Technical Assistance Report Project number: 42032-01 Capacity Development Technical Assistance (CDTA) November 2008

Lao People’s Democratic Republic: Building Lao PDR’s Capacity to Develop Special Economic Zones

CURRENCY EQUIVALENTS (as of 21 October 2008)

Currency Unit – Kip (KN)

KN1.00 = $0.00001 $1.00 = KN8,600

ABBREVIATIONS

ADB – Asian Development Bank ASEAN – Association of Southeast Asian Nations GMS – Greater Mekong Subregion LDC – least developed country MPI – Ministry of Planning and Investment MOIC – Ministry of Industry and Commerce PMO – prime minister’s office PSC – project steering committee SEDP6 – Sixth National Social and Economic Development Plan SEZ – special economic zone SEZA – special economic zone authority SWOT – strengths, weaknesses, opportunities, and threats UNIDO – United Nations Industrial Development Organization WTO – World Trade Organization

TECHNICAL ASSISTANCE CLASSIFICATION

Type – Capacity Development Technical Assistance (CDTA) Targeting Classification

– General intervention

Sector – Law, economic management, private sector development Subsector – Economic management Themes – Sustainable economic growth, regional cooperation, capacity

development Subtheme – Promoting economic efficiency and private sector development

NOTE

In this report, "$" refers to US dollars.

Vice-President C. Lawrence Greenwood, Jr., Operations Group 2 Director General A. Thapan, Southeast Asia Department (SERD) Directors G.H. Kim, Country Director, Lao Resident Mission (LRM), SERD Team leader C. T. Hnanguie, Country Economist, LRM, SERD Team members1 M. Thant, Principal Economist, Regional and Sustainable Development

Department J. Hakim, Urban Sector Specialist, SERD P. Jena, Governance Specialist, SERD

1 The TA report was prepared in association with the United Nations Industrial Development Organization, led by

Ricardo Seidl Da Fonseca, Senior Industrial Development Officer.

I. INTRODUCTION 1. The Government of Lao People’s Democratic Republic (Lao PDR) considers the private sector as the engine of growth and industrial development. A main objective of the country’s private sector and industrial development efforts is to attract sustainable foreign and local investments. Building upon its small and medium enterprises (SME) strategy and investment laws and regulations, the Government seeks to establish special economic zones (SEZs)1 to mobilize substantive foreign and domestic investments in non-resource-based sectors. The Government recognizes that by offering the necessary infrastructure and services in strategic geographic areas for manufacturing and industry, SEZs can attract foreign investment, spur employment, boost the development of new technologies, diversify the economic base, and enhance entrepreneurial and technical capacities. 2. The Government requested the United Nations Industrial Development Organization (UNIDO) and the Asian Development Bank (ADB) for technical assistance (TA) to develop its SEZ in September 2007. This TA paper was developed by a team from the Special Economic Zone Authority (SEZA) of the prime minister’s office of Lao PDR, ADB Lao Resident Mission and UNIDO. The TA’s project design and monitoring framework is in Appendix 1.2

II. ISSUES 3. In light of the recent trends in global foreign direct investment (FDI), attracting and promoting FDI is a highly competitive venture (particularly among least developed countries), with countries, provinces, municipalities, special economic areas, and other actors often competing for the same FDI market. As Lao PDR is in transition from a landlocked to a land-linked country, it is facing a number of challenges in attracting FDI for industrial manufacturing, assembling, and processing operations. Despite its efforts to attract foreign and local investment for manufacturing industry, the results have been limited. The country’s location, underdeveloped infrastructure, and weak technical and human resource capacity are among the hurdles for investors. The development of SEZs is expected to offer a competitive environment for investors with the provision of land, basic infrastructure and facilities, and an adequate legal and regulatory framework. 4. The rapid growth of SEZs over the past three decades in many countries has been made possible by necessary reforms. In developing countries, one of the success stories of SEZ operation is the Shenzhen SEZ in the People’s Republic of China. Other successful endeavors operate in Brazil, Iran, Jordan, Kazakhstan, Pakistan, Poland, Russian Federation, Senegal, and Ukraine. Bangladesh and India’s experiences have been mixed. In Asia, the growth of SEZs has been significant, jumping from about 95 in 1997 to about 135 in 2007, generating a total of about $20 billion in exports and directly creating about 10 million jobs. Specific types and approaches of SEZs have also evolved over the past two decades in East Asia, with some successful examples in Indonesia, Malaysia, Philippines, Thailand, and Viet Nam. In addition, Cambodia is developing the Sihanoukville SEZ. Experiences in the region show that a well-designed and managed SEZ can have a significant impact on a country’s economic growth and development, including creating jobs, improving technologies, and building technical and human capacities.

1 SEZs are delimited geographic locations where basic infrastructure is provided for industrial plants and facilities, and

special provisions, including legislative and financial benefits, are accorded to firms (usually foreign) to attract capital investments in these selected locations. SEZs vary in types and include export processing zones, free ports, free trade zones, industrial estates, technology parks, and urban enterprises zones.

2 The TA first appeared in the business opportunities section of ADB’s website on 3 April 2008.

2

5. The establishment and implementation of an appropriate framework based on good practices and standards is critical. While there is a temptation to attract investment by offering special financial incentives rather than building underlying competitive conditions, it should be noted that these approaches have the potential to distort national fiscal policy and hurt environmental and labor standards. An SEZ initiative should be structured to include incentives that are consistent with an overall strategy to promote private sector-led growth and adequately address labor, social, and environmental safeguards. 6. Regional good practices and lessons learned suggest that SEZ development in Lao PDR could help promote private investment-led economic growth and accelerate the implementation of the Government’s reform agenda. To attain these goals, SEZ development should be part of the Government’s comprehensive nationwide reform program and its success would be a test-case for liberalizing reforms and the development of best practices in promoting foreign investments nationwide. A cross-country review of SEZ experiences would help Lao PDR to adopt the most appropriate approach to its own situation. 7. The Government of Lao PDR introduced the SEZ initiative in 2003 with the adoption of the prime minister’s consolidated decrees on the Savan–Seno SEZ, located along the East–West Economic Corridor. The 2003 decrees provided an overall framework for establishing and managing SEZs, while taking into account the importance of the private sector and the need to enhance foreign investment, promote exports, and develop the strategic subregional economic corridors. However, the decrees did not provide the adequate legal and regulatory framework for SEZ development. 8. Notwithstanding the Government’s strong commitment to SEZ, the progress achieved so far has been minimal and opportunities are being missed due to suboptimal investment inflows. Key challenges facing Lao PDR in moving its SEZ initiatives forward include: (i) the lack of a national strategic road map for guiding the country to pursue SEZ development; (ii) an unclear institutional framework among central agencies and between central and provincial authorities; (iii) a weak legal framework and the absence of regulatory guidelines; (iv) insufficient technically-qualified officials for SEZ management, investment analyses, and negotiations with investors; and (v) the absence of information dissemination and SEZ promotion targeting potential investors and beneficiaries. Recent assessments3 suggest that while SEZ development in Lao PDR is viable, the current SEZ infrastructure arrangements and human resource capacities are not sufficient to achieve the desired results. Lessons from a number of ADB’s private sector interventions in trade and investment enhancement in Lao PDR and in the Greater Mekong Subregion (GMS)4 demonstrate the importance of a clear strategic direction, legal framework, and institutional regulations to guide activities that will ensure sustained trade and investment flows.5

