Capacity Building for Urban Development Administration Authorities

This two-year project (2000-2002) supported the implementation of the Government of Lao PDR’s policy measures to decentralize the responsibility for urban governance from the central to local governments known as Urban Development Administration Authorities (UDAAs). Five UDAAs were assisted, including the capital city of Vientiane and four provincial towns. The project strengthened financial management systems and supported development of financially-sustainable UDAAs able to effectively deliver urban services which are responsive to community needs. It did so by delivering three sets of outputs: (a) ensuring that all levels of government in Lao PDR were fully aware of the concept of local governance, its functions and responsibilities; (b) putting in place a clear institutional framework and developing capacity for the operation and financing of UDAAs; and (c) providing improved financial management skill levels for all staff. In addition to working with individual UDAAs, the project addressed the need for policy development and institutional capacity to provide advice, regulation and coordination within the central government. The project operated in a context of stakeholder interest at several levels: the national government, provinces, the UDAAs and their communities, and interest groups served by the UDAAs.