The Asian Development Bank will support the development of forest plantations in the Lao PDR through a US$10 million loan and grant package.
An ADB press release says forests, along with water, are the most important natural resources in Laos. While forests account fpr 34% of the country's total export value, forest cover has dropped from 70% in 1970 to about 42% in 2000.
ADB's support comes in the form of a $7 million loan and a $3 million grant from its concessional Asian Development Fund. The loan carries a 32-year term, including a grace period of 8 years, and interest charged at 1% per annum during the grace period, and 1.5% thereafter.
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