3 See Industrial Estate Authority of Thailand. 2006. The Feasibility Study on the Establishment of Savan-Seno Special

Economic Zone in PDR. Bangkok: Industrial Estate Authority of Thailand; and Ministry of Economy, Trade and Industry of Japan, and the Japan Development Institute. 2007. The Study for Special Economic Zone Development in CLMV (Cambodia, Lao People’s Democratic Republic, Myanmar, Viet Nam) Countries. Tokyo: Japan Development Institute.

4 ADB. 2005. Technical Assistance Completion Report for the Greater Mekong Subregion on Promoting Subregional Cooperation among Cambodia, People’s Republic of China, Lao People’s Democratic Republic, Myanmar, Thailand and Viet Nam (Phase IV-Year 1). Manila; and ADB. 2002. Impact Evaluation Study of the Asian Development Bank’s Program of Subregional Economic Cooperation in the Greater Mekong Subregion. Manila.

5 These challenges will be even more compelling in the coming years as regional economic integration expands and investment opportunities gain momentum in Southeast Asia. Lao PDR will need to deploy officials with relevant knowledge and skills; strengthen policy and legal and institutional arrangements for investment; and organize an operational and well-equipped resource information center to be able to respond quickly and effectively to emerging opportunities and challenges. In addition, a strategic road map will need to be formulated to guide investments to Lao

3

9. The Government is committed to addressing key challenges at the highest level, as was evident by the deputy prime minister’s statement at the Lao business symposium in February 2008 and the planning and investment minister’s statement at the GMS business forum in March 2008. To enable the Government to meet its commitment, it is critically important to strengthen policy, legal, institutional, and human resource capacities to develop, manage, negotiate, and promote SEZs. 10. To realize its SEZ objectives, the Government requested ADB and UNIDO to assist Lao PDR in establishing the fundamentals for developing SEZs. ADB’s country strategy and program for Lao PDR, 2007–20116 specifies sustainable economic growth through private sector development and regional cooperation as core areas of ADB support. In line with the Government’s small and medium-sized enterprise (SME) strategy, ADB approved its private sector development program for Lao PDR in 2007. UNIDO’s Integrated Programme Phase II (2004–2008) stipulates that the focus of private sector-led development should be on strengthening local capacities in Lao PDR. UNIDO has provided assistance to many of its member countries in developing and implementing SEZs. In cooperation with ADB, UNIDO’s global experience will be used for providing the knowledge and good practices of SEZ development in Lao PDR. Close collaboration with other development partners—including Japan, the International Finance Corporation, and the chambers of commerce and industries of neighboring countries—will also be fostered.

III. THE TECHNICAL ASSISTANCE

A. Impact and Outcome

11. The objective of the TA is to support Lao PDR to increase private investments that will help sustain the current high levels of economic growth. The intended outcome of the TA is enhanced national capacity to develop, manage, negotiate, and promote SEZs in Lao PDR. The TA will be a critical precursor to Lao PDR’s future SEZ development. The main outputs will include the following: (i) improved policy, legal and regulatory framework for SEZ; (ii) improved SEZ management and institutional capacity; (iii) target production-chain business opportunities identified; and (iv) an investment promotion network established and promotional activities conducted. The key results of the TA’s core activities and outputs are outlined in Appendix 1. B. Methodology and Key Activities

12. The TA formulation process adopted a participatory approach, including an extensive consultative process within ADB and among the prime minister’s office, Ministry of Industry and Commerce (MOIC), Ministry of Planning and Investment (MPI), Office of the Governor of Savannakhet province, UNIDO, other development partners, potential investors, and sectoral and provincial focal points and businesses. This collaborative arrangement is expected to continue during project implementation to foster strong client ownership, and will also provide learning-by-doing opportunities for government counterpart staff.

13. TA implementation will be in two phases—the first phase will undertake a strengths, weaknesses, opportunities and threats (SWOT) analysis on the feasibility of SEZs in Lao PDR. The SWOT analysis will include a review of the economic viability of SEZs in Lao PDR and will

PDR. This road map will help in planning priorities, optimizing investment benefits, and in the sequencing of legal and policy reforms needed to open up markets in support of multilateral and bilateral commitments.

6 ADB. 2006. Country Strategy and Program (2007–2011). Lao People’s Democratic Republic. Manila (endorsed by ADB’s Board of Directors in October).

