18 June 2024, Vientiane Capital, Lao PDR — The National Planning and Financing for Inclusive Development (NPFID) Project, implemented by the Ministry of Planning and Investment with the support of the United Nations Development Programme (UNDP) in Lao PDR, is getting additional resources from the United States Agency for International Development (USAID) and the Ministry of Foreign Affairs and Trade of New Zealand (NZ-MFAT) to scale up its interventions. The revised project document, which will guide the implementation of the activities until June 2026, was signed during a ceremony in Vientiane, which was followed by a meeting of the project board. 

The NPFID project aims to enhance coordination among key government entities responsible for shaping and implementing national development strategies. Currently in its second year of implementation, the project has secured additional resources from USAID and NZ-MAT, as part of a joint commitment to accelerating sustainable development and transformative change in Lao PDR’s economic and social landscape. The new funding will allow to scale up the interventions in support of the Government as Lao PDR is formulating its 10^th National Socio-economic Development Plan (NSEDP 2026-2030), which will coincide with the deadline for the achievement of Vision 2030 and the Sustainable Development Goals (SDGs), as well as the country’s graduation from Least Developed Country (LDC) status. 

With an overall focus on strengthening collaboration and synergies among the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Foreign Affairs, the project’s primary goals are to streamline coordination mechanisms, align budget formulation with development planning, and integrate the Sustainable Development Goals (SDGs) into the National Socio-Economic Development Plans.  Additionally, the NPFID project aims to enhance aid coordination through strengthening the role of Sector Working Groups (SWGs) and the Round Table process in developing and implementing the NSEDPs, and monitoring progress against the agreed results. 

“A robust socio-economic development plan with more inclusive, result-based, shock-responsive, proper budget allocation, and fiscally attainable goals will lead Lao PDR to the achievement of the national development agenda. A formulation of this comprehensive socio-economic development plan requires strong institutional capacity, good coordination, cooperation, and monitoring mechanisms.” said Vice Minister of Planning and Investment Phonevanh Outhavong. 

“With the additional funding provided by USAID and New Zealand, the NPFID project has the potential to become a very effective cross-ministerial multi-partners collaborative platform for integrated planning and financing, facilitating the formulation of inclusive, risk-informed development plans, supported by sound fiscal decisions. This is more critical than ever as Laos approaches its imminent graduation from Least Developed Country (LDC) status and must forge new pathways towards self-reliance and sustainability, maximizing the benefits of economic growth for the population to enhance the living standards of all its citizens.” said UNDP Resident Representative for Lao PDR, Ms. Martine Thérer.

USAID Country Representative to Lao PDR Michael McCord highlighted the expanding partnership between the United States and the Lao PDR under the US Lao PDR Comprehensive Partnership. “Today marks a significant milestone in our joint efforts and a demonstration of our commitment to support the Government of Lao PDR in achieving its NSEDP goals,” said Mr. McCord. “The United States remains committed to partnering with the Government of Lao PDR in promoting the well-being of the people of Laos.”

“New Zealand is proud to support NPFID. The project reflects our commitment to fostering sustainable development and inclusive growth in Lao PDR. As Lao PDR approaches its graduation from Least Developed Country status, the New Zealand government is pleased to be able to partner with UNDP and USAID to support the Lao PDR government’s ambitions to effectively plan, finance and implement its national development priorities to respond to the needs of the citizens and pave the way for a prosperous, inclusive and resilient future.” said Representative of the New Zealand Ministry of Foreign Affairs and Trade (NZ-MFAT), Mr. Matthew Allen. 

Following the signing ceremony, the project held a board meeting to review the implementation progress of 2023 and approve the work plan for 2024. 

During the project board meeting, which followed the signing ceremony, over the past year, the project has significantly contributed to Lao PDR’s national development planning processes. Key accomplishments over the past year were highlighted, including the Mid-Term Review of the 9^th NSEDP, the successful organization of the 2023 Round Table Implementation Meeting and the endorsement of the Round Table Process guidelines, Lao PDR’s participation in the 4^th round of the Global Partnership for Effective Development Cooperation, and the finalization of the prototype for a database that will allow to track tax exemption and preferential treatments. 

The National Planning and Financing for Inclusive Development (NPFID) Project is worth more than 4 million USD, implemented by the Ministry of Planning and Investment with the support of the United Nations Development Programme in Lao PDR. It is supported with a matching contribution by the United States Agency for International Development and the Ministry of Foreign Affairs and Trade of New Zealand. The project’s implementing partners are: the Department of International Cooperation, the Department of Planning, the Lao Statistics Bureau, the Development Research Institute and the Department of Investment Promotion of the Ministry of Planning and Investment, the Fiscal Policy Department of the Ministry of Finance, and the Department of International Organization of the Ministry of Foreign Affairs.

Contacts:

Ministry of Planning and Investment 

Santi Songnavong, Acting Director of International Organization Division,

Department of International Cooperation, Ministry of Planning and Investment 

UNDP 

Aksonethip Somvorachit, Communications Analyst, UNDP Lao PDR

Email: aksonethip.somvorachit@undp.org

USAID

Athit Chanthalath, Senior Development Outreach and Communications Specialist. 

Email: achanthalath@usaid.gov

NZ-MFAT

Siritharin Chareonsiri, Senior Development Programme Coordinator, Cambodia, Lao PDR, Thailand

Email: Siritharin.Chareonsiri@mfat.govt.nz