(Vientiane Times) The Ministry of Natural Resources and Environment needs US$430 million to fund programmes over the next five years that aim to manage natural resources and the environment in regards to socio-economic development.

Representatives from various government agencies and international organisations yesterday gathered in Vientiane to discuss a five-year plan for the development of the natural resource and environment sector.

Planned programmes over the next five years cover land, forest, environmental and integrated resource management. About 30 percent of Official Development Assistance (ODA) funding, totalling almost US$210 million, has been approved to date for the natural resource and environment sector, according to the ministry.

“Our natural resources are our biggest asset, with over 40 percent of the country covered in forests, large mineral deposits such as gold, copper and silver, and with the numerous tributaries of the mighty Mekong River providing ample hydropower potential,” Deputy Minister of Natural Resources and Environment Mr Akhom Tounalom said at the meeting.

The economy has benefited from large inflows of foreign direct investment in hydropower, land concessions, mining and agriculture, as well as from government policies aimed at opening up the economy to trade and investment, making the private sector the prime driver of economic growth, he said.

The richness of natural resources provides a wonderful opportunity for the Lao government to meet its objective of achieving the Millennium Development Goals by 2015 and moving away from least developed country status by 2020, said Mr Akhom.

The National Growth and Poverty Eradication Strategy and the 7th National Economic and Social Development Plan for 2011-15 strongly emphasise the risk of natural resource eradication; however, the government has a strong commitment to environmental and social safeguards.

“We are embarking on the implementation of an integrated water resource management programme and the establishment of an early warning system in light of our ongoing work to operationalise our national strategy on climate change,” Mr Akhom said.

He noted the long-term growth path for Laos will be through the development of green, clean and attractive cities, driven by the services sector including the all important sustainable tourism.

The agriculture sector, on which currently most of the population depends, will transform itself into a niche producer of bio-friendly, climate friendly and organic products for Asian and wider markets, he stated.

“Although initial achieve-ments in natural resource and environmental management have been recorded, we are not there yet and the government is putting in place the necessary legal and regulatory mechanisms and monitoring systems,” Mr Akhom said.

“We currently lack the resources and capacity to effectively implement those mechanisms and programmes and it is for this reason that education, skills development and capacity building are very high on our agenda for the next five years.”

The Asian Development Bank (ADB) will continue to support Laos in efforts to develop the natural resource and environment sector and to promote agriculture production on a higher scale for export and domestic consumption, said ADB Country Director Dr Chong Chi Nai.

The bank will also focus on increased capacity building in each sector from the central to the local level for good management and to enhance the ability of farmers, he said.