4

explore whether or not SEZs are an appropriate option. It will also assess the current policy, legal, and institutional arrangements; human resource capacity; and coordination arrangements for investments; and will determine the strengths and weaknesses of the existing framework. Implementation of other TA activities will depend on the outcomes of the strengths, weaknesses, opportunities, and threats analysis, and on consultations with stakeholders through a workshop. 14. A national workshop will be convened to deliberate on the findings of the SWOT analysis and to determine whether or not to proceed with other activities of the TA. Should there be consensus to pursue other TA activities; the next phase of the TA will include the drafting of a national SEZ strategic road map to be prepared in alignment with the national SME development program and relevant GMS trade and investment operations. The roadmap will set out how Lao PDR can maximize socioeconomic development through the efficient establishment of SEZ activities and programs. The national SEZ road map will support the implementation of the SEDP6 and subsequent national and subregional development efforts. Draft SEZ guidelines will be prepared on how the SEZA will coordinate with investors, developers, businesses, and intergovernmental focal points at the central and provincial levels; and with chambers of commerce, and investment focal points of other countries. The SEZ guidelines will outline the proposed procedures, roles, responsibilities, and accountability mechanisms that will serve as Lao PDR’s management, promotion, and negotiation operational manual for SEZ development. 15. The TA will also assist in planning and establishing the SEZ resource center in SEZA. This will include providing office furniture and fixtures, computer equipment, assistance for the cataloguing of SEZ documentation; and establishing databases and a website for the SEZ. When the resource center has been equipped with facilities and the SEZ guidelines have been prepared, an electronic network system will be established in SEZA. The electronic network will be linked to the SEZ guidelines and will serve as its operating system and as a peer learning network in cooperation with neighboring countries. 16. Capacity-building programs will be implemented based on needs assessment. It will focus on the skills development necessary to effectively implement the Lao PDR’s strategic SEZ road map and operational guidelines. Other capacity-building activities will include tailor-made computer and English language training programs, website uploading and maintenance, electronic networking, cataloguing and information management, and key investment related issues. 17. The TA will have eight main activities, including: (i) stocktaking of strengths, weaknesses, opportunities, and threats with respect to the feasibility of SEZs for Lao PDR, and assessing the existing SEZ-related policies, and legal, regulatory, and institutional collaboration arrangements; (ii) arranging workshops and seminars to discuss lessons from neighboring countries and the most appropriate approach for Lao PDR; (iii) preparing a results-oriented national SEZ road map to outline a clear medium-term SEZ strategy and implementation plan, in consultation with key stakeholders, including the private sector and development partners; (iv) reviewing the prime minister’s decrees on SEZ and related laws, and drafting a SEZ law; (v) developing a set of SEZ operational guidelines and manuals that outline a step-by-step process on the management, negotiation, and promotion of SEZs; (vi) assessing the institutional and human resource capacities for SEZ and developing a comprehensive institutional and human resource capacity-building program; (vii) identifying potential investment areas and investors based on production chain analysis and labor market surveys, and supporting promotional activities, as appropriate; and (viii) providing on-the-job training to Government officials on how to develop, manage, and promote SEZs; conduct investment analyses; and effectively negotiate with potential investors.

5

C. Cost and Financing

18. The total cost of the TA is estimated to be $950,000 equivalent. The TA will be supported by parallel cofinancing from ADB’s Technical Assistance Special Fund ($700,000) and UNIDO ($150,000) to cover foreign and local currency costs, and by the Government ($100,000 equivalent) through in-kind assistance to cover office accommodation, counterpart staff, administrative and logistic support, and other required services. The TA cost estimate and financing plan is in Appendix 2. The use of TA funds will finance the items outlined in Appendix 2, with both ADB and UNIDO financing the items outlined using their own arrangements and guidelines. D. Implementation Arrangements

19. TA implementation will be in two phases—the first phase will include a diagnostic assessment of the feasibility of SEZs in Lao PDR. Phase 2 will depend on the findings of phase 1. The TA will be implemented over 24 months from March 2009 to March 2011, and will require the services of a consulting firm to provide: (i) a total of 16 person-months of international consultancy services (intermittent basis) in the areas of SEZ economics, strategy and policy development, and project financing for public-private partnerships; SEZ legal issues, operational manual preparation, and investment promotion and training; and (ii) a total of 62 person-months of national consultancy services for SEZ law, strategy and policy review; SEZ resource center, information technology systems development; surveys and promotion activities; SEZ operational manual preparation, and training; and project coordination. The consultants’ outline terms of reference are in Appendix 3. The consultants will be engaged by UNIDO and ADB in accordance with their respective guidelines on the use of consultants and other arrangements satisfactory to both organizations. UNIDO will engage individual consultants for resource persons for workshops, seminars, conferences, surveys and assessments. ADB’s engagement of consultants will be in accordance with ADB’s Guidelines on the Use of Consultants (2007 as amended from time to time). The consultant team leader under the guidance of ADB and UNIDO will prepare and submit (i) an inception report within 2 weeks of the start of the TA; (ii) a SWOT analysis report within 3 months after the TA’s commencement; (iii) a midterm report 12 months after the TA’s commencement; (iv) activity completion reports at assignment completion, including review and discussion papers; and (v) a final report at project completion, in addition to various review and discussion papers, as appropriate. 20. Equipment and materials to be financed by the TA will be procured using the shopping method, and in accordance with the respective guidelines of UNIDO and ADB. ADB-financed procurement will be in accordance with ADB’s Procurement Guidelines (2007 as amended from time to time). At the end of the TA, the procured equipment will belong to the relevant government agency using it. 21. The SEZA of the prime minister’s office will be the executing agency. As the TA involves various ministries and agencies, a project steering committee will provide overall guidance for TA implementation and issue the appropriate directives and decisions. The project steering committee will be chaired by the minister responsible for economy and industry at the prime minister’s office and comprise the vice governor of Savannakhet province, governor of SEZA, and representatives from the department of industry of MOIC, department of domestic and foreign investment of MPI, and the concerned staff of UNIDO and ADB. The project steering committee will meet every 8 months (or as needed) starting from project inception. The vice governor of SEZA will be the project director and will function as the secretary for the project steering committee. SEZA management team, ADB, and UNIDO project task managers will implement the project in collaboration with the Savannakhet provincial planning and investment department,

6

chamber of commerce, and utility providers. A project coordinator will be located at the SEZA to organize and supervise the daily activities of the TA. 22. UNIDO, with the support from its offices in Bangkok and Vientiane, and the ADB Lao Resident Mission will jointly oversee project implementation and conduct quarterly reviews in close collaboration with SEZA, MOIC, MPI, and the prime minister’s office and Office of the Governor of Savannakhet province. Besides providing financial support, UNIDO and ADB will also provide the technical and managerial expertise to support project implementation, through its own staff and external experts. As a joint endeavor between UNIDO and ADB, implementation arrangements may be adjusted to facilitate implementation as and where appropriate. Monitoring of the implementation progress and TA outcomes will be carried out through periodic reviews of TA activities as per the TA framework in Appendix 1.

IV. THE PRESIDENT'S DECISION

23. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $700,000 on a grant basis to the Government of the Lao People’s Democratic Republic for Building Lao PDR’s Capacity to Develop Special Economic Zones, and hereby reports this action to the Board.

