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New ADB Resident Mission Office Opens in Lao PDR

Lao PDR Prime Minister Boun Nhang Vorachith (left) shakes hand with ADB President Tadao Chino during the opening of ADB's new office in Vientiane.

VIENTIANE, LAO PDR (16 July 2001) - Lao PDR Prime Minister Boun Nhang Vorachith and Asian Development Bank President Tadao Chino officially opened the new office of ADB's Resident Mission in Vientiane today.

President Chino described the event as "a major milestone in ADB's development partnership with the Government and people of Lao PDR and with other members of the development community and civil society."

President Chino noted that Lao PDR, which is a founding member of ADB, has to date received about US$1 billion in loans and technical assistance from ADB. He added, "There is much more to achieve and ADB is committed to work very closely with the Government and people of Lao PDR to reduce poverty, to promote economic and social development, and to strengthen regional cooperation."

ADB expects to finalize a new Country Strategy and Program (CSP) by next month, which will provide strategic directions for its operations in Lao PDR for the next five years. "Poverty reduction through broadening community participation and expanding economic opportunities" will be the theme of the new strategy. ADB will focus on rural development and market linkages, human resource development, sustainable environmental management, and private sector development and regional integration. Good governance through policy and institutional development will be emphasized as an integral part of ADB's operations.

Paul Turner, ADB Representative in Lao PDR, said ADB proposes to provide assistance in 2001 for three projects with concessionary loans totaling about US$65 million and grant technical assistance of about $5 million. The proposed loans include:

• A loan of $20 million for the Second Education Quality Improvement Project. This will improve teacher training by upgrading Teacher Training Colleges in Bokeo, Sayaburi, Louang Phrabang, Savannakhet, Champassak, and Vientiane Provinces. In addition, primary schools will be improved in Bokeo, Sayaburi, Louang Phrabang, and Savannakhet Provinces.
• A loan of $25 million for the Vientiane Urban Infrastructure and Services Project. The project will support decentralization and urban governance reforms and the process toward a well-functioning and self-sufficient urban local government. It will also further improve drainage and road infrastructure and services in Vientiane.
• A loan of $20 million for the Transport and Energy Socio-Environmental Management Program. The project will help the Government develop a policy and regulatory framework, as well as effective monitoring, enforcement and coordination mechanisms to ensure that social and environmental concerns are taken into account in major infrastructure development projects.

ADB has successfully collaborated with other aid agencies in cofinancing development projects. "Mobilizing cofinancing resources from other donor countries and aid agencies will be an important part of the new ADB Resident Mission's operations, as cofinancing increases the cost-effectiveness and development impact of the projects," said Mr. Turner.

The ADB Resident Mission in Lao PDR will initially have two international and 8 Lao staff.

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