AFD and Laos

AFD a n d

CHINA

BURMA

VIETNAM Luang Prabang

Vientiane

SOUTH CHINA SEA

Laos

Savannakhet

THAILAND

Pakse

© Gaylord Giordanino

CAMBODIA

49 projects

financed by AFD Group since 1994

250 million euros committed since 1994

40,000

connections to quality water in rural areas in 2017

With its bountiful mountains, forests and waterways, Laos has plenty of assets for its development. For the last ten or so years, it has shown a high and stable growth rate, backed up by significant extractive and hydroelectric resources.

AFD operates there chiefly in the sectors of agriculture, natural resources and preservation of cultural heritage.

#WorldInCommon

OUR ACTION IN

AGENCE FRANÇAISE DE DÉVELOPPEMENT | LAOS

Laos 1

Support sustainable and inclusive agriculture

65% of Laotians live in rural areas and depend on agriculture. This sector is faced with the challenges of ensuring food and nutritional safety, contributing to economic growth and to rural development, and to preserving the environment and health.

To help meet these challenges, AFD assists in capacity building for stakeholders (such as national and decentralized departments of the Agriculture and Forests Ministry, cooperatives, civil society and researchers) through and for: the promotion of agricultural activities that help fight against ­malnutrition;

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Laos is a country of forests (more than 60% of the country) and of waterways, the greatest of which is the Mekong River, which runs along 2,000 km of Laos’ borders. Exploitation of these exceptional natural resources can create risks for the e ­ nvironment and local people, so as common goods they require ­concerted management. To this end, AFD assists the Mekong River Commission (MRC), which is in charge of dialogue among the countries bordering the river, and the NGO Wildlife Conservation Society, which supports the management of protected areas, especially via a public-private-people partnership.

the construction of water and irrigation networks; the strengthening of the organization and quality of agricultural value chains (for coffee, tea and rice), via promotion of certifications (for organic and fair-trade products and for geographical indications); the promotion of agroecological practices that are efficient and sustainable from an economic, social and environmental point of view.

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Reconcile tourism development and cultural heritage preservation

Since 1998, with AFD support, Luang Prabang has undergone regulation of its urbanization, training for the authorities in charge of preserving the site, ­renovation of public buildings, aid for private renovation, and work to improve public spaces. These have helped maintain the atmosphere and cultural values of the former royal capital despite the 600,000 tourists who visit annually.

Since 2012, AFD has also been working with the authorities in charge of managing the pre-Angkorian site Vat Phou, in southern Laos.

The aim is to preserve its cultural landscape, which—like Luang Prabang—is classified as a World Heritage Site.

Manage resources in common

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Invest for sustainable and inclusive economic growth

AFD and its subsidiary Proparco participated in financing the big private hydroelectric projects Nam Theun 2 and Theun Hinboun, whose environmental and social management respect top international standards. AFD also makes a risk-sharing tool (the ARIZ guarantee) available to local banks, thereby helping them lend more to SMEs and thus contribute to inclusive economic development. More than €8 million in loans to SMEs have already been facilitated by this tool.

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Encourage the FrancoLao relationship

Because of their common history, France and Laos enjoy special relations of friendship. These can be witnessed by a certain use of French language, a large Franco-Lao community, and a strong French presence that includes NGOs, companies (France is the top Western investor), research centers (CIRAD, IRD, Institut Pasteur, École française d’Extrême-Orient), cooperation between local authorities from the two countries, and private foundations. AFD encourages this relationship by forming partnerships with French companies (for example EDF to support people displaced by the Nam Theun 2 dam, and BRED for loans to SMEs of its subsidiary Banque FrancoLao) and by supporting the international cooperation initiatives of French communities.

Vientiane Office Head of Vientiane Office: Matthieu BOMMIER Dongpalane road Sisattanak District PO Box 5923 Vientiane Tel: +856 21 227 005 afdvientiane@afd.fr