World Bank funds $37M project for improved waste management in Laos

World Bank funds $37M project for improved waste management in Laos
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Ajay Banga 14th President of the World Bank Group | Official Website

The World Bank has approved a project aimed at enhancing the management of waste, plastics, and pollution in Laos. Announced on June 13, the initiative will primarily target improvements in municipal solid waste services within Vientiane Capital.

The Pollution and Waste Management Project, with a budget of $37.85 million, will be implemented by Laos' Environment Protection Fund and Ministry of Public Works and Transport from 2025 to 2031. This effort is part of Laos' broader commitment to pursuing a cleaner development path. The focus on Vientiane is intended to serve as a model for other cities in Laos.

As part of the project, investments will be made in waste collection equipment and transfer and treatment facilities, including an upgrade to a landfill facility outside Vientiane. Additionally, the project will aid in developing a compliance monitoring system to enforce pollution control regulations. It also aims to enhance air and water quality monitoring stations' accuracy and reliability while strengthening the legal framework for waste management. Waste workers will receive vocational training alongside occupational health and safety education.

"Air and water pollution have been longstanding concerns for Laos, while solid and plastic waste management problems are also growing," stated Alex Kremer, World Bank Manager for Lao PDR. "This project will help the government address these issues and will also contribute to efforts to reduce the amount of waste that flows down the Mekong River to the ocean."

Approximately 645,000 residents of Vientiane are expected to benefit directly through improved waste management services. Furthermore, better working conditions, training, and employment opportunities will be provided for 264 waste pickers at the Vientiane landfill. The initiative aims to achieve full solid waste collection coverage in Vientiane while maximizing material recovery efficiency. It also supports efforts under the National Plastics Action Plan to reduce single-use plastics prevalence and enhance recycling efforts.

Funded by an International Development Association credit combined with a grant from PROBLUE—a multi-donor trust fund promoting blue economy practices—the project forms part of the World Bank-financed Southeast Asia Regional Program on Combating Marine Plastics. This joint effort with ASEAN seeks to curtail plastic consumption, boost recycling rates, and minimize both land-based and marine plastic pollution across Southeast Asia.

Waste generation has seen significant growth in urban centers across Laos over recent years. In 2017 alone, health-related impacts from air and water pollution along with poor sanitation were estimated at costing about 14.6% of GDP annually.