The project is improving the environmental management of cities and provinces to deliver enhanced urban services in Lao PDR. This includes establishing decentralized waste collection services, constructing integrated resource recovery centers and decentralized wastewater treatment systems, and rehabilitating a fecal sludge treatment plant. The project also supports the integration of principles of green growth and green cities into the 10th National Socio-Economic Development Plan (NSEDP) at provincial and national levels, the building of capacity, and origination and mobilization of green investment for cities. The project is led by the Ministry of Planning and Investment, with the Ministry of Public Works and Transport, and delivered with support from GGGI and the Korea International Cooperation Agency (KOICA).

– Improve capacity for green growth planning and green investment

– Strengthen sustainable solid waste and wastewater management and the circular economy

– Create green jobs and strengthen green enterprise for long-term sustainable economic growth

Lao PDR has been experiencing rapid urban population growth, urban densification and expansion, and the uneven distribution of economic development. This has led to challenges in terms of urban environmental management and the provision of adequate, sustainable and inclusive urban services to urban communities. In particular, many urban communities lack adequate services for solid waste, wastewater management and sanitation. These untreated wastes end up flowing into local rivers, waterways and soils or burned on the edges of town.

Recognizing the need to invest in sustainable cities, the Government of Lao PDR has prioritized green growth within the National Socio-Economic Development Plan. However, critical gaps persist in delivering urban services:

– Low waste collection rates – This leads to illegal dumping and burning of waste. Only 51% of households in Vientiane Capital receive waste collection services.

– Inadequate solid waste management systems: Many urban areas lack a formal recycling system, source separation mechanisms, and waste-to-resource facilities.

– Inadequate wastewater treatment systems: This leads to contamination and disease, as only three cities in the country operate wastewater treatment facilities.

– Insufficient investment in green cities: While policy targets are in place, securing funding for green cities projects remains challenging.

The project promotes green cities in Lao PDR through support to four provinces, namely Vientiane Capital, Champassak Province, Vientiane Province, and Savannakhet Province. Green growth planning, capacity and investment are being strengthened, and solid waste and wastewater management systems in selected cities are being improved.

– 4 provincial plans with green cities principles integrated

– USD 75 million mobilized for green cities infrastructure

– 3 municipal composting facilities designed and constructed in Vang Vieng and Vientiane Capital

– 12,300 urban residents receiving municipal waste collection services

– 4 wastewater treatment systems designed and constructed in Pakse City and Kaysone Phomvihane

– 4,500 urban residents with household connections to newly built sewerage network

– 12,000 tons of accumulated waste recovered and recycled

– 30 – 37% of solid waste and wastewater generated in cities sustainably treated

Read and download the full project factsheet here: Lao version & English version