40065 www.worldbank.org/lao TABLE CONTENTS OF Foreword v Acknowledgments vi Abbreviations and Acronyms vii Executive Summary viii Environmental Indicators xii The Lao Statistical Landscape xiii SECTION I: TRENDS IN THE ENVIRONMENT 14 NATURAL RESOURCES 14 Overview 14 Land Resources 15 Forest Resources and Protected Areas 18 Biodiversity and Habitats 22 Water Resources 26 ENVIRONMENTAL QUALITY 32 Overview 32 Water Quality 33 Municipal Solid Waste 38 Hazardous Chemicals 40 Air Quality 41 SECTION II: ENVIRONMENTAL MANAGEMENT 42 INSTITUTIONS AND LEGISLATION 42 Institutions 42 Legislation 46 Implementation Framework 50 CAPACITY DEVELOPMENT 51 Strengthening Management Capacity 51 Environmental Education 54 Public Awareness 55 SECTION III: CHALLENGES 58 Glossary of Environmental Terms 65 Relevant Websites 66 Lao PDR at a Glance 67 This report is a product of the staff and consultants of the International Bank for Reconstruction and Development / The World Bank. The findings, interpre- tations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law.TheInternationalBankforReconstructionandDevelopment/TheWorldBankencouragesdisseminationofitsworkandwillnormallygrantpermission to reproduce portions of the work promptly For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org. ii TABLE CONTENTS OF LIST FIGURES OF Figure 1. Estimated Land Area in Lao PDR in 2000 15 Figure 2. Agricultural Lands in Lao PDR (ha in 2002) 15 Figure 3. Percentage Agriculture to GDP 16 Figure 4. Increase in Irrigated Areas (ha) 16 Figure 5. Forest Cover in Lao PDR (1997) 18 Figure 6. Changing Forest Cover 18 Figure 7. Lao PDR Household Income 19 Figure 8. Income From NTFPs 19 Figure 9. Deforestation Rate (1993-1997) 20 Figure 10. International Significance of Species 21 Figure 11. Sources of Wildlife for Trade in Lao Across Borders 24 Figure 12. Main Rivers Basins in Lao PDR 26 Figure 13. Average Annual Water Usage 27 Figure 14. Type of Irrigation Systems (2002) 27 Figure 15. Hydropower Consumption and Export 29 Figure 16. Sources of Fisheries Production (2001) 31 Figure 17. Fish Production in Lao PDR 31 Figure 18. Rural Sanitation, 2000 35 Figure 19. Waste Composition in Lao PDR 38 Figure 20. Disposal Practices in 57 Urban Areas 39 Figure 21. Number of Vehicles in Lao PDR, 1993 ­ 2003 41 Figure 22. Organization Chart of Selected Government Agencies 45 Figure 23 Annual Environmental Expenditure 2001-2005 53 Figure 24. Reason for (i) Choosing Employment and (ii) do Environmental Work 56 Figure 25. Reasons for (i) Visiting NPAs and (ii) Valuation of the Environment 56 iii TABLE CONTENTSOF LIST TABLES OF Table 1. Type of Shifting Agriculture 16 Table 2. 1992 Forest Types in Lao PDR 18 Table 3. Lao PDR Protected Area System 21 Table 4. Mammal Species Richness in Lao PDR 21 Table 5. Annual Sale of Wildlife in Lao PDR 24 Table 6. Average Market Prices (2001) for Selected Species 24 Table 7. Lao PDR's Estimated Water Flows 26 Table 8. Type of Irrigation Schemes in Lao PDR 28 Table 9. Existing Lao PDR Hydropower Plants 29 Table 10. Tentative Ambient Water Quality Classes for Fresh Surface Waters 33 Table 11. Industrial Growth in Lao PDR 34 Table 12. Urban Household Toilet Facilities (1995) 35 Table 13. Status of Lao PDR Millennium Development Goals for WSS (2004) 35 Table 14. Average Per Capita Waste Production, Secondary Towns (2002) 38 Table 15. Landfills in the Four Secondary Towns 38 Table 16. Solid Waste Collection 39 Table 17. Ambient Air Quality in Vientiane Capital from Sep 02 ­ Feb 03 41 Table 18. Staffing Estimates in Environment Agencies 45 Table 19. Key Environmental Laws and Regulations 47 Table 20. Lao PDR International Agreements 48 Table 21. Summary of Current Key Environment Policies and Strategies 50 LIST BOXES OF Box 1. Landmine and UXO Clearance Initiative 17 Box 2. Main habitats in Lao PDR of High International Significance 22 Box 3. Hunting of the Siamese Crocodile 23 Box 4. Striped Rabbit Revealed in Lao PDR Forest 23 Box 5. Power Sector Development 30 Box 6. Monitoring Wastewater in Vientiane 34 Box 7. Supply of Water and Sanitation Services 36 Box 8. Environmental Health Concerns 37 Box 9. Vientiane Solid Waste Management 39 Box 10. Company Wants to Sift Through Your Trash 40 Box 11. Stakeholder Consultation in the Nam Theun 2 Project 44 Box 12. Responding to the EIADecree 46 Box 13. NPAManagement Constraints 51 Box 14. Strengthening Environmental Management Capacity 52 Box 15. Country's First Degree Program in Environmental Management 54 Box 16. Biodiversity Field Guides in Lao PDR 55 Box 17. Enhancing Environmental and Social Sustainability 61 iv FOREWORD Lao PDR has a remarkable range of natural resources and environmental riches, despite being categorized as a `least developed country'. With almost half of the country under forest cover and abundance of water and a low population density, Lao PDR has a diversity of species that is found in few other countries in the region. The country's economic development is largely dependent on its natural resources, mainly water (for hydropower), forests and minerals. Once the Land of a Million Elephants, Lao PDR is now confronted with numerous environmental challenges. The unsustainableexploitationofresourceshasresultedindegradationoflandandlossofnaturalhabitats.Thisdegradation, combined with declining water quality and increasing threats to air quality, is disproportionately impacting the poorest groupsinthecountry. Thisreportstudiesthelevelofnaturalresourcedegradationanddecliningenvironmentalquality, and their implications for long-term sustainable development and quality of life in a country where poverty reduction remains a key challenge. In response to declining environmental conditions, the country has made important strides in instituting changes in partnership with local communities and international organizations. Over the past five years, the country has invested millionsofdollarsinimprovingenvironmentalmanagement,focusingonbuildingcapacityamongGovernmentagencies and raising awareness more broadly, establishing protocols for monitoring and managing environment indicators, and makingsite-basedinvestments.Theresultsoftheseinvestmentshavebeenmixed.Thechallengesfacingtheenvironment in Lao PDR are many and varied, requiring a more strategic approach. TheLaoEnvironmentMonitor2005isthefirstofaseriesofmonitorspresentingasnapshotofenvironmentalstatus,and keytrendsandchallengesinLaoPDR.Itspurposeistoengageandinformstakeholdersofkeyenvironmentalchangesas they occur, in an easy-to-understand format. The report focuses on the general status of environment. Using charts and graphstheMonitorbenchmarkstrendsinnaturalresourcesandenvironmentalquality.Inaddition,thisMonitoranalyzes the effectiveness of Government policies and assesses the capacity of institutions to address environmental issues. Informationhasbeenobtainedfromavarietyofsources,includingtheLaoGovernmentandBankpublications,academic andscholarlymaterialandpersonalexperience. Severalsurveysandassessmentswereundertakentoobtainadditional dataandinsights:(i)ACapacityAssessmentwasundertakentoassesstheeffectivenessofthecountry'sinstitutionsregulatory framework; (ii) Public Environmental Expenditures were reviewed to better understand the allocation and trends in environment-related expenditures; (iii) A Survey of Environmental Attitudes was undertaken to assess the perceptions of individuals working in environmental professions in Lao PDR; and (iv) the Poverty-Environment Nexus in Lao PDR was further studied. The results of these surveys and analyses are included in the report. This Monitor builds on the experiences of other Country Environment Monitors in the region and embraces the key principles articulated by the framework for preparing Country Environmental Analysis initiatives of the Asian Development Bank and the World Bank. The Monitor has three sections. Section 1 reviews trends in natural resources and environmental quality, along with their linkages to poverty. The capacity of Government institutions, policies, legislationandinstrumentsareassessedinSection2. Theenvironmentalchallengesconfrontingthecountryareanalyzed in Section 3. ThisMonitoristheresultofacollaborativeexercisethatinvolvedstafffromvariousLaoGovernmentagencies,coordinated by the Environment Research Institute in STEA, and the World Bank. Preparation of this report was closely coordinated with theAsian Development Bank and the United Nations Environment Program. Ian C. Porter H.E. Prof. Dr. Bountieum Phissamay Country Director Minister and President East Asia and Pacific Region Science, Technology and Environment Agency World Bank v ACKNOWLEDGEMENTS Preparation of the Lao PDR Environment Monitor 2005 (LEM) has been a collaborative activity of the staff of EnvironmentalResearchInstituteoftheScience,Technology,andEnvironmentAgency(STEA),relevantGoLministries and institutions, and a World Bank team. Environmental Research Institute: Monemany Nhoybouakong (Team Leader), Phonechaleun Nonthaxay, Singsavanh Singkavongxay, Khamphoui Sivongxay, Bouakeo Phounsavath, Virany Sengthianthr, Kesone Sayasen, and Soukkaseum Chanthapanya. WorldBank:AnjaliAcharya,ChandavanhDethrasavong,ValerieHickey,PatchamuthuIllangovan(TeamLeader),StephenLing, Sirinun Maitrawattana, Nat Pinnoi, Frank Radstake, Soudalath Silaphet, Jitendra J. Shah, Tanyathon Phetmanee, Viengsamay Srithirath and Tony Whitten. Jostein Nygaard, Team Leader for the Poverty-Environment Nexus study also contributed to the writing of this report. Staff and consultants of Asian Development Bank and United Nations Environment Program (UNEP - ROAP) also contributed to the preparatory work. Asian Development Bank: Armando Balloffet, James A. Nugent, Mark Kasma and Marla Huddleston United Nations Environment Program: Yuwaree In-na The process for preparing this report was guided by a GoL Steering Committee, chaired by STEA and comprising of CommitteeforPlanningandInvestment(CPI),MinistryofAgricultureandForestry(MAF), MinistryofCommunications, Transport, Post and Construction (MCTPC), Ministry of Public Health (MoH), Ministry of Energy and Mines (MEM), and the Lao National Mekong Committee (LNMC). The team received valuable support and guidance from H.E. Noulinh Sinbandhit, Vice President, STEA. LEM preparation was informed by two consultation workshops, organized by ERI, ADB and the World Bank, with stakeholders from GoL ministries and agencies, provincial offices, international partners (WCS and IUCN) and academia. Photographs were provided by Wildlife Conservation Society (WCS), World Conservation Union (IUCN), Water and Sanitation Program (WSP), MAF, MCTPC, MEM and ERI. Information provided by World Wildlife Fund (WWF), WCS, IUCN, Japan International Cooperation Agency (JICA) and United Nations Development Program (UNDP) is appreciated. The World Bank task team received guidance from Ms. Maria Teresa Serra, Sector Director, Environment and Social Development; Mr. Ian C. Porter, Country Director, Lao PDR; Ms. Magda Lovei, Sector Manager, Environment; and the document was peer reviewed by Ms. Laura E. Tlaiye, Sector Manager, Environment Department, and Mr. Dan Biller, Lead Environmental Economist, East Asia and Pacific Region. Messrs. Ronald D. Zweig, Senior Agricultural Ecologist, William B. Magrath, Lead Natural Resources Economist, and Keith Bell, Senior Land Policy Specialist, also provided comments. vi ABBREVIATIONS AND CRONYMS A ADB Asian Development Bank MAF Ministry of Agriculture and Forestry ASEAN Association of Southeast Asian Nations MCTPC Ministry of Communications, Transport, BSc Bachelor of Science Post and Construction CBD Convention on Biological Diversity MDG Millennium Development Goals CCD United Nations Convention to Combat MF Ministry of Finance Desertification MIC Ministry of Information and Culture CITES Convention on International Trade in MEM Ministry of Energy and Mines Endangered Species MoE Ministry of Education CPAWM Center for Protected Areas and Watershed MoInt Ministry of Interior Management MoH Ministry of Public Health CPI Committee for Planning and Investment NAFES National Agriculture and Forestry DAFOs District Agriculture and Forestry Offices Extension Service DCTPC Department of Communications, Transport, NAFRI National Agriculture and Forestry Research Post and Construction Institute DFRC Division for Forest Resources Conservation NBCA National Biodiversity Conservation Area (DoF/MAF) NCEHWS National Center for Environmental Health DGM Department of Geology & Mines and Water Supply, MoH DHUP Department of Housing and Urban Planning NEC National Environment Committee DoE Department of Electricity, MEM NNT- NPA The Nakai Nam Theun National Protected Area DoE Department of Environment, STEA NPA National Protected Area DOF Department of Forestry NTFP Non-Timber Forest Product DoI Department of Industry NUoL National University of Lao PDR DoP Department of Planning, MAF OECD Organization for Economic Co-operation DoR Department of Roads and Development EdL Electricite du Laos PA Protection Agencies EDC Environmental Data Center (ERI/STEA) PAFO Provincial Agriculture and Forestry Office EEA Environmental Education and Awareness PM Particulate Matter EIA Environmental Impact Assessment PSTEO Provincial Science, Technology & Environment EMMU Environmental Management and Monitoring Office Units SEM Strengthening Environmental Management EPL Environmental Protection Law SEMD Social and Environment Management Division EQMC Environment Quality Monitoring Center SEMFOP Social and Environmental Management ERI Environment of Research Institute (STEA) Framework and Operational Plan ESD Environment and Social Division Sida Swedish International Development FAO Food and Agriculture Organization of the Cooperation Agency United Nations STEA Science, Technology & Environment Agency FRC Forest Research Center TSP Total Suspended Particulates GDP Gross Domestic Product TT Teacher Training GoL Government of Lao PDR UDAA Urban Development and Administration HPO Hydropower Office Authority ICEM International Centre for Environmental UNEP United Nations Environment Program Management UNFCC United Nations Framework Convention on IED Industrial Environment Division Climate Change IMF International Monetary Fund UNICEF United Nations Children's Fund IUCN The World Conservation Union URDD Urban and Rural Development Division LEM Lao Environment Monitor UXO Unexploded Ordnance LFNR Lao Front for National Reconstruction WCS Wildlife Conservation Society LNCE Lao National Committee for Energy WHO World Health Organization LNMC Lao National Mekong Committee WRCC Water Resources Coordinator Committee LNMCS Lao National Mekong Committee Secretariat WRI World Resource Institute LTUF Lao Trade Union Federation WRM World Rainforest Movement LWU Lao Women's Union WSS Water Supply and Sanitation LYU Lao Youth Union WWF World Wide Fund for Nature Unless otherwise noted, all dollars are US Dollars Exchange rates: kips per US dollar ­ 9,860 (November 2006) vii EXECUTIVE SUMMARY Lao PDR is a landlocked and mountainous country, knownthatover-harvestingandwildlifetradearebyfar which is surrounded by Cambodia, China, Myanmar, the greatest threats to biodiversity, placing much of it at Thailand and Vietnam. It is a multi-ethnic society, with riskoflocalextirpationdomesticandincreasingforeign aculturaldiversityunparalleledintheIndochinaregion. demand.Aspartofitseffortstoconserveitsbiodiversity, About 73.2 percent of the country's 5.6 million people Lao PDR currently has 20 National Protected Areas liveonlessthanUS$2perday.WithapercapitaGDPof (NPAs)andtwoCorridors,coveringalmost3.34million US$402,itisoneofthepoorestcountriesintheEastAsia hectares, or 14 percent of the country. If the area under and Pacific Region. The country's human development provincial and district protection is added, the area ranking is 143rd among 175 countries. With this level of increases to 5.3 million hectares, or 22.6 percent of the poverty, the country's natural resource base becomes of land area. critical importance in poverty alleviation and growth. However, natural resource degradation, combined Lao PDR's protected areas are among the most remote with inadequate provision of environmental services is areasinthecountry.However,humanuseoftheseareas disproportionately affecting the poor in Lao PDR. is rising as a result of increased population growth in traditional communities, migration, and settlement. In Natural Resources Degradation addition,bothprotectedareasandthelandaroundthem InLaoPDR,forestcovercurrentlystandsat41.5percent face increasing degradation as a result of expanding of the area of the country. It has a large volume of agricultural frontiers, illegal hunting, illegal logging, internal renewable water resources and considerable and uncontrolled burning. mineralresources,suchasgold,ligniteandcopper.These naturalresourceshavecatalyzedpasteconomicgrowth, ThehydropowerpotentialofLaoPDRishighcompared but mismanaged exploitation has caused significant to other countries in the lower Mekong River Basin, environmental damage to the country. providing the Government with an opportunity to earn foreignincometosupportsocio-economicdevelopment. MuchofthelandinLaoPDRissusceptibletosoilerosion The hydropower sector has developed rapidly; annual asaresultofthelargeamountoflandwithahighdegree production rising to 3,674 million KWh as of 2002. of slope, the types of soils and the high rainfall. Soil erosion is compounded by shortened fallow periods, The total renewable water resources of Lao PDR resulting in lower productivity and ever increasing are estimated at 190 billion m3 per year. However, demand for more land. development emphasis on expanding land cultivation and increasing exploitation of hydropower potential is Shiftingagricultureisusedinforestedlandstocultivate putting additional pressure on the resource base. the upland areas. Some forms of shifting agriculture, including long rotational swidden, are not harmful to Environmental Quality thelandandaresuitableforLaoPDR.However,pioneer In Lao PDR, surface water is the major water source `slash and burn' is still used in Lao PDR. for urban supply as most towns are located along the rivers, while groundwater is the main source for the Lao PDR is rich in forest cover relative to many other rural population. Whilst still within acceptable limits Asiancountries.In1940,forestswereestimatedtocover both surface and groundwater quality are declining. 17millionha,approximately70percentofthelandarea. Withrisingpopulationsinurbananduplandareas,water Recent surveys suggest that this figure is being reduced pollution issues will become increasingly important in byanaverageof53,000haperannum,witha2004cover the near future. Sixty four percent of Laotians have of 41.5 percent. access to safe drinking water. LaoPDRisoneofthemostbiodiversity-richcountriesin ThroughoutLaoPDRthereisahighincidenceofgastro- SoutheastAsia.Despiterelativelypoorinformation,itis intestinal diseases, such as diarrhea and dysentery, viii EXECUTIVE SUMMARY caused by inadequate water supply, poor sanitation persistent organic pollutants or POPs) in the aquatic andsewerage,andpoorhygiene.Seventypercentofthe andterrestrialenvironmentofLaoPDR. Asthecountry urban households have access to satisfactory sanitation continuestodevelopitsindustrialcapacity,itisexpected facilities such as cistern flush or pour flush toilets, but that hazardous chemicals will become an increasingly this sharply contrasts with the 36 percent coverage in important issue in the future. rural areas where 80 percent of the population lives. Environmental Management Vientiane Capital City is presently establishing sewage Theinstitutionalstructureforenvironmentalmanagement system, the country's first. On-site wastewater disposal in Lao PDR consists of: (a) the Science, Technology and and treatment facilities, mainly septic tanks, are often Environment Agency (STEA) as the main manager, poorly designed, constructed and maintained and monitor and coordinator of the environment at the therefore perform badly. In addition, discharges from national level, and a number of other ministries and some major industrial and mining establishments are institutions in charge of mitigating environment issues also polluting water sources. arising from their sectoral development activities; (b) national committees which guide inter-sectoral The generation of solid waste in urban areas in Lao coordination among agencies; (c) provincial and PDR is on the rise, and poses an emerging threat to the district entities which have devolved responsibility quality of surface and groundwater. Expanding urban for environmental protection at the local level; and (d) populations,combinedwithpoorcollectionandlargely mass organizations which support the government in inadequatedisposalfacilities,arecompoundingthelevel promoting participation and awareness. of pollution. Recognizingthecross-sectoralcharacterofenvironmental conservation and protection, the Lao Government has The current annual waste generation is 270,000 tons. created multiple coordination bodies to facilitate inter- Domestic waste accounts for the bulk of it. The average agency and provincial coordination. These include the daily urban waste production is 0.75 kg per capita. National Environment Committee (NEC), the Water Vientiane Capital City and the four secondary towns Resources Coordination Committee (WRCC), and the accountfor0.8­1.4kgpercapitaperday.OnlyVientiane Lao National Mekong Committee (LNMC). and the four secondary towns have landfills, but the disposalareasaresmall,andhavenoleachatecollection In 2000, the Government began implementing its ormonitoringwells.Overtwothirdsofmunicipalwaste decentralization policy to transform the province into could be recycled, but the current scale of recycling in the strategic unit, the district as the planning and Lao PDR is still very modest. budgetary unit, and the village as the implementing unit. Most national agencies, including STEAand MAF Current urban air pollution in Lao PDR is at a safe are making progress in devolving their authority to the level. However, air quality is expected to worsen if provinces but are constrained by lack of human and adequatemitigationmeasuresarenottakenimmediately, financial resources. especiallyinVientianeCapitalCity,wherethenumberof vehicleshasbeengrowingannuallyatalmost10percent Lao PDR has also started to put in place a sound legal during the past decade. framework for environmental protection and natural resources conservation. The Environmental Protection Indoor air pollution, caused by use of wood-stoves, is Law of 1999, supported by its Implementing Decree prevalent, but no data are currently available on this of 2002, is the principal environmental legislation in issue. the country. It includes measures for the protection, mitigation and restoration of the environment as well There is limited information on the current levels of as guidelines for environmental management and hazardous chemicals (including heavy metals and monitoring. ix EXECUTIVE SUMMARY The recent approval of the Nam Theun 2 Hydropower to empower communities to use forest revenues for Project,fundedbyaconsortiumofinternationalfinanciers, local development efforts. is a significant milestone in Lao's commitment to purse Land Management the path of sustainable development. This Project's · Establishing a nationwide land administration design embeds several pioneering environmental and system, increasing dialogue, consultations and social features that will enhance its sustainability, community involvement, as well as promoting and and serves as a good model for replication in Lao and developing local or traditional practices in land elsewhere. management and in the land policy development process. Main Challenges The Government of Lao PDR has made important Biodiversity and Habitats strides in instituting changes that could slow the pace · Strengthening the NPA system, by increasing of