Lao - Luxembourg Development Cooperation

LAO_DEV_COOP

1. Key Dates of Development Cooperation between Laos and Luxembourg

1997: First diplomatic relations at the margins of the United Nations General Assembly and a first intervention in the health sector
2000: General Cooperation agreement signed in Vientiane
2003: ICP I (Indicative Development Programme) covering the period from 2003 to 2006 with a total budget of 18 million EUR
2007: ICP II (2007-2010) with a budget of 35 million EUR
2011: ICP III (2011-2015) with a budget of 50 million EUR
2015: ICP IV (2016-2010) signed in Luxembourg with a budget of 60 million EUR
2017: During his visit to Lao PDR in November 2017, Luxembourg's Minister for Development Cooperation, Mr. Romain Schneider, signs an increase of the Grand Duchy's financial commitment to 75 million EUR

2. Core sectors and objectives

The targeted sectors of Luxembourg's Development Cooperation in Laos are:

Rural development
Health (50% of the budget)
Vocational training and technical support
Governance as cross-cutting issue

The overall objective of the implemented programs and projects is poverty reduction along with the support of the Lao Government's intention of graduating from Least Developed Country (LDC) by 2020. Geographically,activities are concentrated on less developed areas where the most vulnerable groups in the country are localized.

Further objectives include:

Higher education in legal and banking sector, medical research and the governance sector
Economic cooperation, for example in the field of satellite technology

3. Legal frameworks

2000: General Cooperation Agreement between the Governments of the Grand Duchy of Luxembourg and Lao People's Democratic Republic
2013: Agreement between the Governments of Lao People's Democratic Republic and the Grand Duchy of Luxembourg on Avoidance of Double Taxation and the Prevention of Fiscal Evasion and the Exchange of Notes
Protocol Agreements defining the framework for the implementations of each bilateral project
The successive ICP's
An Annual Partnership Commission between Luxembourg and Lao PDR is alternately organized in both countries in order to evaluate the progress made and to set the priorities for the future

Regional Fora

EU-ASEAN relations
ASEM Meetings
Treaty of Amity and Cooperation in Southeast-Asia
Membership in the Asian Development Bank and the Asian Infrastructure
Mekong River Commission

Qualitiy and effectiveness standards of international development aid

Paris Declaration on Aid effectiveness
Accra Agenda for Action
Busan Partnership Document
Mexico High-Level Meeting Communiqué
European Code of Conduct on Complementary and Division of Labor
Luxembourg's Action Plan for Development Effectiveness

4. Indicative Cooperation Programmes

The Indicative Cooperation Programmes constitute the main framework regulating Luxembourg's bilateral cooperation strategies. The first ICP between Lao PDR and Luxembourg was signed in 2003, initiating annually exchange meetings on strategic orientations of cooperation on a ministry level. The fourth ICP for Laos has been signed in September 2015 in Luxembourg by the Grand Duchy's Minister for Development Cooperation Mr. Romain Schneider and the Laotian Minister for Planning and Investment, Mr. Somdy Douangdy:

“The programme, which covers the period 2016-2020, is aligned with the priorities and objectives of the 8th Laotian National Socioeconomic Development Programme and is an integral part of the joint European programme, which covers the same period.

There will be continuity between the 3rd and 4th ICP: the priority sectors will remain the same, i.e. health, rural development, vocational training in tourism and hospitality, as well as good governance/rule of law, which also entails a certain consolidation of the interventions carried out in these areas. Under ICP IV, special emphasis will be placed on good governance, which will be a cross-cutting issue, alongside gender equality, the environment and climate change.

With a view to enhancing aid effectiveness, ICP IV also enhances geographical concentration as well as increased cooperation and coordination between the bilateral and multilateral projects.

In the health sector, a project to develop sanitation systems and a reproductive, maternal and child health programme will be implemented jointly by three UN agencies. With regard to vocational training, a project to develop capacities in tourism and hospitality, funded half and half with Switzerland’s development cooperation, started in 2016.

To complement the formulation of a new project in the legal sector, a cooperation agreement was signed between the universities – more specifically, between the law faculties of Luxembourg and Laos. In the rural development sector, several projects are underway and a single consolidated programme involving all the activities in four provinces – Bolikhamxay, Khammouane, Vientiane and Bokeo – has been established. In addition to the work in these main sectors, there has been collaboration with several Luxembourg organisations – STATEC, the Luxembourg Institute of Health and BBI Luxembourg – and their respective partners in Laos.”

The ICP IV is available in English (PDF)

A mid-term review of the ICP IV will take place in the middle of the year 2018 in order to discuss cooperation strategies concerning the new ICP introduced by 2020.

5. Projects

An overview of bilateral and multilateral projects, programme support, regional cooperation, cooperation through NGOs and humanitarian affairs can be found in the following Document (PDF):

Laos Luxembourg Development Cooperation (January 2017)

UNmap Laos