VIENTIANE (Laotian Times): The Asian Development Bank (ADB) has approved US$10 million in funding for the Responsible Forestry Project Phase I in Laos. The package includes a US$5 million concessional loan from ADB’s ordinary capital resources and a US$5 million grant.
The project aims to tackle forest degradation, enhance climate resilience, and support the livelihoods of forest-dependent communities in Bolikhamxay, Khammouane, and Vientiane Capital.
ADB emphasized that public funding alone is insufficient to reverse the damage, highlighting the need for increased private investment in forest restoration, tree planting, and conservation-focused ecotourism.
Phase I will focus on identifying existing challenges and preparing technical and feasibility studies for Phase II. It will also promote collaboration among relevant stakeholders to develop commercial plantations and conservation initiatives.
The project is expected to strengthen institutional capacity and create opportunities for local communities to participate in forestry activities while benefiting economically from sustainable forest management.
Forests cover approximately 62 percent of Laos and provide employment for more than 65 percent of the workforce. However, unsustainable practices have caused widespread degradation, resulting in economic losses estimated at nearly 19 percent of the country’s gross domestic product each year.
