Press Release

Laos pursues water supply rehabilitation with help of US$9 million OPEC Fund loan

18/2006 March 21, Vienna, Austria
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The OPEC Fund for International Development today signed a US$9 million loan agreement with the Lao People’s Democratic Republic to help finance a project aimed at improving the quality and accessibility of water supply services among 11 towns in the northern and central regions.

Although around 70% of the urban population in the capital Vientiane and its four suburbs have piped-in water supplies, coverage in Laos’ small villages is sparse. This, in combination with poor sanitation facilities and low hygiene awareness, has resulted in a high incidence of waterborne illnesses and parasitic diseases such as malaria. Women and children often spend several hours a day fetching water, time that could be put toward more productive activities. In order to address this situation, government has accorded priority to developing water supply systems and rehabilitating associated infrastructure in 11 villages situated in the country’s northern and central regions, where poverty levels are the highest.

The project will undertake a wide range of works. In order to boost the efficiency of the water supply sector, institutional strengthening and capacity-building measures will be carried out at Laos’ Water Supply Authority and Urban Planning Department. Some 97,000 residents will receive access to safe drinking water through the development of surface, spring or groundwater sources and water treatment and distribution networks, as well as the installation of individual service connections. Urban infrastructure directly associated with the construction and operation of the water supply systems will be rehabilitated; namely, public sanitation and drainage facilities, roads and bridges. To foster the sustainability of the project, a Community Health and Awareness program will be created, in addition to an Environmental Improvements initiative that will provide funds and technical assistance for small-scale schemes that will upgrade, among others, village access roads, footpaths and sanitation services at community facilities.

This is the 11th loan the OPEC Fund has extended to Lao PDR. The other nine include one for balance of payments support, two for commodity imports programs and seven project loans in the agriculture, energy and transportation sectors. In addition, the country is a participant in the Fund’s initiative against HIV/AIDS in Asia and the Pacific. A Fund grant was also used to finance Laos’ subscription to the Common Fund for Commodities.

Today’s agreement was signed in Vienna by HE Mr. Khouanta Phalivong, Ambassador Extraordinary and Plenipotentiary of the Lao People’s Democratic Republic to Germany, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.