Development assistance in Laos
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2024-25 bilateral allocation [budget estimate]
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$24.1 million
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2024-25 total Australian ODA [budget estimate]
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$53.2 million
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2023-24 bilateral allocation [budget estimate]
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$23.1 million
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2023-24 total Australian ODA [budget estimate]
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$47.7 million
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2022-23 total Australian ODA [actual]
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$51.0 million
Australia and the Lao People's Democratic Republic (Laos) are longstanding bilateral and regional partners. Diplomatic relations have existed since 1952 – one of Laos' longest-standing diplomatic relationships. In March 2024, Australia and Laos elevated our relationship to a Comprehensive Partnership, further deepening people-to-people links and expanding cooperation in key sectors.
The overarching goal for the Australia–Laos development partnership is a stable, prosperous and resilient Laos. Our development cooperation policy aligns with the Lao PDR National Socio-Economic Development Plan and Australia's International Development Policy.
We are undertaking the following activities under our Official Development Assistance program, consistent with the principles and priorities set out in the Laos-Australia Comprehensive Partnership. The forthcoming Development Partnership Plan will further articulate how we will translate our development and Comprehensive Partnership priorities into action.
People, Education and Human Resource Development
We recognise the important contribution of education to building stronger communities and fostering sustainable economic growth and prosperity. Australia is assisting Laos to develop the critical foundations upon which secondary and tertiary education, skilled employment and economic development is built. Australia is also continuing to build leadership capacity, people-to-people and institutional linkages, and strengthening Laos' capacity to effectively engage in the region and beyond. We recognise the importance of protecting and promoting human rights in both countries and Australia is also supporting Laos respond to emerging infectious and non-infectious disease threats.
Key Investments
Basic Education Quality & Access in Lao PDR program Phase 2 (BEQUAL 2)
$33.3 million (2022-2026)
Basic education, including long-term investment in literacy and numeracy, is the critical foundation upon which secondary and tertiary education, skilled employment and economic development is built. Basic education has historically been Australia's flagship program in Laos. BEQUAL 2 aims to improve primary students' learning outcomes by improving teaching quality. The program is working to strengthen its focus on inequality by going beyond gender mainstreaming and social inclusion, promoting inclusive education and supporting long-term change by improving spoken Lao skills for Grade 1 students who do not speak Lao.
Related Documents
| Name of document | Year published | Type |
|---|---|---|
| BEQUAL Investment Design Document | 2014 | Design |
| BEQUAL Mid-Term Review Report and Mid-Term Review Response | 2018 | Review |
| BEQUAL Phase 2 Investment Design Document | 2022 | Design |
Related Link
Basic Education Quality and Access in Lao PDR
Laos Australia Institute Phase 3 (LAI 3)
$32.0 million (2021-2026)
The Laos Australia Institute Phase 3 implements Australia Awards Scholarships, short course training, targeted leadership capacity building, and alumni engagement ensuring future leaders, including women and marginalised groups, are equipped to address existing and emerging development challenges faced by Laos.
Related Documents
| Name of document | Year published | Type |
|---|---|---|
| Laos-Australia Human Resource Development Program: Design document | 2013 | Design |
| Laos Australia Institute Phase III Program Design Document | 2025 | Design |
Related Link
Australia-Lao PDR Human Rights Technical Cooperation Program (HRTCP) Phase 3
$1.8 million (2023-2027)
The Human Rights Technical Cooperation Program assists the Government of Laos in its efforts to protect, promote and advance human rights in the Lao PDR by providing capacity building for government officials to engage in treaty body reporting processes.
Driving Down Dengue in the Lao PDR
$7.5 million (2024-2028)
This program contributes to a reduction of dengue transmission in Laos by using the Australian-developed Wolbachia method. The population of Wolbachia-carrying A. aegypti mosquitoes is increased in target areas through tailored release efforts and community outreach. The investment supports the Lao Government and communities to participate in the Wolbachia method through gender-equitable, inclusive and climate-informed actions.
Related link
Economics, Trade and Investment
Australia is supporting economic growth and resilience in Laos. Australia's economic programs work across all key Lao economic ministries to support economic and fiscal reforms, improve high-quality investment, increase trade, promote private sector development and enhance transport policy and planning.
Key Investments
Lao PDR Competitiveness and Trade (LCT)
$4.5 million (2018-2025)
The LCT supports Laos in simplifying business regulations, facilitating trade and improving firm-level competitiveness, especially for woman-led and managed firms.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| Lao PDR Competitiveness and Trade (LCT) Mid-Term Review | 2021 | Review |
| World Bank Document | 2018 | Design |
Public Financial Management in Lao PDR
$10 million (2021-2026)
Australia is supporting the Lao government to improve the management of its public finance and human resources. Specific areas of focus are public expenditure management, revenue mobilisation, debt management, and better management of the education budget. The investment also supports capacity building activities for the Lao Statistics Bureau to collect sex-disaggregated data and undertake gender, disability, and social inclusion analysis. This program is implemented through the Mekong Australia Partnership.
Laos-Australia Connectivity Partnership (LACP)
$10 million (2022-2025)
LACP is supporting the upgrade and development of cross‑border trade and logistics facilities. This is paired with capacity-building and technical assistance to build an integrated multimodal transport strategy. Together, Australian assistance is helping transform the Lao Government's approach to transport policy and planning, including building in climate and disaster risk considerations for a resilient transport system. LACP is implemented through the regional Partnerships for Infrastructure program.
Strengthening Gender and Social Inclusion Data and Analysis
$1.8 million (2022-2025)
This initiative helps address gaps in data collection by building the capacity of the Lao Statistics Bureau to collect sex-disaggregated data and to undertake gender, disability, and social inclusion (GEDSI) analysis.
Climate Change, Environment and Energy
Australia is expanding its engagement with Laos on climate change, to strengthen climate resilience and improve energy, food, and water security. We are assisting Laos to develop the policies and regulations required to participate in international carbon markets and enhance Laos' ability to attract and access climate financing. To assist Laos' efforts to reduce its vulnerability to the impacts of climate change, Australia is investing in climate resilient agriculture, Laos' key economic sector. We are doing this through a suite of regional and bilateral cooperation programs, including the bilateral programs below.
Key Investments
Open and Sustainable Carbon Markets in Laos
$2.8 million (2023-2027)
The Open and Sustainable Carbon Markets in Laos program supports the creation of a coordinated multi-sectoral framework for sustainable participation in international carbon markets to increase flows of climate finance into Laos, facilitate carbon sequestration, and reduce greenhouse gas emissions.
Laos-Australia Sustainable Energy Partnership (LASEP)
$3.0 million (2023-2025)
LASEP supports the policy and regulatory framework needed to strengthen planning and greater uptake of renewable energy. The program promotes the integration between energy, climate change and disaster risk reduction. LASEP will integrate social considerations to support the Lao Government to build an inclusive, just and sustainable energy sector. Through LASEP, we are engaging the private sector, civil society, and public on the challenges and opportunities of transitioning toward a more reliable, sustainable and inclusive energy sector. LASEP is implemented through the regional Partnerships for Infrastructure program.
Water, Sanitation and Hygiene in Rural Communities in Laos
$6.0 million (2022-2027)
The program improved access to climate resilient and gender equitable water, sanitation, and hygiene services in hard-to-reach communities including health clinics, and schools through provision of water supply, sanitation, and handwashing facilities. The program operates in five provinces across Laos (Phongsaly, Oudomxay, Houaphan, Luang Namtha and Savannakhet).