ADB to Support Agrifood Systems Transformation in Lao PDR

Strategic Insights -

The Asian Development Bank (ADB) has approved a $65.8 million financing package for the Sustainable Agrifood Systems Sector Project in Lao PDR. The project aims to improve climate resilience, food security, nutrition, and incomes of vulnerable households and communities. It will strengthen agrifood systems geared toward domestic and export markets for high-value commodities, with investments in financial services, technical services, infrastructure, and food safety. The project will be implemented nationwide and in selected provinces in the south and north.

Key Takeaways:

  • The ADB has approved a $65.8 million financing package for the Sustainable Agrifood Systems Sector Project in Lao PDR, with a $50 million package from the ADB, ASEAN Infrastructure Fund, and the European Union-ASEAN Catalytic Green Finance Facility, and $15.8 million in grants from the Asian Development Fund, the Green Climate Fund, and the High-Level Technology Fund.
  • The project aims to improve climate resilience, food security, nutrition, and incomes of vulnerable households and communities by strengthening agrifood systems geared toward domestic and export markets for high-value commodities.
  • Investments will be made in financial services, technical services, small-scale infrastructure, and food safety to support the project's objectives.
  • High-value commodities such as bamboo, coffee, durian, sustainable cassava, and tea will receive additional support to increase value addition prior to export.
  • The project will be implemented nationwide and in selected provinces in the south and north.
  • ADB Country Director for the Lao PDR, Shanny Campbell, stated that the project reflects ADB's commitment to expand its support to long-term food and nutrition security in Asia and the Pacific.
  • Lao PDR's agriculture sector holds significant growth potential, spurred by rising domestic and regional demand.

Statistics:

  • $65,800,000: the total amount of the ADB financing package
  • $50,000,000: the amount from the ADB, ASEAN Infrastructure Fund, and the European Union-ASEAN Catalytic Green Finance Facility
  • $15,800,000: the amount of grants from the Asian Development Fund, the Green Climate Fund, and the High-Level Technology Fund
  • 69: the number of ADB members, with 50 from the Asia and Pacific region

Sources:

  • Asian Development Bank (ADB) press release announcing the approval of the Sustainable Agrifood Systems Sector Project in Lao PDR
  • M2 PressWIRE press release "ADB to Support Agrifood Systems Transformation in Lao PDR" on July 7, 2025.