ADB to Assist Lao PDR with $100 Million of Loans and Grants for 2007-2009

Laos News Agency (KPL)
11/27/2006 

ADB’s new assistance strategy for the Lao People's Democratic Republic (Lao PDR) in 2007-2011 follows the Government’s Five-Year National Socio-Economic Development Plan and will focus on core priorities in the country, including agriculture, health, education and infrastructure, according to the press release from ADB headquarter.

The strategy addresses critical constraints to pro-poor growth and social development by concentrating ADB support on basic education and preventative health services, smallholder agriculture diversification and commercialization, and improving the business climate for small and medium-scale enterprises. This will be combined with a major effort to improve public sector financial management.

During the first three years of the Strategy, ADB will offer $60 million in loans and grants directly to the Lao PDR Government, and another $40 million to the country under the Greater Mekong Subregion program. Five technical assistance grants, totaling around $10 million, are also expected.

In addition, ADB continues to work closely with other international organizations and the Government on the Nam Theun 2 Hydropower Project. ADB’s focus on the huge undertaking has been to monitor the safeguard provisions and assist in strengthening the country’s ability to manage public funds to be generated by the project.

Lao PDR is one of the poorest countries in the Asia and Pacific region. Per capital gross domestic product is $490, one third of the population is poor, and one third is illiterate. 

According to the ADB strategy, prospects for economic and social development are promising despite the challenges. The economy has grown and diversified in the last five years, and this trend is expected to continue.