Southeast Asia

The Lao PDR recorded robust GDP growth estimated at 7.3%, attributable to a broader base of economic activities. Increasingly resilient to external shocks, the country was able to absorb the recent rise in global oil prices without resorting to government subsidy or suffering serious inflation. In June 2006, the Government approved its Sixth National Socio-Economic Development Plan 2006–2010, which includes a strategy for poverty reduction and sustainable development.

In October 2006, ADB approved a new country strategy and program, which reflects lessons from ADB’s experience in the country. It introduces greater sector selectivity and focus, and proposes a move toward a programmatic approach. ADF lending and grants to the Lao PDR amounted to $62.2 million. Disbursement amounted to $76.1 million. ADB approved a $10.0 million sovereign public sector loan for the Rural Finance Sector Development Program, a $9.3 million sovereign sector loan for the Northern Region Sustainable Livelihoods through Livestock Development Project, a $7.0 million loan and $3.0 million grant for the Forest Plantations Development Project, and an $8.9 million loan and $12.7 million grant for the Basic Education Sector Development Program. ADB also provided eight technical assistance grants amounting to $4.6 million for project preparation and capacity development in priority areas.

ADB approved a new country strategy and program for the Lao PDR, which reflects lessons from ADB’s experience in the country