natural resources degradation, in partnership with budgets for recurrent expenditures and working local communities and international organizations. withlocalcommunitiesinNPAstobetterprotectand Recent institutional achievements include: enacting the sustainably manage biodiversity. environmentalimpactassessmentdecree;development · Implementing the National Biodiversity Strategy of a policy to safeguard the environmental and social and Action Plan (NBSAP) in partnership with local sustainability of the hydropower sector; creation of communities where local knowledge and traditions an Environment Protection Fund; strengthening the are respected. regulation for wildlife trade in endangered species; Water Resources creatingaspecializedagencytoprotectandmanagethe · ExploitingthehydropowerpotentialofLaoPDRina Nam Theun Watershed; decentralizing environmental sustainable manner, by giving careful consideration functionstoprovinces; improvingwaterandairquality to environmental and social issues, as demonstrated monitoring; and establishing a third-party monitoring by the Nam Theun 2 Hydropower Project. This protocol to report on environmental impacts of experience could be replicated in other hydropower development projects. Furthermore, sustainable projects currently under development. management of the country's natural resources and · Improving the efficiency of water utilization in responsible governance of the benefits accrued from agriculture, hydropower generation, and water their use has been identified as an integral part of the supply. government's recently approved National Growth and Poverty Eradication Strategy (NGPES). Urban Environment · Improving, through local governments and Urban Despite this progress, environmental threats continue Development and Administration Authorities ­ deforestation has increased, threats to protected areas (UDAA), sewage systems, solid waste collection, are rising, and urban environmental problems are recycling and disposal. now emerging. These have been exacerbated by rapid · Expandingaccesstosafewatersupplyandsanitation growth, lack of human resources, inadequate financing, to cope with increasing demand for environmental uneven enforcement of environmental laws, and services. growingdemandfornaturalresourcesfromneighboring Institutions and Instruments countries. The main challenges are: · Developing skills and capacity in the country to implementandenforcetheenvironmentallegislation Forests and Forest Products and policies. · Creating a system of National Production Forest · Clarifying regulatory mandates among different Areas (NPFA) through formal arrangements with ministries and agencies, and strengthening local communities, which would ensure benefit enforcement. sharing arrangements and increased participation x EXECUTIVE SUMMARY · Strengtheninginstitutionalcoordinationthroughthe National Environment Committee. · Adoptingandscalingupenvironmentalmanagement models that have already been developed under specific projects like the Nam Theun 2 Hydropower Project. Financing · Increasing budget allocation for environmental functions several fold from its current low-level. Instituting a governance mechanism that ensures properallocationofrevenuesfromtheuseofnatural resources for addressing environmental issues. · Operationalizing the Environment Protection Fund as an effective financing entity. · Promoting and developing the active involvement and participation of the private sector in investing in environmental sectors, such as reforestation, recyclingandreusingwaste,sewagetreatment,river bank erosion, environmentally sound technology in industrial development. Awareness and Participation · Raising basic awareness on priority environmental issues through village awareness programs and mobilizing mass organizations. · Targetingchildrenandyouththroughenvironmental education curricula at all levels · Strengtheningfacilitiesatthetertiary-level,including at the National University of Lao, for conducting advancedstudiesandresearchinenvironmentaland natural resources management. · Establishing knowledge centers such as herbaria, nationalparks,botanicalgardensandecologycenters to expose and educate Laotians to the country's unique ecological assets and riches. xi ENVIRONMENTAL INDICATORS Natural Resources, Environmental Quality and Environmental Management Indicators Agenda Indicators Value Year Natural Resources Land Resources Cultivated land area (percent of total land area) 8 2003 Forest Resources Proportion of land area covered by forest (percent) 41.5 2004 Rate of deforestation (hectares per year) 53,000 2004 Protected Areas and Ratio of area protected to maintain biological diversity to surface area 22 2004 Biodiversity (percent including national, provincial and district) Water Resources Land equipped for irrigation during the dry season (ha) 214,832 2003 Land effectively irrigated during the dry season (ha) 130,000 2003 Hydropower production per year (million KWh) 3,674 2002 Fisheries production (tonnes per year) 80,000 2001 Environmental Quality Water Pollution Access to safe drinking water (percent of population: rural, urban, total) 60, 75, 64 2004 Access to improved sanitation (percent of population: Rural, Urban, total) 36, 70, 44 2004 Solid Waste Solid waste generation in urban areas (kg/capita/day) 0.75 2004 Solid waste collection efficiency of urban households in the five larger 45 2003 urban areas (percent) Number of sanitary landfills 5 2003 Air Pollution Number of passenger cars per 1000 people 7.4 2003 Carbon dioxide emission (metric tons per capita) 0.1 1999 General Health Under-five mortality rate (number per 1,000 live births) 106 2000 Environmental Management Institutional Capacity Environment staff at national level: STEA(DoE, ERI) 47 2003-2004 (Staffing) Staff at Provincial level: PSTEOs 300 2003-2004 Environment staff at Implementing sector agencies (MAF,MCTPC, MEM, 278 2003-2004 and MOH) Staffing at national level for the management of NPA(DFRC/MAF, staff 4.8 2003-2004 per 1 million ha of national protected areas) Staffing at Provincial level for the management of NPA: PA(Staff per 1 45.3 2003-2004 million ha of national protected areas) Environment Expenditure At the national level (percent of total Public Expenditure) 0.6% 2001-2002 Environmental Education Number of students enrolled for undergraduate environmental studies. 40 2004 Comparison of Environmental Indicators among Mekong Countries Environmental Indicators Lao PDR Cambodia Thailand Vietnam Number of Population (persons) 5,609,997 13,363,421 64,865,523 82,689,518 Land area (sq.km.) 236,800 181,040 515,113.6 331,114 Forest (1,000 sq. km.) 126 93 148 98 Deforestation (average annual % change 1990-2000) 0.4 0.6 0.7 -0.5 Land under protection (% of total land) 14 18.5 13.9 3.7 Water use (% of total resources) 0.3 0.1 8.1 6.1 CO2 emissions (metric tons per capita) 0.1 0.1 3.2 0.6 Access to an improved water source (% of total pop.) 64 30 84 77 Access to improved sanitation facilities (% of total pop.) 44 17 96 47 Environmental expenditure (% of total expenditure) 0.6 - 1.2-1.4 0.8-1 xii THE LAO STATISTICAL LANDSCAPE 10% · Public expenditure spent on environmental protection (0.6%) · Provincial staff who work on environmental protection · Primary schools with proper latrines · Use of pesticides in agriculture 20% · Land area under protection (national, provincial and district) · Population residing in urban areas · Villages with access to electricity · Manufacturing as a proportion of GDP 30% · Land area with slope greater than 30 degrees · Population living below poverty line 40% · Villages practicing slash-and-burn agriculture · Population with access to improved sanitation 50% · School-age children infected with soil transmitted parasites · Agricultural land affected by UXO · Garbage collected in 5 largest towns · Land area under forest cover 60% · Population with access to safe drinking water · Target for forest cover by 2020 · NTFPs as a source of rural family cash income 70% · Ethnic minorities as a proportion of total population · Municipal waste that can be recycle xiii SECTION 1: TRENDS IN THE ENVIRONMENT NATURAL RESOURCES Overthelastdecade,thepoorerdistrictsinLaoPDRhave OVERVIEW also experienced a greater decline in agricultural lands, As much as 73.2 percent of Lao PDR's population lives largely because of the poor quality of soil and increased on less than US$2 a day. On the other hand, the country soil erosion although, the rate of deforestation is similar is rich in natural resources, with forest cover at 41.5 to the national average. percentoftotallandarea1.Thisnaturalresourcebaseisof critical importance for the country's poverty alleviation Many villages practicing shifting agriculture report and growth. substantial declines in agricultural land productivity (as much as 50% decline) due to shortening of fallow The economy of Lao PDR is primarily natural resource periodsfrom14-15yearstoaslittleas3-4years,causing basedwithmorethan50percentofGDPfromagriculture, serious nutrient depletion. forestry,livestockandfisheries. Mostcommunitiesalso rely on fuel wood for energy and many on non-timber Deforestation and Poverty forest products (NTFPs) for food supply. Lao PDR Studies indicate that the livelihood and quality of is comprised of diverse ethnic groups whose social life of the poor is affected by past deforestation, and systems,culturalcharacteristicsandidentitiesarelinked deterioration in the quality and quantity of forest to their local ecosystems. resources. Tounderstandtheextentoftheproblembetter, a closer look at the state of Lao PDR's land resources, While rich in natural resources, including hydropower forest resources and protected areas, biodiversity and potential,forestryandNTFPs,modernagricultureinLao habitats, and water resources follows. PDR is constrained by limited availability of flat land. Population growth remains relatively high at almost 3 percent per year, increasing the pressure on natural Poverty and Fragile Lands Poverty and Deforestation resources in rural areas. Recent studies have shown that the poorer districts in Lao PDR are especially susceptible to land and forest resources degradation2. Land Degradation and Poverty About half of the total land area in the poorest districts has an average slope of more than 30 percent3. With little technical and financial support in finding more Source: World Bank (2002), "The Poverty-Environment productive options to dry-rice cultivation, the poor NexusinCambodia,LaoPDR,andVietnam",unpublished have had to supplement low crop yields by resorting to research paper already declining NTFPs. Poverty and Natural Resources in Lao PDR Areas Indicators: Poverty and Geographic Analysis: Poverty Poverty incidence 1997/98 Number of poor 1997/98 Highest in the North 1 Source. Draft Report on Legal Framework of Forestry Forest Deforestation (%) 1993-97 Highest in the North and Sector for Forest Strategy 2020, DoF/MAF 2004 Deforestation (km2) 1993-97 poorest group 2 GoL, 2004 - National Growth and Poverty Eradication Strategy Agricultural land per capita 1997Lowest in the North and poorest group (NTPES) Land 3 World Bank (2002), "The Poverty-Environment Nexus in Sloped land (% of total land) Highest in the North and poorest group Cambodia, Lao PDR, and Vietnam", unpublished research Source: Poverty and Environment Nexus Study Report. paper. 14 NATURAL RESOURCES LAND RESOURCES Figure 1. Estimated Land Area in Lao PDR in 2000 The Lao People's Democratic Republic (Lao PDR) is a Water/sw landlocked country with a total area of 236,800 km2 or Grassland Urban amps 0.5% 23,680,000 hectares. Urban areas take up less than one 3.6% 1.1% Arable percent of the total land area (Figure 1). Other land 0.5% 7.6% Thecountryisdividedintosixteenprovinces,onespecial Other zone, and Vientiane Capital City. With a population of wooded Forest about 5.6 million4 in 2005, the Lao PDR is the second areas 45.2% 5.5% leastpopulatedcountryintheAssociationofSouth-East Asian Nations (ASEAN). Its population density is 24 Potential forest person for every 100 hectares, as compared to 72, 122, 36.0% and236personsper100hectaresinCambodia,Thailand, and Vietnam, respectively. The urban population in Source. MAF/NAFRI 2000. Lao PDR makes up an estimated 20 percent of the total Note : Potential forest is land that is degraded that could be population. returned to forest. Or land that was once forest that has been converted into another temporary land use but which could Limited Arable Land be returned to forestland. Lao PDR's mountainous terrain precludes expansive permanent agriculture, with 70 percent of the land area having a slope of more than 20 degrees. The area Figure 2. Agricultural Lands in Lao PDR (ha in 2002) suitable for intensive agriculture is estimated at nearly 1.9 million hectares, or only 8 percent of the total land 1,000,000 878,000 920,000 area5,whichconsistsofpermanentpasture,arablelands 800,000 and permanent crops (Figure 2). 600,000 The arable land consists mainly of narrow valleys and Hectares400,000 theproductive,siltrichfloodplainoftheMekongRiver 200,000 81,000 and its tributaries. The arable land under cultivation is 0 estimated to be 800,000 ha. This comprises 43 percent Permanent Arable lands Permanent of the intensive agricultural land, or only 3.4 percent of pasture crops the total land area. Rice is grown on 78 percent of this land6. Source: FAO, 2004 - FAOSTAT (apps.fao.org/faostat) 4 CPI 2005 5 FAO, 2004 - FAOSTAT (apps.fao.org/faostat) 6 FAO, Aquastat 2003 (www.fao.org) 15 Improving Agricultural Productivity Figure 3. Percentage Agriculture to GDP While agriculture still accounts for about half of GDP, and employs over four-fifths of the population, the )%(egatnecreP60 actualshareofagriculturetoGDPcontinuestodecrease 50 (Figure 3) while manufacturing and service sectors are 40 30 growing. The annual growth in agricultural output is 20 also declining, estimated at less than 3 percent in 2003. 10 0 The Government has put emphasis on developing 1985 1990 1995 2000 2005 cultivable lands through irrigation (Figure 4). In 2003, GDP Contribution thetotalareaequippedforirrigationduringthewetand Annual growth in Agricultural dryseasonwas310,170and214,832ha,respectively7.The output main irrigated crop is rice. Other irrigated crops grown Source: ADB, 2004 -. Key indicators of Developing Asian in the dry season include vegetables; however, this is and Pacific countries. largelylimitedtoareasnearurbanmarketsinVientiane, Savannakhet, Saravane and Champassack. Figure 4. Increase in Irrigated Areas (ha) However, the area actually irrigated is far below the 350,000 area equipped for irrigation. It is estimated that only 60 300,000 percent8 or 130,000 ha of land equipped for irrigation is 250,000 effectively irrigated during the dry season, comprising 200,000 16 percent of the lands under cultivation (see also page 150,000 27).Pumpingcostsandinaccessiblemarkets,particularly 100,000 50,000 inthenorth,donotmakepaddycultivationattractivein 0 the dry season, except in areas near urban markets. 1995 1997 1999 2001 2003 2005 Wet Season Dry season Thegovernmentisalsoputtingemphasisonincreasingthe availability of secure land title to increase communities' Sources:UNEP,2001;MAF,AgriculturalStatisticsYearbook incentives to invest in improving productivity. 2003 Shiftingagricultureisusedinforestedlandstocultivate Table 1. Type of Shifting Agriculture the upland areas. Some forms of shifting agriculture, Current Government including long rotational swidden, are not harmful to Description Approach the land and are suitable for Lao PDR (see Table 1). Sedentary cultivation using Preferable However, pioneer `slash and burn' that encroaches on conservation farming practices (Sustainable) virgin forestlands is still widely practiced in Lao PDR9. on upland or sloping land areas (and perhaps on allocated land) (`het asip khong ti') Swidden or rotational upland Acceptable cultivation without encroaching (Sustainable) on new forest areas or in agreed agricultural zones (`het hay bap moun vien') Pioneer slash and burn (`het hay Unacceptable leun loey') (unsustainable) 7 MAF, Agricultural Statistics Yearbook 2003 8 WRCC, personal communications. Source. GoL, 2004: NT2 Social and Environmental 9 NSC/CPC,2004-ThehouseholdsofLaoPDR.Socialandeconomic Management Framework and Operational Plan. indicators. LECS-III 2002-2003. 16 NATURAL RESOURCES Increasing Land Pressure Box 1. Landmine and UXO Clearance Initiative Despite having a low population density, with annual population growth of 2.8 percent and decreasing Lao PDR suffers from unexploded ordnance (UXO) productivityofmuchofthearableland,thepressureon remainingfromtheIndochinawarera.Approximately land resources for cultivation is rapidly increasing. two million tons of ordnance were dropped on Lao PDR during the conflict. Of the 18 provinces in Decreasing productivity arises from many factors, Lao PDR, 15 are significantly affected by UXO. It is chief among them being soil erosion. Unsustainable estimated that UXOs are still present in nearly 50 formsofland-use,combinedwithmountainousterrain, percent of the total arable land area of Lao PDR. predominantlypoorsoilsandhighrainfall,makesmuch of the land in Lao PDR susceptible to soil erosion. Soil AUXOLaoSteeringCommitteewassetupconsisting erosioniscompoundedbyshortenedfallowperiodsand of representatives of relevant ministries and affected increased pesticide use, resulting in lower productivity provinces. The mission of UXO Lao is to `reduce and ever increasing demand for land. deaths and injuries from UXO and to open up land for agriculture and other development'. The pressure on suitable land for agriculture is further aggravated by the fact that Lao PDR was subjected to In 2002, 840 hectares were cleared by UXO Lao and a heavy bombing during the Indochina war, resulting in total of 100,000 larger and smaller bombs, mines, and large areas of land ridden with dangerous unexploded other UXOs were removed and/or destroyed. ordnance (UXO) throughout many parts of the country (Box 1). UXO is a critical impediment to agricultural Sources: Lao PDR Landmine Monitor Report 2002, and development and land utilization. As the population Lao Urban Data Book 2003. increases, resulting in higher demand for land for infrastructure,construction,agricultureandwells,UXO is a serious impediment. 17 FOREST RESOURCES AND PROTECTED AREAS Table 2. 1992 Forest Types in Lao PDR ....... Percent of Land Rich in Forest Resources Forest Type Area (ha) Area Lao PDR is rich in forest resources. Mixed deciduous Dry Dipterocarp 1,207,680 5.1 forest is the predominant forest type (Table 2). Smaller Lower Dry Evergreen 94,720 0.4 areasarecoveredbydrydipterocarp,dryevergreenand Upper Dry Evergreen 1,065,600 4.5 coniferous forests. Lower Mixed Deciduous 852,480 3.6 Upper Mixed Deciduous 7,459,200 31.5 Gallery Forest 94,720 0.4 In 1940 forests were estimated to cover 17 million ha, Coniferous 118,400 0.5 approximately 70 percent of the land area. In 1989, the Mixed Coniferous/ 284,160 1.2 forest cover accounted for 47 percent of the land area. Broadleaved The forest cover ranges from about 65-70 percent in Sub-total Forest Cover 11,176,960 47.2 the southernmost provinces to only 25 percent in some Non-forest Cover 12,503,040 52.8 Total Land Area 23,680,000 100.0 northern provinces. The largest and least disturbed blocksofforestareinthecentralandsouthernpartofthe Source: National Office of Forest Inventory and Planning country (Figure 5). Surveys suggest that this is being10 further reduced by an annual 53,000 hectares per year , Figure 5. Forest Cover in Lao PDR (1997) resulting in approximately 10.2 million hectares or 41.5 percent cover in 2002 (Figure 6). Contributing to the National Economy With little economic diversification, Lao PDR continues torelyheavilyonitsnaturalresourcestosupportnational developmentandsecurelivelihoodsforitspeople.Wood productsaccountformorethan35percentofLaoPDR's totalexportrevenues,andforestrycontributesmorethan 15 percent of GDP11. In the 1960s, small plantations were established in the MekongValleytosecurewatershedsandprotectagainst flooding. Species planted were mainly teak, rosewood and black trees. Soon after species of eucalyptus and Source: Mekong River Commission (MRC), 2001 other fast-growing trees were introduced. About 1,900 ha of plantations were established prior to 1976. Figure 6. Changing Forest Cover 75% 70% 65% 60% 55% 50% 45% 40% 35% 1920 1940 1960 1980 2000 2020 10UNEP/ADB, 2004 - Greater Mekong Sub-region; Atlas of the Environment. Source: UNEP/ADB, 2004 11FAO Country Profiles (www.fao.org) 18 NATURAL RESOURCES To meet its new ambitious forest sector targets, the Figure 7. Lao PDR Household Income government intended to establish 400,000 ha of plantations, beginning in 1993. Today, only 57,281 ha of plantationshavebeenplanted,althoughtheysufferfrom Off-farm lackofappropriateinvestment,managementtechniques, 15% regulations and procedures. Many of these plantations were replanted several times because of management NTFP failure and fire, and most performed poorly in strict 55% Livestock economic terms. 30% TheLaoPDRforestindustryislargelycomprisedofsmall- capacity sawmills, exploiting keruing (Dipterocarpus Source: IUCN, www.iucn.org/places/asia/pdf/Ntfplao.pdf alatus) and mersawa (Anisoptera costata) as the principal commercial species. There are 125-150 sawmills in Lao PDR, with a total capacity of approximately 1.2 million Figure 8. Income from NTFPs cubic meters. More than half of this capacity is in two provinces, Khammouane and Savannakhet, and eight Other Yang Oil mills account for over a quarter of total capacity. In Sapan and NTFPs 4% Bong Bark 2003/4, Lao's mills consumed more than 400,000 cubic 26% 7% meters of timber. Bamboo Rattan Shoots 7% 5% Contribution to Food Security Non-Timber Forest products (NTFPs) are crucial for Dammar Cardomom meeting subsistence needs and for achieving food Resin 16% Fish Wildlife 11% security for the majority of rural Lao households. An 13% 11% averageruralfamilyconsumestheequivalentofUS$280 per year in NTFPs12. This is of particular note since the Source: IUCN, www.iucn.org/places/asia/pdf/Ntfplao. average per capita income is about US$402. The role of pdf NTFPs is especially important given the occurrences of droughts, pests and rodents which often reduce the available rice yields. In addition, collection and sale of NTFPs provide on average 55 percent of family cash income13 (Figure 7). 12Robichaud et al, 2001, Review of the NPA system in Pao PDR. 13Foppes and Ketpanh, 1997, The use of non-timber forest products in Lao PDR. 19 The relative importance of individual NTFPs to the Figure 9. Deforestation Rate (1993-1997) average income of rural households is illustrated in Figure 8. The most traded NTFPs in Lao PDR include benzoin,turpentineandrosin,damaroil,honeyandwax, cardamom, rattan, bamboo and sugar palm. Medicinal plants are also an important portion of this trade and areharvestedregularly.Conversely,themostimportant NTFPs for food security and local protein consumption are bamboo shoots, greens, fish, wild tubers, and invertebrates (such as snails and insect larvae). Most, if notall,taxaofwildvertebratesareusedbyatleastsome ethnic groups, either for food, medicine or trade. Disappearing Forest Resources Deforestationandforestdegradationremainasignificant environmentalprobleminLaoPDR.Deforestationrates in certain districts have been more then 20 percent over the period 1993-1997 (Figure 9). Other blocks of forest Source: Mekong River Commission (MRC), 2001 are becoming increasingly fragmented and disturbed, resulting nationally in a rapid contraction of mature Unsustainable Exploitation practices have led to the forest, and decreasing degrees of tree cover and crown depletion of NTFP resources. As pressure on land density. increases, rural villagers are increasingly turning to NTFPs as a ready source of income. This leads to In a number of upland forest areas, deforestation is their accelerated exploitation, which in turn is rapidly mainly a result of logging and unregulated commercial diminishingtheiravailability.Growingmarketdemand exploitation. In addition, local pressures include for NTFPs that are increasingly scarce elsewhere unsustainableexploitationpractices,shiftingagriculture in South-East Asia is also causing accelerated and and poverty, all of which are putting pressure on the unsustainable exploitation. remaining forests. Approximately 80 percent of domestic energy Commercial Logging is permitted only in areas with consumption for cooking is based on fuel wood. The forest management plans, and logged areas should be estimated amount of annual fuel wood used by local replanted and well-maintained. Commercial logging communities is about 4-5 million m3/year (about 1 is based on annual quotas, which in turn are based on m3/person/yr)14, often leading to excessive fuel wood assessmentsmadeattheprovinciallevel.Sinceloggingis gathering, tree felling, and further pressure on the prohibitedinprotectedareas,thepressureonproduction remainingforests.However,thisaloneisnotasignificant forests is enormous, often leading to clear-cutting and cause of forest degradation. forest degradation. 