Vientiane: The Lao Government and the Asian Development Bank (ADB) signed a set of financing agreements for the Sustainable Agrifood Systems Sector Project in Vientiane today. The agreements were signed by Mr. Soulivath Souvannachoumkham, Deputy Minister of Finance, representing the Lao PDR government, and Ms. Shanny Campbell, ADB Country Director for the Lao PDR. The signing ceremony was attended by senior officials from various government agencies, along with the Ambassador of the European Union to the Lao PDR.

According to Lao News Agency, the project is backed by a USD 50 million package from ADB, the ASEAN Infrastructure Fund, and the European Union-ASEAN Catalytic Green Finance Facility. Additionally, USD 13 million in grants from the Asian Development Fund and the Green Climate Fund through the Community Resilience Partnership Program Investment Fund will support the project. The Ministry of Industry and Commerce, along with other governmental bodies, will implement the project.

The initiative aims to enhance climate resilience, food security, nutrition, and household incomes in Lao PDR. Agrifood systems will be strengthened to cater to domestic and export markets for high-value commodities. Investments will be made in commercial financing, privatized technical services, small-scale infrastructure, and food safety to achieve these goals.

Financial services will be accessible through banks and microfinance institutions across the country. Technical advisory services and infrastructure improvements will focus on the provinces of Champasak, Salavan, Xekong, Houaphan, Phongsali, and Xaignabouli. High-value commodities such as bamboo, coffee, durian, sustainable cassava, and tea will receive targeted support to enhance their export value.

Ms. Campbell emphasized that the project will support national efforts to transform agrifood systems, benefitting communities and enterprises while contributing to economic growth. The project is a key component of ADB’s wider country program aimed at supporting the Lao PDR Government’s social and economic development agenda.

The agriculture sector in Lao PDR has considerable growth potential, driven by increasing domestic and regional demand. Realizing this potential involves enhancing the competitiveness and resilience of agrifood systems, boosting food security and nutrition, and increasing exports of high-value commodities.