Photo: Road in northern Laos

Laos and the Republic of Korea (ROK) are cooperating to implement the Northern Greater Mekong Sub-region (GMS) transport network improvement project to increase trade possibilities in the northern provinces.

The government has signed a loan agreement with the Republic of Korea to rebuild roads at a cost of about US$22.5 million.

The agreement was signed last Friday in Vientiane between the Deputy Minister of Foreign Affairs, Mr Phongsavath Boupha, and the Ambassador of the Republic of Korea to Laos, Mr Park Jae-hyun.

Mr Park Jae-hyun said at the signing ceremony that Korea is prepared to assist the government of Laos in many fields, especially infrastructure development, which is vital to socio-economic growth.

The ROK recently made public an increase in its official development aid as one of its major diplomatic policies for the upcoming year. “We are going to closely cooperate with the Lao government to execute further projects,” Mr Park said.

The funding for this project was provided by the ROK’s Economic Development Cooperation Fund (EDCF), which is dedicated to strengthening regional cooperation and boosting economic growth in the GMS.

The agreement calls for the improvement of 367 kilometres of Route No 4 between Xieng Ngeun district, Luang Prabang province, and Nakha village, Botaen district, Xayaboury province.

The project also includes an upgrade by the ROK of 59 kilometres of road running from Xieng Ngeun district to Pak Khone village in Luang Prabang province, including a bridge across the Mekong River, linking Luang Prabang and Xayaboury provinces.

The starting date for the work has not yet been set, but is expected to be decided soon, according to a report from the Embassy of the Republic of Korea to Laos.

The road construction project follows the successful implementation, with the EDCF, of the Luang Prabang National University Project last month, with a grant of about US$23million.

The ROK government established the EDCF in June, 1987, for the purpose of promoting economic cooperation with developing countries.

By vientiane times