1. Outline of the ProjectCountry: Lao PDR

Project Title:Lao Electric Power TechnicalStandard Promotion Project

Issue/Sector: Electric Power

Cooperation scheme:
Technical Cooperation Project

Division in charge: Laos OfficeTotal Cost:

Period of Cooperation: 18 January 2005 – 17 January 2008 (3years) Partner Country's Implementing Organization:
Department of Electricity and Electricity ofLaos, Ministry of Energy and Mines
Supporting Organization in Japan: Japan
Electric Power Information Center (JEPIC)
Related Cooperation:
1-1 Background of the Project
Electric power sector in Lao PDR faces a problem of lacking human resources necessary for improvingelectrification rate and earning foreign currency by sales of electric power to neighboring countries. Anotherproblem is inefficient operation of electric facilities, such as generators, transmission lines and distribution lines,
built by foreign investors. Since many facilities comply with technical standards which are different from eachother it is difficult to manage and operate them.
In response to the request made by the Government of Lao PDR JICA has conducted technical cooperation
project for Lao Electric Power Standard Establishment, from May 2001 to April 2003 to train officers who would
be able to develop and administrate an electric power technical standard suiting actual situation of electric power
sector in Lao PDR. The project assisted the Government of Lao PDR to establish the Lao Electric Power TechnicalStandard (LETS) as well as human resources development of electric power sector in Lao PDR. LETS has beenlegislated as ministerial decree of Ministry of Energy and Mines in February 2004.
Currently a three year-long technical cooperation project by the Government of Japan which started January
18th 2005 is in progress as the second step of the previous technical cooperation project to strengthen overall
capacity of electric power sector in Lao PDR to administer and enforce LETS. The project has been implemented
by Department of Electricity (DOE) and Electricity of Laos (EDL), Ministry of Energy and Mines (MEM).
The project aims at developing capacity to train officers and engineers who is competent in six technical areas ofelectric power (namely, civil engineering, hydro-power, substation, transmission, distribution and user’s site).
Three long-term term experts (expert to DOE, expert to EDL and coordinator) and short term experts in the six
technical areas has been dispatched to support the project.
According to JICA Guideline for Project Evaluation stipulating that the terminal evaluation shall be carried out
six months prior to the project termination, the Joint Terminal Evaluation Team was organized to carry out tasks ofevaluating the achievements of the Project from 5 to 15 of June 2007.

－87－1-2 Project Overview
1-2-1 Overall Goal
Power sector’s activities and power facilities’ safety are improved.
1-2-2 Project Purpose
The LETS is enforced within public and private sectors.

1-2-3 Output(1) Complementary guideline and manuals relating to the LETS is drawn.
(2) Through on the job training, knowledge and training skills of counterparts of DOE and EDL as trainers areupgraded.
(3-1) DOE staffs obtain necessary knowledge and skills as inspectors and transfer those knowledge and skills toPDIH staff.
(3-2) EDL engineers obtain necessary knowledge and skills in order to apply the LETS to their works(4)

Management structure for the LETS is formulated.

(4-1) Responsible division for the LETS is established.
(4-2) Mechanism for monitoring and evaluating implementation of the LETS is formulated.
(5) Awareness on the LETS of public and private sectors is increased

1-2-4 Input
Japanese side:
Long-term Experts

3 (Total of 108M/M)

Equipment

Total amount of

Short-term Experts

Total of 42 experts have

Local Cost

Disbursed US$126,677 to cover the local cost

Note:

JICA supported US$50,000 to construct 115kV

been dispatched
Trainees received

11 trainees have received

transmission towers for training at the EDL
training centre, and US$68,700 for training
facilities for distribution lines and user’s site.
Lao Side:Counterparts

F/T C/P: 11

P/T C/P: 8Land and Facilities

Land, building, rooms and other facilities for the Project were provided by DOE and EDL.

