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IFC to promote private sector to boost Lao economy
The International Finance Corporation (IFC), a member of the World Bank Group, plans to support the development of the infrastructure, energy and financial sectors in Laos.
Vice President for Asia, Eastern Europe, the Middle East and North Africa at the IFC, Mr Rashad R. Kaldany, this week visited Laos to discuss the proposed assistance.
“To support Laos’ economic growth, the IFC plans to support the further development of the country’s infrastructure, energy and financial sectors.”
“We also plan to maximise contributions from private companies for poverty alleviation,” he added.
During his visit, Mr Kaldany discussed opportunities for scaling up IFC’s partnership with Laos during meetings with private sector partners and senior government officials in Vientiane.
The talks centred on IFC’s support for the government’s development agenda by encouraging investment and private sector participation in areas such as hydropower.
Mr Kaldany said Laos is rich in natural resources and is strategically located in one of the fastest growing regions in the world. The increasing interest in the hydropower and mining sectors bodes well for continued economic growth.
“Our focus is to support the development of these resources in a sustainable and environmentally sound manner and ensure projects contribute to improving people’s lives.”
During his visit, Mr Kaldany met with Minister of Finance, Mr Somdy Douangdy, Minister of Mines and Energy, Mr Soulivong Daravong, and Deputy Managing Director of Banque Pour Le Commerce Exterieur Lao, Mr Vankham Voravong.
Mr Somdy Douangdy thanked IFC for its continued support, especially in the private sector. “However, I think we should further promote the IFC’s role in order to boost participation by the private sector and allow companies to access more funds.”
“For example, small scale dams could be developed by local investors if they knew how to access funding sources,” he added.
IFC’s strategy in Laos focuses on developing the private sector as a catalyst for economic development, promoting inclusive growth through improved access to infrastructure, and supporting environmentally and socially sustainable growth –particularly through renewable energy and sustainable development of Laos’ natural resources.
Last month, IFC, through its joint World Bank-IFC sub-national initiative, extended a US$15 million loan to Electricite du Laos, the largest utility in Laos, to expand its electrical grid to 37,000 rural households in central and southern parts of the country, supporting phase two of the country’s rural electrification programme.
IFC is a large global development institution focused on the private sector in developing countries. It creates opportunities for people to escape poverty and improve their lives by providing financing to help businesses employ more people and supply essential services, by mobilising capital from others, and by delivering advisory services to ensure sustainable development.
Vientiane Times
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