14Phanouvong, 1997, Energy demand and supply in Lao PDR. In Production,UtilizationandMarketingofWoodfuelinLaoPDR. FAO). 20 NATURAL RESOURCES Protecting Forest Resources Table 3. Lao PDR Protected Area System As part of its efforts to conserve its forest resources Level Number Total Area Percent of and biodiversity (see page 22), Lao PDR established (ha) land area the National Protected Area (NPA) system through National 20 NPAs 3,310,200 13.98 a Prime Ministerial Decree in 1993. The decree states 2 Corridors 77,170 0.33 that the National Protected Areas (NPAs), formerly Sub-total: 3,387,370 14.31 known as National Biodiversity Conservation Areas Provincial 57 Conservation 931,969 3.94 Areas (NBCAs), are managed resource areas (IUCN Category 23 Protection 461,410 1.95 VI Protected Areas). They are designed to (i) preserve Forests natural resources, (ii) protect the abundance of nature Sub-total: 1,393,379 5.89 and the environment of such nature, and (iii) preserve District 144 Conservation 503,733 2.12 Areas the beauty of natural scenery for leisure resorts, study 52 Protection 55,713 0.23 and research. Forests Sub-total: 559,446 2.35 The following restrictions are placed on land-use Total: 5,340,195 22.55 within each NPA, unless specific exceptions are made Source:Sigaty.DraftReportonLegalFrameworkofForestry by government: logging, collecting forest products, Sector for Forest Strategy 2020. excavation or mining, expansion of shifting cultivation, exploitation of cultural or historical assets, use of Figure 10. International Significance of Species explosives, chemicals or poisons, and burning. Lao PDR has established 20 NPAs and two Corridors, covering almost 3.4 million hectares, or more than 14 percent of the country. Moreover, large areas have been designatedasProtectionorConservationForestat Provincial and District levels (Table 3).All these classes offorestnowcoverover5.3millionha,bringingthetotal land area under some degree of protection to more than 22 percent. Source: Duckworth et.al, Wildlife in Lao PDR: 1999 Status The management of the NPA System is based on an Report integrated conservation and development approach, which seeks to maximize local development while minimizing degradation of the area's biodiversity. Table 4. Mammal Species Richness in Lao PDR Species Number of Species Primates 13 Canids 2 Bears 2 Cats 8 Rhinos 2 Pigs 2 Deer 9 Bovids 6 Elephant 1 Dolphin 1 Source: Duckworth et.al., Wildlife in Lao PDR: 1999 Status Report 21 BIODIVERSITY AND HABITATS Box 2. Main Habitats in Lao PDR of High International Significance Rich in Biodiversity EvergreenForestsoftheAnnamiteMountainsandFoothills. LaoPDRisoneofthemostbiodiversity-richcountriesin Thisisconsideredthemostbiologicallydistinctecosystem. Southeast Asia. A small population with a tremendous Species endemism is high for many taxa. Included are diversity of ethnic groups, a multiplicity of ecosystems, extremely wet forests, which are formed by an interaction andalowrateofnaturalresourceexploitationcompared ofmonsoonpatternsandlocaltopography.Annamiteforests to neighboring countries have allowed significant are found only in Lao PDR, Vietnam, and Cambodia, but natural and cultivated biological resources to survive theyareprobablyofhighestqualityinLaoPDR,dueinpart and to be developed. to lower human pressure. The variety of habitat types of high international Central Indochina Limestone Karst: Like the Annamites, significanceinLaoPDR(Box2)supportsagreatdiversity speciesendemismishighandthehabitatisfoundelsewhere ofspecies.Ofthe1140animalandplantspeciesreviewed only in Vietnam. in 199915, 319 are considered of national or global DryDipterocarpForestsoftheMekongPlain.Foundmainly conservationsignificancebasedontheirlimitednumbers in southern Lao PDR, and characterized by relatively flat, and limited range. In recent years a number of species, low elevation land with grass and herbs under widely genera and even families of mammals (e.g. the Saola, spaceddeciduoustrees(predominantlyDipterocarpaceae). Pseudoryx nghetinhensis and Large-Antlered Muntjac, It is typically studded by permanent or seasonal pools, Muntiacusvuquangensis),birds,reptiles,amphibiansand which are of high importance for a variety of wildlife, from fish that are new to science have been identified in Lao large ungulates to rare waterbirds. PDR (see Box 4), while the known ranges of many other species have been extended. Bolavens Plateau. This massif between the Mekong and the Annamites in southern Lao PDR is a habitat of high Lao PDR has the highest number of large mammals in distinctiveness. It occurs only in Lao PDR. Southeast Asia (Table 4). Most of the Lao populations of these mammals are both highly endangered within Northern Highlands. The mountains of the north are biogeographicallydistinctfromtheAnnamitesinthecentral Lao PDR, and of global significance. For example, the and southern part of the country, with different species Kouprey (Bos sauveli), one of the most endangered assemblages. mammals globally, is thought to now only exist, if at all, in southern Lao PDR. Similarly, the Lesser One-horned MekongRiver.LaoPDRhasapivotalroleintheconservation RhinocerosorJavaRhinoceros(Rhinocerossondaicus)has of the biodiversity of the Mekong. Not only does much of been recently found in Xayabouly Province16. the river run through Lao PDR and along its border, more of the drainage that feeds the river is found in Lao PDR (25%)thananyothercountry.TheMekongundergoesmajor seasonal changes in flow rate and the exposed channel during low flow season is of outstanding significance to wildlife (Duckworth et al. 1999). Other Rivers and Streams. Because of the extensive mountainous topography of Lao PDR, streams are a widespread and key habitat. The fish diversity in streams of Lao PDR is very high, and so is endemism (Baird 1998; Baltzer et al. 2001). Source: ICEM, 2003. Lao PDR National Report on 15Duckworth et al, Wildlife in Lao PDR: 1999 Status Report Protected Areas and Development. 16WWF, 2004 22 NATURAL RESOURCES Disappearing Habitats and Wildlife Populations Box 4. Striped Rabbit Revealed in Lao PDR Forest For a long time the remoteness of protected areas has contributed to the protection of the biodiversity that lives within their boundaries. However, human use of these once remote areas is rising as a result of increased international biodiversity market demand, population growth in traditional communities, migration, and settlement.Asaresult,expandingagriculturalfrontiers, illegalhunting,illegallogging,anduncontrolledburning have led to a decline in biodiversity resources. Biodiversity Surveys (mostly partial) have been completed in only some areas. Many areas have not been covered, and existing surveys need to be repeated Source. Trinh Viet Cuong / Fauna & Fauna International todetecttrends.Despitethelackofdetailedinformation, over-harvestingandwildlifetradeareclearlytheprincipal By BBC Environment Correspondent Alex Kirby reasonsforthedeclineinbiodiversity,threateningmuch (1999) of it with local extirpation. A new species of striped rabbit (Annamite Striped Rabbit,Nesolagussp.)hasbeenfoundinthemountain ThereisalongtraditionofhuntinginLaoPDR,andrural forests of Lao PDR and Vietnam. The furry, red- communities are dependent on hunting and harvesting bottomed creatures have black and brown stripes of wild products to supplement seasonal rice harvests. across their face and back. They resemble the However, new hunting methods using automatic endangered Sumatran striped rabbit, the only other weapons, explosives and steel cable snares have had a known striped rabbit. considerable impact on wildlife populations and have led to over-harvesting. A British biologist, Rob Timmins, found the new rabbits in a Lao PDR market. Diana Bell, an expert Box 3. Hunting of the Siamese Crocodile on rabbits at the University of EastAnglia in the UK, analysed them. The Siamese crocodile (Crocodylus siamensis) is one of the most endangered species of crocodile in the "This discovery is extremely exciting and underlines the world, found only in Lao PDR, Cambodia and biodiversityvalueofthemountainforestsinSoutheastAsia" Thailand. Today, the crocodile is known to exist Dr Bell said. The discovery, reported in the journal in only three locations in Lao PDR- two wetlands Nature, follows recent sightings or photographs of in Sanamxay District, Attapeu Province and one other rare mammals from the same area. wetlandinXayboulyDistrict,SavannakhetProvince. Hunters living around these areas are aware that the In the last few years a forest pig and a hoofed animal Siamesecrocodileisaprotectedspeciesandharvestof like an antelope, the Saola, have also been found in crocodilesisillegal,buttheycontinuetohuntbecause the region. of the financial incentives from international traders for skins and live animals, and because of the lack of Source: BBC Online, Friday, August 20, 1999 enforcement of existing prohibitions. Source. www.wcs.org 23 Similarly, commercialization of the trade in wildlife Table 5. Annual Sale of Wildlife in Lao PDR products has also increased with improved access to Taxa Number of Number of Weight Value previouslyremoteareas.Wildlifehasbeentradedinand Traded Species individuals (kg) (US$) through Lao PDR for centuries, and anecdotal evidence Mammals 23 10,000 33,000 160,000 suggests that trading levels have shown no sign of Birds 33 7,000 decreasing in recent decades. Table 5 shows the annual Reptiles 8 4,000 salesofwildlifeduringthe1990s.Aswildlifepopulations decline, the value of wild products increases. Much of Source. Srikosamatara et al. 1992 this trade takes place from areas in or near NPAs, as shown in Figure 11. Figure 11. Sources of Wildlife for Trade in Lao Across Although much wild meat is consumed within the Borders country, there is also a massive illegal trade of live animals and animal parts from and into neighboring countries. The Lao wildlife traded internationally is predominantly used for traditional medicine. The most valuable products are certain turtles and tiger (Panthera tigris) bones, which are traded to buyers in neighboring countries (Table 6). A wide variety of other species are also used, including many which are or were common, such as geckoes, snakes, civets, otters, gibbons and DoucLangurs(Pygathrixnemaeus).Thegreatestvolumes traded are probably in pangolins and turtles. Having signed the Convention on International Trade in Endangered Species (CITES) in May 2004, and due largely to the efforts of the Ministry of Agriculture and Forestry (MAF) and the Wildlife Conservation Society (WCS), as well as a national gun amnesty, the wildlife trade has become less visible nationwide. However, without more effort to curb demand both locally and internationally, wildlife will continue to disappear throughout Lao PDR. Source: ICEM,2003.LaoPDRNationalReportonProtected Areas and Development. Table 6. Average Market Prices (2001) for Selected Species Species Traded Price (USD) per kg Tiger 60-90 Pangolin 21-52 Golden Turtle 100-150 Muntjac 3 Source: Nooren and Claridge, 2001 ­ The end of the Game. 24 NATURAL RESOURCES Conservation of Aquatic Biodiversity In Lao PDR, 71 percent of all farming households fish The Mekong is one of the most species-rich river part-timeonaseasonalbasis19. Besidesfish,smallaquatic systems in the world, and the native fish fauna in Lao species including snails, frogs, clams, crustaceans, etc., PDR is known to include 47 out of a total of 91 families are an important source of nutrition for rural poor recorded in the Mekong Basin. In 1986, a total of 211 households, providing animal protein, vitamins, and fish species were known from Laos. However between minerals. Given the importance of aquatic resources to 1995 and 2001, as a result of a series of detailed surveys foodsecurityandasasupplementtohouseholdincome, (mainly undertaken for the environmental assessments there is an urgent need for baseline and monitoring of proposed hydroelectric dams)17, this had more than studies of fish, fisheries and aquaculture to reliably doubled to 456. Most of the additions were of species predict the impacts of water resource development, already known from neighboring countries, but about pollution,anduseofaquaticresources. Awarenessofthe 100werenewtoscience.Manyofthesewerequitesmall valueoffisheriesandaquaticresourcestothesubsistence and of no direct commercial interest, but there are also economy of Lao PDR also needs to be raised. somelargespeciesofconsiderableeconomicimportance at the local level. Of the total number of indigenous fish species, about 25 species are used in aquaculture (see page 31). There are 30 commonly occurring fish species within the Lao section of the Mekong which migrate between at least two different countries18. Man-made alterations of water flow and discharge, resulting from water resource developments, modifies aquatic habitats and consequently affects fish and other aquatic organisms' migratory behavior and spawning, water quality, and the availability of food resources for fish. Other major threatstoaquaticecosystemsinclude(i)waterpollution (domestic,industrial,aquaculturalandagricultural),(ii) over-harvesting,and(iii)introductionofexoticspeciesfor aquaculture. The Mekong Giant Catfish (Pangasianodon gigas), which can grow to 3 meters in length and weigh AGiant catfish from Mekong River being taken to more than 300 kg, is now endangered due to habitat market. (Photo by Zeb Hogan) destruction, over-fishing and development. 17Sources: Kottelat, M. 1998. Fishes of the Nam Theun and Xe Bangfai basins (Laos), with diagnoses of twenty-two new species (Cyprinidae, Balitoridae, Cobitidae, Coiidae and Odontobutidae). Ichthyological Exploration of Freshwaters 9: 1-128. Kottelat, M. 2000. Diagnoses of a new genus and 64 new species of fishes from Laos (Teleostei: Cyprinidae, Balitoridae, Bagridae, Syngnathidae, Chaudhuriidae and Tetraodontidae). Journal of South Asian Studies.Kottelat,M.2001.FishesofLaos.WildlifeHeritageTrust Publications, Colombo. 18Schouten, R. 2003. Threats to healthy fisheries in the Lower Mekong Basin. Water Utilisation Programme, Mekong River Commission, Phnom Penh. 191998 Agricultural Census. 25 WATER RESOURCES Figure 12. Main Rivers Basins in Lao PDR Abundant Resources TheMekongRiverflowsforabout1,860kmthroughLao PDR. The Mekong River basin covers nearly 90 percent of the total area of the country (Figure 12). In addition to the Mekong, several smaller river basins drain from Lao PDR towards Vietnam. The rivers' discharge follows the pattern of rainfall: about80percentduringtherainyseason(May-October) and 20 percent in the dry season, from November to April. For some rivers in the central and southern parts of the country (particularly Nam Xebangphay, Nam Xebanghieng and Nam Xedone) the flow in the dry seasonisreducedtoaround10to15percentoftheannual flow.ThewaterlevelintheMekongRivermayfluctuate by up to 20 m from wet to dry seasons. AsignificantpartofLaoPDRwaterresourcesisgenerated within its own watersheds (Table 7). Average annual rainfall ranges from 1,300mm per year in the northern valleys to 3,700mm per year at higher elevations in the Source: UNEP/ADB, 2004 ­ Greater Mekong Sub-region, South. This corresponds to an annual rainfall of 434 Atlas of the Environment. billion m3, of which less than half is estimated to be runoff. Accordingly, Lao PDR has estimated (internal) renewable water resources (IRWR) of 190 billion m3 Table 7. Lao PDR's Estimated Water Flows per year or 35,000 m3 per capita per year. This makes it the largest per capita volume of IRWR in the region: From Flow Percentage Cambodia,ThailandandVietnamhave9,201,3,344,and estimate (billion m3 4,690 m3 of IRWR per capita per year, respectively. /year) In: Inflow from China, 143 43% Myanmar, and Thailand Lao PDR internal water 190 57% resources (including 38 billion m3/year of groundwater recharge) Total inflow: 333 Out: Outflow to Cambodia 323 97% Outflow to Vietnam 9 2.7% Lao PDR Water usage 1 0.3% Total outflow: 333 Source: FAO, 2003 ­ Review of world water resources by country and Aquastats 2003; WRI Country profile 2003 (earthtrends.wri.org) 26 NATURAL RESOURCES However, generalized water figures can be deceiving, Figure 13. Average Annual Water Usage as water demand and local availability often do not match, causing local water constraints, shortages, and/ or natural disasters. For example, over the past decade, Lao PDR has suffered from both severe droughts and floods. In the year 2000, 1,104 km2 in seven provinces Agricultural Domestic were flooded, affecting 450,000 people. 90% 4% Industrial Competing Water Users 6% Currently there is relatively little competition between the various users of water because of the relative abundance of water and the small population. Total water usage is relatively limited, estimated at 1 billion Source: FAO Aquastats 2003 (www.fao.org) m3 per year in 200020. An estimated 90 percent is used foragriculturalpurposes,whiledomesticandindustrial supplies use 4 and 6 percent, respectively (see Figure 13). The two sectors that most impact water resources Figure 14. Type of Irrigation Systems (2002) management are irrigation and hydropower. Temporary Developing Irrigation weirs TheGovernmenthasgivenhighprioritytoinvestmentin 14% the irrigation sub-sector to increase the amount of land Gates and available for cultivation (see Land Resources section). It Dikes Pumped has supported projects that focus on the development 3% schemes Reservoirs of community-managed irrigation schemes, pump 59% /ponds irrigation systems, extension training for farmers, and 7% irrigation-ecosystem management systems (see Figure Gravity Gabions 14 and Table 8). systems 1% 16% SurfacewateristheonlysourceofirrigationinLaoPDR. Dry season irrigation is mainly concentrated near the Source: MAF, Statistical Yearbook 2002 major cities: Vientiane Capital City (59 percent of total dry season irrigated areas), Savannakhet (11 percent) and Luang Prabang (6 percent)21. 20Source FAO Review of World Water Resources by Country (2003)(www.fao.org) 21Source: FAO (www.fao.org) 27 Table 8. Type of Irrigation Schemes in Lao PDR Size Type of water control Description Location Population involved Small schemes Weir schemes Traditional wet season Mountainous provinces 1-2 villages, up to 50 < 100 ha supplementary irrigation households systems. Most of them are less than 50 ha. Pumped schemes Designed for dry and wet Along the Mekong and season irrigation. its tributaries Medium schemes Weir schemes Wet season supplementary In the floodplains Up to 8 villages, up 100-500 ha irrigation. Most build with to 500 households external assistance. Pumped schemes Designed for dry and wet Along the Mekong river season irrigation. and its tributaries. Reservoir schemes Gravity irrigation in dry Near Savannakhet and wet season. Build by Province. provincial irrigation services on behalf of communities. Gravity irrigation in dry Large schemes Reservoir schemes and wet season Near Vientiane Capital > 500 ha City, Bokeo, Xayabouly, and Savannakhet Provinces. Pumped schemes Dry and wet season Along the Mekong river irrigation and its tributaries. Source: FAO (www.fao.org) NT2 Conceptual Design. Source: NTPC, 2006 28 NATURAL RESOURCES Benefiting from Hydropower Potential Table 9. Existing Lao PDR Hydropower Plants Lao PDR has a theoretical hydroelectric potential of about23,000MW,excludingtheMekongRiveritself.Of Project & Year of Capacity Annual this, about 18,000 MW may be technically exploitable. Province completion (MW) Production CurrentlyLaoPDRhasninehydropowerprojectsaround (Million the country with a total capacity of 624 MW (Table KWh) 9). The hydropower sector has developed rapidly: the Nam Leuk 2000 60 230 annualproductionhasrisento3,674millionKWh(Figure (Vientiane) 15) in 2002, and construction has recently begun on the Houay Ho 1999 150 617 NamTheun2project,whichwilladdanother1,070MW (Attapeu) capacity by the end of 2009. On average 65 to 80 percent Nam Theun- 1998 210 1,620 of the annually produced energy is exported. Hinboun (Khammouane) The Government continues to give priority to power Nam Ko 1996 1.5 - sector development to expand electrification in the (Oudomxay) country and export electricity to neighboring countries Nam Phao 1995 1.6 - (Box5andFigure16). Thelatterwouldgeneraterevenues (Bolikhamxay) which could be used for priority poverty reduction Xeset (Saravane) 1994 45 180 programs. Currently, domestic energy consumption is Nam Ngum 1970 150 998 growing at 8 to 10 percent annually. However, energy (Vientiane) use in cooking within the country is still dominated by Nam Dong 1970 1 5 the use of fuel wood, which accounts for an estimated (Luang Prabang) 80 percent of total energy requirements. Selabam 5 24 (Champassack) Total 624 3,674 Source: LNCE, 2004 (www. poweringprogress.com) Figure 15. Hydropower Consumption and Export dnanoitducorplaunnA 4000 )h 3500 Wknoilli 3000 2500 2000 M(tropxE1500 1000 500 0 1975 1980 1985 1990 1995 2000 Domestic consumption Export Source: LNCE, 2004 (www. poweringprogress.org) Current and future Hydroelectric Project developments. Source: NTPC 2006 29 Threats to Aquatic Resources Box 5. Power Sector Development TheemphasisoftheGovernmentonruraldevelopment Thegoalsofthepowersectorpolicyareto(i)maintain through increased land cultivation and increased and expand an affordable, reliable and sustainable investment in hydropower development is increasing electricitysupplywithinthecountry;and(ii)promote pressure on water and aquatic resources, including power generation for export to provide revenues for wetlandsandfisheries.Threatsinclude22:(i)unsustainable national development. fishingpracticessuchasgillnettingandpoisonandblast fishing, (ii) introduction of exotic fish species (i.e. carp Planned Lao PDR Hydropower Plants andtilapia), (iii) hunting andtrading ofaquatic wildlife Project and Capacity Type and and migratory water birds, and (iv) weed infestation Province (MW) Purpose (e.g., Mimosa pigra), pesticides, and pollution. Nam Beng 45 Storage, hydro. (Oudomxay) Domestic Thermal, coal. Wetlands play a very important role in the subsistence Hongsa lignite 640 (Xayabourly) Export, Thailand and commercial economy of the country. Although Nam Ngum 5 70- 100 Storage hydro. wetland resources ­ fish, crustaceans, turtles, frogs, and (Xieng Khouang) Domestic insects ­ are important in all parts of the country, they Nam Ngum 3 444-(580) Storage hydro. Export, Thailand are particularly valuable in the lowlands since much of (Xay somboun) (alternatively the lowland forests have been cleared for agricultural Nam Ngum 3E) use. Wetland resources are harvested for food