Laos, ADB ink US$20m loan agreement for Covid-19 response

Laos and the Asian Development Bank (ADB) on Wednesday signed an agreement under which ADB will provide an additional US$20 million loan to support Laos’ response to the coronavirus outbreak. 
Deputy Minister of Finance Mr Bounchom Oubonpaseuth, on behalf of the Lao government, and ADB Country Director to Laos Mr Yasushi Negishi, on behalf of ADB, signed the loan agreement.

“ADB stands by the side of the Lao PDR to respond to the Covid-19 outbreak to save lives and ensure the country’s sustainable and inclusive growth during the pandemic,” Mr Negishi was quoted as saying in a press release from the ADB office in Laos.
“The additional financing will help support the Lao PDR to provide quality healthcare, equipment, and materials to contain the spread of Covid-19 and treat cases of infection effectively.”
Senior officials from the Ministry of Health and Ministry of Planning and Investment attended the signing ceremony.
The agreement was signed after the Bank approved the loan on Monday.
The loan, as additional financing to an original US$12 million loan and grant provided by ADB, for the ongoing Laos component of the Greater Mekong Subregion (GMS) Health Security Project, will assist the Ministry of Health to procure personal protective equipment, laboratory equipment, test kits, medical equipment, and ambulances, according to the press release.
It will also help the government provide supplies and training to frontline health workers on infection prevention and control, lab testing, and clinical care for Covid-19 patients. It will also cover the government’s costs for contact tracing, risk communications, and other interventions.
With 19 confirmed Covid-19 cases and despite there being no new infections for 45 consecutive days as of May 27, Laos remains highly vulnerable to the disease, the ADB said. 
The fact that migrant workers are returning from heavily-affected neighbouring countries, foreign workers employed for essential projects in Laos are travelling from affected areas, and truck drivers bring goods from affected neighbouring countries into Laos poses an increased risk of the spread of Covid-19. 
This means that the healthcare system, with limited medical personnel, supplies, and equipment, could be overwhelmed by the rapid spread of the virus.
The original project, which ADB approved in 2016 with a US$125 million loan and grant, is helping to strengthen health security in Laos, Cambodia, Myanmar, and Vietnam, with a focus on regional cooperation and subnational communicable disease control systems, particularly in border areas of the GMS. 
The other two members of the GMS, Thailand and the People’s Republic of China, are also participating in the GMS Working Group on Health Cooperation, which is supported by ADB.

By Times Reporters
(Latest Update May 28, 2020)