ADB, Japan to Help Lao PDR Improve Rural Health Service Delivery

MANILA, PHILIPPINES - The Asian Development Bank (ADB) and the Government of Japan are providing $3 million to improve rural health services in two of the poorest provinces in Lao People’s Democratic Republic.

The grant for Developing Model Healthy Villages in Northern Lao PDR is being provided by Japan Fund for Poverty Reduction, financed by the Government of Japan and administered by ADB. It is targeted to help up to 40,000 people in 100 villages in Houaphan and Xiangkhouang provinces. The Project is designed to increase community involvement and provide a model for potential replication around the country.

The project will ensure that villagers, particularly women, the poor and minority ethnic groups, play a greater role in planning and managing primary health care services. It will fund services identified by individual villages, and provide resources to establish district health teams which will develop and support "model healthy villages" that can be replicated in other provinces under future government programs.

“The project will encourage increased village ownership of health activities, supported by a stronger district health system network,” said Camilla Holmemo, Poverty Reduction Specialist in ADB’s Southeast Asia Department. “Successful implementation of these activities should lead to their scaling up and institutionalization by the Government.”

Lao PDR has reduced child and maternal mortality rates, and established a network of hospitals, health centers and village health volunteers. However, services in remote rural villages remain patchy, with basic infrastructure still lacking. The project is expected to increase access to infrastructure, such as water and sanitation. Up to 30% of jobs for operating and maintaining new infrastructure will be reserved for qualified women.

The grant will cover 80% of the project cost, with provincial and district governments providing 10% and target villages 10% in the form of labor, materials and cash. The Ministry of Health will be the Executing Agency for the project which is due for completion in 2012.

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