security Nam Ngum 2 615 Storage hydro. in times of rice deficits, as well as for an ongoing source (Xay somboun) (159+183) Export, Thailand of plant products and protein. (alternatively Nan Ngum 2Aand 2B) Nam Mang 3 35 Storage hydro. Most of the important wetlands are located along the (Vientiane) Domestic Mekong River, in particular in the Siphandone region, Nam Ngiep 1 366 Storage hydro. Export, Thailand Champassack province of southern part of Lao PDR23. (Bolikhamxay) Nam Mo (Xieng 100 Storage hydro. Near the border with Cambodia, a large wetland 35 km Khouang) Export, Vietnam eastoftheMekong,issurroundedbyseasonallyflooded Nam Theun 3 236 Storage hydro. forest (Bung Nong Ngom) and has a rich fish fauna and (Bolikhamxay) Export, Vietnam Storage hydro. a number of large mammals (Asian elephant, Elephas Nam Theun 2 1070 (Bolikhamxay) Export, Thailand maximus; tiger, clouded leopard, Pardofelis marmorata; Nam Theun 1F 400 Storage hydro. deer, Kouprey), resident and migratory waterfowl and (Bolikhamxay) Export the endangered Siamese crocodile. One of the world's Xeset 2 and 3 70+16 Run-of-river. Domestic most endangered mammals, the Irrawaddy Dolphin (Saravane) Xe Pian - Xe 392 Storage hydro. (Orcaella brevirostris), occurs in two areas of Lao PDR: Namnoi Export, Vietnam the Mekong River from Cambodia upstream to Khone (Champassack, Phapheng Water Falls; and, the Sekong River and the Attapeu) Storage hydro. lower reaches of its major tributaries. Further to the Xe Kaman 3 307 (Attapeu) Export, Vietnam north, permanent marshes exist at the confluence of Xe Kaman 1 468 Storage hydro. severaltributaries(PaksanandPaksamarshes)withthe (Attapeu) Export, Vietnam MekongRiver.TheNamNgumreservoiristhelargestof Huay Lamphang 70 Storage, hydro. Domestic its type in Lao PDR and supports a diverse fish fauna. Gnai (Sekong) Thak Ho 35 ROR (Mekong (Champassack) main- stream) Domestic 22Claridge, 1996 - An inventory of Wetlands of the Lao PDR. Nam Kong 1 238 Small storage/ (IUCN/Gland) (Champasack) semi-ROR. Export 23Source:MRCandHatfieldConsultantsLtd.,2003-MekongRiver Source: LNCE, 2004 (www. poweringprogress.com) Awareness Kit. 30 NATURAL RESOURCES Fish and Fisheries play an important economic role in Figure 16. Sources of Fisheries Production (2001) Lao PDR, contributing 13 percent to the national GDP annually24. Most fishing is for subsistence, although thereissignificantcommercialfishingintheNamNgum reservoir and along various other parts of the Mekong River and its main tributaries. Commercial fishing is also practiced in ponds and paddy fields in parts of the country with reliable access to markets (Figure 16). Finfish dominate the overall catch, but approximately 30 percent of the catch within the country by weight is composedofmollusks,crustaceans,insects,amphibians and reptiles. The average annual per capita consumption of fish in 2003 has been estimated at 25 kg per year25. Over Source:Sverdrup-Jensen,2002,FisheriesinthelowerMekong the last decade, fish consumption has increased by 24 basin: Statistics and Perspectives. percent and accounted in 2003 for 37 percent of total animal products consumed. Particularly in the rural areas, fish are the primary source of animal protein in Figure 17. Fish Production in Lao PDR the Lao diet. Total fish production has increased three-fold from 28,000tonnesin1990to80,000tonnesin2001(Figure17). In1999,over8percentofruralhouseholdswereengaged in aquaculture26. The remaining catch is harvested from theMekongRiveranditstributaries,reservoirs,swamps and rice fields. Source: FAO, 2004 ­FAOSTAT (apps.fao.org/faostat) 24FAO Aquastats (www.fao.org) 25NSC/CPC,2004-ThehouseholdofLaoPDR.Socialandeconomic indicators. Lao Expenditure and Consumption Survey 2002/03. LECS 3. 26SingkhamPhonvisay,1999,Reportonfisheryresourcesandfishery policy development. 31 ENVIRONMENTAL QUALITY Poverty and Environmental Quality in Lao PDR OVERVIEW Environmental health impacts from inadequate water Areas: Indicators: Poverty and Geographic Analysis: supply and sanitation, and indoor air pollution, appear Poverty Poverty incidence 1997/98 Highest in the North to be disproportionately affecting the poor in Lao PDR. Number of poor 1997/98 Sloped land (% of total Highest in the North and Withtherisingpopulation,bothwaterandairpollution land) poorest group is on the rise ­ with consequent effects on mortality and Indoor air Households using fuel High in all regions and pollution wood (%)-potential indoor poverty groups (medium in morbidity.Recognizingthis,thegovernment'sdefinition air pollution problem Vientiane Municipality and of poverty embraces important environmental services, least poorest group) Water Piped water supply (1995 Low in all regions and such as access to safe water and sanitation. supply Census) poverty groups (medium in Vientiane Municipality and least poorest group) Poverty and Access to Clean Water and Sanitation Reliance on river water Highest in north, south, and Throughout Lao PDR, there is a high incidence of (1995 Census) poorest group Sanitation No toilet facilities (1995 Highest in south and all diarrhea and dysentery caused in part by inadequate Census) poverty groups (medium in water supply, poor sanitation and sewerage, and lowest poverty group) Urban Air pollution Medium in largest cities absence of wastewater treatment facilities. With rising environment Solid waste, water and populationsinurbananduplandareas,waterpollution sanitation is getting worse. Poverty andAccess to Clean Water Alsothepoorestdistrictshavelessthanhalfthenational average of daily water use, due to less access to water for either personal use or irrigation purposes. Poverty and Indoor Air Pollution More than 95 percent of the population use wood or charcoalfortheirdailycooking.Theuseofwoodfueland charcoal is far more prevalent among poor households than in the general population.27 This, together with the mountainous terrain of northern Lao PDR, a colder climate, different cultural practices and housing styles, and more indoor cooking, suggests that indoor air pollution may cause respiratory health problems for Poverty andAccess to Sanitation the poor people in upland areas. There are, however, no studies of indoor air pollution carried out in Lao PDR to date. The following sections on water quality, solid and hazardous wastes, and air quality highlight the inadequacy of environmental services, especially to the poorest groups. 27Sources: NSC (1995), Population Census 1995 and FAO (1997), Production, Utilization and Marketing of Woodfuel in Lao PDR, Bangkok,Thailand;NSC/CPC,2004-ThehouseholdofLaoPDR. Socialandeconomicindicators.LaoExpenditureandConsumption Source: PEN Sustainable approaches to poverty reduction in Survey 2002/03(LECS 3). Cambodia, Lao PDR and Vietnam, 2006 32 ENVIRONMENTAL QUALITY WATER QUALITY Table10.TentativeAmbientWaterQualityClassesfor Fresh Surface Waters In Lao PDR, surface water is the major water source for urban water supply, while groundwater is usually a Class Description main source for the rural population in lowland areas, Class 1 Unpolluted water supply safe for human particularly in the central and southern parts of the consumption without treatment, provides country,wherethegroundwatertableissufficientlyhigh habitat for sensitive aquatic biota and body andofsufficientquality.Intheuplandareas,particularly contact recreation the north and east of the country, water is usually Class 2 Water supply safe for human consumption supplied by gravity-flow systems, mostly from streams after normal treatment process, habitat for (surface water), but also from springs (groundwater), biota and suitable for recreation and aquatic although this tends to be limited to communities living biota in remote areas. Class 3 Medium quality water suitable for human Surface Water Quality consumption after normal treatment TheGovernmentiscurrentlypreparingnationalambient process, irrigation supply, and aquatic biota waterqualitystandards(Table10).Ingeneral,thewater Class 4 Somewhat polluted water used for human quality of rivers within the Lao PDR is considered to consumption only after special treatment be good. The level of oxygen is high and the nutrient and for industrial supply concentration is low. Class 5 Polluted fresh water suitable for navigation Source: NEAP 2000 Draft, STEA Nevertheless,highersedimentloadsareaffectingseveral rivers,varyingconsiderablyfrom0.41to3.45tonnesper hectareperyear.Tributariesandriverreacheswithhigh sedimentationaretheXeBanghieng,XeDone,NamOu, and the upper and lower stretches of the Mekong.28 Underpressurefromrapiddemographicgrowth,socio- economic development and urbanization, however, waterqualityisdeteriorating.Inurbanareas,pollutants fromroads,commercialandindustrialareas,andprivate propertieswashintodrainsandwatercourses.Litter,dust and dirt, oil and grease, particles of rubber compounds from tires, particles of metal, glass and plastic from vehicles, and lead are common pollutants. Residential properties and open spaces contribute sediments and nutrients. Urban drains also act as secondary sewers Grandfather and young boy are helping each other carrying industrial discharges, septic tank seepage and to pump water from the ground using a home-made overflows in wet weather.29 wooden hand-pump. Photographer: Thomas Meadley, WSP-EAP LCO Team Leader 28ADB, 1998, Water Sector Study, ADB. 29ADB, 1998, Water Sector Study, ADB. 33 It is common practice to dispose of sewage to surface Box 6. Monitoring Wastewater in Vientiane drainsanddrainagechannels.Asaresult,wastewateris invariablycontaminatedwithfaecalmatterfromlatrines Wastewater monitoring was conducted in Vientiane and coliforms from septic tank effluent. in 2002. Samples were collected from 15 monitoring stations.ParametersmeasuredwerepH,conductivity, There has been an increase in the output of in the alkalinity, BOD5, COD and temperature. The industrial sector from 8 percent of GDP in 1999 to monitoring results show that the average of all 11.3 percent in 200330. The total number of industries parameters are within acceptable limits, although has grown nearly four-fold from 1994 to 2003 (Table certain samples exceeded standards for Class A 11). However, the growing number of industries has wastewater discharge, issued by the Government in increased the risk of pollution. The larger mills and 1994. industries of concern in Lao PDR are pulp and paper, timber, food processing and garment manufacturing. Wastewater Quality in Vientiane Capital Jan-Dec 2000 Most of these have only limited wastewater treatment Parameters Unit Range of Avg Standard* systems for reducing waste concentrations and loads results in the final effluents to waterways. Likewise, the pH 6.38-8.44 7.34 6 ­ 9.5 increasingly large number of smaller industries also Conductivity us/cm 110 - 782 362.62 produces an increasing risk of pollution. Alkalinity mg/l 57 - 250 175.56 (CaCo3) Withtheexceptionofonce-offwastewaterdatacollection BOD5 mg/l 5 - 35 14.09 < 20 carried out in 2002 (see Box 6), no regular monitoring is (O2) being carried out. COD mg/l 70 ­ 200 115.93 < 120 (O2) Groundwater Quality Temperature 0C 12.2 - 30 24.42 There is little information available on groundwater quality in Lao PDR, even though it is the main source of Source: Waste Water Analysis, EQMC - ERI, 2002 ruralwatersupply.Nosystematicmonitoringofimpacts Note: * Standard for class A wastewater discharge. of fluoride, pesticide, nitrate from fertilizer and other chemical pollutants is carried out. Table 11. Industrial Growth in Lao PDR Arsenic contamination is not considered a high risk in Lao PDR31. Groundwater surveys carried out in Large Medium Small Total 2002/2003 in 7 (> 100 (10-100 (< 10 employees) employees) employees) 1994 80 343 5,523 5,946 1995 89 363 10,374 10,826 1996 112 408 14,134 14,654 1997 119 437 15,375 15,931 1998 99 462 15,953 16,514 1999 94 493 19,806 20,393 2000 95 512 20,962 21,569 2001 116 542 22,916 23,574 2002 112 604 24,026 24,742 2003 119 614 24,874 25,607 30ADB, 2004 -.Key indicators of Developing Asian and Pacific countries. Sources: MEM, NSC/CPC 31MRC, 2003 - State of the Basin report 2003. 34 ENVIRONMENTAL QUALITY (Table12).However,themethodsadoptedfortreatment Table 12. Urban Household Toilet Facilities (1995) anddisposalofwastewateraregenerallynotsatisfactory. Modern Normal Dry Other None Most households rely on soak pits for wastewater Vientiane 5.9% 71.6% 11.4% 0.6% 10.5% disposal. With the exception of a short 2.8 kilometer Luang 2.6% 58.4% 18.4% 1.2% 19.4% interceptor and an associated waste stabilization pond, Prabang there is no sewerage system in Vientiane or in other Thakhek 1.6% 53.1% 7.6% 0.6% 37.1% urban areas in Lao PDR. Savannakhet 2.1% 65.1% 3.8% 0.3% 28.7% Pakse 2.0% 73.0% 3.2% 0.5% 21.4% All buildings are supposed to have on-site wastewater disposalandtreatmentfacilitiessuchasseptictanks,but Source: Adapted from ADB/MCTPC, 2003 ­ Lao Urban the facilities are often poorly designed, constructed and Data Book. maintainedandthereforeperformpoorly.Theproblems withthepresentsystemofon-sitesanitationareincertain locations exacerbated by a flat terrain, high water table Figure 18. Rural Sanitation, 2000 and low soil permeability, resulting in a failure of the systems, overflow of effluent and pollution of surface Pour flush waters and drains. latrine 10% Access to sanitation in rural areas in 2004 was only 36 No facilities Traditional percent32. Of these, flush latrines with septic tank or / fields pit latrine sewage system accounts for only 0.1 percent (Figure 79% 9% 18). The majority has no latrines, resulting in the use of Flush with septic tank fields,marshes,andwatercoursesfordisposalofhuman Unidentified 0% wastes. 2% Specificre-useofwastewaterforotherwaterusage(e.g. Source: Access to Improved Sanitation: Lao PDR", WHO / irrigation) is not yet being applied in Lao PDR. UNICEF, 2001. Planning for Improved Water Supply and Sanitation The Government has committed itself to implement the Table13.StatusofLaoPDRMillenniumDevelopment Millennium Development Goals (MDG), as prepared Goals for WSS (2004) collaboratively by the UN, WB, IMF and OECD and agreed to in 2000. The MDGs for water supply and Percentage of Percentage of sanitation (WSS)areto halve,by 2015,the proportionof population with population with peoplewithoutsustainableaccesstosafedrinkingwater access to access to and basic sanitation. The status for Lao PDR in 2000 is improved improved given in (Table 13). drinking water sanitation sources Rural 60,06% 35,66% Urban 75% 70% Total 63,8% 44,25% (assuming 20% of urban population) Source: The National Center for Environmental Health and 32Source: National Center for Environmental Health and Water Water Supply, 2004 Supply, 2004 35 Southern Provinces33 showed that only one percent of Box 7. Supply of Water and Sanitation Services the680wellstestedhadlevelsoverthecurrentdrinking water quality standard for Lao PDR of 0.05 mg/l. Urban water supply throughout the country is presently undertheresponsibilityofNamPapa,thestate-ownedservice However, the study identified local areas of higher risk providersunderthejurisdictionofeachprovince.NamPapa for arsenic contamination. Vientiane comes under the jurisdiction of the Vientiane Capital City authorities. The Department of Housing and Bacteriological contamination of groundwater often Urban Planning (DHUP) of the Ministry of Communication, Transport,PostandConstruction(MCTPC)hasmanagement occurs, due to poor construction and maintenance of andinvestmentoversightforurbanwatersupply.DHUPhas sanitation facilities around water sources, and results thedutytoperiodicallyreviewthepolicyandstrategyofNam in water-borne diseases. Papa including standards of customer service and priorities for urban water supply development. In 1999, the Water Supply Authority (WASA) was set up to bring regulatory Improving Safe Water Supply oversight to the sector. Although Lao PDR has the largest per capita volume of renewable water resources in Asia, a quarter of urban Rural water supply is under the responsibility of the National Centre for Environmental Health and Water dwellers and 40 percent of the rural population are Supply (Nam Saat) of the Ministry of Public Health. In 1997, withoutaccesstosafedrinkingwater.Nearly60percent Nam Saat introduced the "Demand Responsive Approach of the urban population have access to a piped water (DRA)" for demand-based planning. The goal is to increase sustainability through improved sense of ownership by supply, while another 15 percent are within reach of ensuring community "voice and choice". The key principle supplies but not directly connected. Also, In addition, is that choices are made by users for investing in improving many older properties have access to groundwater water and sanitation services, based on a range of technical through dug wells that are now used only for non- and financial options presented to them. As a result of this approach,communitiesbecomethe"decisionmakers"while potable supply. Nam Saat and its partners act as facilitators to support local decisions based on informed choices. In rural areas, access to clean water is still limited, estimated at around 60 percent in 2004. In certain areas, There are beginning to be a few examples of Private Sector Participation(PSP)fordesign,constructionandmanagement villagers may have to travel up to 1 or 2 kilometers to ofruralwatersupplyandsanitationinfrastructureinvillages. get water, which is often of low quality. These are unregulated at present.Asuccessful example is in Ban Saphai Neua, Champasack Province, with water supply being provided to 200 households (approx. 1,200 persons). Poor Sanitation and Sewerage PSP was applied to this household piped water service after In2004,anestimated70percentoftheurbanpopulation approval of a ten-year license by the district authorities. inLaoPDRhadaccesstosatisfactorysanitationfacilities. The female owner of the system undertook surveying and In Vientiane, the proportion of urban households with data collection to assess demand and agreed a tariff rate with the village authorities and community to cover the satisfactory sanitation facilities such as cistern flush or full costs of the water supply service. The tariff was initially pour flush toilets was estimated at more the 75 percent set at 650 kip/m3. Use of the service includes signing of a in 1995. contract by each household requiring the service, with the cost of connection paid in advance by the household. Under GOL's decentralization program, Nam Saat (the agency in the Ministry of Health responsible for rural water supply and environmental hygiene) has also launched a program called "HASWAS" (Hygiene Awareness, Sanitation, and Water Supply, a component of the Provincial Infrastructure Project in Oudomxay and Phongsaly Provinces) to help provincial offices to use the private sector for supply and construction of water supply and sanitation infrastructure in villages, with the completed systems being managed by the communities. Source: "Building Blocks Used To Achieve Rural Water Supply and 33Source: National Center for Environmental Health and Water Sanitation(RWSS)SectorPolicyReforminLaoPDR",NamSaat,WEDC Supply, 2004 and WSP-EAP, 2004. 36 ENVIRONMENTAL QUALITY Poor Storm Water Drainage Box 8. Environmental Health Concerns Storm water drainage in most urban areas consists As the population of Lao PDR grows and becomes of roadside drains leading ultimately to natural more concentrated with development, especially streams or rivers. Drains are generally not adequately along watercourses that are used simultaneously interconnected and do not form a network. In the larger for water supply and waste disposal, health risks towns, drains are lined in the town centre areas, and increase. Where people use streams directly for covered in front of commercial establishments. drinking, bathing or washing, the water is polluted, and the potential for contracting diseases is high. The flat and low-lying topography of Vientiane Capital Common diseases include dysentery, cholera and City, combined with its proximity to the Mekong River, typhoid. There are also concerns in some places over meansthatstormwaterdrainageisaperennialproblem heavy metal pollution. Populations gathered around resulting in frequent flooding of large parts of the city, water also risk dengue fever and malaria, which are and in health risks (see also Box 8). carried by mosquitoes. Progress has been made over the past ten years in improving health systems in Lao PDR. For example, the number of health facilities has increased by 75 percent over the last 5 years, mortality from malaria has been reduced by 60 percent in rural areas, as comparedto1996,andunder-fiveinfantmortalityhas dropped from 170 in 1995 to 106 in 2000. However, there are many remaining challenges: · The health status of the Lao population compares poorly to regional standards; · Underfivemortalityratesaretwiceashighinrural areas as in urban areas; · In many rural areas there is still limited access to health services; · Severepoverty,malnutrition,illiteracysuperstition, and non-hygienic lifestyles are causes of under utilization of public health services; · Thelowqualityofhealthservicesisanothercause of under utilization; · Availability of four essential drugs (chloroquine, paracetamol, antibiotics and ORS) is limited in rural areas. Source: GoL, 2004 ­ National Growth and Poverty Eradication Strategy. 37 MUNICIPAL SOLID WASTE Figure 19. Waste Composition in Lao PDR The generation of solid waste in urban areas in Lao PDR is on the rise, and already degrading the quality of surfaceandgroundwater.Expandingurbanpopulations, organic poorcollection,andlargelyinadequatedisposalfacilities plastic material 30% are compounding the level of pollution. 30% Waste Generation Increasing The annual waste generation in 2004 was 270,000 tons. paper glass, cans Domestic waste accounts for the bulk of materials 15% and metals generated. The average urban waste production in Lao 25% PDRis0.75kgpercapitaperday.Vientianeandthefour secondarytownsaccountfor0.8­1.4kgpercapitaperday Source: ADB, 2001, Environments in Transition: Cambodia, (Table14). SolidwasteinLaoPDRcomprisesmainlyof Lao PDR, Thailand and Vietnam. organicmaterial,plastic,paper,andglass,cansandother metals (Figure 19). Hazardous and toxic wastes such as batteries, old paint cans, aerosols and other refuse are Table 15. Landfills in the Four Secondary Towns also mixed with these wastes. The comparatively low Luang Thakhek Savannak Pakse content of organic material in municipal solid waste is Prabang het mainly due to the fact that a large proportion of food Date started June Aug Aug July waste is recycled as animal feed even in urban areas. 