Fifth Poverty Reduction Support

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The Fifth Poverty Reduction Support Operation Program (PRSO-5) for Lao People's Democratic Republic aims to support the Government's priorities as outlined in its National Socio-Economic Development Plan (NSEDP) and supported by the country assistance strategy (CAS), namely by: (i) sustaining growth through improved investment climate and competiveness; and (ii) improving social outcomes by improving the quality of the public finance management framework and service delivery mechanism in the health and education sectors. PRSO-5 will contribute to the achievement of these objectives through improving management of key areas (regional integration, private sector development, and quality of investment in natural resource sector) and through strengthening of public financial management and service delivery capacities and targeted poverty reduction programs. The PRSO program squarely supports the four pillars of the CAS: (i) sustain growth through improved management of key drivers - regional integration and private sector development, rural development, and natural resource management; (ii) improve social outcomes and reduce vulnerability through strengthened public financial management and service delivery capacities and targeted poverty reduction programs; (iii) adopt a strategic approach to capacity development and partnership in support of better NSEDP results; and (iv) support the implementation of Second Nam Theun (NT2) hydro-power project, focusing on the revenue management arrangements. PRSO-supported reforms are timely for improving the public financial management framework, as significant resources will accrue to the Government from the NT2 project and other natural resource sector developments.