Thai government approves 840 million baht to Laos

Laos News Agency (KPL) 
11/29/2006


The Lao government signed a Memorandum of Understanding (MOU) with Thai government under the bilateral co-operation framework involved the road construction project in northern provinces of Laos.

This is according to the bilateral signing ceremony held on 27 November, Vientiane, Thai government has approved 840 million baht loan to Laos for a 52km-long road construction stretching from Ngeun district in Xayaboury to Baeng district of Oudomxay provinces.

The Road Construction Project is expected to launch in next January and it will finish in 2009.
The Thai government granted 250 million baht and 590 million baht was low interest loan to the Lao government. The debt will be cleared within 30 years.

This road construction, as a strategic plan of the Lao Government in the national communication and transport infrastructure development linking northern provinces and linking Laos, Thailand, China and Vietnam.

Mr Vanheuang Chanthasane, Head of Ngeun-Pakbaeng Districts Road Construction Project said that this project of objectives to contribute to the government’s efforts to develop the national communications, transportation and infrastructure in northern provinces, also to stimulate agricultural production through facilitating the flow of goods and tourists.

It is expected that more than 500 vehicles per month would be used effectively this road after the construction completed.

The Ngeun-Pakbaeng District Road Construction Project carried out a feasibility study in 1999.
Mr Sommad Pholsena, Minister of Communication, Transport, Post and Construction, Mr Ratthakit Manathat, Thai Ambassador to Laos as well as representatives of two provinces attended to the signing ceremony.