Ministry of Industry and Commerce Department of Planning and Cooperation Foreign Aid Division (FAD)/ National Implementation Unit (NIU) Mainstreaming Aid for Trade – Key outputs and Highlights of the work plan TDF II Project Review Committee Meeting By Sodavanh SOUVANNAPHOUM, Deputy Director, NIU/DPC, MOIC November 16, 2016 Chair and co-chair; Representatives from TDF II co-financing donors; and Representatives from all the implementing agencies. As main coordinating body for the implementation of TDF II project and secretariat to PRC/PEC, and SWG, I would like to briefly go through major activities in two main areas of NIU’s responsibilities, namely trade mainstreaming and overall TDF II project administration .

Implementation support outline Work Plan Key outputs Policy dialogue Program formulation Capacity building Implementation support Under trade mainstreaming, I would like highlight key outputs in Trade and private sector development policy formulation and implementation, and provide an update on key progress for the implementation of sub projects funded through the DTIS Challenge Facility. Additionally, I would like highlight major outputs from all components of the TDF II and provide you with an overview of our status in areas of procurement and finance.

Policy Dialogue and Capacity Building Completed an analysis of, and strategy for, the rubber, cassava, maize, cattle sub-sectors; Organized two sector working group meetings: Non-tariff barriers and role of services in economic diversification; Value chains of key agricultural products; Trade facilitation and NTMs; Investment policy framework. Organized technical seminar on effective public policies in areas of industrial policy, trade liberalization, SME and Tourism Development; Reorganization of PPD structure and facilitation of PPD process (Government focal point). To prepare technical inputs into the sector development plan, a number of studies have been carried out under EIF Mainstreaming Support Facility and EIF Tier I. These include the following studies: Study on price controls, taxation measures, subsidies and general market interventions for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). The objective of the study is to assist the MOIC’s technical team in undertaking two reviews for the MoIC of the extant work concerned with price controls in the domestic market of Lao PDR. The focus of the two separate reviews was to provide document/reports which record the derived experience of many years of applied economics (price controls, taxation measures, subsidies and general market interventions), for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). Given the importance of the subject matter to the economy of Lao PDR, and the long run wellbeing of its people, this review is timely, of significance, and essential to further poverty reduction initiatives. An analysis of, and strategy for, the rubber, cassava, maize, cattle sub-sectors consistent with the M4P framework. This will include: 1) an analysis of the overall sub-sector performance and the position of the poor within it; 2) the structure, players and relationships that describe how it operates; 3) the key systemic constraints impinging on the sub-sector; 4) the main elements of a sub-sector strategy; and 5) specific interventions consistent with this analysis and strategy. Additionally, one technical seminar on public policies in areas of SME, tourism, industrial, and trade development was organized for senior level officials from all technical departments To continue developing capacity of different IAs, a number of project cycle management workshops, project financial management and procurement guidelines were delivered during the reporting period.

Program Formulation Supported formulation of new TRTA: JICA’s support to wood processing industry; GIZ’s new regional project – Support to initiative for ASEAN Integration; Additional Financing to TDF II; EU’s new support program; Restructuring of SME Access to Finance Project and others To prepare technical inputs into the sector development plan, a number of studies have been carried out under EIF Mainstreaming Support Facility and EIF Tier I. These include the following studies: Study on price controls, taxation measures, subsidies and general market interventions for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). The objective of the study is to assist the MOIC’s technical team in undertaking two reviews for the MoIC of the extant work concerned with price controls in the domestic market of Lao PDR. The focus of the two separate reviews was to provide document/reports which record the derived experience of many years of applied economics (price controls, taxation measures, subsidies and general market interventions), for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). Given the importance of the subject matter to the economy of Lao PDR, and the long run wellbeing of its people, this review is timely, of significance, and essential to further poverty reduction initiatives. An analysis of, and strategy for, the rubber, cassava, maize, cattle sub-sectors consistent with the M4P framework. This will include: 1) an analysis of the overall sub-sector performance and the position of the poor within it; 2) the structure, players and relationships that describe how it operates; 3) the key systemic constraints impinging on the sub-sector; 4) the main elements of a sub-sector strategy; and 5) specific interventions consistent with this analysis and strategy. Additionally, one technical seminar on public policies in areas of SME, tourism, industrial, and trade development was organized for senior level officials from all technical departments To continue developing capacity of different IAs, a number of project cycle management workshops, project financial management and procurement guidelines were delivered during the reporting period.

