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Helping Landless Poor in Lao PDR

MANILA, PHILIPPINES (31 January 2002) - The Asian Development Bank (ADB) will provide a US$1 million grant from its Japan Fund for Poverty Reduction (JFPR) to help poor families in Lao People's Democratic Republic (PDR), especially landless households, secure alternative sources of income through increased involvement in farm-based production and related activities. JFPR is funded by the Government of Japan.

The signing ceremony for the grant was held at the Ministry of Finance in Vientiane today. Lao PDR was represented by Mr. Sien Saphangthong, Minister of Agriculture and Forestry, and ADB by Paul V. Turner, Country Director for Lao PDR. Others at the ceremony included Mr. Soukhanh Mahalath, Finance Minister, and Ms. Rie Hikiji, Diplomatic Counselor of the Embassy of Japan.

The grant will finance the Community-Managed Livelihood Improvement Project, which is designed to create sustainable, area-based, and community-owned alternative sources of income. The project will target about 2,000 households, many of whom live in uplands, who have no land, or have land that cannot be irrigated.

The project supplements the ongoing Community-Managed Irrigation Sector Project, also financed by ADB. The irrigation project is aimed at boosting rice production in the mountains where irrigation is limited.

One crucial component of the JFPR-funded project is to involve women as much as possible, and include environment-friendly approaches. Participatory assessment, planning, design, implementation and management of all activities will be secured under the project.

Specific activities will be selected and undertaken by the concerned beneficiaries in small villages. Such activities include development of livestock, an important source of income, especially for upland farmers. Basic veterinary services and skills will be developed within the communities, such as regular vaccination schemes and disease diagnosis.

Other activities which will be implemented by communities with the help of nongovernmental organizations (NGOs) include development of small fishponds, improvement of seed production of high-value vegetables, integrated pest management and weed control, and establishment of nurseries for fruit and timber trees. In some areas, market facilities will be developed. Potable water supply systems will be introduced, thereby reducing the workload of women who have to carry water over a long distance.

In addition to the ADB assistance, the Government and beneficiaries will meet the total project cost of US$1.2 million. The JFPR was set up with an initial contribution of 10 billion yen (approximately $90 million) in 2000, followed by an additional commitment of 7.9 billion yen (approximately $65 million) in 2001. JFPR projects directly target poor people and prioritize innovative approaches that have a demonstrative effect.

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