1. WATER RESOURCES DEMAND MANAGEMENT AT THE NATIONAL LEVEL OF LAO PDR By: Mr. Thongthip CHANDALASANE Ms. Chindavanh SOURIYAPHACK Department of Water Resources Ministry of Natural Resources and Environment Lao PDR 26 July 2011

2. Contents 1. Irrigation status in Lao PDR 2. The Water Demand Management National Policy 3. The lesson learn 4. The problem and challenges of Demand Management

3. 1.Irrigation status in Lao PDR Lao PDR is abundant the water resources, it became a potential to support socio-economic development, especially hydropower and irrigation sub- sectors. The hydropower sector in Lao PDR is more potential compared to other Lower Mekong River Basin countries. Since, Agriculture sector is the foundation of national economic development and contributed to Lao’s GDP 29.8% (2010). So, Laos’s government has given high priority to investment in the irrigation sub- sector. However, the water sources development is still at a low level: irrigation area is only 20% of the national paddy area and hydropower production is still at 2% of its potential.

4. Irrigation development in 2006-2010 Irrigation development plan in 2011-2015

5. 2. The Water Demand Management National Policy In Lao PDR, there is no specific policy on demand management. The other existing policy related to irrigation such as: Water and Water Resources Law (1996), National Water Resources Policy, Strategy and Action Plan for the Years 2011-2015 and National Adaptation Program of Action to Climate Change.

6. 3. The lesson learn Establishing Water User Organization (WUO) in community to manage irrigation efficiently and accept responsibility for repairs, upkeep, maintenance, and also capital replacement under Irrigation Management Transfer (IMT) agreements, irrigation policy and implementation has not been successful. Communities are not able to manage asset sustainably. Irrigation schemes are not well maintained and water user organization is very weak.

7. 4. The problem and challenges of Demand Management There are two principal challenges of Irrigated Agriculture Subsector Strategy: 4.1. The conduciveness of the business environment in irrigated agriculture (i) market and trade, (ii) technology application, and (iii) infrastructure development and management. 4.2. The effectiveness of public management