7

DESIGN AND MONITORING FRAMEWORK

Design

Summary

Performance Targets/Indicators

Data Sources/Reporting

Mechanisms

Assumptions and

Potential Risks Impact Increased private investments for economic growth

By end of 2015, the Sixth Five Year Socio-economic Development Plan, 2006–2010 (SEDP6) and small and medium-sized business (SME) goals attained: • GDP growth at 7–8% per year • Industry and construction sector

(including infrastructure and mining) comprising 50% of GDP; up from 32% in 2006

• Foreign direct investment (FDI) to the Lao People’s Democratic Republic (Lao PDR) to reach $1 billion from the $500 million in 2006

SEDP6 review reports SME strategy review reports International financial institutions (IFIs) economic review reports FDI tracking system

Assumption • Macroeconomic

stability, and resources export boom continues

Risks • External environment

deteriorates, increasing stress on fiscal policy

• Decline in political commitment to private sector development

Outcome

Enhanced national capacity to develop, manage, negotiate, and promote special economic zone (SEZs)

By end of 2011: • First SEZ for Lao PDR developed and

operational • FDI baseline of $200 million in

investments in SEZ attained • Legislation provides incentives to

potential SEZ financiers and developers

SEDP6 review reports Asian Development Bank (ADB) SME strategy review reports IFIs economic review reports

Assumption • Strong political will and

bureaucratic commitment at the highest level

Risk • Political will and

bureaucratic commitment at the highest level may not be sustained to realize the envisaged outcomes

Outputs 1. Improved policy, legal, regulatory, and financial framework

By early 2011: • SEZ strategic road map for Lao PDR

prepared and adopted by Government

• Law on Lao PDR’s SEZ drafted and submitted for Government adoption

• SEZ operational guidelines and manual for Lao PDR prepared and adopted by Government

• Public-private partnerships and project financing schemes for SEZ prepared

Project review reports Activity completion reports

Assumptions • Line ministries and

agencies remain committed to implement the SEZ policy, strategy, and operational guidelines

• Resources are well targeted to identified priority areas at sustainable levels

• Allocation of public sector resources to support SEZ development within fiscal year (FY) 2009

2. Qualified and sufficient personnel to develop and manage SEZs

• Training on SEZ development, management, negotiation, and promotion

• Special Economic Zone Authority (SEZA) conducts pilot implementation

Risk • Weak interagency coordination

8

Design

Summary

Performance Targets/Indicators

Data Sources/Reporting

Mechanisms

Assumptions and

Potential Risks of one-stop-shop dealing with various business support services, including standardization, quality assurance, and certification

• Training on production chain studies and targeted investment promotion.

• Information technology (IT)systems installed and SEZ information resource center established

3. Target production chain business opportunities identified

• SEZA carries out production chain studies and develops implementation strategy for the promotion of selected projects (e.g., agro-food and wood processing)

4. Investment promotion network established and promotional activities conducted

• Increased investor awareness and partnerships forged

• Potential investors and partnership arrangements identified

• Investment promotion campaign and road show conducted

5. Project management system operational

• Project steering committee established

• Project management and implementation team established

• Project coordinator’s post established

• ADB and United Nations Industrial Development Organization (UNIDO) administrative and working arrangements confirmed

Activities with Milestones A. Core TA Activities and Milestones Phase 1 1.1. Conduct a strengths, weaknesses, opportunities, and

threats (SWOT) review and analysis of the existing SEZ-related policy, legal, regulatory, financial and institutional arrangements, including environment, land, and resettlement safeguard standards, and regional best practices. Comparative cost benefits analysis of SEZ in the region (within 2 months of project inception).

1.2. Convene a stakeholder’s workshop in Vientiane to deliberate on the outcomes of the SWOT analysis and take a decision as to whether or not to proceed with other activities of the TA (within 3 weeks after the analysis has been circulated to stakeholders).

Phase 2 1.3. Review the prime minister’s decrees on SEZ and related

laws and draft a SEZ law that takes into account incentives as well as safeguards (within 4 weeks after decision to proceed with phase 2 has been taken)

Inputs A. Asian Development Bank Financing, $700,000 1. Consultants

a. Remuneration and per diem i. International consultants (16 person- months) $330,000 ii. National consultants (62 person- months) $180,000 b. International and local travels $50,000 c. Workshops/reports/communications $10,000

2. Equipment $70,000 3. Contingencies and support costs $60,000 B. United Nations Industrial Development Organization Financing, $150,000 1. Workshops, seminars, conferences and

resource persons a. Workshops, seminars, conferences $50,000 b. Resource persons $30,000

2. Surveys and assessments $30,000 3. Promotional activities $30,000 4. Contingencies $10,000

9

Activities with Milestones

Inputs 1.4 Prepare proposal to use public-private partnerships and

innovative project finance schemes for SEZ development (within 2 months after decision to proceed with phase 2 has been taken).

1.5. Prepare a report (in both Lao and English) based on regional best practices that outlines a results-oriented national strategic SEZ road map on how Lao PDR will sustain and optimize economic growth through SEZ over the medium to long term. The road map will take into account recommendations of the strengths, weaknesses, opportunities, and threats report, regional best practices; and evaluate the current and forecasted SEZ issues and trends in its formulation, in consultation with key stakeholders including the private sector and development partners (within 4 months after decision to proceed with phase 2 has been taken).

1.6. Consult with stakeholders through a workshop on the SEZ strategic road map (within 3 months after decision to proceed with phase 2 has been taken).

1.7. Based on the review report and taking into account regional best practices, prepare the draft national SEZ law and translated into Lao (within 4 months after decision to proceed with phase 2 has been taken).

1.8. Consult with stakeholders through workshops on the draft national SEZ law (within 6 months after decision to proceed with phase 2 has been taken).

1.9. Government consideration of the draft national SEZ law (within 12 months after decision to proceed with phase 2 has been taken)

1.10. Prepare the draft SEZ operational guidelines and manuals (in both English and Lao), based on the SWOT analysis, and regional best practices and the draft SEZ law, that outlines the detailed step-by-step process guide on how to develop and analyze investments, and manage, negotiate, and promote SEZs, e.g., an inter-ministerial and investor-developer-government coordination mechanism with specific focal points (within 14 months after decision to proceed with phase 2 has been taken).

1.11. Consult with stakeholders through a workshop on the draft SEZ operational guidelines and manuals (within 13 months after decision to proceed with phase 2 has been taken).

1.12. Prime ministerial decision to adopt the SEZ strategic road map (within 6 months of project inception) and the SEZ operational guidelines and manuals to serve as the basic tool for SEZ operationalization in Lao PDR (within 16 months after decision to proceed with phase 2 has been taken).

2.1. Assess human and institutional resource capacity needs for

SEZ and outline a comprehensive capacity-building program specifying a detailed implementation plan and using a phased approach (within 2 weeks from the acceptance of the SWOT analysis report).

2.2. Arrange workshop to discuss the diagnostic analyses and lessons from the experience of neighboring countries, and the appropriate approach for Lao PDR, including trend analysis on the future of SEZs in the region (within 8 weeks after decision to proceed with phase 2 has been taken).

C. Government of Lao PDR Financing, $100,000 (for project office, counterpart staff, counterpart staff travel and operational expense, administrative services, facilitation for meetings, participation in consultant selection and tripartite meetings)

10

Activities with Milestones

Inputs

2.3. Conduct awareness seminars and workshops on the SEZ

operational guidelines (within 2 weeks of the adoption of the SEZ operational guidelines and manuals).

