ADB Approves $149m to Boost Inclusive, Sustainable Growth in Lao PDR

27/01/2026 12:50
KPL The Asian Development Bank (ADB) approved $149 million for four projects for the Lao People’s Democratic Republic (Lao PDR) in 2025 to support the country’s social and economic development priorities. The investments span agriculture, health, education, and forestry, with a strong focus on climate resilience, human capital development, sustainable livelihoods, and private sector engagement.

This project embodies ADB's shared vision with the Government of Lao PDR to invest in the country's greatest asset-its people. Photo by ADB

“These investments work together to strengthen essential services, empower people and enterprises, and build a greener, more competitive economy,” said Shanny Campbell, ADB Country Director for the Lao PDR. “By improving agrifood systems, primary health care, skills for the green economy, and responsible forestry, ADB is supporting the Government of the Lao PDR ’s agenda to deliver inclusive growth and resilient development across the country.”  

The $63 million Sustainable Agrifood System Sector Project  strengthens climate resilient and competitive agrifood systems in the Lao PDR. It improves food security, nutrition, and incomes for vulnerable communities by expanding access to financial services, supporting climate resilient financing, developing value chains, enhancing food safety laboratory services, and upgrading irrigation systems and rural connectivity roads. Focusing on six provinces—Champasak, Salavan, Xekong, Houaphan, Phongsali, and Xaignabouli—the project provides targeted support for high value commodities such as bamboo, coffee, durian, sustainable cassava, and tea to boost value addition and export potential.

The $40 million Green Primary Care Project strengthens climate resilient primary health services across Lao PDR. The initiative upgrades and equips health facilities, climate proof water systems, trains health workers for service continuity during climate shocks, and supports community led climate adaptation. The project spans 51 districts, including 14 climate vulnerable areas, across Champasak, Louangphabang, Oudomxai, Savannakhet, and Xiangkhouang provinces, helping protect national progress toward universal health coverage. This investment marks a major step toward a more resilient health system capable of withstanding increasing climate risks.

The $36 million Skills Enhancement for Inclusive and Green Economic Development Project modernizes technical and vocational education and training (TVET) in Lao PDR to meet growing demand for green  jobs by updating curricula; introducing courses in electric vehicle maintenance, ICT, and industrial electrical skills; strengthening school–industry partnerships; expanding short courses; and upskilling teachers. The project will upgrade 11 TVET schools, introduce energy efficient equipment, and renovate dormitories for rural female students. It will also boost employment—especially for young women—improve job readiness, and strengthen an inclusive, climate resilient skills system.

The US$10 million Responsible Forestry Project – Phase I pilots new partnership models between public institutions, private investors, and communities to support sustainable plantations and conservation based ecosystem, alongside analytical and feasibility work for Phase II and capacity building. Implemented in Bolikhamxay, Khammouan, and Vientiane Capital, the project will strengthen forest stewardship and climate resilience, lay the groundwork for responsible private investment, and improve livelihoods for forest dependent communities—especially women.

“Looking ahead to 2026, when we will commemorate 60 years of partnership between ADB and the Lao PDR, ADB is committed to continue working even more closely with the government—through line ministries and in cooperation with development partners and stakeholders—to deliver high quality investments with lasting impact,” said Campbell. “Together, we will continue to drive progress that improves livelihoods, supports inclusive economic growth, and helps build a more resilient and prosperous future for all people in the Lao PDR.”

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

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