Lao PDR Area: total: 236,800 sq km Population: 5.6 million GDP - per capita: purchasing power parity - $1,900 GDP - composition by sector: agriculture: 49.5% / industry: 27.5% / services: 23% Labor force - by occupation: agriculture 80% Industries: gold, tin and gypsum mining, timber, electric power, agricultural processing, construction, garments, tourism

Revising the regulations on project approval for EIA in Lao PDR Somphath SOUVANNAVONG, CPI, Lao PDR Vivath SAUVALY, Enterprise Development Consultants Co. Ltd., Lao PDR Akiko Urago, IC Net Limited, Japan

Table of Contents 1. Background of EIA in Lao PDR 2. Why EIA is not fully applied to public investment projects in Lao PDR? 3. The actions CPI has been taken 4. Lessons Learned

1. Background of EIA in Lao PDR Regulation on EIA (1770/STEA.PMO, Oct. 2000) defines general principles for impact assessment at project level All infrastructure donor projects have prepared EIA reports Most of domestic projects have been approved without EIA

2. Why EIA is not fully applied to public investment projects in Lao PDR? CPI and DPI who are in charge of approval of domestic projects, are not familiar with EIA process. The regulation on public investment No. 918 defines the procedure of domestic projects’ approval and environment considerations, but does not specifically mention EIA. EIA regulation is less effective than a decree.

2-1. Approval without EIA ProposalEIS Approval Certificate Start Project ProposalEIS Approval Certificate Start Project Project Owner STEA CPI Donor projectsDomestic projects Project Owner

3. The actions CPI has been taken Preparation of a new approval procedure and a handbook Environmental training for CPI and DPI, central and provincial government officials Revision of Regulation on public investment No. 918

3-1 Proposed work flow

3-2 Proposed budget request format

3-3 Proposed Regulation Articles Article 15 Total Project Costs: Total project costs shall be adjusted for unexpected environmental impact. Article 20 Preparation, Management and Evaluation Costs: EIA cost must be considered for getting approval for the annual budget based on the quotation proposed by the environmental impact assessor.

3-4 Proposed Regulation Articles Articles 22: Procedures for Public Investment Project Implementation: The Project Owner must obtain an environmental certificate issued by STEA. Article 25: Requirements for Securing the Public Investment Project The projects without an environmental certificate will not be approved.

4. Lessons Learned EIA law is strengthened by approval law. Without changing the procedure of project approval, EIA will not work.

Thank you very much.