Deputy Minister of Finance Mr Soulivath Souvannachoumkham and ADB Country Director for the Lao PDR Shanny Campbell shaking hands after signing financing agreements. - VT
VIENTIANE: The Asian Development Bank (ADB) has signed a set of financing agreements worth US$63 million to support the transformation of agrifood systems in Laos through the Sustainable Agrifood Systems Sector Project.
The US$50 million in financing is provided by ADB, the Asean Infrastructure Fund, and the European Union-Asean Catalytic Green Finance Facility.
An additional US$13 million in grants also comes from the Asian Development Fund and the Green Climate Fund, channelled through the Community Resilience Partnership Programme Investment Fund, totalling US$63 million.
The Sustainable Agrifood Systems Sector Project aims to enhance climate resilience, improve food security and nutrition, increase household incomes, and strengthen high-value agricultural exports across selected provinces.
The agreements were signed in Vientiane on July 23 by Deputy Minister of Finance, Soulivath Souvannachoumkham, on behalf of the Lao government, and ADB Country Director for the Lao PDR, Shanny Campbell.
The signing ceremony was attended by representatives from relevant government ministries and the Ambassador of the European Union to Laos.
“The project supports the Lao PDR government’s efforts to accelerate agriculture sector growth and deliver benefits to households and agribusinesses,” Soulivath said.
“On behalf of the government of Laos, I would like to thank our development partners, particularly ADB and the European Union, for their continued support.”
The project will strengthen agrifood systems geared towards domestic and export markets for high-value commodities. It will provide investments in commercial financing, privatised technical services, small-scale infrastructure, and food safety initiatives.
Financial services will be delivered nationwide through banks and microfinance institutions, while targeted technical advisory services and infrastructure development will be implemented in six provinces—Champasak, Saravan and Xekong in the south, and Huaphan, Phongsaly and Xayabouly in the north.
Key commodities such as bamboo, coffee, durian, sustainable cassava, and tea will receive targeted support to enhance value addition before export.
“By supporting national efforts for agrifood systems transformation, the project will benefit communities and enterprises while also contributing to the country’s economic growth,” Ms Campbell said.
“This project is an integral element of ADB’s broader country programme in support of the government’s social and economic development agenda.”
Laos’ agriculture sector has considerable growth potential, driven by rising domestic and regional demand. However, realising this potential requires greater competitiveness and resilience in agrifood systems, along with improved food security and increased export capacity.
The project will be implemented by the Ministry of Industry and Commerce, with support from the Bank of the Lao PDR, the Ministry of Agriculture and Environment, and the Lao National Chamber of Commerce and Industry. - Vientiane Times/ANN
