Evaluation Summary - Second phase of the water supply distribution extension in Vientiane project (AEP2)

In Laos, the second phase of the water supply distribution extension in Vientiane project (AEP2) was subject to an evaluation in May 2016.

The company Nam Papa Nakhone Luang (NPNL) was unable to meet the growing demand in water in Vientiane for several reasons: the rapid growth of the city and its aging infrastructures, the losses due to high non-revenue water, the limited financial capacity of the company, its lack of adequate tools and its limited human resources capacities.

The project was highly relevant and efficient. The main partners involved showed flexibility and transparency and provided quality inputs. As a result, NPNL experienced better financial results. Non-revenue water was indeed decreased from 36% to 25%, the cost of water treatment was decreased, and the tariff raised. Access to water supplies was globally raised to 72% of the Vientiane population in 2013. No social and environmental components were compulsory in the project design. As the project was overall successful, it is recommended that the project be continued and include these social and environmental components.