Lao PDR Public-Private Partnership Policy
The Government of Lao PDR pursues PPPs as a new way of procuring public infrastructure and services to speed up the investment program and improve the performance of public infrastructure. As such they are to be primarily considered as a tool to reach more general policy objectives such as:
- Improving transport and communication across the country;
- Upgrading energy production, transmission and distribution facilities;
- Enhancing delivery of water provision, waste collection and other urban services;
- Broadening access to basic health and education services; and
- Facilitating economic development in remote areas of the country’s territory.
In comparison to the more conventional procurement approaches currently followed in Lao PDR, PPPs bring a few inherent advantages, such as private sector innovation, efficiency and creativity in the delivery of public services, which can result in increased Value-for-Money for Government and users. As such, the success of a PPP arrangement strongly depends on its ability to direct private sector advantages towards optimising public objectives.
The Government of Lao PDR acknowledges the poor state of public infrastructure and services in the country as being one of the main impediments to the nation achieving its economic growth and development objectives. Historically the provision of public infrastructure and services has to a large extent relied on Government budget and foreign development aid.
However successive National Socio-Economic Development Plans have identified the private sector as the main engine of growth and the Government of Lao PDR is committed to fostering a transition to a private-sector-led market economy. In line with that approach, the Government of Lao PDR would now like to emphasize the role of Public-Private Partnerships (PPPs) as a useful tool to help bridge the infrastructure gap and improve the performance of public services in the country.
