PICSA project

Lao PDR and IFAD Sign USD 10 Million Financing Agreement to Extend and Scale Up PICSA Project

PICSA is pleased to share that on 19 June 2025, the Government of the Lao PDR and the International Fund for Agricultural Development (IFAD) signed an amendment to the Financing Agreement for the Partnerships for Irrigation and Commercialization of Smallholder Agriculture (PICSA) project.

This additional USD 10 million in funding extends the project until 2028, enabling PICSA to expand its support for smallholder farmers and rural communities. Building on progress across 353 villages, the project will now reach an additional 120 villages, further advancing inclusive and sustainable agricultural development.

Lets build more sustainable futures together!

IFAD Support Mission to PICSA: Driving Smallholder Commercialization in Laos.

From 28 April to 2 May 2025, a high-level Implementation Support Mission (ISM) from IFAD visited the PICSA project in Laos to assess progress and accelerate efforts toward achieving project outcomes.

👉 The mission was led by Mr Dan Martin, IFAD Senior Regional Technical Specialist, and included specialists in procurement, irrigation, climate and environment, monitoring and evaluation, and knowledge management.

The mission took a two-pronged approach:
• Field Visit Team: Visited project sites in Luangprabang including Nongheo and Moud Villages, reviewing on-ground implementation of small-scale irrigation systems, rural roads, and producer group activities.
• Bilateral Engagement Team: Held intensive meetings with key stakeholders—MAF, M*F, MPI, and development partners such as ADB, GIZ, MOIC, LFA, and DETAP—to review PICSA’s technical progress, discuss the scale-up strategy for the Additional Financing (AF) phase, and coordinate policy and partnership efforts.

📍 Discussions focused on:
• Project physical completion by June 2025
• Scaling up key interventions under Additional Finance (AF)
• Procurement, partnerships, exit strategies
• Climate resilience and farmer registration systems
The mission culminated in a constructive wrap-up meeting with all stakeholders, reaffirming commitments and next steps to enhance impact on smallholder farmers.

👏 A big thank you to all the implementing partners, government agencies, and development partners for their cooperation and dedication!

🌾 Transforming Rural Lives in Laos 🇱🇦

Despite remarkable economic growth, nearly one in five people in Laos still live below the poverty line. Small-scale farmers continue to face poor infrastructure, declining soil fertility, limited irrigation, and restricted access to financing and technical support, all of which hinder their ability to improve their livelihoods.
Through strategic rural investments in form of AFN 2 and PICSA projects, IFAD and the Government of Laos are bridging the gap between rural and urban markets, unlocking high-value opportunities for farmers producing cardamom, rice, and other essential crops. By improving roads, irrigation, and nutrition education, they are helping farmers increase income, strengthen food security, and ensure better diets for thousands of children.
Sustainable rural development is key to reducing poverty and creating long-term prosperity. 🌱💡

📽️ Watch the inspiring journey of Lao farmers here:

Laos: pathways to prosperity The Lao People’s Democratic Republic has seen remarkable economic growth in recent years but despite this, nearly one in five people are still below the pove...