Germany provides an additional EUR 5.5 million for rural development

The government of the Federal Republic of Germany will continue to support the Lao government to improve and develop rural infrastructure in Huaphan province with a total amount of EUR 5.5 million (over 62 billion kip) under the Rural Development Programme phase III (RDP III), which is part of last year’s intergovernmental negotiations between Laos and Germany.
A project official told Vientiane Times that phase III of the Rural Development Programme will begin at the end of this year and continue until 2024.

More than one third of the Lao population lives in rural areas and these rural communities suffer from a high poverty rate due to isolation and limited accessibility, especially during the rainy season and particularly in the mountainous areas.
This disconnection from basic infrastructure such as markets, hospitals, schools and clean water leads to heightened risks of poverty, according to a press release from RDP III. 
In the last few years, several long-distance corridors (national roads, railways) have been and are being planned and expanded in order to promote Laos’ regional economic integration.
The catchment area of these corridors is relatively narrow due to the lack of links to surrounding rural areas, which means that positive effects on the population living not far from the corridors are still relatively small and are largely limited to urban areas.
As a consequence, the economic development of rural areas could deteriorate. Without economic prospects, increasing migration, especially of the younger population, to cities is to be expected.
Since 1994 the German government has committed to support Laos in the field of rural development. Under Lao-German Development Cooperation, almost 100 million EUR has been invested in infrastructure through KfW.
Initial support focused on the rehabilitation of national roads in central regions, while recent activities have concentrated on the extension, rehabilitation and repair of roads damaged by flooding in the south.
Building on the previous phases of the programme, the sustainability of investments is supported by accompanying training to ensure appropriate road maintenance.
This training supports the Public Works and Transport Training Institute (PTTI) as the national training institute, as well as providing technical skills for local provincial and district administrations of the Ministry of Public Works and Transport.
As an important contribution to basic maintenance, Village Maintenance Committees in individual villages along the improved roads also received training.
Additionally, smaller infrastructure investments near project roads have been included to improve the economic and social attractiveness of rural regions.
Secure year-round access to markets, schools and health facilities provides development opportunities and creates new jobs, especially for the poor and young rural population.
Last but not least, the investments also enable access to the higher-level national transport network and new transport corridors and, overall, significantly improve the living conditions of poor communities.

By Times Reporters
(Latest Update July 1, 2021)