(Vientiane Times) The government of the Republic of Finland has provided grant aid worth 9.5 million euros to the Lao government, to protect the environment and improve the quality of life of rural people.

Minister to the Prime Minister's Office and Head of the Water Resources and Environment Administration of Laos, Mrs Khempheng Pholsena, received the grant aid in Vientiane yesterday.

The Environmental Management Support Project to strengthen the Water Resources and Environment Administration will run from 2010 to 2014, with the goal of preventing and reducing damage to the environment.

The grant aid will help provincial offices and other key government organisations to become well qualified, professional and capable of using all appropriate environmental management tools and methods with consistency, fairness and transparency, Mrs Khempheng said.

“I am very pleased to say that the government of Laos is truly committed to implementing this project and we take full ownership and overall responsibility for it.”

“We also recognise the clear linkage to climate change mitigation and adaptation, which therefore must be part of an integrated approach to ensure that our resources are developed in a socially, environmentally and economically sustainable manner so that Laos as a whole, the environment and the people, including future generations, can benefit,” she said.

Today, economic growth often comes at a price in terms of environmental issues and challenges, and Laos is no exception, she said. “The pace of economic growth has been so fast that we are under pressure to put the necessary social and environmental safeguards in place.”

Fortunately, Laos has received substantial technical assistance and support from the donor community to strengthen capacity and implement environmental measures. Laos has also been successful in attracting responsible investors who appreciate the necessity of sustainable development, Mrs Khempheng added.

She said significant progress has been made in Laos in recent years.

“National Environmental Standards have been issued, and our Strategy on Climate Change has been adopted by the government. A thorough revision of our 10 year old Environmental Protection Law is under finalisation and a decree on Operating Permits is under development.”

Mrs Khempheng said Laos was on the right path, experiencing strong economic growth and increasing welfare. During the period from 2000-2007, overall annual GDP economic growth rates rose from 5.8 percent in 2000 to 7.9 percent in 2007.

In fiscal years 2007/2008 and 2008/2009, the growth rate was 7.9 percent, despite the global economic downturn. Agriculture has been overtaken by the service sector as the main economic sector, at the same time as the industrial sector - spearheaded by mining and hydropower - has seen the highest growth rates.

“Let me take this opportunity to thank the entire donor community, in particular Sweden, the Asian Development Bank, World Bank, and United Nations Development Programme, for their longstanding support and assistance to environmental management in Laos,” Mrs Khempheng said.