Local Cost

(1) Expenditure for the renovation of EDL training centre=US$18,000(2) Expenditure for workshops (per-diem EDL participants)=US$3,700(3) Expenditure for OJT (in-kind basis)
Total Expenditure=US$22,100－88－=US$400

2. Evaluation Team
Members ofEvaluation Team

Responsibility

Name

Affiliate/Title

Team Leader

Kaoru SUZUKI

Department of Economic Development, JICA HQElectric PowerTechnologyHideki NARUMI

Japan Electric Power Information Center (JEPIC)

Evaluation Planning
Evaluation Analysis

Sota SEKINE

ARR of JICA Laos Office

Masato ONOZAWA Pionnier Research, Inc.

Period of Evaluation June 5 – Septermber 15, 2006

Type of Evaluation: Terminal Evaluation

3. Result of Evaluation
3-1 Summary of Evaluation Results(1) Relevance
STEP II is compatible with Power Sector Policy Statement of Lao P.D.R. published in March 2001.
The need of LETS in the electric power sector is high. Legislation of LETS and its enforcement are expected toresolve current problems associated with lack of electric power standard for installation of power facilities, andassure improvement of safety and quality of electric power supply. The Project would strengthen DOE and EDL’s
overall capacity to implement developing projects. This may help the Lao Government ensure high-quality power
supply and socio economic development. Furthermore, the Project is consistent with the Japanese government’s
Country Assistant Plan for Lao PDR published in September 2006. Therefore relevancy of the project isconsidered high.

(2) EffectivenessThe effectiveness of the Project is high because the Project has fulfilled its outputs stipulated in the PDM. C/Ps
have conducted inspection, examination and giving comments for 14 IPP projects to acquire necessary skills andknowledge for their work. Furthermore the LETS training has been carried out at the EDL Training Center as oneof the center’s training program. Moreover LETS documents including the guidelines and the manuals have beendeveloped and enacted as the government decree in May 2007. LETS regulatory unit, which is a preparatory unit
for “Electricity Management and LETS Regulatory Division” of DOE is expected to be established by December
2006.

(3) Efficiency
Based on the input record of both sides, overall quality and quantity of inputs to the Project were appropriate.
Both sides have carried out activities as scheduled by the agreement in R/D signed on December 7, 2004. Mostof Outputs have been fulfilled and all outputs are expected to be fulfilled by January 2008 as scheduled.

(4) Impact
Some tangible positive impacts have been observed at the time of the evaluation. First, the number of new
project complying with LETS is significantly increasing. Currently 14 projects are carried out following the－89－standard. Second, enactment of LETS document can be considered to bring about institutional impact to Laopower sector.

(5) Sustainability
The Evaluation result shows that establishment of a regulatory division which becomes the authority to conduct
all the regulatory works associated with LETS is necessary to make the project outputs sustainable. Institutional
establishment such as enactment of LETS document enforce safety and improvement of the electric power
activities in Lao PDR. Such institutional enactment ensures DOE to properly manage, operate and regulate thepower sector. It also brings about a favorable investment condition for domestic and international investors.

3-2 Factors that promoted realization of effects(1) The synergy made between preparation of LETS documents and technical training provided by short termexperts
The basic design of the project aims at capacity development of C/P personnel through preparation ofcomplementary guidelines and manuals for LETS and the technical trainer training for inspectors and engineers.
The project has carried out by the initiatives of Lao side with supports from long and short-term experts. Now
C/Ps have comprehended deeply each article of LETS through localization process such as translation andinterpretation to local situations. The project is expected to integrate C/Ps’ knowledge and skills through applying
LETS in examination of documents for power facilities development projects, inspection of the on-going projects
and technical training for engineers.

(2) Legislation of LETS
Legislation of LETS carried out after termination of STEP I contribute to implementation of the Project. The
guidelines and manuals for LETS developed through the Project were also enacted as the ministerial decree inMay 2007. The project activities were fully supported by such legislative arrangement of Lao PDR. Suchlegislation will help DOE to administer IPP projects, for example, to comply with LETS. Therefore, it is expectedthat LETS would be effectively administered and managed after the project completes.

