Event: Lao PDR’s Road to Safer, More Connected and Resilient Transportation

The Government of Lao PDR aims to transform the country from landlocked to land-linked, capitalizing on its strategic location in the Greater Mekong Sub-region. This vision is being realized through significant investments in expanding Lao PDR’s highway network, airport infrastructure, inland waterway transport, and railway development. The Ninth Five-Year National Socio-Economic Development Plan (2021-2025) emphasizes upgrading transport infrastructure to meet ASEAN standards and prioritizes the development of the logistics industry for economic integration with neighboring countries.
 
National Road 13 (NR13) is central to this strategy, serving as a critical North-South corridor that links China in the north and Cambodia in the south, connecting 10 of the 17 provinces of the country. This enhances both internal connectivity and international linkages. AIIB is committed to supporting Lao PDR's development goals by continuing to fund the improvement and rehabilitation of critical sections of NR13. This includes the NR13 North project, approved in 2019 and co-financed with the World Bank; the NR13 South project, approved in 2020 and financed by the AIIB; and the upcoming NR13SE project, set for approval in 2024, which will be co-financed by Abu Dhabi Fund for Development, with the AIIB serving as the lead financier. These projects align with AIIB’s strategies, including cross-border connectivity, green infrastructure, technology-enabled infrastructure, trunk linkages and upgrading existing infrastructure. AIIB aims to improve Lao PDR's connectivity, making it a vital land-linked hub that facilitates access to international markets and drives economic growth.
 
The project objective is to enhance connectivity by improving the road condition, safety, and climate resilience of targeted critical sections of NR13. Additionally, the project will integrate climate resilience measures, provide capacity building, enhance road safety and promote gender inclusiveness by drawing lessons learned from previous AIIB projects and others.