Promoting Climate-Resilient Rural Development and Food Security in Southeast Asia – Responsible Forestry Preparation Project

PROJECT CONTEXT

Lao PDR’s forestry sector has strong potential to boost economic growth and support GDP, offering a path to ease the country’s high debt distress. However, several challenges hinder its sustainable development, including:

(i) weak institutional coordination and unclear regulations and land tenure;

(ii) limited sustainable funding for forest and biodiversity conservation; and

(iii) a lack of viable investment models, infrastructure, and technical capacity to support forest plantations and related value chains.

Objectives

The project will support the design and due diligence of pilot activities under the Responsible Forestry Preparation Project (RFPP) in Lao PDR. It will address key challenges in the forestry and ecotourism sectors and promote responsible, sustainable forest sector growth through three outputs:

  • Output 1: Strengthened forest, carbon, and biodiversity management
  • Output 2: Promotion of commercial forest plantations and value chains
  • Output 3: Development of climate-resilient, sustainable livelihoods for forest communities

The project aims to raise incomes and improve living standards for forest communities in central and southern provinces, enhance forest ecosystems, carbon sequestration, and biodiversity, mitigate climate impacts, and contribute to national economic growth.

The Ministry of Agriculture and Forestry (MAF) will serve as the executing agency, with the Department of Forestry (DOF) as the implementing agency. Implementation will be coordinated with the Ministry of Natural Resources and Environment (MONRE) and supported by relevant Provincial Agriculture and Forestry Offices (PAFOs).

 

client:
Asian Development Bank (ADB)
LOCATION:
Lao PDR
TIME:
February 2025
to December 2025

TAGS

Biodiversity, Climate Change, Environmental Economics, Project description
Lao PDR
Current Projects

Project Activities

The assignment includes the following stages:

Stage 1 – Inception report.  Following consultations and site visits, ICEM will prepare an inception report covering:

  • Baseline assessments and methodology
  • Forestry sector analysis, private sector opportunities
  • Stakeholder consultations and land suitability for plantations
  • Preliminary infrastructure designs (e.g., for forest product and ecotourism markets)
  • Cost estimates, financing plans, and technical/financial/social assessments
  • Draft gender and poverty strategies, climate risk assessments (Paris-aligned)
  • Financial and procurement capacity assessments
  • Draft project implementation and administration plans
  • Start-up plan to accelerate Year 1 recruitment and procurement

Stage 2 – Interim report, including feasibility studies and due diligence.

ICEM will implement feasibility studies for at least two pilot projects focused on enabling commercial forestry and ecotourism investments. Key activities include:
  • Designing access roads and biodiversity surveys
  • Developing benefit-sharing models among government, private sector, and communities
  • Incorporating lessons from ADB’s prior projects in Lao PDR
  • Producing updated drafts of due diligence reports based on Stage 1 findings

Stage 3 – Final report and loan fact-finding mission. 

After an interim workshop, ICEM will:
  • Finalize the integrated background and Final Report with all linked documents
  • Ensure alignment with ADB and government standards
  • Support the ADB loan fact-finding mission and field visits

Stage 4 – Loan approval, signing and project start-up. 

ICEM will support project start-up by:
  • Preparing procurement documents for consultant recruitment, surveys, and goods
  • Training implementing partners on ADB safeguards, procurement, and financial procedures
  • Supporting the finalization of all documents and the loan negotiation process through signing

RECENT PROJECTS