Program Implementation Support Main executing/coordinating body – overall project oversight and fiduciary funcntions for: TDF II; EIF Tier II; SME Access to Finance Project. Participating in the following governance structures: Chairing PRC for TDF II, EIF Tier II, RELATED/IAI projects; Project Advisory committees for Labor standards, BAF, Board of Directors for GSDC, and Research Panel. Capacity building workshops on project cycle management, fiduciary procedures To prepare technical inputs into the sector development plan, a number of studies have been carried out under EIF Mainstreaming Support Facility and EIF Tier I. These include the following studies: Study on price controls, taxation measures, subsidies and general market interventions for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). The objective of the study is to assist the MOIC’s technical team in undertaking two reviews for the MoIC of the extant work concerned with price controls in the domestic market of Lao PDR. The focus of the two separate reviews was to provide document/reports which record the derived experience of many years of applied economics (price controls, taxation measures, subsidies and general market interventions), for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). Given the importance of the subject matter to the economy of Lao PDR, and the long run wellbeing of its people, this review is timely, of significance, and essential to further poverty reduction initiatives. An analysis of, and strategy for, the rubber, cassava, maize, cattle sub-sectors consistent with the M4P framework. This will include: 1) an analysis of the overall sub-sector performance and the position of the poor within it; 2) the structure, players and relationships that describe how it operates; 3) the key systemic constraints impinging on the sub-sector; 4) the main elements of a sub-sector strategy; and 5) specific interventions consistent with this analysis and strategy. Additionally, one technical seminar on public policies in areas of SME, tourism, industrial, and trade development was organized for senior level officials from all technical departments To continue developing capacity of different IAs, a number of project cycle management workshops, project financial management and procurement guidelines were delivered during the reporting period.

DTIS Challenge Facility 08 proposals approved: 06 proposals closed; 02 ongoing: TA to strengthening PPD – Lao Business Forum; TA to developing regulatory framework for insurance sector In total US$776,000 committed with US$566,000 disbursed. To prepare technical inputs into the sector development plan, a number of studies have been carried out under EIF Mainstreaming Support Facility and EIF Tier I. These include the following studies: Study on price controls, taxation measures, subsidies and general market interventions for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). The objective of the study is to assist the MOIC’s technical team in undertaking two reviews for the MoIC of the extant work concerned with price controls in the domestic market of Lao PDR. The focus of the two separate reviews was to provide document/reports which record the derived experience of many years of applied economics (price controls, taxation measures, subsidies and general market interventions), for two key areas of Lao PDR’s economy: the agribusiness sector (rice), and the energy sector (fuel oil). Given the importance of the subject matter to the economy of Lao PDR, and the long run wellbeing of its people, this review is timely, of significance, and essential to further poverty reduction initiatives. An analysis of, and strategy for, the rubber, cassava, maize, cattle sub-sectors consistent with the M4P framework. This will include: 1) an analysis of the overall sub-sector performance and the position of the poor within it; 2) the structure, players and relationships that describe how it operates; 3) the key systemic constraints impinging on the sub-sector; 4) the main elements of a sub-sector strategy; and 5) specific interventions consistent with this analysis and strategy. Additionally, one technical seminar on public policies in areas of SME, tourism, industrial, and trade development was organized for senior level officials from all technical departments To continue developing capacity of different IAs, a number of project cycle management workshops, project financial management and procurement guidelines were delivered during the reporting period.

Summary of Expenditures Against Budget As we can see from this table, commitment and disbursement rates very among components and sub-components. Overall commitment rate for component A, B, and C are: 60%, 97%, and 74% respectively. Overall project commitment as of March 2016 was 75%. This indicates that over the next few months, all implementing agencies are required to fully program their activities and accelerate the implementation of approved activities to make sure key project outputs/outcomes are achieved by the end of the project.

Cumulative Disbursements, including DA Balances As of November 03, 2016 No. Currency Allocations Disbursements % of disbursement Undisbursed amounts IDA XDR 2,600,000 1,957,475 75% 642,525 TF US$ 9,900,000 6,707,451 68% 3,192,549 As we can see from this table, commitment and disbursement rates very among components and sub-components. Overall commitment rate for component A, B, and C are: 60%, 97%, and 74% respectively. Overall project commitment as of March 2016 was 75%. This indicates that over the next few months, all implementing agencies are required to fully program their activities and accelerate the implementation of approved activities to make sure key project outputs/outcomes are achieved by the end of the project.

Work plan for FY 2017 - Key highlights Regular policy dialogue – two sector working group meetings and RTM; Facilitate constructive dialogue under LBF – Government Focal Point; Program formulation: Finalization of concept for the next phase of TRTA (multi-donor trust fund, EIF, Bilateral Programs) Program implementation support for TDF II, EIF Tier II, SME Access to Finance Project; Regular PRC and PEC meetings; Capacity building in Project Cycle Management and Public Policy and PSD; Fully commit CF fund by June 2017. As we can see from this table, commitment and disbursement rates very among components and sub-components. Overall commitment rate for component A, B, and C are: 60%, 97%, and 74% respectively. Overall project commitment as of March 2016 was 75%. This indicates that over the next few months, all implementing agencies are required to fully program their activities and accelerate the implementation of approved activities to make sure key project outputs/outcomes are achieved by the end of the project.

Thank You Ministry of Industry and Commerce Department of Planning and Cooperation Foreign Aid Division (FAD)/ National Implementation Unit (NIU) Thank You This brings to the conclusion of my presentation. I am happy to address any questions/ issues you may have. Thank you for your attention.