Poverty Reduction Fund
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Poverty Reduction Fund (PRF) was established by the Government of Lao in 2002. It is one of significant measures to support the national Five-year Socio-economic Development Plan (2001-2005) and the Interim Poverty Reduction Strategy Plan in which the poverty incidence is reduced by half by 2015.

Phase I (2003-2008), PRF received soft loan of total USD 19.3 million from the World Bank to implement number of participatory rural development projects in 1,984 villages, 21 districts within 7 provinces. PRF particularly invested into such development projects as construction of 254 secondary schools, 50 small bridges, 64 dispensaries, 1,012 community water supply, 199 irrigations, and 2,420 kilometer long of roads.

Transitional period (2008-2011), PRF further gained a grant aid of total USD 20 million from international organizations, including USD 15 million from the World Bank and USD 5 million from Swiss Agency for Development and Cooperation (SDC) to implement 1,266 sub-projects associated with 4 sectors _ healthcare, education, agriculture and public work.

The year 2010, PRF gained additional financial support of total USD 7.92 million from the Lao Uplands Food Security Improvement Project (LUFSIP), which is a project financed by the three sources of aid assistance (totally USD 14.60 million)
 
_ the Government of Lao,   the European Union Food Crisis Rapid Response Facility Trust Fund, and SDC. With this fund, PRF was assigned to accomplish the following activities from the year 2010 to 2014.
  • Construction of agricultural infrastructures in order to improve better livelihood of farmers in 17 districts of 5 provinces, including Huaphan, LuangNamtha, Xiengkhuang, Savannakhet and Sekong.
  • Rural infrastructure construction in order to build capacity of rural communities in 13 districts of 3 provinces, including Saravan, Sekong and Attapue.
The impacts as a result of eight-year (2003-2011) PRF interventions in rural community developments are shown in the following progressive indicators.

  • About 900,000 villagers are gaining the benefits the rural interventions of PRF.
  • 2,885 sub-projects of social basic needs are delivered to 2,185 villages, 309 Khumban (cluster villages), 21 districts of 7 provinces.
  • 531 primary and secondary schools were built.
  • 3000 kilometers long of roads were constructed and reached to 1,360 villages.
  • 54 dispensary houses, 550 gravity warty system, and 155 irrigation system were built.
  • 296 forestry protected areas were established.
A joint mission of the Swiss Agency for Development and Cooperation (SDC) and the World Bank have been taking place in Laos since October 2010 to undertake a reappraisal mission for the proposed Poverty Reduction Fund II Project.

Project Objectives
The main objectives of the PRFP are to:
  • Assist villagers to develop community infrastructure and gain improved access to services;
  • Build capacity and empower poor villages in poor districts to plan, manage and implement their own public investments in a decentralized and transparent manner; and
  • Strengthen local institutions to support participatory decision-making and conflict resolution processes at the village, khet, and district levels, involving a broad range of villagers, including women, the poor and ethnic minorities.
The project aims to deliver resources to poor villages, efficiently and effectively. Villagers will decide on how resources are allocated, manage project funds and the implementation of subprojects. Extensive facilitation and training is provided through the project to ensure that poor villagers, including women, participate in the decision-making process and benefit from project inputs. The project builds local community capacity by providing technical support for villagers over a number of years, to help solve problems and resolve conflicts. The project aims to create stronger links between the local government and the aspirations of villagers with project staff at district, province and national levels coordinating and building linkages.

Basic Policies
Types of Activities
The PRFP will fund proposals prioritized by villagers, which they decide are feasible, based on technical information provided to them and designs and budgets prepared with the help of the project technical assistance team. The project is able to fund a wide range of small activities that are proposed and acceptable to the district level forum, including community infrastructure and training activities.
Eligible sub-projects under PRF’s funding
The project allows for villagers to propose and have funded a large selection of community infrastructure and training.
1). Types of community infrastructures
1.1).Eligible items
A.1). Access and transportation:
Bridges, footpaths, tracks, culverts, ramps, piers, road repairs and up­grading.
A.2). Probable procurement method:
Open.
B.1). Water system:
Wells, gravity water supply, small weirs, ponds, etc.
B.2). Probable procurement method:
Community participation.
C.1). Health post or clinic and sanitation facilities:
Building, furniture, latrine, supplies and medicines, allowance for nurses/midwives (in cash or kind).
C.2). Probable procurement method:
Open.
D.1). Schools, nurseries and sanitation facilities:
Buildings, latrine, allowance for teachers (in cash or kind), supplies, equipment, furniture.
D.2). Probable procurement method:
Open.
E.1). Health post or clinic and sanitation facilities:
Building, furniture, latrine, supplies and medicines, allowance for nurses/midwives (in cash or kind).
E.2). Probable procurement method:
Open.
F.1). Community electrical supply:
Mini-hydro generator, wiring.
F.2). Probable procurement method:
Community participation.
1.2). Not eligible items
AA.1). Access and transportation:
New roads and road surfacing/sealing.
BB.1). Water system:
Piped household water hookups.
CC.1). Health post or clinic and sanitation facilities:
Electrical pumps.
DD.1). Schools, nurseries and sanitation facilities:
Any supplies provided by the government.
EE.1). Health post or clinic and sanitation facilities:
Generators.
FF.1). Community electrical supply:
Gasoline or diesel generators.
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Tel: (856-21)-261480 / Fax:(856-21)-261481
P.O.Box 4625 / E-mail:prflao@laotel.com