The government of Japan has agreed to provide a loan of up to 1.5 billion yen (US$16.6 million) to the Lao government under the Japanese Official Development Assistance (ODA) programme, according to the Ministry of Foreign Affairs of Japan.
Dr Thongloun Sisoulith (left) and Mr Katsuya Okada sign a loan agreement in Tokyo, Japan, as Mr Bouasone Bouphavanh (standing left) and Mr Yukio Hatoyama (standing second left) look on.
The agreement came during participation in the First Mekong-Japan Summit in Tokyo last week by a Lao delegation led by Prime Minister Bouasone Bouphavanh.
The agreement was signed last Saturday by Lao Deputy Prime Minister and Minister of Foreign Affairs, Dr Thongloun Sisoulith, and Japanese Minister for Foreign Affairs, Mr Katsuya Okada.
The Japanese Ministry of Foreign Affairs reported the loan is being extended in cooperation with the Fifth Poverty Reduction Support Operation currently operated in Laos by the World Bank.
The financing will provide the Lao government with emergency financial assistance and economic stimulus to offset the effects of the global economic recession.
The loan is subject to an interest rate of 0.01 percent per annum with a repayment period of 40 years (including a ten-year grace period).
The signing ceremony was attended by Prime Minister Bouasone Bouphavanh and Japanese Prime Minister Yukio Hatoyama.
At the summit Japan committed to expanding its ODA to Laos, Cambodia and Vietnam, as well as to the Mekong region as a whole.
Japan has committed more than 500 billion yen (US$5.5 billion) in ODA to the Mekong region over the next three years. This commitment, which facilitates in part the flow of private investment, is expected to fully mobilise Japan’s knowledge and financing, and lead to the promotion of the measures stated in the Tokyo Declaration in a more effective way, according to a statement released by the Japanese Ministry of Foreign Affairs. The leaders of Mekong region countries reaffirmed their commitment to utilise Japanese ODA efficiently, effectively and properly.
During the summit, the government of Japan also agreed to provide a loan of 54.9 billion yen (US$609 million) to the Vietnamese government.
The summit saw the adoption of the Tokyo Declaration and a commitment by Japan to cooperate with NGOs to assist with the clearance of unexploded ordnance in southern Laos in the aftermath of tropical storm Ketsana. The summit was also attended by leaders from Laos, Cambodia, Myanmar, Thailand and Vietnam.
By Vientiane Times Reporters
November 10, 2009
