also polluting water sources.

197. Almost all the electricity generated is from hydropower. The population with access to electricity is almost 50 percent, a high 90 percent in the urban areas while 43 and 11 percent have similar access in rural areas with and without road, respectively. Among provinces accessibility vary from 95 percent in Vientiane Capital to 12 percent in Phongsaly Province. The rest of the population especially in the rural communities uses traditional fuels like wood and charcoal for cooking and lighting.

198. Considerable progress has been achieved over the past ten years in improving the health system in the Lao PDR and, more importantly, in improving the health of the Lao people. For example, life expectancy at birth has increased from less than 50 years before the 1990s to about 61 years currently (63 years for women and 59 years for men). Still, Laos’ health status is among one of the less favorable in the region. Some progress in improving health systems are Maternal, infant and under five infant mortality rates (MMR, IMR and U5MR, respectively) have dropped significantly:

Item 1995 2000 2005MMR 656 530 405IMR 104 82 70U5MR 170 106 98

3.6 Information Access and Stakeholder Participation 199. Information about many aspects of environmental managements in Lao PDR

is becoming easier and more user-friendly. The table below indicates organizations with websites containing environmental information:

Table 3.6.1: List of sources Nam of Organization www National statistic center http://www.nsc.gov.laMinistry of Agriculture of Forest http://www.maf.gov.laDepartment of Environment http://www.doewrea.site40.netNation Agriculture and Forest Research institute http://www.nafri.org.laEnvironment protection Fund http://www.laoepf.org.laHydropower http://www.poweringprogress.orgMinistry of Foreign Affairs http://www.mofa.gov.laVientiane time http://www.vientianetimes.org.laOther sites can accessible with provided the link

3.7 Environmental Awareness and Education 3.7.1 Environmental Awareness 200. Since 1994 Science Technology and Environment Organization (STEO),

1999 Science Technology and Environment Agency (STEA) and 2007 Water Resources and Environment Administration (WREA) as well as Provincial Water Resources and Environment Offices (PWREOs), in cooperation with NGOs and Mass Organizations, Lao Woman Union (LWU) and Lao Youth Organization (LYO), National University of Lao PDR have implemented programs to increase public awareness across throughout the entire country on issues such as health, environmental education, and poverty reduction. The Government continues to celebrate special environmental days, which include Tree Planting Day, Fish Release Day, World Population Day, World Water Day, and World Environment Day.

201. The role of WREA in these undertakings is likely to change in the coming years towards more of a role as coordinator and initiator rather than implementer. Implementation is likely to be carried out by the directly concerned agencies, mass organizations and NGOs.

3.7.2 Environmental Education 202. The Government’s efforts to promote environmental education at the primary

and secondary school levels and development of necessary teaching manuals, course books, posters and leaflets provided to both teachers and students go back only five years. There is every reason to expect their impact to be strongly positive in the long run but the effect on actual performance during the period of assessment was probably insignificant.

203. The National University of Lao PDR (NUoL) launched the first ever five-year B.Sc. Program in Environmental Science and Management in September 2004. Additionally, the Faculty of Forestry designed a model curriculum called “forestry and the environment”. The module includes three main topics: income generation and forestry; forestry management, water and watershed management; and soil

use. The Faculty of Economics at NUoL has also incorporated an environmental economics course into the Faculty’s Economics Program. Here, too, the development is too recent to have had any impact on past environmental performance.

IV. Conclusion and Recommendations 4.1 Forest204. The data on forest cover, logging, and shifting cultivation are out of date and

somewhat inconsistent. However, the data do indicate that in order to reach the target forest cover of 53% by 2010 about 2.6 million ha of existing un-stocked forests are to be regenerated to good forests. This represents regeneration of forest in about 11% of the whole land area of Lao PDR and is considered close to impossible to reach. Just to stop the downward trend in forest cover will be a major achievement and the way forward is to combine forest protection and management with climate change initiatives through the so-called Reduced Emissions from Deforestation and Degradation, REDD systems now being discussed as a way forward for developing countries in mitigation climate change. The concept is that the developed countries should offer financial benefits to developing countries which reduce deforestation and forest degradation equivalent to the carbon marked value of greenhouse gas emissions that have been avoided.

4.2 Crosscutting Issues - Natural Resources205. The economic growth of the Lao PDR is to a large extent relying on natural

resources in one way or the other. For example: i) Extraction and use of resources for mining and hydropower; ii) availability of land, soil and water for agricultural and forest production; iii) existence of unspoiled and pristine nature with rich biodiversity for tourism and as a source of livelihood for the rural population; iv) existence of good water quality and habitats for fish as a source of income and food for people throughout the country. The various interests that the reliance represent are not always compatible in fact they are often competing or conflicting. The proper integration and balancing of these and other interests is a major challenge and key to sustainable development. The following initiatives taken by the government are seen as important steps in that direction:

Introduction of Integrated Spatial Planning at provincial and district level;

Preparation of the first National Land Use Master Plan; Revision of the Environmental Protection Law and

Environmental and Social Impact Assessment Regulation; Capacity building of WREA and the PWREOs; Implementation of the forestry strategy (2020) especially

increasing the forest cover to 70% and limiting forest logging in order to protect and manage the natural forest and biodiversity;

Enhancement of management and protection National Conservation Areas;

Development of Standard Environmental and Social Obligations in Concession Agreements

4.3 Urban Environment206. The urban growth that has taken place during the past 5 years is continuing

with increasing pace. This is likely to become one of the major environmental issues in the very near future.

4.4 Climate Change207. The impacts of climate change on the economic sectors, people’s livelihoods,

nature and environment in Lao PDR is very uncertain and difficult to predict. Research and investigation on climate change issues in Lao PDR is in its infant stage and much of what is known is based on old and unreliable data. Very little has been done in terms of understanding the impacts of climate change on vital economic sectors such as hydropower and agriculture. However, the Government of Lao PDR has recently embarked on a serious commitment to tackling climate change issues. The Department of Environment, WREA has been appointed as the national focal point for climate change initiatives and the government has established the National Steering Committee for Climate Change (NSCCC) chaired by the Deputy Prime Minister. One of the first tasks of the NSCCC has been to initiate setting-up seven Technical Working Groups to carry out sector/thematic in-depth assessments of climate change impacts as the foundation for the preparation of a National Strategy and Action Plan on Climate Change.

208. The National Strategy and Action Plan on Climate Change needs to target the two main aspects of climate change namely on the one hand the impacts that development strategies, programs and projects have on the climate, and on the other hand the climate related environmental and socio-economic impacts on development strategies, programs and projects. This will include foreign donor supported development cooperation programs and projects.

209. Climate change will affect all sectors and segments of society and the response from the Government to adapt, mitigate and avoid the climate change impacts will therefore be developed, planned and implemented through a cross sector programmatic approach. As the focal point for climate change initiatives the Dept of Environment, WREA has established a Climate Change Office, which will be entrusted with the responsibility for overall management of climate change programs. There are also plans to establish Regional Climate Change and Environment Resource Centres, which will be vital in the role out of program activities and in particular in terms of capacity building, awareness raising and support to implementation at the local level.

210. One of the most important and promising climate change initiatives for Lao PDR is to develop REDD mechanisms combining climate change mitigation, biodiversity protection and poverty reduction.