Lao PDR’s Green Growth reforms get $40 million boost with credit from World Bank

The World Bank’s Board of Executive Directors approved a US$40 million credit to support Lao PDR’s shift to a more sustainable growth model. The Second Programmatic Green Growth Development Policy Operation fosters reforms to strengthen fiscal and financial sustainability and incorporate green growth principles into development planning.

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.

“Green growth can bring new opportunities to the people of the Lao PDR while safeguarding the environment and human health,” said Ellen Goldstein, World Bank Director for Myanmar, Cambodia, and Lao PDR. “Lao PDR has enacted important reforms, including establishing the country’s first national park, issuing a new water law for improved river basin management, curbing illegal logging, and managing pollution that undermines human capital. We are pleased to support these efforts, while also enhancing the country’s fiscal and financial sustainability.”

The operation helps Lao PDR address its debt burden and fiscal deficits 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.

Original source: World Bank
Published on 28 May 2019