The Asian Development Bank (ADB) said Thursday it has approved $10 million to support a forestry project in Laos, the ADB’s first investment in the country’s forestry sector in a decade.
The project aims to halt forest degradation, build climate resilience, and improve the livelihoods of forest-dependent communities in Luang Bolikhamxay.
The funding includes a $5 million concessional loan from ADB’s regular 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 rural women and families,” said Shanny Campbell, ADB’s country director for Laos.
Forests cover 62 percent of Laos’ land area, support key sectors, and employ more than 65 percent of the country’s workforce. However, decades of unsustainable practices have led to the degradation of forests, which account for nearly 19 percent of the country’s annual GDP. “By promoting responsible forestry and empowering communities, we can drive sustainable growth, protect ecosystems, and create opportunities for women and families in rural areas,” said Shanny Campbell, ADB Country Director for Laos.