Thursday, January 23, 2020

Scaling up Finnish-World Bank Lao forestry

Finland and the World Bank have been providing financing for Laos’ forestry sector for many years. The donors now plan to scale up this effort with a forestry management project that will introduce a strong focus on carbon sequestration. The Finnish Foreign Ministry announces a tender for the technical assistance.

Addressing climate sustainability is viewed as the “backbone” of this project.

The total budget is USD 53.66 million. Of this, USD 19 million will be an IDA grant and USD 12.83 million will come from a World Bank Strategic Climate Fund Grant. The Finnish Ministry for Foreign Affairs will provide EUR 10.9 million, while the Lao government contributes the rest.

According to a project document prepared by NIRAS and Impact, the new project, which will extend from mid-2013 until 2018, introduces the following climate-related components: monitoring of forest carbon emission reductions and introduction of performance payments for forest carbon sequestration. The project will also promote efforts to develop sustainable livelihood options, and inter-agency coordination.

Finland plans to phase out of forestry sector aid in Laos after 2018. To this end, the project will from 2016 will study alternative models for achieving self-financing, including payments for avoided deforestation.

The deadline for the submission of tenders is August 26, 2013.