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Girls and Ethnic Minorities to Benefit from Improved Education in Lao PDRMANILA, PHILIPPINES (3 October 2001) - Over 550,000 children, especially girls and ethnic minorities, in Lao People's Democratic Republic (Lao PDR) will receive a better education through a project for which the Asian Development Bank recently approved a US$20 million loan. The Second Education Quality Improvement Project will upgrade teaching as well as provide new schools and rehabilitated classrooms. It will also promote a decentralized education management system. More than 400,000 primary schoolchildren will benefit from the project, including 30,000 who will occupy 440 new or rehabilitated schools. Some 23,000 principals and teachers will take part in improved training programs. "The provision of additional facilities and adequately trained teachers will allow more children in four provinces to receive a full five-year primary education," says ADB Education Specialist Yasushi Hirosato. The project also aims to improve the capacity of central, provincial, district and village level administrations. Education is improving in Lao PDR, but still faces many limitations. Nearly 60 percent of teachers in primary and secondary schools are under-qualified. Very low public expenditure is a major constraint to ensuring balanced growth in the education system, especially primary education for the poor. ADB will finance 53 percent of the total project cost of US$37.6 million while the Swedish International Development Cooperation Agency is expected to provide a grant of US$9.6 million. The Government and communities will fund the balance. The ADB loan will come from its concessional Asian Development Fund. Repayment will be over 32 years, including a grace period of 8 years. The interest rate is 1 percent per annum during the grace period, and 1.5 percent per annum thereafter. The Ministry of Education will be the executing agency for the project, which is expected to be completed by end 2007.
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