| György Czerván, Agricultural Secretary of State of the Ministry of Rural Development was the first representative of the new Hungarian government to make an official visit to Laos between 24 - 27 August 2010. An 8.6 million USD Hungarian-Lao tied aid framework agreement was signed in Vientiane in 2009, which came into force earlier this year. The financing tool is funding four projects consisting of separate but closely related components. Given their value and novelty, the most important are the fish, pig and poultry feed production facilities planned at three locations. Of these, the largest unit worth USD 2,2 million was inaugurated in Nongteng, close to the Laotian capital city Vientiane. The second and the third components aim to modernize fisheries, aquaculture and livestock (pigs, poultry) farms, and to develop processing units (hatchery and slaughterhouse). The structure includes service and project monitoring activities, too. As a result of this highly concessional credit line, Hungary's export to Laos – which was practically zero the same period last year - reached 1.7 million USD in the first five months of 2010. The Laotian Minister of Agriculture and Forestry Sitaheng Rasphorne, other local leaders, László Vizi Hungary’s Hanoi based Ambassador, also accredited to Laos and a number of journalists were present at the inauguration ceremony, where György Czerván delivered a speech emphasizing: this type of ODA tied aid credit is a relatively new mechanism, and part of Hungary’s international development cooperation implemented in conformity with our European Union and OECD membership. The State Secretary pointed out that the offered loan was highly concessional, and the chosen projects were in line with the request and the development priorities of the host country (in this case Laos where human contacts are intense due to the hundreds of Laotians studying earlier in Hungary mainly subjects related to agriculture). The Hungarian project is a contribution to the most important sector of the Laotian economy – agriculture, and further improves the provision of the population with food, helps the Laotian government’s internationally recognized poverty reduction efforts. It is in accord with the EU principles of international development cooperation that we provide assistance in a country which belongs to the group of the least developed countries (LDC). The Hungarian State Secretary added however that the experiences he gained in the course of his short visit to Laos and also the published macro economic data (i.e. seven percent or above GDP growth over the past few years) convinced him: there is no doubt, in the near future Laos will move out of the LDC level. The Lao side thanked the Hungarian government’s support. The Minister stressed that the inauguration of the first section of the project followed the conclusion of the framework agreement in a record speed. He also stressed: the feed mill is also important because it reduces the import dependency of Laos, thereby improving the external terms of trade. |