2002 2000 2000 2000 Site Area 15 ha 9 ha 13.5 ha 13.5 ha Disposal 3.5 ha 2.2 ha 4 ha 2.2 ha Open Dumping Predominates Area According to a recent survey in 57 urban areas, only Lifespan 10+ yrs 10+ yrs 5-10yrs 5 yrs Vientiane City and the four secondary towns of Leachate Yes Yes Yes Yes Luangprabang, Thakhek, Savannakhet and Pakse use Pond landfills for solid waste disposal (Table 15). However, Geotextile No No No No Liner the disposal areas are small, and have no leachate Leachate No No No No collection and monitoring wells. Elsewhere, open collection dumping and burning are common practice for waste Monitoring No No No No disposal in Lao PDR. Hazardous and infectious wastes wells are often disposed of with municipal waste (Box 9). Source:MCTPC/UNDP/NORADLAO/96/006:SolidWaste Management in Secondary Urban Centres of Lao PDR Table 14. Average Per Capita Waste Production, Secondary Towns (2002) This improper waste disposal results in environmental impacts such as ground water contamination, leachate, Town Per capita waste production odor, and production of methane which can lead to fire Vientiane City 0.8 kg and explosive hazards. All of these increase the risk of Luangprabang 1.0 kg disease. Thakhek 0.8 kg Savannakhet 1.0 kg Pakse 1.4 kg Source:MCTPC/UNDP/NORADLAO/96/006:SolidWaste Management in Secondary Urban Centres of Lao PDR 38 ENVIRONMENTAL QUALITY Collection Ratios Low, But Rising Figure 20. Disposal Practices in 57 Urban Areas Despite the existence of landfills in Vientiane and the four secondary towns, collection services are limited 40 to accessible areas and profitable target groups such as markets and high-income households. The average 37 30 collection ratio for urban households in the five larger urban areas is 45 percent. Only in Luang Prabang does areas 20 the collection ratio reach more than 50 percent. In of# 10 15 smaller towns, solid waste collection is often limited to commercial establishments in the town centre and the 5 0 market place. Sanitary Controlled tip None Landfill site Recycling Minimal Approximately 70 percent of municipal solid waste Source: ADB/MCTPC, 2003 ­ Lao Urban Data Book. consists of plastic, paper, glass, cans and metals, which have the potential to be recycled commercially, Table 16. Solid Waste Collection and reused in various manufacturing and industrial Urban Area Percent Total # of Disposal activities.However,thecurrentscaleofrecyclinginLao with house holds method PDR is still very modest (see Box 10). collection service Vientiane 48% 55,503 Landfill Luangprabang 83% 7,443 Landfill Thakhek 36% 6,118 Landfill Savannakhet 39% 10,466 Landfill Pakse 32% 8,202 Landfill Weighted 45% 87,732 average Source: ADB/MCTPC, 2003 ­ Lao Urban Data Book. Box 9. Vientiane Solid Waste Management In Vientiane 1997, only 5 percent of urban households were servedbyasolidwastecollectionsystemandonly10percent of the solid waste generated was estimated to be collected. Today, with improvements in the solid waste management system, 48 percent of the urban households in Vientiane are now served by solid waste collection services.About half of the solid waste generated is now collected and disposed of atthesanitarylandfillfacilitylocated18kilometersfromthe city centre. It accepts domestic, construction, industrial and hospital waste, and provides separation for hospital waste withinfencedcompound.ThewasteiscollectedbyVientiane Hospital waste section of the Vientiane landfill Municipal Services. Photo: Iain Watson (2003) There are limited environmental and social safeguards concerning handling of waste, no regular covering with soil, no leachate control, and the site is adjacent to agricultural land. The landfill is accessible to scavengers and animals. Rudimentary recycling is undertaken for plastics, paper, and scrap metals. At the recycling area an unpleasant smell is produced. 39 HAZARDOUS CHEMICALS occurneartheVietnamborderandalongtheformerHo Hazardous chemicals of concern include heavy metals Chi Minh Trail. Dioxin is known to have serious health such as mercury, lead, cadmium, arsenic, chromium, and environmental impacts. copper, and zinc as well as persistent organic pollutants (POPs) such as dioxins and furans, polychlorinated Box 10. Company Wants to Sift Through Your Trash biphenyls(PCBs),andvariouspesticidesandherbicides that are now banned globally. At present their Schoolsandvillagersarebeingencouragedtocollect environmental impact is still poorly understood in and recycle rubbish through a system supported by Lao PDR. STEA initiated an inventory of hazardous local NGO, PADETC, UNDP and the government. chemicalsinDecember2003,andtheNationalHazardous A private company, Lao Chareon Recycling Centre Chemicals Strategy and Action Plan is currently being has agreed to buy all the rubbish that villagers can revised. bring to any of the 60 recycling centres. Heavy Metal contamination results primarily from Hard rubbish will be collected at segregated points industrial activities, which are increasing significantly and purchased by Lao Chareon. Glass, paper and as the country develops. Of particular concern is lead plastics will be collected. Organic refuse will also be production and rudimentary metal smelting facilities gathered and used to make compost, which besides in the country, as well as releases of mercury, cyanide, being sold, will also improve farming yields in the copper, cadmium and other heavy metals from mining local area. activities. Surface water quality in areas downstream of industrial and mining activities therefore needs to be "As Vientiane grows, it is becoming apparent that carefully monitored to avoid potential human impacts. we may soon face a rubbish crisis. Private business, often major contributors of refuse, need to take the Persistent Organic Pollutants Presently, herbicides and lead, and act before piles of solid waste block our pesticides are used only in moderate levels in Lao waterways, litter our streets and increase the risk PDR, mostly as a result of low per-capita incomes and of disease," said Mr. Uodone of Lao Chareon. Our traditionalagriculturalpracticesinruralareas.However, company is very happy to be part of this initiative. thereisevidenceofbannedpesticidesandherbicidesstill being imported into Laos from neighboring countries, "This scheme will also raise awareness on the and dumping of empty barrels in landfills has been issue of refuse and make people conscious that recordedinVientianeCapitalCityandothermajorcities. what they throw away eventually impacts on their There is a lack of baseline information on the extent of environment," added Mr. Khamserm of PADETC. the problem in the country, and its potential effects on "Until recently, there were no plastic bags in the human health. market. Things were wrapped in banana leaves. We need to instill a change in culture, so that people PCBsarestillfoundinoldtransformersthroughoutLao understand what it means to throw away." PDR, but these are being phased out. PCB oils are now being adequately stored in the country, but there are Besides providing an income for poor villagers, concerns related to historical spills and dumping sites. the scheme will help Vientiane take pressure off its landfills, not to mention decrease the workload for Dioxin and furan contamination in Lao PDR occurs dustmen and garbage collectors. mainly from combustion of solid and industrial waste, burning of wood and oil for fuel, and forest fires. Source: UNDP Press Release March 2003 However, significant quantities of dioxin were also releasedduringtheIndochinaWarfromtheuseofAgent Orangeandothertoxicherbicides.Dioxinresiduesmay 40 ENVIRONMENTAL QUALITY AIR QUALITY Table 17. Ambient Air Quality in Vientiane Capital from Sep 02 ­ Feb 03 Clean Air Ambientairqualitystandardshaveyettobeformalized, Pollutants Unit Range of Average Ranges for but overall air quality in urban and rural areas in Lao results of results international PDR is currently at acceptable levels. standards TSP mg/m3 0.082 - 0.296 0.165 0.33 Air quality monitoring in Lao PDR is very recent and PM10 mg/m3 0.040 - 0.089 0.068 0.12 ­ 0.15 limited in scope. Monitoring of air quality in Vientiane SO2 mg/m3 0.025 - 0.276 0.108 0.32 ­ 0.36 wasconductedinSeptember2002­February2003(Table NO2 mg/m3 <0.001-0.057 0.014 0.30 17). The key pollutants measured were total suspended Source: Ambient Air and Noise Monitoring in Vientiane particulates (TSP), particulate matter smaller than 10 Municipality ­ MEM, STEA and DANIDA, 2003 microns (PM10), sulfur dioxide (SO2), and nitrogen dioxide (NO2). The monitoring results show that the averages of all pollutants comply with international standards (Table 17). Figure 21. Number of Vehicles in Lao PDR, 1993 ­ 2003 Pollution on the Rise 300 TherearecomparativelyfewindustriesinLaoPDR,but 250 the number is increasing. Despite a lack of data, the 200 threat from industrial air pollution is considered much vehicles less than that from vehicular pollution in urban area. 150 1,000 100 The numbers of vehicles, especially motorcycles, is unit: 50 rapidly increasing, with an average annual growth of 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 more than 9 percent during the past decade (Figure Motorcycles Light Duty 21). This pollution source is expected to become most Heavy Duty Total prominent in Vientiane Capital where more than half of all vehicles are used. Source: MCTPC, 2003 EventhoughmostfuelusedfortransportinVientianeis unleaded and low in sulfur, vehicles are still the major sourceofotherpollutants:TSP,PM10andCO.Particulate matter, especially PM10, has the most serious potential impact on health, including decreased lung function, cancer and possibly death from respiratory illness. 41 SECTION II:ENVIRONMENTAL MANAGEMENT INSTITUTIONS AND LEGISLATION The Ministry of Agriculture and Forestry (MAF) has a diverse portfolio of functions, which includes INSTITUTIONS crops, livestock, soil, irrigation, fisheries, watershed The institutional structure for environmental management, forests and protected areas, and is management in Lao PDR consists of: (i) national mandatedtomitigateimpactsandpromotesustainability committeesthatguideinter-sectoralcoordinationamong of agriculture and forest development. MAF includes agencies; (ii) STEA as the main manager, monitor and the Department of Forestry (DoF), which regulates all coordinator of environment matters at the national aspects of forest exploitation and conservation. level, and other relevant ministries with the mandate to mitigate environment and social issues arising from The Committee for Planning and Investment (CPI), their sectoral development activities; (iii) provincial formerly known as CPC, is the national economic and district entities that have devolved responsibility planning agency that is responsible for integration and for environmental protection at the local level; and (iv) approval of sectoral and provincial development plans mass organizations which support the government intotheoverallnationallong-,medium-,andshort-term in promoting participation and awareness. The key plans and Public Investment Plans. environmental institutions are shown in Figure 22 and their respective roles are further clarified below. The The Environmental Protection Law of 1999 requires approximatenumberofstaffforthemainenvironmental each sector Ministry to issue its own procedures on agencies is presented in Table 18. Environmental Impact Assessment, based on STEA regulations. These include: National-Level · the Ministry of Communications, Transport, Post and The Science, Technology, and Environment Agency Construction(MCTPC),responsibleformanagementof (STEA),whichwasestablishedunderthePrimeMinister roadprojects,transport,housingandurbanplanning. Officein1993,includestheDepartmentofEnvironment It also oversees urban wastewater treatment, urban (DoE) and the Environmental Research Institute water supply and sanitation, riverbank erosion (ERI). STEA is the principal Government agency for control, and construction. formulating and guiding environmental policy in the · theMinistryofEnergyandMines(MEM), responsible country. These two departments are the national focal for industrial and mineral development, power points for environmental management, including the development,includinghydropower,fossilfuelsand developmentofstrategies,policies,regulations,programs renewable energy; andprojects,implementingGovernmentresponsibilities · theMinistryofPublicHealth(MoH),responsiblefor in environmental impact assessment, environment ruralwatersupplyandsanitation,andenvironmental monitoring, and research and training activities. health issues. Additional Departments and Research Institutes under STEA are active in environment management including: (i) the Department of Intellectual Property, Standardization and Meteorology, which concentrates on protecting traditional or local knowledge rights; (ii) the Technology Research Institute, which focuses on promoting and developing the use of renewable energy and appropriate technologies in remote areas of the country; and (iii) the Institute of Scientific Research, which focuses on biosafety issues. 42 INSTITUTIONS AND LEGISLATION Inter-sectoral Coordination Decentralized STEA Offices have been established in Recognizing the cross-sectoral nature of environment Vientiane Capital City, Xaysomboun Special Zone, and issues, the Lao Government has created multiple in the form of 16 Provincial STEA Offices (PSTEOs). coordination bodies to facilitate inter-agency and The PSTEOs are housed under the Provincial Cabinet, provincial coordination. These include: under the guidance of the Governor, and report to · theNationalEnvironmentCommittee(NEC),established both the Governor and STEA. On average, a PSTEO in 2002. The main responsibilities of NEC are consists of five staff members, namely a Chief of Unit, to coordinate and provide advice to GoL and its as well as technical and administrative staff. Further agencies regarding environmental management, decentralization of functions to Districts and Villages strategies,regulationsandplans. TheNECconsistsof is ongoing. managementlevelofficialsfrom14keyagencies,and is chaired by the Vice Prime Minister, with the STEA MAF's mandate in forestry and protected areas President and the MAF Minister acting as Deputy management is implemented through Provincial Chairpersons. The Secretariat is housed in STEA. Agricultural and Forestry Offices (PAFOs) and District · the Water Resources Coordination Committee (WRCC) AgriculturalandForestryOffices(DAFOs). MostPAFOs was established in 1999 to improve water resources and DAFOs are well represented in all the provinces. management. Its main responsibilities are to NPAsaregenerallystaffedandmanagedbytherelevant formulate and implement water resource policy, PAFOs/DAFOs. The most common arrangement is for including management of water allocations. The theNPAHeadtobeassignedfromthePAFO,andhiscore WRCCconsistsofmanagementrepresentativesfrom staff drawn from a mix of PAFO and DAFO staff. Field STEA, MAF, MEM, MCTPC, MoH and LNMC. offices are now established in nine of the 20 NPAs. · the Lao National Mekong Committee (LNMC), established in 1999 to formulate policy, strategic Startingin1995,responsibilitiesforurbandevelopment plans, projects and programs related to water were decentralized from the ministerial departments at resources development in the Mekong Basin. It also provincial and prefecture level to the level of an urban works to ensure development cooperation with local authority. As a result, Urban Development and otherMekongripariancountries,othercountriesand AdministrationAuthorities(UDAA)havegraduallybeen donors. establishedinVientianeCapitalCityandfoursecondary towns (Luang Prabang, Thakhek, Savannakhet and Decentralized Entities Pakse) to improve urban management, and have taken In 2000, the Government began implementing its over the responsibilities of the PCTPC in the larger decentralization policy. The Government aims to towns34. The roles and mandates of the UDAAs are transformtheprovinceintothestrategicunit,thedistrict currently being reviewed and integrated as part of the into the planning and budgetary unit, and the village overall national decentralization policy35. into the implementing unit. Most national agencies, including STEA and MAF, are making considerable progress in devolving their authority to the provinces. Centrally appointed Provincial Governors administer the country's 16 provinces, Vientiane Capital City and Xaysomboun Special Zone, and are responsible for the devolved functions. 34Until1995,therewasnoadministrativeseparationbetweenurban areas and rural areas with provincial towns forming (part of) a district. 35Source: ADB, 2003 - Lao Urban Data Book. Development IndicatorsfortheUrbanAreasofLaoPDR.ProducedunderADB TA No. 3492-LAO Small towns Development Project. 43 Mass Organizations and Civil Society Box11.StakeholderConsultationintheNamTheun Mass Organizations and Civil Societies in Lao PDR 2 Project are actively involved in participatory planning and awarenessraisingactivitiestoadvancethegovernment's ThedesignphasefortheNamTheun2hydropowerproject developmentagendaatthegrass-rootslevel.Theirrolein involved an unprecedented level of local, domestic and environmentalprotectionisjustbeginningtotakeshape, international public consultation to inform development as are government practices for engaging civil society of social and environmental plans. in development plans (see Box 11). Chief among the In total, several hundred local consultations have taken mass organizations are the Lao Trade Union Federation place since 1996 with villages affected by all components (LTUF), Lao Women's Union (LWU), and the Lao of the project, including management of the watershed, Youth Organization (LYO). The Lao Front for National reservoir inundation, construction sites, and impacts Reconstruction (LFNR) is a Civil Society; it includes to downstream river systems. Throughout this process, senior citizens, veterans, and ethnic groups, defending meetings became increasingly driven by the villagers their interests and also participates in environmental themselvesasdiscussionsbecamemorefocusedonspecific protection activities. compensation measures, and as lessons were learnt and tools developed, such as use of trained village facilitators, visual aids and break-out discussion groups in addition to Donors plenary sessions. National workshops have involved local There are a few locally based international NGOs who government and Lao mass organizations, and for the first support capacity building, research, monitoring, and time external NGOs and development organizations have site-specific investments in the country. In addition, been engaged in prior consultation through international private companies are becoming more involved in workshops in Bangkok, Paris, Tokyo and Washington. environmental protection. Theconsultationshavebeeninstrumentaltofinalizationnot Among the main international donors supporting the justofthedetailsofresettlementanddownstreamcompen- sation packages, but also to aspects of overall design such government,massorganizationsandinternationalNGOs as location of project sites and regulation of downstream are the Japan International CooperationAgency (JICA), flow. Environmental and social plans have been disclosed Swedish International Development Agency (Sida), on websites and through national and local information German Government (GTZ), the Government of The centers, with summaries translated into Lao. Netherlands, the Agence Française de Développement (AFD), Asian Development Bank (ADB), Canadian Environment Protection Fund International Development Agency (CIDA- Inc.), The Lao Environment Protection Fund is a financially AUSAID, DANIDA, IUCN, WCS, WWF, FAO, WHO, and administratively autonomous, non-profit UNESCO,UNICEF,UNDPandtheWorldBank.Support organization established as a source of financing to is provided in environmental protection, capacity support environmental management, protection and building, forest management, biodiversity conservation. It was established by Prime Ministerial decree in June 2005, and is expected to begin operations conservation and watershed management through by the end of the year. strengtheninginstitutionsatthenationalandprovincial levelsandfinancinginfrastructureandservices(seealso It was established in response to commitments within Box 14). policy documents relating to environmental protection, forestry, biodiversity and water resources. A single fund,abletosupportabroadrangeofstakeholders,was createdinordertostreamlineadministrativeprocedures and reduce overheads, and to strengthen inter-sectoral coordination by providing a single mechanism to channel various state revenues and donor funds. 44 INSTITUTIONS AND LEGISLATION Figure 22. Organization Chart of Selected Government Agencies Prime Ministerís Office Committee for Planning and Investment (CPI): Committee for Investment and Cooperation (CIC) National Environment Committee (NEC) Secretariat: STEA Science, Technology & Environment Agency (STEA): Department of Environment (DoE) Environmental Research Institute (ERI) Water Resources Coordination Committee (WRCC), Secretariat: STEA Lao National Mekong Committee Secretariat (LNMCS) Lao National Mekong Committee (LNMC) Ministry of Ministry of Energy and Ministry of Agriculture and Ministry of Public Communications, Post, Mining : Forestry: Health: Transport & Department of Geology & Department of Planning Department of Hygiene Construction: Mines Department of Irrigation and Disease Prevention Department of Roads Department of Electricity Department of Livestock & National Centre for Department of Transport Fisheries Environmental Health Department of Housing Department of Agriculture and Water Supply and Urban Planning Department of Forestry Department of Meteorology & Hydrology NAFES, NAFRI Table 18. Staffing Estimates in Environment Agencies Number of staff in specific Agency/Ministry Total staff Environment units/ (2002-2003) Specific Environment Units/Divisions Division Percent (2003-2004) Central Government: · STEA 218 Department of Environment (DoE) 66 33% Environmental Research Institute (ERI) · MAF 6,823 DFRC (DoF), FRC (NAFRI), and part of 126 2% NAFES · MCTPC 2,096 ESD (EMMU in DoR) 15 1% UDD (EMMU in DHUP) · MEM 622 Environment Division (DoE) 17 3% Environment Division (DoI) Environmental Office (EdL) · MoH 11,124 Department of Public Health and 120 1% Hygiene Provinces 7,651 PSTEOs, MSTEO, NPAstaff, Road 300 4% Units (DoE). Lao National Mekong 35 Professional Staff 17 49% Committee Secretariat Total: 28,494 642 2% Source: ERI Capacity Survey (2003/2004) 45 LEGISLATION International Agreements Many Laws Lao PDR has joined a number of multilateral TheGovernmenthasformulatedawidearrayoflegislation environmental agreements, and has delegated their and regulations for environmental conservation and implementation among the various ministries and protection(Table19).TheEnvironmentalProtectionLaw agencies (Table 20). of1999,supportedbyitsImplementingDecree(2002),is the principal environmental legislation in the country. Box 12. Responding to the EIA Decree It includes responsibilities of national environmental agencies, measures for the protection, mitigation and To ensure compliance with the EIA decree, each restoration of the environment as well as guidelines for ministryhastoestablishEnvironmentalManagement environmental management and monitoring. andMonitoringUnits(EMMU).Atpresentatotalof5 EMMUs have been established (MCTPC and MEM). TheDecreeonEnvironmentalImpactAssessment(EIA) was approved in 2000. This regulation describes the Division Ministry/Department Staff process for consideration, approval and certification of Environment and Department of Roads 8 development projects (see Box 12). Sector specific EA Social Division (DoR / MCTPC) (ESD) regulations have been developed for hydropower and Urban and Rural Department of Housing 7 electricity (MEM) and Road Development (MCTPC). Development and Urban Planning Division (URDD) (DHUP / MCTPC) The Forest Law of 1996, and its various enabling Social and Department of Electricity 5 Environment (DoE / MEM) implementation decrees and regulations, describe Management measures to improve the protection of forests and Division (SEMD) protected areas. Under this law, specialized decrees Industrial Department of Industry 5 have also been issued for specific forestry programs or Environment (DoI / MEM) Division (IED) protected areas. Environmental Electricite du Laos (EdL / 9 Office (MEM) Enforcement and Inconsistencies of Legislation Need Total: 34 to be Addressed Environmental legislation has evolved quickly in Lao The EMMUs have developed sectoral EIA related PDRInconsistencieshavesurfacedindifferentlegislation guidelines mainly for road and hydropower sectors, asaresultofdifferentministriesleadingthedevelopment which include screening procedures, management of sectoral legislation. Principal inconsistencies include standards, social impact assessments, safety conflicting provisions, overlapping mandates given instructions, and resettlement and compensation to different