The LUNA II Project is supported by the Government of the United States of America, acting through the US Agency for International Development Cl1SAID") seek to support the Government of the People's Democratic Republic of Laos to comply with multilateral and regional trade agreements, and that promote the diversification of the Lao economy.

The implementation of the LUNA II Project is guided by the Memorandum of Understanding between the Ministry of Industry and Commerce (MOIC) and US Embassy, and USAID signed on the 28of April 2014, with the Program Executive Committee (PEC) serving as the overall governing body of the LUNA II Project, and the MOIC serving as the key decision making body for operational as well as policy direction.

1. Project Objective

The main goal of the project is to support effective and equitable implementation of trade agreements, new laws and regulations at both the national and sub-national levels, including institutional development and building competitive capacities within both the public and the private sectors, thus contributing to the overall improvement of the enabling environment for trade and investment. A cross-cutting objective is to make a gradual shift toward facilitating implementation of laws and regulations through offering more training in order to help Lao PDR improve its capacity for enforcement.

2. Responsibilities of the MOIC

The MOIC through FTPD shall perform the following main functions with respect to the Project:

2.1. Acting as technical focal point for the LUNA II project through active participation in developing work plans, implementation, reporting and project monitoring;

2.2. Coordinating with NIU as secretariat 10 the PEC in meeting all reporting requirements as described in the project description;

2.3. Facilitating implementing Agency regards to the arrangement of visas and residency permits for project staff and consultants;

2.4. Supporting the implementing Agency in registering a project office in order to open a local bank account and contract short-term and long-term Lao staff;

2.5. Assisting the Implementing Agency to receive the necessary VAT and customs duties exemptions on all LUNA II expenses according to prevailing laws and regulations in Lao PDR.

3. Responsibilities of the Implementing Agency

The Implementing Agency commits to undertaking the following responsibilities with respect to the Project:

3.1. Implement the Project as described in the attached Program description (Annex A) which forms an integral part of this Memorandum;

3.2. Assign a project team with the necessary authority to work on a day-to-day basis with MOle to deliver Project results;

3.3. Work with concerned departments to develop a detailed activity plan to submit for PEe approval;

3.4. Coordinate with relevant line ministries in work related to the project;

3.5. Facilitate consultation with key stakeholders during the project implementation and facilitate the provision of technical advice and expert inputs at relevant line ministries where needed through international or national consultants.

3.6. Organize workshops to update stakeholders on the progress of the LUNA II project.

  4. Project Budget

The total project budget is S8,958,300 USD and the project donor is USAlD. According to USAID funding guidelines, funds obligated to the LUNA II project are subject to availability. All funding for the project have not yet been obligated. Initial obligated funding is $1,007,834. Additional funding will be made available to the LUNA I( project as necessary and as available. This project will receive obligated funding periodically based on annual work plans to be developed and submitted and based on availability of funds by USAID.

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