(KPL) The Lao PDR will benefit from reforms to strengthen fiscal sustainability and financial stability and incorporate green growth principles into development planning with support from the World Bank.
The USD$40 million Second Programmatic Green Growth Development Policy Operation financed by the International Development Association (IDA) was signed by Deputy Minister of Finance Thipphakone Chanthavongsa and World Bank Country Manager for the Lao PDR, Nicola Pontara. The financing aims to support the shift to a more sustainable growth model in the Lao PDR.
The operation supports a suite of policy reforms seeking to mainstream green growth principles across sectors: making infrastructure more resilient to mounting climate risks, managing pollution that harms human health and productivity, and improving management of water resources, forests and protected areas. A cleaner and more resource-efficient growth model helps the poor, who are most vulnerable to pollution, climate risks, and deforestation.
The Lao PDR has made great strides in its transition to greener growth, including the recently approved National Green Growth Strategy to 2030. Earlier this year, the country established its first national parks, and the new water law has improved management of river basins. We are pleased to support these efforts, while also strengthening the country’s fiscal framework, said Nicola Pontara, World Bank Country Manager for the Lao PDR. In addition to protecting the Lao PDR’s natural resources, a fiscally and environmentally sustainable growth model can create a healthy environment for the citizens of the Lao PDR and help generate new livelihood opportunities.
The operation supports the Lao PDR to enhance its fiscal sustainability by supporting a medium-term fiscal framework aimed at improving revenue generation, strengthening debt management and public financial management, and enhancing the stability of the financial sector.
This operation, the second in a series of three, builds on the foundations established in the First Programmatic Green Growth Development Policy Operation approved in 2017.
Source: Lao News Agency