ministries, and lack of implementing procedures. Other Departments that have not yet regulations and supporting environmental standards. established formal EMMUs are also in the process of The Government is working to address these issues, developing similar implementing guidelines (e.g. for and to formulate a national system for standardizing mining). EMMUs in support of the implementation and enforcing environmental regulations. of the Environmental Protection Law have also been established within all provinces, Vientiane Municipality and Special Zones. Source: Authors 46 INSTITUTIONS AND LEGISLATION Table 19. Key Environmental Laws and Regulations Law Regulated Activities Key Contents Responsible Ministries Forestry Law States principles, regulations and · Specified procedures for getting approvals from MAF (1996) standards for the use of forest authorized agency is required for individuals and lands and resources. Promotes the organizations to possess and use natural forests conservation and rehabilitation of · Individuals and organizations have obligation to forest resources. Defines roles and preserve forest resources including water sources, authorities of forest management marine animals and wildlife and inspection organizations. Water and Regulates the management, exploi- · MAF is responsible for the survey and inventory of WRCC Water tation,development,protectionand water resources Resource Law sustainable use of water and water · Classifies scale of water use into small, medium and (1996) resources large, the latter two require permits. Land Law Provides rules on management, · All individuals and organizations have obligation to MAF, MEM, (1997) protection and use of land. protect the land to ensure that there is no soil erosion, MCTPC, MIC, land slip, soil degradation and negative impact on the MND, MoInt, natural or social environment MF Mining Law Provides a system of management · Licensees are required to preserve and restore the land MEM / DGM (1997) for the conservation, exploration, utilizedduringminingandtorehabilitatethelandafter mining and processing of minerals mineclosureandtoguaranteethattheprojectshallhave for local consumption and export no serious negative impacts. · Any person or entity licensed to develop mineral resources shall utilize procedures to limit adverse environmental impacts Specifies principles, rules and · AllpersonsandorganizationsresidinginLaoPDRhave STEA/ DoE measures to manage, monitor, an obligation to protect the environment restoreandprotecttheenvironment, · STEAisresponsibleforoverallenvironmentaloversight natural resources and biodiversity and coordination Ensure the sustainable socio- · Each sector responsible for development projects shall economic development. issue its own regulations for EIA, based on general EIA regulation issued by STEA Industrial Regulates the establishment and · All businesses shall ensure the protection of the MEM / DOI Law managementofbusinessinindustry environment in accordance with EPL (1999) and handicraft sector · Wastes shall be treated in accordance with the relevant waste discharge regulations Establishes uniform environmental · Organizational responsibilities are specified STEA/ DoE assessment requirements and · Procedures and methods for the EA. procedures for all development · Requirements for the Environmental Management projects Plans, Environmental Monitoring and Evaluation, and Public Involvement. Implementing Outlines requirements for the · Ministries and ministerial equivalents shall: STEA/ DoE Decree of the preparation of detailed sector regu- · Issue and implement sectoral regulations EPL lations, and provides assistance in · Prepare technical standards and regulations on (2001) achieving the goals of the National construction,operation,maintenance,repair,innovation Socio-Economic Development Plan and expansion (NSEDP). · Issue regulations to protect and control pollution · Establish or Improve the EMMUs. Electricity Provides a framework to manage · Theplanningandexecutionofpowerprojectsmusttake MEM/DoE Law all electricity activities (generation, intoaccountsocialandenvironmentalimpact,including (1997) transmission and distribution) those upon ecosystems and wildlife habitats, as well as ensuring economic returns. 47 Table 20. Lao PDR International Agreements Year Convention Focal Points Remarks and Status in Lao PDR 1985 ASEAN Agreement on the MAF, Lao PDR became a full member of the `Association of Southeast Asian Nations' (ASEAN) Conservation of Nature ASEAN in 1997. The government has been engaged in implementing the `Hanoi Action Plan' and and Natural Resources its environmental strategic plan and is considering a number of agreements with significant influences on the national development and environmental protection. 1987 Protection of the World MIC The Government accepted accession to the `Convention for the Protection of the World Cultural and Natural CulturalandNaturalHeritage' on20March1987andistakingthelegal,scientific,technical, Heritage administrativeandfinancialmeasuresnecessaryforidentification,protection,conservation, and rehabilitation of designated heritage sites in the country. Luang Prabang town was designated as the first site and others are being proposed. 1995 Agreement on the LNMC The Government signed the `Agreement on the Cooperation for Sustainable Development Cooperation for the of Mekong River Basin' together with other members of the Mekong River Commission on Sustainable Development 5 April 1995 and is implementing the `Mekong River Programs'. of the Mekong River Basin 1995 United Nations STEA The Government has been a signatory of the `United Nations Convention to Combat Convention to Combat Desertification' (CCD) since 30 August 1995 and accepted accession to the Convention on Desertification (CCD) 20 September 1996. The Government adopted the `National Action Plan' (NAP) to combat desertification in 1999 and is revising it. 1995 United Nations STEA The Government has accepted accession to the `United Nations Framework Convention on Framework Convention Climate Change' (UNFCC) on 4April 1995. The first `National Communication' was issued for Climate Change in 2000. (UNFCCC) 1996 Convention on Biological STEA The Government has accepted accession to the `Convention on Biological Diversity' (CBD) Diversity (CBD) on 20 September 1996 and has finalized its `National Biodiversity Strategy andAction Plan' (NBSAP) for conservation and sustainable use of the nation's biodiversity in 2004. In 2004, the Government signed the convention. 1998 Montreal Protocol STEA The Montreal Protocol on Substances that Deplete the Ozone Layer was adopted in September 1987. The Protocol was adjusted to accelerate the phase out schedules, and has also been amended to introduce other kinds of control measures and to add new controlled substances to the list. Governments are not legally bound until they ratify the Protocol as well as the Amendment. Lao PDR has ratified the Protocol, but not yet the amendment. 1998 Vienna Convention on STEA The Government accepted accession to the `Vienna Convention for the protection of the the Protocol of the Ozone Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer' on Layer 21 August 1998 and has finalized the `National Action Plan' to deal with this issue in the beginning of 2004. 2000 Millennium Declaration MOFA In September 2000, Lao PDR adopted the Millennium Declaration. The Declaration includes the Millennium Development Goals (MDG), a set of development goals related to peace, securityanddevelopmentconcerns,includingenvironment,humanrights,andgovernance. The MDG incorporate most of the goals and targets set at the global conferences and world summits of the 1990s. 2004 Convention on MAF Lao PDR has sign the Convention on International Trade in Endangered Species of Wild International Trade in and Fauna and Flora (CITES) in May 2004. CITES entered into force in July 1975 and now has Endangered Species of STEA more than 115 member countries. These countries act by banning commercial international Flora and Fauna (CITES) trade in an agreed list of endangered species and by regulating and monitoring trade in others that might become endangered. - Stockholm Convention STEA Signed but not yet ratified. on Persistent Organic Pollutants - Wetlands of International MAF Under preparation. Importance Especially as Waterfowl Habitat (Ramsar Convention) 48 INSTITUTIONS AND LEGISLATION Sectoral Approaches expanding irrigated areas for both wet and dry Over the past five years, many sector-specific strategies season production, and by improving the operation and action plans had also been approved with the and maintenance of existing irrigation schemes; (iv) NESAP: Agriculture and Forestry Research Program, aiming to rehabilitate existing research stations and expand · The `Water Sector Strategy and Action Plan' (WSSAP) researchactivitiestonewareas,andtocooperatewith was adopted in 1998 and a `Policy on Water and international research institutions; and (v) Human Water Resources' was prepared in 2000 to ensure that Resources Development Program, aiming to upgrade management, exploitation, use and development the technical and administrative skills of ministry of water resources are sustainable, equitable, and staff, and to develop an effective extension service support the goals of socio-economic development at the provincial and district levels. and environmental protection of Lao PDR. · The `National Policy on Environmental and Social · The `National Biodiversity Strategy and Action Plan' SustainabilityoftheHydropowerSectorinLaoPDR'was (NBSAP) was approved in 2004 with a goal of adopted in 2005 in response to the need the develop promotingparticipatoryandsustainablemanagement Lao PDR's hydropower potential in a way that of biodiversity. It links biodiversity conservation to ensures long-term viability and net benefits for Lao government priorities in poverty eradication and society, and leaves critical aquatic resources intact. sustainable development with the aim of protecting The Policy lays out requirements for environmental the current asset base of the poor impact assessment taking into account cumulative impacts, compensation in consultation with project- · The formulation of a `Forestry Strategy to 2020' affected peoples including those downstream of the was initiated in 2001 with support from Sida development,watershedmanagement,conservation and JICA. The Strategy identifies the roles and offsets for unavoidable ecosystem impacts, use of potential of the forestry sector in achieving the revenues for social and environmental purposes, goals of economic growth, poverty alleviation, and monitoring and disclosure. It draws heavily upon environmental stability in Lao PDR. The Strategy the experiences and innovations of the Nam Theun is a follow-up of the `Forestry Vision for 2020' 2 project (See Box 17), and aims to streamline the prepared in 2000, which recognized the need to application of the principles followed for that reverse the negative forestry trends, for example through strengthening the legislative framework for sustainableforestmanagementandimprovingforest law enforcement. · The `Agriculture and Forestry Sector Development Plan', prepared in 2001, is comprised of: (i) Food ProductionProgram,aimingatachievingfood-security by improving quantity, quality and availability of food with specific targets for rice, maize, root crops, meat and fish; (ii) Commodity Production Support Program, aiming to develop the agro-processing sector to provide local income opportunities and increase value-added crops; (iii) Stabilization/ Reduction of Slash-and-Burn Cultivation Program; (iv) Irrigation Development Program, aiming at increasing rural incomes and stabilizing rice availability by 49 IMPLEMENTATION FRAMEWORK infrastructure,urbandevelopment,tourism,andspecial economic sectors; (iii) strengthening of the institutional National Policies frameworkforenvironmentalmanagementandcapacity Since the 1992 Earth Summit, Lao PDR has formulated building; (iv) improved private sector involvement in several National Policies and Strategies on the environment management; (v) promoting appropriate environment, of which the key documents are outlined financing instruments and mechanisms; and (vi) in Table 21. improved international cooperation. The Government has approved its 2020 vision in the It is anticipated that 18 Provincial Environment Strategies formoftheNationalEnvironmentStrategy(NES),which and Action Plans (PESAPs) will be approved by the end alsoincludesthesecondNationalEnvironmentalAction of 2005. Up to now, PESAPs have been approved by the Plan (NEAP) for 2006-2010. The key components focus Governors of Phongsaly, Oudomsay, Houaphanh, Say- on: (i) sustainable management of natural resources; (ii) abouly,XiengKhouang,Khammouane,Champassack,and improvedenvironmentalmanagementofindustriesand Sekong, while others are in the process of final approval Table 21. Summary of Current Key Environment Policies and Strategies Year Title Agency 1994 First National Environmental Action Plan STEA 1997 Draft National Resettlement Policy for Major Projects CPI, STEA Draft Public Involvement Guidelines CPI, STEA Sector Strategy & Guideline National Framework - Rural Water Supply & Environmental Health Sector MoH 1998 Water Sector Strategy and Action Plan 1999-2004 WRCC/ PMO 1999 The Government Strategic Vision for the Agricultural Sector DoP/MAF 2000 Draft Policy on Water & Water Resources Law WRCC/ PMO Lao PDR Food Security Strategy in the period of 2001-2010 MAF Forest Vision for 2020 MAF Hydropower Development Strategy MEM 2001 5th National Socio-Economic Development Plan CPI Master Plan Study Integrated Agricultural Development Lao PDR MAF Power Sector Environment Policy MEM Social Impact Statement for Electricity Projects MEM Agriculture and Forestry Sector Development Plan MAF 2003 Draft National Environmental Quality Monitoring Program (NEQMP) 2003-2010. Final Consultation STEA Workshop, Vientiane, March 24, 2003. Draft Policy on Resettlement STEA National Public Involvement Guidelines STEA 2004 National Biodiversity Strategy and Action Plan, years 2010 and 2020. June 2004. STEA NationalStrategy onEnvironmentEducationandAwarenesstotheyears2020andActionPlanfortheyears STEA 2006-2010. June 2004 National Environmental Strategy years up to the year 2020 , and the Environment Action Plan, 2006-2010 STEA National Growth and Poverty Eradication Strategy (NGPES) 2005 National Policy on Environmental and Social Sustainability of the Hydropower Sector in Lao PDR MEM/ STEA Decree 197 on Compensation and Resettlement ­ 7 July 2005 Prime Minister Implementing Regulations and Technical Guidelines on Compensation and Resettlement on 11 November STEA 2005 Adopted Implementing Regulations and Technical Guidelines on Compensation and Resettlement on 18 MEM November 2005 Source: Authors 50 CAPACITY DEVELOPMENT CAPACITY DEVELOPMENT Box 13. NPA Management Constraints In 2004, STEA released the "National Strategy on NationalProtectedAreas(NPA)areusuallymanaged Environmental Education and Action Plan for 2006- by the relevant Provincial Agriculture and Forestry 2010" (the EEA strategy). Its key elements include: Office(PAFO)andtheircorrespondingDistrictForest (i) Strengthening human resource development and Offices (DAFOs). Field offices are currently opera- capacity building; (ii) Integration of Environmental tionalinnineofthe20NPAs.Becauseofashortageof Education and Awareness (EEA) into the formal and personnelandalackofproperenforcementofregula- non-formal education systems; and (iii) Strengthening tions, biodiversity is rapidly disappearing and local public awareness of environmental issues. communities are losing out to outside exploitation of theseresources.WithlessthananestimatedUS$15,000 STRENGTHENING MANAGEMENT CAPACITY perannumformanagementoftheNPAsystem,there In 2003, a survey was carried out by ERI with assistance is little ability to implement existing laws or enforce from the World Bank, to identify management capacity regulations. among the staff of the main Ministries and Agencies in VientianeCapitalandsixprovinces36.Thesurveyshowed Basis data for Protected Areas that:(i)thenumberofenvironmentstaffisquitelimited, and generally insufficient to carry out their mandate; Protected Areas NPAs (ii) the number of staff with higher and/or appropriate Land Area (ha): education is also limited; and (iii) the opportunities for North 1,025,600 the application of professional skills is restricted. Central 1,331,100 South 953,500 Relatively low levels of education amongst staff within Number with field offices 9 government agencies, combined with overall lack of Staff Assigned to NPAs: resources and public expenditure on the environment, 2000 224 limit government capacity to manage natural resources 2004 150 andenvironmentalquality.Increasingstaffcapacitywill Budgets: rely upon a balance of access to international higher 2000 US$ 15,000 education,on-the-jobtraining,andappropriatepersonal development planning for staff within their positions. Sectors requiring immediate upgrading include policy development, EIA, pollution control and monitoring, For some NPAs, however, efforts are underway to and NPAmanagement (Box 14). find additional sources of sustainable funding: Nam Ha NPA receives some revenue from ecotourism; The Government is working with several donors to Phou Khao Khuay NPA is managed by the Ministry strengthen capacity of staff through both management of Defense and receives its budget from Nam Leuk's and on-the-job training. Examples of capacity building hydropower revenues; and Nakai Nam Theun NPA with STEAand other agencies are listed in Box 14. will receive an unprecedented level of funding from the Nam Theun 2 project over the next 31 years. It is also intended that the Environment Protection Fundwillchannelsomerevenuesfromdevelopment projects to protected areas in future, and the LENS project is providing support to protected areas in central Lao as a model for future EPF funding. 36Phongsaly, Oudomxay, Borikhamxay, Saravane, Sekong, Champasack and Vientiane Capital. 51 Box 14. Strengthening Environmental Management Capacity OngoingstrengtheningofenvironmentalmanagementcapacityisprincipallysupportedbytheSwedishInternational Development Cooperation Agency (Sida) and the ADB and largely, but not exclusively focused on STEA. Since2001SidahasbeensupportingcapacitybuildingforeffectiveenvironmentalmanagementinLaoPDRthrough the "Strengthening Environment Management" (SEM) project. Phase 1 of the project focused on the following four mainactivities:(i)Developingcapacityinmanagementandadministration,developtoolsformanagement,namely policy and environmental management strategy; (ii) Develop Environmental Impact Assessment activities; (iii) Develop and promote environmental education and awareness; and (iv) Support PSTEOs in three pilot provinces (Oudomxay, Xieng Khuang, and Champassack). Phase 2 of the SEM project, which will cover the period of 2005- 2010, is expected to further expand the activities at both central and local levels in a total of nine provinces. STEA,withsupportoftheADB,hasimplementeda"EnvironmentalandSocialProgramLoan",addressingcritical policy measures with regard to environmental and social management in the energy and transport sectors. As a result of the program loan and accompanying technical assistance, STEAhas: (i) successfully established a donor coordination mechanism for environmental and social management, (ii) initiated the preparation of Provincial EnvironmentalActionPlansandStrategies,(iii)establishedtheThirdPartyofIndependentEnvironmentMonitoring System; (iv) established sectoral reporting on social and environmental compliance, (v) established a twice-yearly EnvironmentalNewsletter,(vi)establishedtheEnvironmentalProtectionFundandwillsupportoperationalization of the Fund through provision of the initial capital endowment by ADB; and (vii) MAF has approved a Policy on Water Resources and developed a watershed monitoring and information system. Following the achievements of the Sida and ADB supported activities, the Government and World Bank have developed the "Lao Environment and Social" (LENS) Project, which began implementation at the beginning of 2006. The Project will establish two funding windows in the Environment Protection Fund, one of which will develop capacity to implement a range of environmental policies, including the National Policy on Environmental and Social Sustainability of the Hydropower Sector in Lao PDR and integrated river basin management, and support experiential environmental learning. Source: Authors Public Expenditure for Environment figures presented here provide an adequate estimate In Lao PDR, budget allocation and expenditures for of the overall magnitude and trend of environmental environmentarenotaccountedseparately.Expenditures spending. arespreadoveralargenumberofGovernmentAgencies, and have never been subject to a detailed combined It is estimated that the total environmental expenditure audit. Moreover, environmental expenditures are not averages US$ 0.6 million per year (Figure 23). In 2002, alwayswelldefined37;e.g.expenditureonwater supply environmental expenditure was roughly 0.6 percent of and water resources management were not included totalgovernmentspending,aroundhalfofwhatVietnam for present purposes. Despite these uncertainties, the (0.8to1percent)andThailand(1.2to1.4percent)spend on environmental protection. 37The budget for STEA for FY02/03 and FY03/04 is 105,576 and 132,626 US$, respectively. 52 CAPACITY DEVELOPMENT Recurrentenvironmentalexpenditures38haveincreased Figure 23 Annual Environmental Expenditure 2001- from an estimated US$ 0.06 million in 2001 to US$ 0.11 2005 million in 2005. About half of recurrent expenditure is made by STEA, while an estimated 40 percent is from provincial PSTEOs and PAFOs. Despite the gradual $3,000,000 increase,however,governmentfinancialsupportremains very low, and insufficient to address environmental $2,500,000 management needs. $2,000,000 Total capital expenditure between 2001 and 2005 $1,500,000 averagedUS$0.5millionperyear,approximately5times recurrent expenditure. More then 90 percent was spent $1,000,000 by MCTPC on environmental and social assessment and mitigation related to ODA-funded road projects39. $500,000 Capital expenditures by other ministries are typically $0 less than their recurrent costs. However, environmental 2001 2002 2003 2004 2005 capital expenditures can vary strongly between years Capital Expenditures Recurrent Expenditures Foreign Grants due to required counterpart contributions to ODA- supported projects. Source: STEA Donor Projects EnvironmentalmanagementandprotectioninLaoPDR is still heavily dependent on foreign grant funding. Principal donors during the last 5 years included Sida, ADB, and the World Bank (Box 14). In total over the last five years, Lao PDR received approximately US$ 10 millionofexternalfundingtostrengthenitsinstitutional capacity. There is insufficient data available to estimate the amount targeted specifically to local government. 38Because not all Agencies have detailed data available, recurrent expenditures is generally be estimated from staff numbers in the specific Divisions or Departments using standard staffing and operational budget allocations. 39Yearly figures for MCTPC's capital expenditure were not available, so total amounts were averaged over 5 years. 