ADB Approves $50.3M Financing to Enhance Water Supply and Sanitation Services in Laos

New Project Aims to Improve Access to Safe, Climate-Resilient Water and Sanitation for 70,000 People in Laos, with Focus on Vulnerable Households.

The Asian Development Bank (ADB) has approved a $50.3 million financing package to support the Lao People’s Democratic Republic (Lao PDR) in improving its water supply and sanitation services. This includes a $2 million technical assistance grant from the Japan Fund for Prosperous and Resilient Asia and Pacific. The project will focus on providing clean, reliable, affordable, and climate-resilient water and sanitation services to communities across the country.

“Access to safe, piped water remains a significant issue across Laos, directly impacting public health and livelihoods,” said ADB Country Director for Laos, Shanny Campbell. “This project will support the Government of Lao PDR in meeting its development targets by ensuring equitable access to clean water and sanitation for 13,000 households, benefiting approximately 70,000 people, including 800 vulnerable households.”

Despite progress in water and sanitation access, Laos still faces significant infrastructure challenges, including inadequate systems, poor sanitation facilities, and a lack of regulatory oversight. These issues hinder the country’s goal of providing safely managed water supply services to 90% of its provincial and district populations by 2030. Current systems suffer from outdated infrastructure, high water leakage rates, and insufficient investment in public services to keep pace with population growth (1.5% annually) and urban expansion (3.2% annually).

The financing agreement for the Water Supply and Sanitation Improvement Sector Project was signed by the Ministry of Finance, representing the Lao PDR government, and ADB on December 12, 2024. The project will address key challenges such as climate resilience, gender inclusivity, and regulatory improvements.

Key objectives of the project include:

Strengthening the Regulatory Environment: The project will introduce a climate-resilient and gender-responsive regulatory framework to enhance asset planning and maintenance, ensuring sustainable water supply and sanitation services.

Expanding Access to Water and Sanitation: The project will focus on rehabilitating and constructing water supply systems, improving sanitation services, and providing pour-flush latrines to vulnerable households, especially those headed by women. Public places and schools will also benefit from inclusive toilets designed for accessibility.

Building Institutional Capacity: The project will enhance the capacity of the Department of Water Supply and provincial water utilities, helping to ensure the long-term sustainability of water and sanitation services in targeted provinces.

The target provinces for this project are Bokeo, Houaphan, Salavan, Xaisomboun, and Xiengkhouang. With this initiative, Laos aims to significantly improve water supply services, improve public health, and ensure access to sanitation for vulnerable and underserved communities.