One of the two agreements recently signed by the World Bank and Laos is for continued technical assistance by which Laos can manage its hydropower and mining resources. The $17.8 million additional financing comes from the Technical Assistance for Capacity Building in the Hydropower and Mining Sectors Project.
The World Bank Group has inked two agreements for around $40 million in financing that will aid the Lao People’s Democratic Republic in developing their hydropower sector.
One of the two agreements recently signed by the World Bank and Laos is for continued technical assistance by which Laos can manage its hydropower and mining resources. The $17.8 million additional financing comes from the Technical Assistance for Capacity Building in the Hydropower and Mining Sectors Project.
The other agreement signed is for the new support for the Small and Medium Enterprise Access to Finance Project, which includes a $10 million grant and a $10 million credit from the International Development Association, and approximately $4 million from the International Finance Corporation in risk sharing funds.
 |
  |
The project will provide long term credit to small firms and help grow and create more jobs.
“S.M.E.s, hydropower and mining sectors form an important part of the Lao economy. The two projects will contribute to the socioeconomic development and environmental sustainability of Lao P.D.R.,” said H.E. Mme. ThipphakoneChanthavongsa, vice minister of Finance of the Lao P.D.R.
“Financing for small firms is vital for the Lao economy. It will help create more jobs, increase family incomes and reduce poverty. Equally important will be the sustainable use of Lao P.D.R.’s wealth of hydropower and mining resources. The World Bank Group is pleased to offer its strong support for these two projects and looks forward to continue our close partnership with Lao P.D.R.,” said Ulrich Zachau, country director of the World Bank for Southeast Asia.
In addition to providing aid to the country’s S.M.E.s, hydropower and mining resources, World Bank has also given Laos aid for its sustainable forest management project, providing $31 million grant back in August 2013 (see related story). – EcoSeed Staff
