MANILA — The Asian Development Bank (ADB) has approved a $10 million financing for the Responsible Forestry Project Phase I in the Lao People’s Democratic Republic (Lao PDR), marking ADB’s first investment in the country’s forestry sector in a decade.
The project aims to halt forest degradation, strengthen climate resilience, and improve livelihoods for forest-dependent communities in Bolikhamxay, Khammouan, and Vientiane Capital.
The financing comprises a $5 million concessional loan from ADB’s ordinary capital resources and a $5 million grant through ADB’s Asian Development Fund (ADF).
“By promoting responsible forestry and empowering communities, we can drive sustainable growth, protect ecosystems, and create opportunities for women and rural families,” said ADB Country Director for Lao PDR Shanny Campbell.
Forests cover 62% of Lao PDR, support key sectors, and employ more than 65% of the national workforce. Yet decades of unsustainable practices have caused forest degradation costing nearly 19% of gross domestic product annually. Public funding alone cannot reverse such consequences. Private investment is needed to restore forests, expand tree planting, and develop conservation-linked ecotourism.
Phase I will assess current challenges and design solutions, including feasibility studies for Phase II. It will facilitate partnerships between government, private investors, and communities to establish commercial plantations and conservation initiatives. The project will also strengthen institutions and ensure that communities can actively participate in and benefit from forestry activities.
The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021–2024, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.
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.
