WASHINGTON, D.C., May 28, 2019—The World Bank’s Board of Executive Directors approved today 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.
“This operation is aligned with the Government of Lao PDR’s green growth vision, as articulated in the 8th National Socio-Economic Development Plan and the new National Green Growth Strategy for 2030,” said Dr. Kikeo Chanthaboury, Vice Minister of Planning and Investment for Lao PDR. “Our transition to a greener development model can help sustain Lao PDR’s strong economic growth and make the country more resilient to climate change.”
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.
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.