2.4 Training modules developed and training conducted on the procedural use and the roles of each sectoral focal point on the use of the SEZ operational guidelines and manuals (within 2 weeks of the SEZ operational guidelines and manuals’ adoption);

2.5. Provide on-the-job training for SEZ staff and related officials on concepts and methods of SEZ negotiation, promotion, and investment analysis; how to develop, manage, and promote SEZs; and how to carry out investment analyses and effectively negotiate with potential investors; (starting within 2 weeks of the SEZ operational guidelines and manuals adoption for 3 months).

2.6. Establish the SEZ information resource center in SEZA and equip it with an IT system, website, database, cataloguing systems, computers, and related equipment (starting within 5 months after decision to proceed with phase 2 has been taken for 10 months).

2.7. Prepare the training modules and delivery of training on the use of the SEZ IT system, catalogue, database and other tailor-made programs based on needs (including English language, computer use, and SEZ website use, especially information uploading) for SEZ staff and relevant government and business agencies (within 6 months after decision to proceed with phase 2 has been taken).

2.8. Conduct training on production chains analysis for target investment promotion (within 12 months after decision to proceed with phase 2 has been taken).

2.9. Support the establishment of a one-stop shop for SEZ in Lao PDR (within 1 month after the adoption of the SEZ operational guidelines).

3.1. Identify selected production chains, including agro- and

wood-based chains, for industrial and investment promotion assistance (within 14 months after decision to proceed with phase 2 has been taken).

3.2. Identify potential investment areas and potential investors based on production chain analysis and labor market survey (within 20 months after decision to proceed with phase 2 has been taken).

4.1. Develop and implement investment promotional activities

(within 20 months after decision to proceed with phase 2 has been taken for 4 months).

4.2. Prepare an investors catalogue for target promotion of selected production chains and make publicly available (within 20 months after decision to proceed with phase 2 has been taken);

4.3. Carry out targeted investment promotion exercises during at least three trade fairs (with the first one held within 22 months after decision to proceed with phase 2 has been taken).

4.4. Ensure extensive use of the electronic registration network and facilities (within 15 months after decision to proceed with phase 2 has been taken).

4.5. Establish an international network for investment and partnership promotion, especially targeting regional value

11

Activities with Milestones

Inputs

chains (within 22 months after decision to proceed with phase 2 has been taken).

4.6. Develop and operationalize marketing support tools and facilities (within 14 months after decision to proceed with Phase 2 has been taken).

4.7 Conduct a comprehensive investment promotion campaign (within 24 months after decision to proceed with phase 2 has been taken).

B. Project Administration Activities and Milestones 5.1. Consultants recruited and contract awarded (within 3 weeks

after TA signed and budget available by ADB, UNIDO, and Government)

5.2. Consultants preparation of project inception report outlining detailed work plan with timelines formulated and agreed to at the project inception workshop by all parties concerned (within 4 weeks of project inception)

5.3. Establishment of a project steering committee (within 2 weeks of TA signing)

5.4. Regular progress reports or activity completion reports prepared by the project coordinator and reviewed by UNIDO and ADB project managers (on a quarterly basis)

5.5 Progress review reports prepared by the project director, UNIDO, and ADB, and submitted to the project steering committee and management concerned (every 8 months from project inception).

5.6. Project steering committee meeting (every 8 months or as needed)

5.7. Consultants’ draft final reports and final reports submitted and reviewed by UNIDO and ADB (1 month and 2 weeks, respectively, before end of TA period)

5.8. Timely closure of TA implementation (24 months from start of TA)

_______________________________ ______________________________ Gil-Hong Kim Arjun Thapan

Country Director, LRM Director General, SERD

Appendix 2

COST ESTIMATES AND FINANCING PLAN ($'000)

Item Total Cost A. Asian Development Bank (ADB) Financinga 1. Consultants a. Remuneration and Per Diem i. International Consultants 330.0 ii. National Consultants 180.0 b. International and Local Travels 50.0 c. Workshops/Reports and Communications 10.0 2. Equipmentb 70.0 3. Contingencies and Support Costs 60.0 Subtotal (A) 700.0 B. United Nations Industrial Development Organization (UNIDO) Financing 1. Workshops/Seminars/Conferences/Resource Persons a. Workshops/Seminars/Conferences 50.0 b. Resource Persons 30.0 2. Surveys/Assessments 30.0 3. Promotional Activities 30.0 4. Contingencies 10.0 Subtotal (B) 150.0 C. Government of Lao PDR Financingc 1. Office Accommodation and Local Transportation 50.0 2. Remuneration and Per Diem of Counterpart Staff 30.0 3. Others 20.0 Subtotal (C) 100.0

Total 950.0

a Funded by ADB’s technical assistance special funding program. b Includes provision for office equipment including shelves, cabinets, computers. c In kind. Sources: ADB and UNIDO staff and government officials estimate. Note: Parallel cofinancing between ADB and the UNIDO.

Appendix 3 13

OUTLINE TERMS OF REFERENCE FOR THE SPECIAL ECONOMIC ZONE CONSULTANTS

1. The technical assistance (TA) aims to build the capacity of the Lao People’s Democratic Republic’s (Lao PDR) to develop special economic zones (SEZs). The TA’s objective is to support Lao PDR in increasing private investments to sustain current levels of high economic growth. The intended outcome of the TA is an enhanced national capacity to develop, manage, negotiate, and promote SEZs in Lao PDR. 2. The TA will require the consulting services of a firm with a total of 16 person-months of international and 62 person months of national consulting services. The international consultants’ responsibilities will include the following: (i) SEZ strengths, weaknesses, opportunities, and threats analysis (SWOT), and stakeholder workshop (2 person-months); (ii) review of the decrees of the prime minister’s office on SEZ and preparation of the national SEZ law and the SEZ operational guidelines and manuals (about 4 person-months); (iii) SEZ strategy and policy development, and project finance (about 3 person-months); (iv) SEZ promotion and resource center development (about 3 person-months); and (v) SEZ capacity building and development (about 4 person-months). The national consultancy services will be engaged to provide technical and advisory services in the analytical work and capacity-building activities of the TA. The consultants will follow the procedures, rules, and regulations of ADB, UNIDO, and the Government of Lao PDR. The composition of the consultants’ skills mix and indicative person-months allocation, and terms of reference are set out below. A. International Expert on SEZ Strengths, Weaknesses, Opportunities and Threats Analysis;

SEZ Law and SEZ Operational Guidelines/Manual preparation (10 person-months). 3. The international consultant engaged to prepare the national SEZ law and the SEZ operational guidelines and manual will act as the project team leader to oversee the outputs of all consultancy inputs. In close coordination with the project managers and other consultants engaged by the TA, the international consultant is expected to convene a SWOT analysis within the tentative time schedules by taking the following actions:

(i) Assess the existing SEZ situation in the country and conduct a comparative cost-benefits analysis of SEZs in Asia. Prepare the SWOT review and analysis with respect to the feasibility of SEZs in Lao PDR and existing SEZ-related policy, legal (including the relevant prime minister’s decrees), regulatory, financial, and institutional arrangements, including SEZ-related environment, land, and resettlement safeguard standards, and regional best practices. The output will be a SWOT analysis report outlining options available for Lao PDR to pursue SEZs. The report should be prepared within 2 months of project inception.

