Germany to help reduce poverty in Laos

Germany has pledged almost 10 million Euros to assist the Lao government in reducing rural poverty in three northern provinces over the next three years.

German government officials met with Lao government representatives yesterday in Vientiane to discuss cooperation on rural development projects in Bokeo, Luang Namtha and Xayabouly provinces, aimed at reducing poverty among local people.

The projects will include the implementation of communication systems at the village level, improving road access to rural areas to create favourable conditions for potential investors and promoting local market economies.

“In Luang Namtha and Bokeo provinces, we will build roads 75 km long,” said Director General of Department of International Cooperation under the Foreign Ministry, Dr Bountheuang Mounlasy. “We will also continue construction on road No. 6.”

The completion of these roads will help promote trade and investment in these provinces as well as encouraging villagers to increase agricultural production. The project includes building a water supply plant in Luang Prabang province. In addition, the Lao government will continue cooperating with the German development agency, GTZ to build vocational schools.

“The German and Lao governments will sign a cooperation agreement setting aside 4 million Euros to build vocational schools in Xieng Khuang and Oudomxay provinces,” he said. “After those schools are built, we want to build schools in Huaphan, Phongsaly and Luang Namtha provinces as well.”

During yesterday’s meeting, both sides reviewed the progress of the projects over the last three years. “Every three years we get together and evaluate our achievements, we will meet again in the next two months to formulate a plan for our future cooperation,” Dr Bountheuang said.

Germany has assisted Laos for many years, particularly in rural and human resource development. They have provided training for villagers to enhance their capacity to expand the agricultural sector. The Lao government in collaboration with the German government is committed to alleviating poverty in the rural areas of northern Laos.

BY Somsack Pongkhao
(Latest Update April 06, 2006)