Opening session of the training on legal skils for private sector financing in Vientiane on April 24, 2023.

(KPL) International Finance Corporation (IFC), a member of the World Bank Group, in partnership with the Ministry of Planning and Investment from today April 24, 2023 will hold a first-ever legal skills training in the Lao PDR focused on unlocking the critical private sector financing needed to achieve national infrastructure and climate goals.

“Its first time in Southeast Asia, the IFC Certificate Programme on the Legal Framework of Private Sector Financing is an internationally recognized initiative developed in 2017 for IFC investee countries to boost the legal capacity of government officials and legal professionals,” said IFC’s Head of Office in Laos Phongsavanh Phomkong.

The three and a half day certificate programme in Vientiane, jointly developed with the International Law Institute - a non-profit organization, will see about 40 participants from the ministries of Planning and Investment, Public Works and Transport, Energy and Mines, Finance, the Prime Minister's Office as well as representatives from local law firms gain valuable knowledge and training on international best practices in the legal and transactional aspects of private sector financing, focused on private infrastructure and including renewable energy projects.

“Drawing on IFC's global role and deep history in private sector financing, this programme has been specifically tailored to help meet the Lao PDR's pressing infrastructure development needs and its climate goals,” said Ms Vinita Sinha, IFC’ Consultant Assistance.

While the country requires significant investment for infrastructure to transform from a land-locked to land-linked country, a limited public budget means it must leverage private sector financing, especially through public-private partnerships (PPP). This mechanism helps government’s tap into the expertise and efficiency of the private sector to raise capital and spur development. Developing quality public-private participation through PPP is pivotal for attracting quality private investment, particularly for the capital-hungry infrastructure sector.

“With momentum to unlock investment through PPP projects set to accelerate with the PPP Decree to become law by the end of 2024, the Certificate Programme will help fill knowledge gaps on international good practices in PPP legal framework and skills and build institutional capacity to create a strong PPP legal framework as well as facilitate and accelerate PPP transactions and projects in the Lao PDR,” said Ms Thavichan Thiengthepvongsa, Deputy Director of Promotion Investment, Ministry of Planning and Investment.

Importantly, with climate change adaptation a major factor in the country's development progress – against the backdrop of achieving a 60 per cent cut in greenhouse gas emissions by 2030 as per the Lao PDR's Nationally Determined Contributions commitments under the Paris Agreement building participants' knowledge of environmental, social, and corporate governance as well as climate issues will be a key training focus.

This training is part of IFC's new the Lao PDR PPP Development project that is focused on sharing international best practices to build the capacity of government agencies and their knowledge of PPP transactions to execute projects, helping to identify high-potential sectors for PPP projects and supporting the development of a new PPP law. This PPP project underlines IFC's commitment to support the Lao PDR's development agenda through championing private sector development, promoting sustainability, and creating job opportunities.

KPL