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The project will enhance the competitiveness of Pakse as a regional economic and tourism center of the southern Lao PDR. It responds to the local government's vision for Pakse to become a green city and for the greater Pakse urban area to gain official city status in the future by improving citywide environmental improvements in solid waste management, flood protection and drainage, and riverbank erosion protection along the Xedon River; supporting community-driven initiatives in urban environmental improvements; strengthening local capacity in urban planning and services; and strengthening local capacity in project management and implementation. The project contributes to the Government of the Lao PDR's long-term urbanization strategy and Pakse Urban Development Strategy, 2011-2030.