Master Plan on Comprehensive Urban Transport of Vientiane (Laos)


General Information of the NAMA

GENERAL INFORMATION
Country  Lao PR
National implementing entity (NAMA owner) Ministry of Natural Resources and Environment (MONRE), Department of Disaster Management and Climate Change (DDMCC), Ministry of Public Works and Transport (MPWT)
Development stage Development of initial concept
International partners Japan International Cooperation Agency (JICA)
Total costs
Duration 2017-2021
SCOPE OF THE NAMA
Type of NAMA Supported (with unilateral elements)
Type of action Strategy or plan
Scope of action Sub-national
Type of approach Shift, Improve
Transport mode Bus , Other public transport, Car, Other motorised transport, Road cargo, Other freight

The objective of the NAMA feasibility study was to explore the potential for components of the Master Plan on Comprehensive Urban Transport of Vientiane to be implemented as a NAMA. The Master Plan has been developed by the Lao PDR Government in response to negative impacts associated with increasing vehicle ownership and use. It is embedded in national climate, transport and development policy, and the potential for replication has been considered, thereby underscoring its potential to have a transformational impact. The Master Plan comprises a road network development plan, public transport development plan, and a transport management plan. The feasibility study explored the possibility of implementing components of the first two as a NAMA. It has not progressed beyond the feasibility study stage, which benefited from inputs from the proposed National Implementing Entities of the Ministry of Natural Resources and Environment (MONRE) and Ministry of Public Works and Transport (MPWT).

Policy context
The ‘Strategy on Climate Change of the Lao PDR’ features low carbon transport as a mitigation priority and outlines the Government’s intention to develop priority actions as NAMAs. The Environmentally Sustainable Transport (EST) Strategy is being refined and will be integrated into the Land Transport Master Plan (LTMP), which was developed to mainstream EST in development policy. The Master Plan on Comprehensive Urban Transport of Vientiane was developed to support the implementation of the EST and thereby LTMP, and all three complement the Vientiane Capital Urban Master Plan. Rapid economic growth experienced in recent years by both Lao PDR and the city of Vientiane has been accompanied by an increase in population and household income, which have contributed to an increase in domestic vehicle ownership and use.

Process steps
NAMA identification It was identified based on discussions between the Ministry of Public Works and Transport (MPWT), the Ministry of Natural Resources and the Environment (MONRE) and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd (MUMSS).

NAMA feasibility study It was led by MUMSS and developed collaboratively, involving a Task Force Team that was established for the Study and a host country committee comprising officials from Department of Transport (DOT) of MPWT and Department of Environment (DOE) of WREA. It was informed by data collected by a local consulting firm.

NAMA development The National Steering Committee on Climate Change (NSCCC), a high-level inter-agency body that is chaired by the Deputy Prime Minister, would develop and implement the NAMA.

Stakeholders
NAMA identification The climate change mitigation activities were selected based on discussions between the Ministry of Public Works and Transport (MPWT), the Ministry of Natural Resources and the Environment (MONRE) and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd (MUMSS).

NAMA feasibility study It was led by MUMSS in consultation with a host country committee. As outlined above this comprised officials from the DOT of MPWT and the DOE of WREA. It also involved inputs and data from experts of the Task Force Team and a local consulting firm.

NAMA development and implementation The MPWT would collaborate with other government departments, local authorities, bus operators and para-transit unions.

Mitigation potential

MITIGATION IMPACT
Expected mitigation impact 191 kt CO2e/pa by 2025

The Master Plan comprises three plans – a road network development plan, public transport development plan and a transport management plan. This NAMA intends to implement elements of the road network and public transport plans (not the transport management component). The more specific measures that will form the basis of each of these plans will be contingent on the level of international support received.

Financing

COSTS
Total costs USD 105 million (until 2020)
Funder
Costs for preparation
Costs for implementation

Profitability of mitigation actions and financing structure
Implementation of the Master Plan is expected to be supported with finance from the Lao PDR Government, foreign aid and climate finance. The intention is to use this finance to attract private investment and technology transfer, and potentially to subsidise activities in the Master Plan that are expected to generate a profit – such as the operation of public transport services. A ‘guiding principle’ of the Climate Change Strategy is to develop innovative financial instruments and financial packages to support the implementation of mitigation activities.

Financing mechanism
The financing mechanism has not been elaborated and a recent proposal from Japan to provide funding to the Lao PDR Government under the Joint Crediting Mechanism (JCM) means that it could be unlikely that an alternative financing mechanism is developed. Transport NAMAs remain a strategic consideration.

Strategies to leverage additional funding
As outlined above, it is anticipated that grant funding can be used to attract private investment and technology transfer, and to subsidise activities in the Master Plan that are expected to generate a profit.

MRV

Concept: 

Data for the key parameters would be accessed from: the census, number of vehicles registered, national statistics, screen line survey, traffic survey, road network monitoring, origin-destination survey, bus company records, measured emission factors, and implementation progress. Data collection and the quantification of GHG emission reductions is expected to be challenging and access to related support is required.

Indicators:

  • Progress of activities
  • Road network
  • Distance travelled (vehicle km)
  • Type of vehicles
  • Number of passengers on buses
  • emission factors (tonne CO2 / km)

Co-benefits

Ecological:

  • Reduced air pollution

Societal:

  • Improved road safety

Economic:

  • Reduced congestion