ADB, Japan back rural healthcare upgrade

The improvement of primary healthcare services in rural areas of the two poorest provinces in Laos has received funding from the Asian Development Bank (ADB) and the government of Japan.

ADB has provided US$10 million for its first-ever programme assistance for the Lao health sector, and Japan has contributed US$3 million.

The two grant agreements were signed yesterday in Vientiane by Deputy Minister of Finance Ms Viengthong Siphandone, ADB Country Director Gil-Hong Kim and Deputy Minister of Health Prof. Dr Eksavang Vongvichith.

Representatives from the Japanese Embassy to Laos and Lao government officials also attended the signing ceremony.

ADB’s US$10 million programme grant, which is accompanied by a US$10 million project grant, will enable Laos to meet the health-related Millennium Development Goals (MDGs). The programme supports the government’s 7th Health Sector Development Plan covering the period 2011-2015.

The programme assistance will fund policy reforms in planning and finance, maternal and child health, and human resources development.

The government has agreed to make the equivalent in programme funding available to increase the non-salary recurrent budget for better quality of services, the rollout of material and child friendly health services, health equity funds for the poor, and so-called “model healthy villages” where communities work together to ensure a healthy environment and access to healthcare for all.

The project grant will fund investment that supports programme goals, including the strengthening of provincial planning and budgeting capacities, training for birth attendants and other primary healthcare workers, and improvements to four district hospitals and 45 health sectors.

Both the programme and the project grants are from ADB’s concessional Asian Development Fund, with the programme funds to be released in two amounts of US$5 million each.

The project grant makes up 93 percent of the total planned project investment of US$10.8 million, with the government providing in-kind. The programme is set to run from January 2010 to June 2012 and the project scheduled for completion by December 2013.

The second US$3 million grant will be provided by the Japan Fund for Poverty Reduction, financed by the government of Japan, administered by ADB, and due for completion in 2012.

The grant will cover 80 percent of the project cost, with provincial and district government providing 10 percent and target villages 10 percent in the form of labour, materials and cash.

The grant will cover 100 villages in all 16 districts of Huaphan and Xieng Khuang provinces.

The project is designed to increase community involvement and provide a model for potential replication around the country.

The project will ensure that villagers, particularly women, the poor and ethnic groups, play a greater role in planning and managing primary healthcare services.

It will fund services identified by individual villages, and provide resources to establish district health teams which will develop and support “model health villages” that can be replicated in other provinces under future government programmes.

Laos has reduced child and maternal mortality rates, and established a network of hospitals, health centres and village health volunteers. However, services in remote rural villages remain patchy.

The Ministry of Health will be the executing agency for the programme and the projects.

ADB, based in Manila, the Philippines , is dedicated to reducing poverty in the Asian and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved US$10.5 billion of loans, US$8114.4 million of grant projects, and technical assistance amounting to US$274.5 million.

By Vientiane Times Reporters
November 24, 2009