Laos, Luxembourg ink 50M EUR cooperation deal

Dr Sinlavong Khoutphaythoune (right) shakes hands with Ms Marie-Josée Jacobs

after signing the Indicative Cooperation Programme agreement.

The governments of Laos and Luxembourg yesterday signed a cooperation agreement for the next five years (2011-2015) amounting to 50 million EUR – up from 35 million EUR for the 2007- 2010 agreement.

Minister of Planning and Investment Dr Sinlavong Khoutphaythoune, representing the Lao government, signed the third Indicative Cooperation Programme (ICP) agreement with the Minister for Development Cooperation and Humanitarian Affairs of Luxembourg, Ms Marie-Josée Jacobs.

The 50 million EUR grant from the Luxembourg government will support programmes including rural development in Borikhamxay and Khammuan provinces and improvements to health services in these provinces and Vientiane province. The funding will support job training and human resource development, build training centres to offer courses on tourism, strengthen the financial and banking sectors, and improve infrastructure development. Minister of Health Dr Ponmek Daraloy, Ms Jacobs and UN agency representatives signed an agreement to support the health sector through Unicef and the World Health Organisation with funding of more than 90.4 billion kip (8.1 million EUR), which will be drawn from the 50 million EUR grant.

An agreement to provide support to the National Regulatory Authority for UXO/Mine Action Sector in Lao PDR through the United Nations was also signed. Funding of 750 000 EUR is also drawn from the 50 million EUR grant.

Luxembourg is an active donor to developing countries across the world.

Although the country’s economy was affected by the global economic crisis, the government of Luxembourg retained its commitment to provide the assistance it pledged, Ms Jacobs said at the signing ceremony.

Laos and Luxembourg established diplomatic relations on September 25, 1997, according to the Ministry of Foreign Affairs.

Cooperation between the two countries began in 1996 and since then assistance worth 2 million USD has been provided to Laos each year.

In 2003, the two countries signed the first ICP for 2003-2006 with financial assistance worth 18 million EUR. Luxembourg also provided 35 million EUR for the second ICP from 2006-2010.

Dr Sinlavong, on behalf of the Lao government and people, thanked the government and people of Luxembourg for the valuable assistance being provided to Laos.

He assured the donors that the grant will be used effectively to help the vulnerable poor.

Before the signing ceremony, cooperation commissions from both sides held their seventh meeting to review previous achievements and outline plans for the next five years.

During their visit to Laos, Ms Jacobs and her delegation paid courtesy visits to Prime Minister Thongsing Thammavong and Deputy Prime Minister and Minister of Foreign Affairs Dr Thongloun Sisoulith.

They also visited projects funded by the government of Luxembourg.

Article by Souksakhone Vaenkeo, Saturday March 5, 2011 - Vientiane Times