53 ENVIRONMENTAL EDUCATION Box 15. Country's First Degree Program in Environmental Management Providing Education Environmentaleducationattheprimaryandsecondary TheFacultyofSocialSciencesoftheNationalUniversity school levels is based on teaching manuals, course of Lao PDR (NUoL) launched the first five-year B.Sc. books, posters and leaflets provided to both teachers Program in Environmental Science and Management and students. These include six supplementary reading in September 2004. This course provides the first books, each with an environmental theme, aimed at opportunity for formal environmental education in primary school students, reading books in the "World Lao PDR. Forty students are currently enrolled in the AroundUs"series,andtheintegrationofenvironmental program. The five-year Program will cover a array of concepts into the `English Language for Secondary School' environmental topics and includes 11 Modules: series40 and into teacher training curricula. 1. Environment and development Moreover, the Government, in cooperation with the 2. Ecology WildlifeConservationSociety(WCS),hasbeendeveloping 3. Environmental law and administration a "Curriculum Enrichment Program in Environmental and 4. Pollution and its effects Life Sciences" and a "Health, Environmental and Clean 5. Agriculture production and environment Water Supply Program" for primary education. 6. Forest resources and environment 7. Water resources and environment The country's first undergraduate degree program in 8. Urban, infrastructure development and environmental management (Box 15) commenced in environment 2004 at the National University of Lao PDR (NUoL). 9. Industrial and mining development and Additionally,theFacultyofForestrydesignedacurriculum environment module called "forestry and the environment". This 10. Integrative EIA module include three main topics: income generation 11. Integrated watershed management andforestry;forestry,waterandwatershedmanagement; andsoiluse. TheFacultyofEconomicsatNUoLhasalso Source: Authors incorporated an environmental economics module into the Faculty's economics course. 40STEA,2004-NationalStrategyonEnvironmentalEducationand Awareness for 2020 and Action Plan for 2006-2010. 54 CAPACITY DEVELOPMENT PUBLIC AWARENESS are implementing specific programs to increase public awarenessacrosstheentirecountryonissueslikehealth, Through its EEAStrategy, the Government emphasized environmental education, and poverty reduction. that an informed constituency and wider appreciation for the importance of the environment are necessary The Government promotes special environmental conditions to garner support for its protection and days, which include Tree Day, Fish Release Day, effective management. World Population Day, World Water Day, and World EnvironmentDay.Inaddition,environmentaleducation Raising awareness has become an important activity has been disseminated through the mass media such as of the Government. All PSTEOs, in cooperation with newspapers, radio and TV and through local language NGOs and Mass Organizations like the LWU and LYU, publications (Box 16). Box 16. Biodiversity Field Guides in Lao PDR The promotion of environmental awareness and education is recognized as a high priority at global, regional and national forums, yet there is still a lack of easily accessible biological information in many developing countries. Few countries inAsia,Africa and SouthAmerica have local language field guides to any of their animals or plants. This lack of accessible information in local languages hampers all biodiversity training, awareness building, and park ranger capacity, and reduces access to necessary information for adequate environmental assessments of development projects. To offset this, the World Bank and several NGOs in Lao PDR have supported the publication of field guides to the local mammals, birds, turtles and fish. These field guides are useful tools in providing additional information and skills, which can empower national scientists and local communities to better promote, and benefit from, biodiversityprotection,includingthroughthedevelopmentofalternativelivelihoodsbasedonsoundbiodiversity management. Source: Authors Environmental Attitudes To gain a better understanding of environmental attitudes amongst key stakeholders, the Environmental Research Institute conducted a survey with assistance from the World Bank during February and March 2004, to assess the attitudes of individuals working in the environmental profession in Lao PDR. Questionnaires werecompletedby146personsinenvironmentsections of government agencies, NGOs, and at NUoL. The aim of the survey was to uncover the factors that inspire someone to care about the environment, and which leads one to decide to work in this sector. Key findings include: · Reasons for working in the environment field were oftenrelatedtopeople'supbringingandtheirsource 55 of environmental inspiration. Respondents with a Figure 24. Reason for (i) Choosing Employment and `mixed' or `urban' upbringing were more likely to (ii) Do Environmental Work work in the environment field because of an interest inprotectingtheenvironment.Similarly,respondents 60 whose source of inspiration came from either a 50 40 `personal mentor or teacher' or `an experience' were 30 more likely to work in the environment field out 20 of interest. Interestingly, more women than men 10 responded that they worked in the environment 0 field out of interest, or because of other professional Placement by Env interests Other govt professional interests (Figure 24). Male Female skills · A majority of respondents ­ mostly younger people 50 who had had a mixed upbringing ­ cited a personal 40 mentor or teacher as the leading inspiration for their 30 interest in the environment (Figure 24). 20 10 0 · When asked about the wildlife trade, respondents TV nce who thought the trade had increased were more Other nt... di... Reading me teac... likely to have been educated in Lao PDR, have had experie An a mixed upbringing, and cite a teacher, mentor Personal GovernmentReligious or an experience as their source of environmental inspiration. Respondents who did not think that Source: ERI, 2004 the trade had increased were more likely to have been educated outside of Lao PDR, had an urban Figure 25. Reasons for (i) visiting NPAs and (ii) upbringing,andciteagovernmentdirective,reading Valuation of the Environment or TV as their reason to work in the environment. 50 40 · 44 percent of respondents had visited two to five 30 NPAs. Almost one half of respondents had visited 20 no more than one NPA in their lifetime. More than 10 40 percent of the respondents cited scenery as the 0 attraction for visiting NPAs (Figure 25). see see To friendsenjoy see the Other For work take To plants To escape To animals To exercise · Younger respondents were more likely to cite global To warmingastheirprimaryenvironmentalconcern,in contrast to older respondents who were more likely 25 to cite habitat loss and degradation as their main 20 15 concern. 10 5 · Moral values and economic arguments were 0 considered of great importance to convince others l c n of of the value of nature, but were not listed as being values Aesthetic research Moral physical as important to the respondents themselves (Figure Biologica uniqueness Economi Educatio management and responsibility Regulation the environment 25). To me To others Source: ERI, 2004 56 CAPACITY DEVELOPMENT 57 SECTION III: CHALLENGES Overview form the core of a viable forestry reform program. The Government of Lao PDR has made important strides in instituting changes slow the pace of natural The Government has identified and is soon to finalize resources degradation, in partnership with local formal creation of a system of National Production communities and international organizations. Recent Forest Areas (NPFA), beginning with eight areas, achievements include: enacting the environmental totaling 500,000 hectares. The NPFA system is to be impact assessment decree; development of a policy to brought under scientific management through formal safeguard the environmental and social sustainability arrangements with local communities that prescribe of the hydropower sector; creation of an Environment benefit-sharing arrangements and participation, and ProtectionFund;strengtheningtheregulationforwildlife empower communities to use forest revenues for local trade in endangered species; creating a specialized developmentefforts.ItmaybeusefulfortheGovernment agency to protect and manage the Nakai Nam Theun to consider extending this approach to around half of Watershed; decentralizing environmental functions to the commercially valuable forest outside the National provinces;improvingwaterandairqualitymonitoring; ProtectedAreas, which would directly benefit about 1.5 and establishing a third-party monitoring protocol million people. to report on environmental impacts of development projects. Furthermore, sustainable management of the Land Management country'snaturalresourcesandresponsiblegovernance Since 1999, the country has taken several major steps ofthebenefitsaccruedfromtheirusehasbeenidentified to develop policies and implement programs in land asanintegralpartofthegovernment'srecentlyapproved administration, distribution and management. National Growth and Poverty Eradication Strategy (NGPES). The Government's long-term goal is to establish a Despitethisprogress,negativetrendscontinueinforest nationwide land administration system and provide cover and the status of protected areas, and urban secure tenure to all eligible land holdings. To achieve environmentalproblemsareemerging. Theeffectiveness these, the Government needs to accelerate land-titling ofeffortstoaddressthesetrendsislimitedbyconstraints activities. Specific attention should be given to: (i) on finances and expertise, and increasing international women's rights in land titling; (ii) increasing dialogue demand for Lao natural resources. In addition to its andconsultationsinthelandpolicydevelopmentprocess; internal efforts, Lao PDR will have to reach out to (iii) community involvement in land titling including international neighbors and partners to resolve certain exploring options for communal land titling in areas environmental challenges. where this is the preferred option; and (iv) promoting and developing traditional or local knowledge in land Highlighted below are the key policy responses use management undertaken in priority areas, and the challenges that remain to be addressed over the next five years. As part of the ongoing land policy development process, the government needs to address state land Forests and Forest Products management as a priority, and review the modalities The Government has taken key initial steps to bring of the land allocation program. The latter has had production forestry under control and to integrate documented adverse environmental and social impacts it more effectively into poverty eradication efforts. on communities practicing traditional long-rotational Participatory forestry, through which local people are (swidden) agriculture. enabled to manage and directly benefit from the sale of timberandotherforestresources,havehadaremarkable Until 1997, the Government policy regarding shifting and demonstrated success in Lao PDR. This, and other agriculture largely focused on stabilization and the improvedcommercialforestmanagementapproaches,if encouragementofsettledagricultureinanefforttolimit applied,willdeterillegalanduncontrolledlogging,and landdegradation.However,thispolicyhassubsequently 58 POLICY RESPONSES AND REMAINING CHALLENGES evolved to a more pragmatic approach, in which long- elaboratedintheSocialandEnvironmentalManagement rotationalswiddenispermitted.Tomaximizetheresults Framework and Operational Plan for the Nam Theun of this new policy, the Government needs to increase Watershed. This model needs to be pursued far the involvement of local communities in land use enough to allow a comprehensive assessment of its zoning,definetheextentoftheseagriculturalzones,and performance, and needs to be adapted for the levels of develop land use agreements to mitigate against future sustained funding that might feasibly be available for encroachment into undisturbed forest areas. Lao protected areas. Biodiversity and Habitats Water Resources Lao PDR is home to a great diversity of animal and WiththelargestpercapitawateravailabilityinAsia,Lao plantspecies,manyofwhicharegloballysignificantand PDR is planning to tap this potential to spur economic provide food security for many rural people. However, growthbydevelopinghydropower,expandingirrigation modification and conversion of natural ecosystems, facilities and increasing water supply. Hydropower overexploitationofbiologicalresourcesanddestructive generation has increased five-fold in the last 25 years, harvesting techniques are serious threats to Lao's rich and is expected to further expand three-fold in the next biodiversity. five years with the construction of Nam Theun 2. Achieving the poverty reduction and biodiversity Overthenextquartercentury,LaoPDRhasthepotential conservation goals of NBSAP requires engagement to generate 18 percent of the 23,000 megawatts of from all levels of government and Lao society. Public hydropower that can be generated in the country. awareness, education and community involvement are Nevertheless,theexploitationofthishydropowerpotential criticalelementsforconservationofbiologicaldiversity. needs to be carefully balanced with environmental and Theknowledgeandexperiencesoflocalandindigenous social pressures, to ensure that the country's vast water people must be taken into consideration and fully used. resources are developed in a sustainable manner. Of Awarenessandpoliciesneedtobeextendedtostimulate key concern are the potential cumulative impacts of a sense of community involvement and ownership. numerous hydroelectric developments, and impacts on fisheries and other aquatic resources in the Mekong As part of its efforts to conserve biodiversity, more than Basin. afifthoflandareaisunderprotectionthroughanetwork of 20 National Protected Areas (NPAs), two Corridors, The Nam Theun 2 Hydropower Project has already andseveralprovincialanddistrictlevelprotectedareas. providedmodelsandprinciplesthathavebeenincluded Despitethesedesignationsandthe enabling legislation, withintheNationalPolicyonEnvironmentalandSocial the allocated budgets and subsequently the levels Sustainability of the Hydropower Sector in Lao PDR. of protection in all protected areas are minimal and Some existing projects have already begun to reverse reportedly widespread logging and poaching. course and implement remedial actions to improve environmental and social conditions, and a timetable To address these issues, the Government needs to for completion of this work will be set as part of the increase budgets for recurrent expenditures, and implementation framework of the policy. work in a participatory manner with local and enclave communities in NPAs. A model for participatory Since, the likelihood of locating multiple hydropower protected area management has been developed in Lao projects within an eco-system are high, the use of PDRfrompastexperienceisanumberofprojects.Itrelies cumulative impact analysis (as was done for the upondevelopingvillageresourceuseagreements,village proposed Nam Theun 2 Hydro-electric Project) should conservation teams and sustainable livelihood options, become an integral part of the country's power sector and builds on principles of community empowerment, planning. The Lao Environment and Social Project (see inclusivenessandadaptivemanagement.Itisextensively Box13)willsupportintegratedriver-basinmanagement 59 systems, which would then be taken into account in Determinationofbaselinelevelsofpesticides,herbicides, cumulative impact assessments under the hydropower heavy metals, PCBs and dioxins/furans in the aquatic sustainability policy. Besides hydropower use, there is andterrestrialenvironmentisthereforeurgentlyneeded, also need to improve the efficiency of water utilization sothatlong-termtrendscanbemonitoredinfuture.The inagricultureandwatersupplysectors.Buildingonthe presence of Agent Orange dioxin hotspots in Lao PDR creationoftheWaterResourcesCoordinationCommittee needstobeinvestigated,sincetherearepotentialimpacts (WRCC), the Government needs to further expand to human health in areas where these chemicals may its policy and implementation arrangements towards have been stored or applied in significant quantities. achieving an integrated approach to water resources management in the country. Urban Environment Institutions and Instruments Given the low-level of access to safe water supply (35 Central to addressing environmental challenges is the percent) and sanitation (29 percent), priority should be rapid development of skills and capacity in the country accorded to expanding services. to makeinstitutionsworkeffectively.Inadequatehuman resources (2 percent of public sector staff) and very Despite the low degree of urbanization in the country, low state funding (less that 1 percent of government the population in urban areas is already experiencing budget) significantly constrain the implementation and environmental health risks from inadequate collection enforcement of tremendous legislation and policies and disposal of solid waste, inadequate sanitation that have been enacted to protect the country's vast coverage and little, if any, treatment of wastewater. natural resources from environmental degradation. Environmentalmodelshavebeentrialledundervarious Proper solid waste management is only functional in donor projects, but resources are often lacking to apply certain urban areas. Wastewater treatment is still new these more widely once the projects end. to the country, and to cope with the increasing need for environmentalservices,localgovernmentsandUDAAs Buildingontherecentadvancesmadethroughcapacity (withsupportfromtheNationalGovernment)areunder building initiatives supported by theADB and Sida, the pressure to further implement and operationalize these following need to be tackled urgently: services in Vientiane and the other larger urban centers. (i) addressing the critical shortfall of environmental This would encompass: (i) improving solid waste personnel needed in the country to address the above collection, recycling and disposal; (ii) expanding access challenges by: (a) encouraging the NUoL to double to safe sanitation; (iii) protecting water sources from its intake of students studying environment, ecology, pollution;(iv)involvingtheprivatesectortopartnerwith tropical botany, taxonomy, entomology, zoology, localgovernmenttodelivertheseservices;(v)effectively toxicology,socio-economics,environmentalengineering, applying the UDAA's 2002 cost recovery regulation to and environmental economics, which would require partially recover operation and maintenance costs from significant strengthening of the curriculum, teaching service users; and (vi) intensifying capacity building materials and related infrastructure; (b) supporting efforts of local governments. vocational schools to introduce short-term diploma programs in different environment topics; and (c) Hazardous Chemicals increase the number of on-the-job training programs There is limited information on the current levels of undertaken for national and provincial staff, and hazardous chemicals in the environment of Lao PDR. concurrently ensure that trained personnel are retained As the country continues to develop its industrial for longer periods than at present; capacity, it is expected that hazardous chemicals will become an important issue in the near future, if (ii) further strengthening of the staff capabilities in appropriate mitigation measures are not implemented. STEAtoimprovetheirskillsinenvironmentalandsocial 60 POLICY RESPONSES AND REMAINING CHALLENGES Box 17. Enhancing Environmental and Social Sustainability ­ of Nam Theun 2 Hydropower Project AsuiteofenvironmentalandsocialmitigationprogramshasbeendesignedaroundtheNamTheunprojectcovering the entire footprint of the development from the Vietnamese border to the Mekong, and at a total cost of around $120 million. The Nam Theun Watershed, comprising Nakai Nam Theun NPA and two corridor areas, has been declared as a protectedareabyprimeministerialdecree,andwillreceivefundingfromthedeveloperfor31years.Theboundary of the Watershed has been demarcated, and management funds will be spent on both protecting biodiversity and improving the quality and sustainability of the livelihoods of its inhabitants. OntheNakaiPlateau,surveysandstudiesofelephantsandotherwildlifewillbeusedtomanageecosystemtransition and to reduce potential wildlife conflict with local people. Large seasonally flooded areas of the reservoir will be protected as Special ConservationAreas to provide fish nursery grounds and maintain the integrity of the corridor between the Watershed and Phou Hin Poun NPA. All aspects of construction and associated activities are subject torigorousenvironmentalimpactreductionandmitigationplans.Thedeveloperhasguaranteedtoroughlydouble the current income of households resettled from the inundation area, and adopted a target to roughly triple it. Downstream water release will be aerated, regulated and halted during periods of flood risk. Downstream communitieswillbecompensatedwithimprovedlivelihoodsprogramsandfloodprotectionmeasuresforpotential impacts from increased flooding and disruption to river fisheries. The entire program will be adaptively managed and subject to multiple layers of internal and external monitoring. Source: Authors assessments,includingtraininginthelatesttechnologies (vi)partneringwithlocalandinternationalorganizations for environmental monitoring, sampling and analysis, to undertake functions for which available staffing and data management and communications (e.g., IT, GIS, skills in agencies are inadequate; and databases, remote sensing, and pollution monitoring), and resettlement planning to implement the recently (vii) the fundamental and critical improvement of approved Prime Minister's Decree 197; opportunitiesforparticipationatlocallevelsandraising awareness of, interest in, and actions for conservation (iii) strengthening the capacity of MAF's offices in the and environmental management. provinces and districts to undertake protected area monitoring,patrollingandenforcementtasksmandated Financing by Regulation 193; Over the past few years, the country has benefited from considerable donor support to strengthen its (iv) improving cross-sectoral coordination among institutional capacity. Foreign assistance remains MinistriesandAgencies(CPI,MCTPC,MEM,MAFand the main source of financing. As a result, progress is STEA) through the National Environment Committee, visible in certain areas of environmental management and strengthening the environmental monitoring and such as the implementation of Environment Impact assessment programs undertaken by these ministries; Assessment procedures, provincial level planning and publicawarenessactivities.However,continuityofthese (v) clarifying overlapping regulatory mandates activitiesgetsdisruptedwhendonorfinancingceases.A and strengthening the enforcement capacity of caseinpointisthestaffavailablefortheprotectionofthe STEA, MAF, other relevant ministries and provincial 20NPAshasdeclinedfrom224in2000toapproximately agencies; 150 in 2004. 