(ii) Organize a consultation workshop to deliberate the outcomes of the SWOT

analysis. The outcome of the workshop should determine whether other activities of the TA will be implemented. If there is consensus to proceed, then other activities of the TA would begin. The workshop should be convened within 3 weeks of the completion of the SWOT analysis report.

(iii) Review the prime minister’s office decrees on SEZ and related laws and outline the

pros and cons of establishing a SEZ in Lao PDR based on the review findings and the SWOT analysis recommendations. Prepare the draft national SEZ law, taking into account incentives as well as safeguards, regional best practices, and the SEZ operational guidelines and manuals. Outline a detailed step-by-step process guide on how to analyze investments and develop, manage, negotiate, and promote

14 Appendix 3

SEZs, including a clear inter-ministerial and investor-developer-government coordination mechanism with specific focal points. A draft national SEZ law and the SEZ operational guidelines and manuals should be prepared within 4 months of the date of the decision to proceed with other TA activities.

(iv) Prepare a results-oriented national SEZ policy and strategic road map on how Lao

PDR will sustain and optimize economic growth through SEZ over the medium to long term. The road map will be based on regional best-practices and completed within 4 months of the date of the decision to proceed with other TA activities.

(v) Organize stakeholder awareness workshops on the draft national SEZ law and

ensure consistency and synergy among the SEZ law, SEZ policy and strategic road map, and SEZ operational guidelines and manuals. The workshops should be convened within 5 months of the date of the decision to proceed with other TA activities.

(vi) Contribute to the assessment of human and institutional resource capacity needs

for SEZ and support the SEZ training and promotion expert in outlining a comprehensive capacity-building program specifying a detailed implementation plan using a phased approach.

(vii) Make presentations on the training modules developed and trainings conducted on

the procedural use of the SEZ operational guidelines and manuals, and the roles of each sectoral focal point. Provide on-the-job training for SEZ staff and related officials on concepts and methods involved in SEZ negotiation, promotion, and investment analysis; and on how to develop, manage, and promote SEZs. The training should start within 2 weeks of the adoption of the SEZ operational guidelines and manuals.

(viii) Provide policy and financial advice for the establishment of a one-stop shop for

SEZ in Lao PDR, within 1 month after the adoption of the SEZ operational guidelines. Prepare the proposal for using public-private partnerships and innovative project finance schemes for SEZ development, within 2 months of the date of the decision to proceed with other TA activities. Contribute to the realization of targeted investment promotion exercises—including at least three trade fairs, with the first one held within 2 months of the date of the decision to proceed with other TA activities.

(ix) Prepare the TA inception report outlining a detailed work plan with timelines

formulated and agreed to by all parties concerned at the project inception workshop. A project inception report is to be prepared within 4 weeks of project inception. Prepare the draft TA completion report and submit to the United Nations Industrial Development Organization (UNIDO) and the Asian Development Bank (ADB) within 1 month before TA completion date and submit a TA completion report 2 weeks after the TA completion date.

4. Qualifications. The international consultant will possess a university-level post graduate degree in business economics, business law, or international political economy, and have experience working with the United Nations (UN) and/or multilateral development banks on project preparation and implementation. Relevant work experience in Lao PDR and/or the Association of Southeast Asian Nations (ASEAN) region on investment regulatory issues would be an advantage. Experience in the development of SEZs or similar industrial infrastructure projects, and fluency in both written and oral English are required.

Appendix 3 15

B. National Expert on SEZ Strengths, Weaknesses, Opportunities, and Threats Analysis,

SEZ Law, and SEZ Operational Guidelines/Manual preparation (12 person-months). 5. In close coordination with the project managers, the international consultant on SEZ law, and SEZ operational guidelines and other consultants engaged by the project, the national consultant will perform the following specific tasks within the tentative schedules:

(i) Assist in the SWOT review and analysis; preparation of the draft SEZ law; SEZ operational guidelines; SEZ policy; a results-oriented national strategic road map; and a proposal for using public-private partnerships and innovative project financing schemes for SEZ development.

(ii) Organize and participate in the stakeholder awareness workshop on the draft

national SEZ law, strategic road map, and SEZ operational guidelines; translate the draft national SEZ law, strategic road map, and SEZ operational guidelines from English into the Lao language. Provide technical support and advisory services to the Government during consideration of the draft national SEZ law, strategic road map, and SEZ operational guidelines.

(iii) Coordinate with the expert concerned on the assessment of human and

institutional resource capacity needs for SEZ; and provide inputs and contribute to the development of training modules and the implementation of training on the procedures for and roles of each sectoral focal point on the use of the national SEZ law, strategic road map, and SEZ operational guidelines. Collaborate with the relevant expert and support on-the-job training for SEZA staff and related officials on concepts and methods involved in SEZ negotiation, promotion, and investment analysis; on how to develop, manage, and promote SEZs; and how to carry out investment analyses and effectively negotiate with potential investors, starting within 2 weeks of the adoption of the SEZ operational guidelines and manuals.

(iv) Contribute to the preparation of the project inception report and the draft and final

TA completion report. 6. Qualifications. The position requires a university degree in economics, law, or international political economy. Experience in working on project preparation and implementation with UN organizations and/or multilateral development finance institutions is preferred. Experience in areas related to the development and/or operation of SEZs or similar industrial infrastructure project, and fluency in both written and oral English are required. C. International Expert on SEZ Capacity Building, Training and Promotion (06 person-

months) 7. In close coordination with the project managers and concerned experts, the consultant will perform the following specific tasks within the given tentative time schedules:

(i) Contribute to the SWOT review and analysis, conduct a comparative cost-benefits analysis of SEZ in the region. Participate in the SWOT analysis workshop discussions and support the stakeholder awareness workshops on the SEZ law, strategic road map, and operational guidelines and manuals.

