Lao Competitiveness and Trade Project - Environmental and Social Action Plan (ESAP) - Appraisal Draft for Comments

Jul 19, 2026

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Lao Competitiveness and Trade Project—Additional Financing (P176856) presents a time-bound Environmental and Social Action Plan (ESAP) required under World Bank operational policy waivers. The ESAP outlines how the additional financing will support private sector recovery and government business continuity while addressing COVID-19-related social effects, including gender inequalities and risks of gender-based violence. It also describes the project’s four pillar framework and how ESAP actions will be implemented, prioritized, and regularly updated as the project evolves.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

Contents of the Environmental and Social Action Plan

Background

Project description and revised project activities

Environmental and Social Action Plan (ESAP)

Public Disclosure Authorized Public Disclosure Authorized LAO COMPETITIVENESS AND TRADE PROJECT ADDITIONAL FINANCING (P176856) ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP) APPRAISAL DRAFT FOR COMMENTS MINISTRY OF INDUSTRY AND COMMERCE (MoIC) May 30, 2021 CONTENTS OF THE ENVIRONMENTAL AND SOCIAL ACTION PLAN I. Background .........................................................................................................................3 II. Project description and revised project activities ..............................................................3 III. Environmental and Social Action Plan (ESAP) .................................................................8 I. Background 1. Following the approval of the COVID-19 waiver for additional financing (AF), the AF Project will support the recovery of the private sector and government business continuity activities outlined in Table 1. The waiver was approved by World Bank management on (April 19 2021) . This covers: (i) the Environmental and Social Framework (the Vision for Sustainable Development, World Bank Environmental and Social Policy for Investment Project Financing and the Environmental and Social Standards); (ii) the Environmental and Social Directive for Investment Project Financing; and (iii) the Directive on Addressing Risks and Impacts on Disadvantaged or Vulnerable Individuals or Groups. This request is submitted pursuant to Bank Policy,“Operational Policy Waivers”, and Bank Procedure,“Operational Policy Waivers and Waivers of Other Operational Requirements”. 2. In accordance to the Bank Procedure for such a situation (OPS5 .03-PROC. 189), a time bound Environmental and Social Action Plan (ESAP) is required. ESAP describes the actions necessary to implement the various sets of mitigation measures or corrective actions to be undertaken; prioritize these actions; include the timeline for implementation. For example, the pandemic is also likely to exacerbate pre-existing factors of fragility and exclusion, aggravate existing gender inequalities, and increase risks of gender-based violence (GBV) . Globally, the impact of the COVID- 19 crisis is not gender neutral. To ensure that there is adequate and timely attention to social effects of planned AF activities, and to a lesser extent any environmental risks that may materialize, the counterpart and the Bank have agreed upon this ESAP. The ESAP is a ‘live’document which needs to evolve with the Project. The Project Implementation Unit will regularly review and update as required the ESAP to ensure it reflects any changes in the project implementation and organization. 3. The proposed AF for the Project is in line with the World Bank Group COVID-19 Crisis Response Approach Paper: "Saving Lives, Scaling-up Impact and Getting Back on Track". In the next 18 to 24 months, the proposed AF aims to alleviate the COVID-19 impact on firms and support their sustainable and resilient recovery, as well as strengthen the Government of Lao PDR (GoL) core institutions and capacity to provide key business services in a safe and inclusive manner by inter alia leveraging ICT solutions. Helping viable firms survive the shock and restructure by facilitating their ability to do business, access international markets for inputs and outputs amid-COVID-19 is central to increase their survival rate and help them maintain and create more of the formal jobs that Laos needs. It will also be central in driving the economic recovery for this landlocked, trade and tourism reliant country. II. Project description and revised project activities 4. The objective of the LCTP AF project is to simplify business regulations, facilitate trade, and improve firm-level competitiveness. This will be maintained in the AF, but will be focused exclusively on the COVID-19 activities in line with the Government of Lao PDR (GoL) COVID-19 responses. 5. The project comprises four components (called pillars): The parent project

FAQs

Why is an ESAP required for the additional financing under the COVID-19 waiver?

Because the World Bank procedure for this situation requires a time-bound Environmental and Social Action Plan to describe required mitigation and corrective actions, their priorities, and implementation timeline.

What is the main objective of the LCTP additional financing project?

To simplify business regulations, facilitate trade, and improve firm-level competitiveness, with a focus on COVID-19 related activities in line with Lao PDR responses.

What are the four project pillars (components) described in the plan?

Improving the business environment; facilitating trade and connecting to markets; improving firm-level competitiveness via a business assistance facility; and supporting better and more inclusive policies through project management, policy making/transparency, and public-private dialogue.

Jul 19, 2026

Upload by Eden