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p. 58 of 95 BACK | NEXT Message from the Chairman of the Board of Directors Members, Capital Stock and Voting Power The Record Abbreviations 2004 in Review: Board of Directors' Report Special Theme: The Changing Face of the Microfinance Industry: Building Financial Systems for the Poor Part 1: Institutional Effectiveness Part 2: Poverty Reduction Strategic Priorities Thematic Priorities Regional Perspectives East and Central Asia Mekong Cambodia Lao People’s Democratic Republic Myanmar Thailand Viet Nam The Pacific South Asia Southeast Asia Part 3: Financial Statements: Management's Discussion and Analysis

Annual Report 2004 : Part 2: Poverty Reduction : Mekong

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Lao People’s Democratic Republic

Strategy and Policy Dialogue. The CSP for the Lao PDR outlines a number of operational priorities for ADB's assistance to the country. Among them are (i) rural development and market links; (ii) human resource development; (iii) sustainable environmental management; (iv) private sector development; (v) governance and capacity building; (vi) geographic focus, particularly on the relatively impoverished Northern Region and areas along the GMS east-west economic corridor in Savannakhet Province; and (vii) subregional cooperation with neighboring countries in the GMS.

Policy dialogue was conducted throughout 2004 on commercial and rural banking sector reforms, SME development, and environmental and social safeguards. Capacity building was provided in public financial management with a view to enhance the country's state audit functions and to improve accounting regulations and procedures. Through technical assistance, ADB supported government preparation of a development strategy for the Northern Region. Due diligence for the proposed GMS Nam Theun 2 hydropower development project in partnership with the World Bank proceeded.

Loans and Technical Assistance. Two loans totaling $27.7 million were approved to improve rural roads and to promote community-managed irrigation in the Northern Region. Eleven technical assistance projects totaling $6.1 million were also approved.

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