Oct 26, 2011

Laos - Laos seeks more funding to restore flood-hit areas



The Lao government will seek more funding from both domestic and foreign sources to restore flood-affected areas and return victims' lives to normal, government spokesperson Bounpheng Mounphosay said.

Bounpheng was speaking at a press conference in Vientiane on Friday to report on the outcome of the government's October 20-21 meeting, which was chaired by Prime Minister Thongsing Thammavong and attended by cabinet members.

The government has set a figure of 600 billion kip (US$75 million) as necessary for essential rebuilding in the aftermath of the flooding triggered by tropical storms Haima in June and Nock-Ten in July.

The money will be used to repair irrigation systems for the upcoming dry season, as well as schools, hospitals, roads and other necessities.

However, the government has been able to provide only 100 billion kip (U$12.5 million), which represents just 16.6 per cent of the total funding it now seeks for restoration projects.

The estimated cost of irrigation repairs is 170 billion kip (U$21 million) but the government can provide only 30 billion kip (US$3.75 million) due to financial constraints. The 30 billion kip will be used to repair irrigation systems needed for dry season crops and to buy animal vaccines, rice seeds and pesticides.

Bounpheng said the government would task local authorities with doing their best to source additional funding to mitigate the impact of the flooding. "Meanwhile, the government will seek more funding from various sources, including from all levels of society, to help affected villagers," she said.

Laos still needs much more funding to restore affected areas after severe floods this year killed 30 people and caused about 1.764 trillion kip (US$220.9 million) in damage.

The flooding devastated important infrastructure including roads, bridges, schools, hospitals, tourist sites, and electricity and water installations.

Despite economic growth of 8 per cent, one of the major concerns in Laos over the next year will be food security because of the magnitude of agricultural losses from the flooding.

Experts say that if local authorities do not have enough money to repair irrigation systems for dry season cultivation, food security in Laos could decline as more than 64,400 hectares of farmland were inundated.

Because the flooding in Thailand, Vietnam and Cambodia could also impact Laos and cause fluctuations in food prices, the government has urged the relevant sectors to monitor the situation closely so they can address any changes.

The government has also directed the relevant agencies to collect information and formulate long-term plans to deal with the possible impact of future flooding.

The long-term plans will include building embankments and relocating schools, hospitals and villages in areas where flooding frequently occurs. The government also plans to focus more on forest preservation to protect the environment and prevent soil erosion.

News Desk
Vientiane Times



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