(ii) Conduct an assessment of human and institutional resource capacity needs for

SEZ and outline a comprehensive capacity-building program specifying a detailed implementation plan using a phased approach, within 2 weeks from the

16 Appendix 3

acceptance of the SWOT analysis report. Develop training modules and conduct training on the procedural use and the roles of each sectoral focal point on the use of the SEZ operational guidelines and manuals within 2 weeks of their adoption.

(iii) Establish a one-stop shop for SEZ in Lao PDR, within 1 month after the adoption of

the SEZ operational guidelines. (iv) Provide on-the-job training for SEZ staff and related officials on concepts and

methods involved in SEZ negotiation, promotion, and investment analysis; on how to develop, manage, and promote SEZs; and how to carry out investment analyses and effectively negotiate with potential investors, starting within 2 weeks of the SEZ operational guidelines and manuals adoption and lasting for 3 months.

(v) Prepare the training modules and conduct training on the use of the SEZ

information technology (IT) system, catalogue, database, and other tailor-made programs based on needs (including English language, computer use, SEZ website use, information uploading) of SEZ staff and relevant government and business agencies, within 6 months of project inception.

(vi) Provide training on production chain analysis for target investment promotion;

identify selected production chains for industrial and investment promotion assistance; identify potential investment areas and investors based on production chain analysis and a labor market survey, within 20 months of project inception.

(vii) Develop and implement investment promotional activities, within 20 months of

project inception and lasting for 4 months; prepare a potential investors catalogue for the target promotion of selected production chains and make publicly available, within 20 months of project inception. Carry out targeted investment promotion exercises—including at least three trade fairs possibly in Bangkok, Vientiane, and Savannakhet, with the first one held within 22 months of project inception.

(viii) Contribute to the establishment of an international network for investment and

partnership promotion for SEZ implementation and sustainability (especially targeting regional value chains), within 22 months of project inception. Develop and apply marketing support tools and facilities for SEZ promotion, within 14 months of project inception.

(ix) Contribute to the preparation of the project inception report and the TA final

reports. 8. Qualifications. A university-level post graduate qualification in economics, finance, or business law is required. Relevant experience in human resource development and training delivery; and in the development, operation, and promotion of SEZs or similar investments or industrial infrastructure projects is required. The consultant will possess the relevant skills and have extensive experience with training-module packaging and their execution, and be well-versed with Government policies and procedures. Experience working with United Nations organizations and/or multilateral development finance institutions on project preparation or implementation is a plus. Working experience in Lao PDR and the ASEAN region will be an advantage. Fluency in both written and oral English is required. D. National Expert on SEZ Capacity Building, Training and Promotion (14 person-months)

Appendix 3 17

9. In close coordination with the project managers, the international expert and project team members, the consultant will perform the following specific tasks within the given tentative time schedules:

(i) Assist with the assessment of human and institutional resource capacity needs for SEZ and outline a comprehensive capacity-building program; assist in conducting awareness seminars and workshops on the SEZ operational guidelines; assist in the development of the training modules and conduct training; provide on-the-job training for SEZ staff and related officials.

(ii) Assist in the preparation of the training modules and conduct the training on the

use of the SEZ information technology system, catalogue, database, and other tailor-made programs based on the needs (including English language, computer use, SEZ website use, and information uploading) of SEZ staff and relevant Government and business agencies. Assist in conducting training on production chains analysis for target investment promotion within 12 months of project inception. Translate the relevant documentations from English into the Lao language; and contribute to the preparation of the project inception report and the TA completion reports.

10. Qualifications. A university degree in economics, engineering, business administration, or social sciences is required, along with relevant skills and comprehensive experience in training-module packaging and their execution. The consultant will be well-versed with Government policies and procedures, and be fluent in written and oral English. E. National Expert on Resource Center Development, Information Technology, and SEZ

Promotion (14 person-months) 11. In close coordination with the project managers and concerned experts, the consultant will perform the following specific tasks within the given tentative time schedules:

(i) Compile and organize information and data to support and document the SWOT review and analysis of the existing SEZ-related policy, legal, regulatory, financial, and institutional arrangements, including SEZ related environment, land, and resettlement safeguard standards, and regional best practices, as well as the comparative cost-benefits analysis of SEZ in the region, within 6 weeks of project inception. Compile and organize the information and data required for the assessment of human and institutional resource capacity needs of SEZ, within 2 weeks from the acceptance of the SWOT analysis report.

(ii) Provide documentation support to the workshop to discuss the diagnostic SWOT

analyses and lessons from the experience of neighboring countries and the appropriate approach for Lao PDR. Provide documentation support for the awareness seminars and workshops on the SEZ operational guidelines, training modules and events to be conducted on the procedures for and roles of each sectoral focal point on the use of the SEZ operational guidelines and manuals.

(iii) Provide documentation support for on-the-job training exercises for SEZ staff and

related officials on concepts and methods involved in SEZ negotiation, promotion, and investment analysis; how to develop, manage, and promote SEZs; and how to carry out investment analyses and effectively negotiate with potential investors, starting within 2 weeks of the adoption of SEZ operational guidelines and manuals.

18 Appendix 3

(iv) Provide assistance to the development of the database, cataloguing systems, and documentation for the establishment of the SEZ information resource center in SEZA, starting within 5 months. Translate the relevant documents from English into the Lao language.

(v) Assist in the preparation of the training modules and the delivery of the training on

the use of the SEZ information technology system, catalogue, database, and other tailor-made programs based on the needs (including English language, computer use, SEZ website use, and information uploading) of SEZ staff and relevant government and business agencies, within 6 months of project inception.

(vi) Provide registration and documentation system for the establishment of a one-stop

shop for SEZ in Lao PDR, within 1 month after the adoption of the SEZ operational guidelines and manuals. Organize the preparation and publication of the potential investor’s catalogue for targeted promotion of selected production chains, within 20 months of project inception.

(vii) Prepare promotional material for the targeted investment promotion exercises—

including at least three trade fairs, with the first one held within 22 months of project inception. Develop an electronic registration system, within 15 months of project inception. Provide support for the establishment of an international network for investment and partnership promotion for SEZ implementation and sustainability, especially targeting regional value chains, within 22 months of project inception.

(viii) Provide technical assistance for the establishment of the SEZ information resource

center in SEZA, which will be equipped with the IT system, website, database, software, cataloguing systems, computers, and related equipment, starting within 5 months of project inception for 10 months.

(ix) Prepare the training modules and delivery of training on the use of the SEZ IT

system, catalogue, database, and other tailor-made programs based on the needs (including English language, computer use, SEZ website use, and information uploading) of SEZ staff and relevant government and business agencies, within 6 months of project inception.