3-3 Factors that impeded realization of effects(1) Factors concerning planningNot identified.
(2) Factors concerning the Implementation Process
Not identified.

4. Conclusion
The Project has been implemented successfully according to PO, and has achieved most of outputs as planned.
The team concluded that the Project will terminate on January 17, 2008 as scheduled. However it is recommended
to extend the cooperation period by approximately 2 months to support the C/Ps to apply LETS to the on-going－90－

JBIC transmission project to enhance achievement of the Project. JBIC project will be the first one to which LETS
is applied from the beginning and therefore will be appropriate on the job training for C/Ps.

5. Recommendations
The Team recommends the following measures to be taken to ensure the successful implementation of theProject:
5-1 Enforcing EDL and other electric facility operators to submit accident report (To DOE and EDL)
Serious accidents taking place in the country have not been reported to DOE although LETS and its Guidelines
requires such reporting and stipulates reporting procedures. It is necessary for DOE to dialogue with EDL andother operators to enforce the reporting system.

5-2 Establishment of Regulatory Division in DOE (To DOE)
Both sides have recognized that the regulatory division will have a crucial role to enforce LETS, and to regulate
and properly direct the power sector’s activity. The Team expects DOE to make every effort to establish theregulatory division deploying inspectors under a division head and having its own budget that enable it to work
effectively after the Project terminates.

5-3 Reviewing F/S Submitted by IPP (To JICA)
Applications and preliminary appraisals submitted by IPP hydropower projects has been increasing in number.
The Team suggests that reviewing F/S reports submitted by ongoing IPP projects prior to application or
preliminary appraisals with support by short-term experts will be effective to ensure the overall goal of the Project.

5-4 Enforcing LETS to EDL Projects (To EDL)
EDL should take necessary measures to apply LETS to all projects including power facilities under operation.
Currently, LETS is not likely to be applied to EDL power facilities except for JBIC transmission project, although
LETS including the Guidelines and Safety Rules already come into effects as the Ministerial Decree.

5-5 Dissemination of LETS to Whole Country (To DOE and EDL)
Dissemination of LETS is also important issue to be carried out. It is recommended that DOE and EDL takeaction as soon as possible to disseminate LETS across the country.
5-6 Extension of the Project (To JICA)
The JBIC project is the first case with which LETS will be applied from the early stage. Both sides reconfirmedthat STEP2 project would be extended approximately two months in order to support the examination of thedetailed design regarding the JBIC Project for the construction of transmission lines and substations.

6. Lesson Learned
6-1 Organizational Establishment Cannot Be an Indicator for the Project Design“To establish the Regulatory Unit” is an indicator for the Output of the Project but it was extremely difficult for－91－the Project to deal with such recipient government’s internal matter which involves significant personnel matters.
Consequently, the Project has wasted so much time and energy to persuade the government and MEM to establish
the unit through the Project.
According to the criteria stipulated in the JICA PCM manual, organizational establishment should be defined asImportant Assumption for the Project not as an indicator. This experience of the Project tells that having
consultation and recommendation may be appropriate approach for dealing with organizational issues in project
activities.

6-2 Issuing Certification by Examination
Examination for the C/Ps and issuing the certification to the qualified C/Ps based on the standard set by an
examination committee consisting of JICA experts were effective.
The purpose of the examination was to monitor their achievement through the Project activities. Certificates wereawarded to those who are qualified to be the LETS trainers. Those examination and award were included in the
project design from the beginning. It has become strong incentives for the C/Ps.
As a result, 23 C/P have successfully certified as qualified LETS trainers who will conduct training for local
administrator and engineer with confidence and will enhance the training system of the power sector in Lao PDR
as well.

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