The grant comes under the Health Sector Governance Program, which includes a $23m loan approved in 2015, to support the implementation of the government’s health sector strategy.

“This program is an important platform for a joint effort between the government of the Lao PDR and ADB to overcome the country’s health development challenges, particularly, to assure people’s access to healthcare with affordable and more predictable costs and improved service quality,” said ADB country director Yashushi Negishi.

The money is to help improve the health sector’s financial management system in the southeast Asian country, the bank said.

It will also help assisting the reform process, enhance the implementation of free healthcare for the poor and improve health human resource management.

Last month, the bank approved the $30m grant to help Laos achieve universal healthcare coverage.

The deal was signed by the country’s deputy minister of finance Thipphakone Chanthavongsa and Negishi on Tuesday.