(x) Provide technical assistance for the establishment of a one-stop shop for SEZ in

Lao PDR within 1 month after the adoption of the SEZ operational guidelines. Compile on digital means the potential investor’s catalogue for targeted promotion of selected production chains within 20 months of project inception.

(xi) Support, through IT facilities, the targeted investment promotion exercises in at

least three trade fairs, with the first one held within 22 months of project inception. Implement the electronic registration network and facilities within 15 months of project inception. Provide IT technical assistance for the establishment of an international network for investment and partnership promotion for SEZ implementation and sustainability, especially targeting regional value chains, within 22 months of project inception.

(xii) Provide technical assistance to the development of computer-based marketing

support tools and facilities within 14 months of project inception; and contribute to the preparation of the project inception report and the TA completion reports.

Appendix 3 19

12. Qualifications. The consultant will possess a university degree in economics, business administration, or journalism; advanced knowledge on information and telecommunication systems development and application; and relevant experience on industrial and investment promotion. Extensive journalism experience covering investment issues would be an advantage. Fluency in both written and oral English is required. F. National Project Coordinator (24 person-months) 13. In close coordination with the project managers and TA consultants, the consultant will perform the following specific tasks within the given tentative time schedules:

(i) Oversee and coordinate the SWOT review and analysis of the existing SEZ-related policy, legal, regulatory, financial, and institutional arrangements, including SEZ-related environment, land, and resettlement safeguard standards, and regional best practices.

(ii) Coordinate the review of the prime minister’s decrees on SEZ and related laws,

and draft an SEZ law taking into account incentives as well as safeguards within 8 weeks of project inception. Elaborate a proposal of using public-private partnerships and innovative project financing schemes for SEZ development within 2 months of project inception.

(iii) Finalize a report outlining a results-oriented national strategic SEZ road map on

how Lao PDR will sustain and optimize economic growth through SEZ over the medium to long term, based on regional best-practices, within 4 months of project inception. Conduct a stakeholder awareness workshop on the SEZ strategic road map within 3 months of project inception. Coordinate the preparation of the draft national SEZ Law, based on the review report and taking into account regional best practices, within 4 months of project inception.

(iv) Conduct awareness stakeholder workshops on the draft national SEZ law within 6

months of project inception. Follow up on the Government’s consideration of and decision on the draft national SEZ law within 12 months of project inception.

(v) Coordinate preparation of the draft SEZ operational guidelines and manuals,

based on the SWOT analysis, regional best practices, and the draft SEZ law, outlining the detailed step-by-step process guide on how to analyze investments and develop, manage, negotiate, and promote SEZs, including a clear inter-ministerial and investor-developer-government coordination mechanism with specific focal points, within 14 months of project inception. Coordinate the stakeholder awareness workshop on the draft SEZ operational guidelines and manuals within 13 months of project inception.

(vi) Follow up on the prime ministerial decision to adopt the SEZ strategic road map,

and to adopt the SEZ operational guidelines and manuals to serve as the basic tool for SEZ operationalization in Lao PDR within 6 and 16 months of project inception, respectively. Oversee and coordinate the finalization of the report on the assessment of human and institutional resource capacity needs for SEZ and the outline of a comprehensive capacity-building program, specifying a detailed implementation plan and using a phased approach, within 2 weeks from the acceptance of the strengths, weaknesses, opportunities, and threats analysis report.

20 Appendix 3

(vii) Coordinate with all stakeholders concerned and arrange workshop to discuss the diagnostic analyses and lessons from the experience of neighboring countries and appropriate approach for Lao PDR, including trend analysis of the future of SEZs in the region, within 8 weeks of project inception. Organize awareness seminars and workshops on the SEZ operational guidelines within 2 weeks of their adoption. Coordinate the implementation of the training modules and training on the procedural use and the roles of each sectoral focal point on the use of the SEZ operational guidelines and manuals within 2 weeks of their adoption.

(viii) Oversee on-the-job training for SEZ staff and related officials on concepts and

methods involved in SEZ negotiation, promotion, and investment analysis; on how to develop, manage, and promote SEZs; and how to carry out investment analyses and effectively negotiate with potential investors, starting within 2 weeks of the adoption of the SEZ operational guidelines and manuals adoption and lasting for 3 months.

(ix) Coordinate the establishment of the SEZ information resource center in SEZA,

which will be equipped it with the IT system, website, database, cataloguing systems, computers, and other related equipment, starting within 5 months of project inception and lasting for 10 months. Coordinate the preparation of the training modules and delivery of the training on the use of the SEZ IT system, catalogue, database, and other tailor-made programs based on the needs (including English language, computer use, SEZ website use, and information uploading) of SEZ staff and relevant government and business agencies, within 6 months of project inception.

(x) Coordinate the training on production chains analysis for target investment

promotion, within 12 months of project inception. Coordinate the establishment of a one-stop shop for SEZ in Lao PDR within 1 month after the adoption of the SEZ operational guidelines. Coordinate the selection production chains, including agro- and wood-based chains, for industrial and investment promotion assistance within 14 months of project inception. Coordinate with the consultant on the identification of potential investment areas and potential investors based on production chain analysis and labor market survey within 20 months of project inception.

(xi) Coordinate the development and implementation of the investment promotional

activities, within 20 months of project inception. Coordinate the preparation a publication of a potential investor’s catalogue for the targeted promotion of selected production chains, within 20 months of project inception. Coordinate the targeted investment promotion exercises—including at least three trade fairs with the first one held within 22 months of project inception. Coordinate the establishment of the electronic registration network and facilities, within 15 months of project inception.

(xii) Coordinate the establishment of an international network for investment and

partnership promotion for SEZ implementation and sustainability, especially targeting regional value chains, within 22 months of project inception. Coordinate the development of marketing support tools and facilities, within 14 months of project inception. Coordinate the TA consultants’ preparation of the project inception report within 4 weeks of project inception, and the TA completion report within 4 weeks before TA completion date. Coordinate the establishment of a project steering committee within 2 weeks of TA signing.

Appendix 3 21

(xiii) Prepare regular progress reports or activity completion reports to be reviewed by

UNIDO and ADB project managers on a quarterly basis. Coordinate the progress review reports prepared by the project director, UNIDO, and ADB and submitted to the project steering committee and management concerned, every 8 months from project inception. Translate the relevant documentations from English into the Lao language. Organize a project steering committee meeting every 8 months or as needed.

14. Qualifications. The consultant will possess a university degree in economics, business administration, or social sciences; the relevant skills and comprehensive experience needed for project administration; and a strong familiarity with government administrative processes and procedures. Fluency in both written and oral English is required.