1. WBG engagement
in the forestry
sector of Lao PDR
Meerim Shakirova
Operations Officer, WB

2. BACKGROUND
• Despite lots of efforts made on Participatory Sustainable
Forest Management, Lao PDR has faced a rapid
deforestation and degradation;
60.9% 60.2% 59.3%
58.0%
30%
35%
40%
45%
50%
55%
60%
65%
70%
2000 2005 2010 2015
Forest cover
Source: National Forest Inventory, MAF Forest Inventory and
Planning Department (FIPD) 2018.

3. Lao PDR is reforming and transforming how it manages forests to drive greener, more resilient growth, create jobs
and livelihoods, and expand forest cover and health.
Other development
partners
Working across institutions and instruments to put in place the information and investment
needed to help the country make this shift.
The World Bank Group’s IDA and
IFC
Forest Carbon Partnership Facility
(FCPF)
Forest Investment Program
(FIP)
Global Environment Facility
(GEF)

4. IDA financing for three on-going operations has formed
the center of this strategic, innovative program of support that has been convening and leveraging multiple
sources of financing
o Scaling Up Sustainable Forest Management Project
(SUPSFM, $38M IDA/FIP)
o Green Growth Development Policy operation series
(GGDPO, $100M IDA in 3 tranches)
o Second Lao Environment and Social Project (LENS2, $38M IDA/GEF)
One key complementary instrument has been the FIP, which is co-financing the IDA-supported SUPSFM and an IFC-
supported sustainable plantation project.
The Bank and IFC are seeking to collaborate more closely on
coordinated public and private sector solutions for Lao PDR,
building on this experience to inform the IDA and IFC
pipelines.
Complementary new Emission Reduction Program under preparation would potentially provide up to $40 million in
results-based payments to Lao PDR from the WBG’s Forest Carbon Partnership Facility for verified emission reductions.

5. LAO PDR’ INITIATIVES RELATED TO LANDSCAPE
APPROACH
o Landscape approach piloted in 2 forest landscape projects:
o SUFORD SU supported by WB
o ICBF supported by KfW, German Government
o Ongoing Government/World Bank/GEF development of large-
scale landscape and livelihood project:
5

6. Lao PDR’S perspective with Landscape approach
Landscape management, if successfully implemented, will contribute:
• Sustainable socio-economic development in line with SDGs;
• Sustainable forest management and forest restoration;
• Flood and erosion risk reduction;
• Improved local livelihoods;
• Nature-based tourism development;
• Realization of National REDD+ Strategy, Emissions Reduction
Purchase (under preparation), and NDC commitment

7. Platform for Investment in Lao Landscapes
7
Project1:
IDA/GEF
Partner
2
Policies
Project 2:
IFC Market
1
Analytics
Govtinstitutions
Company 2
Project
3:
ERPA
Company
1
Partner
1
Market
2
Partner
1Market
3
Project
4: GCF

8. THANK YOU FOR YOUR ATTENTION