Vientiane to receive billions for development projects

Laos will receive a multi-billion kip loan to assist in two projects - developments to Vientiane’s Mekong riverbank and the road leading to the South East Asian (SEA) Games sports complex.

Deputy Prime Minister and Minister of Foreign Affairs Dr Thongloun Sisoulith ( right ) and the Ambassador of the Republic of Korea to Laos Mr Park Jae-hyun at the signing ceremony for the loan arrangement.

The governments of Laos and the Republic of Korea are in discussions concerning a loan from the Economic Development Cooperation Fund of the Republic of Korea worth more than 349 billion kip (US$40 million).

An arrangement for the loan was signed yesterday in Vientiane between Lao Deputy Prime Minister and Minister of Foreign Affairs Dr Thongloun Sisoulith and the Ambassador of the Republic of Korea to Laos Mr Park Jae-hyun.

“The Republic of Korea is pleased to share its development experience with the Lao government in various fields, including infrastructure,” said Mr. Park.

He cited Korea’s river management project in the 1980s. “Seoul is situated on the Han River, just as Vientiane is adjacent to the Mekong. The Korean government undertook a comprehensive development project along the river in Seoul, turning the riverbank into a pleasant area with facilities for public use. The project completely changed the image of Seoul, turning it into a beautiful city. So we hope Vientiane can achieve the same success,” Mr Park said.

The finance package will be split between the two projects, with the Mekong riverbank development receiving over 323 billion kip (US$37.213million) and more than 26 billion kip (US$3 million) going towards improvements to the road leading to the SEA Games stadium.

The plan to upgrade 12 kilometres of riverbank will be undertaken in two phases. Firstly, the stretch running from Km 3 on Thadeua Road, Sisattanak district, to the Pakpasak T-junction will be improved. The second phase will begin at the T-junction and continue to Nonkeo village, Sikhottabong district.

The project will involve the construction of a public park, river embankment, improvements to the riverside road and the control of soil erosion to prevent flood damage during the rainy season.

The second venture is the upgrading of the 4.5-km road to the SEA Games stadium, beginning at the three-way junction in Donnoun and continuing to Dongsanghin village, Xaythany district, where the stadium is located.