61 Thebudgetallocationforenvironmentalfunctionsneeds Thesecondistotargetchildrenandyouthbyproactively tobeincreasedseveralfoldfromitscurrentlow-levels,if introducing environmental education in primary thecountryistomeetitschallenginggoals.Recognizing and secondary schools, as well as in Teacher Training that the allocations from the general budget are likely Colleges (TTCs), by: (a) developing suitable curriculum to be low in the immediate-term, the Government is and materials for use in schools and TTCs; (b) training putting in place some specific measures. These include: teachersinenvironmentaltopicsandmodesofteaching; (a) requiring hydropower concessionaires to fund and (c) encouraging schools to adapt environmentally- environmental "offsets" over the life of a concession to oriented extra-curricular activities. support conservation of adjoining watersheds, and this should be expanded to cover mining concessions as The third is to provide greater flexibility to national well;(b)allocatingaportionoftherevenuesearnedfrom and Lao-based international NGOs and Non-Profit hydropower, mining and other development projects Organizations to actively participate in the design and for environmental activities; (c) operationalizing the delivery of awareness building programs. Environment Protection Fund, with funding support from ADB and the World Bank to finance capital and recurrentexpenditureforenvironmentalprotection,and eventually to channel the revenues referred to above; (d) continuing to seek funding from donor agencies. Concurrently,effortsshouldalsobedirectedatinstituting agovernancemechanismthatensuresproperallocation and use of these funds for agreed priorities. Awareness and Participation As noted in the attitudes survey, the opportunities for public participation are enormous, and need to be harnessed.Giventhelow-levelofliteracy,limitedschool enrollmentandethnicdiversity,adiversifiedandmulti- level approach is needed. The first is to raise basic awareness on priority environmental issues in the country, such as: (a) village level awareness programs, especially for those dependent on forest products or particularly at risk from pollutants, that recognize the multi-lingual ethnicity of communities. Use of community radios, visual illustrations and information centers should be consideredinbothraisingawarenessandenablingtheir participation; and (b) mobilizing mass organizations (Lao Women's Union, Youth Organization, etc) and the CivilSocieties(NationalFrontofConstruction...)toplay amoreproactiveroleeitherbyintegratingenvironmental activitiesintheirongoingprogramsand/orundertaking targeted environmental programs that explain the dangers of over-exploiting natural resources to village communities. 62 POLICY RESPONSES AND REMAINING CHALLENGES Key-Issues Status Pressures/ Constraints Government Responses OVERALL DEVELOPMENT FRAMEWORK Development Decentralization Policy introduced Large group of the population GoL developed an integrated package 2000. currently depend and will of development & environmental 5th NSEDP for 2001-2005 being depend in the future on Lao protection policies. As such the GoL implemented. PDR natural resources. tries to balance economic development NGPES approved in 2004. and sustainable exploitation of natural Poverty Reduction Fund (PRF) resources. established in 2002. DEVELOPMENT L PDR INSTITUTIONAL SETTING OF AO Central STEAcreated in 1999 under PMO. Limited capacity and Strengthening of Human Resources Government Line Ministries have major resources. Development of implementing environmental mandates. Conflicting mandates and rules and regulations by sector (e.g. responsibilities. hydropower, roads, mining). Local 17 PSTEOs established in all Limited capacity in Provinces Strengthening of Human Resources. Governments Provinces/Special Zone. and Districts 1 MSTEO established in Vientiane Limited coordination and Capital City. Support from National 20 NPAestablished. Government. UDAAestablished in larger Urban Areas. Cross-Sectoral Three main coordinating Committees have limited Strengthening of capacity and roles. Coordination committees (i.e. NEC, WRCC, power over implementing LNMC). line ministries. Non- Mass organizations (LWY, LYU, - Continue Environmental Awareness Governmental LFNR) active in Environmental campaigns. Organizations Management. No formal Lao NGOs exist. Private Sector Involvement of Industrial sector Continued pressure on Increase environmental responsibilities slowly increasing the environment without of Industries and National Number and Capacity of national applying appropriate Consultants. consultants slowly increasing. mitigation measures. ENVIRONMENTAL PLANNINGAND ROTECTION P Environment 2004: NES, 2nd NEAP and 18 Action plan too ambiguous: Government attempts to address (general) PESAPs to be approved (8 PESAPS limited capacity and priority concerns first. are completed & approved by resources for implementation Further implementation of Provincial Government). and monitoring. Decentralization Policy. Water Resources 1998: WSSAP approved. Lack of coordination Establishment of WRCC in 1999. 1999: Draft `Policy on Water between water and land use, Establishment of Nam Ngum River Resources law'. environment, and sustainable Basin Committee in 2001. 2005: Hydropower sustainability development. Introduction of IWRM approach in policy Nam Ngum River Basin. Agriculture 1999: `Strategic Vision for the Levying financial resources from and Forestry Agriculture Sector until 2010' hydropower for protection purposes Resources 2001: `Agriculture and Forestry Sector Development Plan' `Forestry Strategy 2020'. Biodiversity 2003: Regulation on the Livelihoods of selected Strengthening of monitoring and `Management of NBCAs, Wildlife communities depend on enforcement at local levels. and Aquatic Animals'. forest products. Levying financial resources from 2004: Approval of the NBSAP. National and International hydropower for protection purposes. trade difficult to control. Education and 2003: National Strategy and Action Demand for environmental PSTEO operational budgets are mainly Awareness (EEA) Plan on EEA staff exceeds availability. for Awareness activities. Government emphasizes Insufficient distribution of NUoL introduces a BSc course on importance of Awareness information materials. Environment Science and Management campaigns. in 2004. 63 POLICY RESPONSES AND REMAINING CHALLENGES LEGAL FRAMEWORK Environment 1999: `Environmental Protection Law'. Complex institutional setup. Training of Local Governments. (General) 2000: `EIARegulation'. Conflicting provisions. EIAproject categories and monitoring 2001: `EPLImplementing Decree'. Environmental Quality system being developed. 2003: `National Guidelines on the Standards are lacking. Third Party Monitoring in the Hydro Lack of implementing Power and Transport Sectors' regulations. Water Resources 1996: Water and Water Resources Inadequate allocation of water Development of IWRM approach. Law. resources. Preparation of updated water quality Continued pollution of water standards. resources. Forest Resources 1993: Establishment of the NBCA Insufficient staff and resources Government discusses to levy (now NPA) system (currently 20 to operate and manage NPAs. environmental protection fees for NPAs). hydropower concessions (e.g. NT2). 1996: Forestry law. Biodiversity 1995: Official banning of Wildlife Complex to monitor & Seeking of international Support. trade. enforce. Introduction corridors between the 2004: Signing of CITES. Limited control over NPAs to increase area and improve 2005: Decree 39 establishes NT2 international trade. migration. Watershed and WMPA. Adequacy of the Administration and Resources Public Restricted budget for Environment. Insufficient resources Development of alternative funding Environmental 2005: Environment Protection Fund to properly implement mechanisms, including use of EPF to Expenditure created mandates. channel revenues from natural resource projects and environmental tariffs. Organizational Hierarchical Government structure. Insufficient coordination and Management training of higher staff. Operations Strong Sectoral approaches. delegation of responsibilities. Technical training of Lower staff. STEAhas still limited authority as Unclear mandates of Divisions Promotion of cross-sectoral compared to line ministries. and Centers. Bureaucratic and cooperation. formal requirement. Human Resources ± 250 `Environmental' staff at Central Government cannot attract Increase funding through Donor Development level sufficient competent staff. projects. ± 300 `Environmental' staff at local Limited professional Set-up of `Executive Secretariats' with levels. incentives financial and staffing independence Salaries insufficient. (e.g. NT2 WMPA). Adequacy of the Framework for Implementation Management and No general Environmental Quality General mismatch between Increase overall Environmental Protection Monitoring system in place. Policies and actual capacity. Management capacity. Limited number of NPAs operational. Roles and Responsibilities Focus on further delegation to and Limited capacity of local between central and local strengthening of Local Governments. Governments. government not always well Seek external support for defined. Environmental Quality Monitoring System. Instruments and Mainly `Command-and-Control' Reluctance to enforce Development of Environmental Quality Enforcement instruments. environmental protection. Standards. Lack of Environment Quality Risk of setting bad precedents. Promote Environmental Awareness Standards. Continued irreversible campaigns. Insufficient Implementing Rules and degradation of forests Seek possible introduction of Regulations. resources and wildlife. alternative instruments. Systematic enforcement not yet operational. Safeguards and Compliance Monitoring difficult to Lack of `good practice' Development of an EIAtracking Compliance implement. examples. database. Lack of practical skills. Create success stories of good practices. Environmental Limited cooperation with different Insufficient budget and NUoL introduces a BSc course on Education sectors. facilities. Environment Science and Management Insufficient teacher materials. Education focuses on Central in 2004. No formal environmental education level. in Lao PDR. 64 GLOSSARY Agricultural Land: Arable land and land for permanent crops and Permanent Pasture: Land used permanently for at least 5 years for permanent pastures. herbaceousforagecrops,eithercultivatedorgrowingwild(wildprairie AirQualityStandards:Thelevelofpollutantsprescribedbyregulations or grazing land). that are not to be exceeded during a given time in a defined area. PM10: Particulates smaller than 10 microns. Small particulates are of Arable Land: Land under temporary crops, temporary meadows for special concern because of their ability to penetrate deep into the lungs mowing or for pasture, land under market or kitchen gardens, and and cause major health impacts. land under temporary fallow. Excluded are lands abandoned because Pesticide: Substances or mixture thereof intended for preventing, of shifting cultivation. destroying, repelling, or mitigating any pest. Also, any substance or BiochemicalOxygenDemand(BOD):Theamountofoxygenconsumed mixture intended for use as a plant regulator, defoliant, or desiccant. inthebiologicalprocessesthatbreakdownorganicmatterinwater.The Pollutant: Generally, any substance introduced into the environment greater the BOD, the greater the degree of organic pollution. that adversely affects the usefulness of a resource or the health of Biodiversity: Refers to the variety and variability among living humans, animals, or ecosystems. organisms and the ecological complexes in which they occur. It Protected Areas: An area of land and/or sea especially dedicated to encompasses different ecosystems, species, and genes. the protection and maintenance of biological diversity, and of natural Carbon Monoxide: A colorless, odorless, poisonous gas produced by and associated cultural resources, and managed through legal or other incomplete fossil fuel combustion. effective means. Chlorofluorocarbons (CFCs): A family of inert, nontoxic, and easily ProductionForest:Productionforestsareforestandforestlandswhich liquefied chemicals used in refrigeration, air conditioning, packaging, have been separated to provided for the requirements of national insulation,orassolventsandaerosolpropellants.BecauseCFCsarenot socio-economic development and peoples' regular and continual daily destroyedintheloweratmospheretheydriftintotheupperatmosphere livingneedsintermsofwoodandforestderivedproductswhichdonot where their chlorine components destroy ozone. seriously affect the environment. Climate Change (also referred to as `global climate change'): Used to Protection Forest: Protected forest are forests and forest land which imply a significant change from one climatic condition to another. In are divided for the purpose of protecting water sources, preventing some cases, `climate change' has been used synonymously with the soil erosion, strategic areas for national defense, prevention of natural term, `global warming'; scientists however, tend to use the term in the disasters, the environment, etc. wider sense to also include natural changes in climate. Salinization/SalineIntrusion:Theinvasionoffreshsurfaceorground ConservationForest:Conservationforest(orforestreserves)areforests water by salt water. and forest lands for the purpose of protecting and preserving species Sewage: The waste and wastewater produced by residential and offloraandfauna,natureandotherpreciousthingsintermsofhistory, commercial sources and discharged into sewers. culture,tourism,theenvironment,educationandexperimentalscientific Soil Erosion: The wearing away of land surface by water, intensified research. by land-clearing practices related to farming, residential or industrial Dissolved Oxygen (DO): The oxygen freely available in water, vital to development, road building, or logging. fishandotheraquaticlifeandforthepreventionofodors.DOlevelsare SolidWaste:Non-liquid,non-solublematerialsrangingfrommunicipal consideredamostimportantindicatorofawaterbody'sabilitytosupport garbage to industrial wastes that contain complex and sometimes desirable aquatic life. Secondary and advanced waste treatment are hazardous substances. Solid wastes also include sewage sludge, generally designed to ensure adequate DO in waste-receiving waters. agricultural refuse, demolition wastes, and mining residues. Effluent:Wastewater--treatedoruntreated--thatflowsoutofatreatment Species: 1. A reproductively isolated aggregate of interbreeding plant,sewer,orindustrialoutfall.Generallyreferstowastesdischarged organisms having common attributes and usually designated by into surface waters. a common name.2. An organism belonging to belonging to such a Endangered Species: Animals, birds, fish, plants, or other living category. organisms threatened with extinction by anthropogenic (man-caused) Sulfur Dioxide: A heavy, pungent, colorless, gaseous air pollutant or other natural changes in their environment. formed primarily by processes involving fossil fuel combustion. Greenhouse Gas: A gas, such as carbon dioxide or methane, which Total Coliform Bacteria (TCB): A collection of relatively harmless contributes to potential climate change. microorganisms that live in large numbers in the intestines of man HazardousWaste:By-productsofsocietythatcanposeasubstantialor and warm- and cold-blooded animals. A specific subgroup of this potentialhazardtohumanhealthortheenvironmentwhenimproperly collection is the fecal coliform bacteria - whose presence in aquatic managed. environments indicates that the water has been contaminated with the Landfills: Sanitary landfills are disposal sites for non-hazardous solid fecal material. wastesspreadinlayers,compactedtothesmallestpracticalvolume,and Total Suspended Particles (TSP): A method of monitoring airborne covered by material applied at the end of each operating day. particulate matter by total weight. Nitrogen Dioxide (NO2) : The result of nitric oxide combining with WaterQualityStandards:Thestandardsprescribetheuseofthewater oxygen in the atmosphere; major component of photochemical smog. bodyandestablishthewaterqualitycriteriathatmustbemettoprotect Organic Pollution: Carbonaceous waste contained in plant or animal designated uses. matter and originating from domestic or industrial sources. Watershed: The land area that drains into a stream; the watershed for Ozone Depletion: Destruction of the stratospheric ozone layer which a major river may encompass a number of smaller watersheds that shields the earth from ultraviolet radiation harmful to life. This ultimately combine at a common point. destruction of ozone is caused by the breakdown of certain chlorine Wetlands : An area that is regularly saturated by surface water or and/orbrominecontainingcompounds(chlorofluorocarbonsorhalons), groundwater and is subsequently characterized by a prevalence of which break down when they reach the stratosphere and then destroy vegetationadaptedforlifeinsaturatedsoilconditions.Examplesinclude ozone molecules. swamps, marshes and estuaries. Particulates: Fine liquid or solid particles such as dust, smoke, mist, fumes, or smog, found in air or emissions. Sources : United States Environmental Protection Agency's "Terms of the PermanentCrops:landunderfloweringshrubs,fruittrees,nuttrees,and Environment", revised December 1997; FAOSTAT. vines(suchaslandforcoconut,banana,coffee,andrubberplantations), but not land with trees grown for wood or timber. 65 RELEVANT WEBSITE Organization Website address Description & Contents Asian Development www.adb.org Provides information on environment including environmental Bank (ADB) initiatives, manual, guidelines, assessment and publications. Details of ADB environmental projects in Lao PDR is also available. ADB Lao PDR www.adb.org/laopdr Japan International www.jica.go.jp Presents environmental information on global issues such as cleaner Cooperation Agency production and climate change. Details of JICAenvironmental projects (JICA) and each country profile on environment is also provided. JICALao PDR www.jica.go.jp/laos Mekong River www.mrcmekong.org Presents extensive information on sustainable development for Commission (MRC) Mekong river basin. Compile details of its work programs on water, flood, environment, capacity building, fisheries, agriculture, irrigation and forestry. Lao National Mekong www.lnmcmekong.org Committee (LNMC) Ministry of Agriculture www.maf.gov.la Compiles annual statistical data on agriculture in Lao PDR including and Forestry (MAF) crops, livestock, irrigation, meteorology and forestry. Nam Theun 2 www.namtheun2.com Provides extensive information on background, environmental, Hydroelectric Project technical, safeguard aspects of Nam Theun 2 hydroelectric project. (NT2) Online Support and www.laoshydrogeology.com The Online Support and Training Project for the groundwater sector Training Project for the of Lao PDR is presented by Norconsult International. The Laos Groundwater Sector of hydrogeology web site is intended for students, professionals and Lao PDR decision makers, and focuses on practical aspects of groundwater as a resource. The project is primarily aimed at conditions within the Lao PDR but would be applicable to large parts of the Mekong drainage basin with similar geological settings, and as a hydrogeological study in general. Science, Technology and www.stea.gov.la Presents information on environmental objectives, missions, plans, Environment Agency programs and key achievements of STEA. (STEA) United Nations www.undp.org Presents information on energy and environment related to sustainable Development Program development and global issue such as Global Environment Facility (UNDP) (GEF) and Montreal Protocol (MP). UNDP Lao PDR www.undplao.org United States www.usaep.org Provides links to recent development in environment and its own ­ Asia Environmental projects in region Partnership (US-AEP) United States www.epa.gov Provides information on all technical and legal aspects of environment. Environmental Environmental homepage for kids is also provided. Protection Agency (USEPA) Water Supply Authority www.wasa.gov.la Provides information about the urban water supply sector as it relates (WASA), DHUP, to WASA's role as fledgling regulator and the assistance it provides MCTPC to the government and Nam Papa's nationwide for benchmarking of services and tariff setting. World Bank www.worldbank.org/environment Presents detail information on environment including environmental strategies, indicators, regional and country information, capacity World Bank, Lao PDR www.worldbank.org/lao building, initiatives and all projects. Wildlife Conservation www.wcs.org Presents comprehensive information on wildlife around the world. Society (WCS) Also provide details of several programs such as hunting and wildlife www.wcs.org/sw-around_the_ trade, education and awareness, and conservation finance programs. WCS Lao PDR globe/Asia/laos World Conservation www.iucn.org Provides extensive information on environmental management Union (IUCN) including forest, protected areas, water and biodiversity conservation. Also present details of its work programs and publications. IUCN Lao PDR www.iucn.org/places/asia/lao.htm 66 LAO PDR AT A LANCE G Geography Economy/Society Area: GDP: purchasing power parity $12.29 billion (2005 est.) total: 236,800 sq km GDP growth rate: 7.3 percent (2005 est.) water: 6,000 sq km GDP - per capita: $460 (2005 est.) land: 230,800 sq km GDP - composition by sector: Land boundaries: agriculture: 45.5 percent total: 5,083 km industry: 28.7 percent border countries: Burma 235 km, Cambodia 541 km, China services: 25.8 percent (2005 est.) 423 km, Thailand 1,754 km, Vietnam 2,130 km Population below poverty line: 34 percent (2005 est.) Coastline: 0 km (landlocked) Inflation rate (consumer prices): 7 percent (2005 est.) Maritime claims: none (landlocked) Unemployment rate: 2.4 percent (2005 est.) Climate: tropical monsoon; rainy season (May to Gross Domestic Investment/GDP: 21.2 percent (2003 est.) November); dry season (December to April) Industrial production growth rate: 13 percent (2005 est.) Terrain: mostly rugged mountains; some plains and Agricultural production growth rate: 8.3 percent (2003 est.) plateaus Service sector growth rate: - 4.9 percent (2003 est.) Elevation extremes: Agriculture--products: sweet potatoes, vegetables, corn, coffee, lowest point: Mekong River 70 m sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, highest point: Phou Bia 2,817 m cattle, poultry Natural resources: timber, hydropower, gypsum, tin, Exports: total value: $660 million (2005 est.) gold, gemstones Imports: total value: $1200 million (2005 est.) Land use: Currency: kip (LAK) Arable land: 4.01 percent Exchange rates: kips per US dollar ­ 9,860 (November 2006) Permanent crops: 3.34 percent Population: 6,368,481 (July 2006 est.) other: 95.65 percent (2005) Population growth rate: 2.39 percent (2006 est.) Irrigated land: Birth rate: 35.49 births/1,000 population (2006 est.) rainy season irrigation ­ 310,170 ha; Death rate: 11.55 deaths/1,000 population (2006 est.) dry season irrigation ­ 214,832 ha (2003) Sex ratio: total population: 0.98 male(s)/female (2006 est.) Natural hazards: floods, droughts Infant mortality rate: 83.31 deaths/1,000 live births (2006 est.) Environment - current issues: unexploded ordnance; deforestation; soil erosion; a majority of the population Access to safe water (percent of population): 51 percent (2004) does not have access to potable water Access to sanitation (percent of population): 30 percent (2004) Environment - international agreements: Life expectancy at birth: 55.49 years (2006 est.) party to: Biodiversity, Climate Change, Kyoto Protocol, Total fertility rate: 4.68 children born/woman (2006 est.) Desertification, Endangered Species, Environmental Literacy (at age 15): total population: 52.8 percent (2003 est.) Modification, Law of the Sea, Ozone Layer Protection, Net primary enrollment: 76 percent (2000) Persistent Organic Pollutants National capital: Vientiane Administrative divisions: 16 provinces and Vientiane Capital City signed, but not ratified: none of the selected agreements Independence: 19 July 1949 Sources: The World Factbook, Central Intelligence Agency (CIA), ADB, UNDP and UNEP. Lao PDR Economic Monitor, World Bank, November 2006. 67 World Bank Country Office, Vientiane Patou Xay - Nehru Road Vientiane, Lao PDR Telephone: (856-21) 414-209 Facsimile: (856-21) 414-210 www.worldbank.org/lao Science Technology and Environment Agency Nahaidyo Road, P.O. Box: 2279, Vientiane, Lao PDR. Tel. Information Desk: (856-21) 217-706 Ext. 108 (856-21) 213-470 Ext. 108 Fax. Information Desk: (856-21) 213-472 www.stea.gov.la