Lao PDR Financial Sector Safety Net Strengthening

The development objective of the Financial Sector Safety Net Strengthening Project for Lao People’s Democratic Republic is to strengthen the financial and institutional capacity of the deposit protection office (DPO) to fulfill its deposit insurance mandate. The project comprises of two components. The first component, capitalization of DPO equity fund will use performance-based conditions (PBCs), whereby the World Bank funds are disbursed in tranches based upon verification of achievement of the pre-agreed PBCs. The second component, institutional capacity building for DPO and project management will finance select technical assistance (TA) to strengthen the DPO’s institutional capacity and to complement parallel and ongoing TA financed by the World Bank. This component will also finance consultants to support project implementation, including the following functions: project coordinator, communications, financial management (FM), and procurement.