Germany Grants 5.6 Million Euros to Pave Rural Lao Roads


A grant of EUR 5.6 million has been provided to Laos by the German government towards paving rural roads in Laos.

During a meeting with German government officials and Laos’ Ministry of Finance and Ministry of Public Works and Transport earlier this week, the Rural Development Programme was officially launched.

The grant will be utilized for the first phase of the programme, building continuity with its predecessor, the sixth phase of the Rural Infrastructure Project.

In an attempt to help generate income and improve socio-economic living conditions, Germany is aiding rural development in Laos by rehabilitating roads that connect rural and remote villages.

With the total cost of the Rural Development Programme estimated at EUR 6.3 million, the German government is contributing UR 5.6 million to the cause, while the Lao government is covering the remaining EUR 700,000.

During the first phase of the programme, which is set to run from 2017-2020, the German government will finance the climate-resilient rehabilitation and improvement of approximately 60km of rural roads and associated bridges in Nong and Xepon districts, Savannakhet province.

In addition, the project will provide training for capacity building at national and local implementation levels, with a focus on climate change related adaptation and maintenance management.

The financing parties will also provide continued selected support to the Public Works and Transport Training Institute.

The purpose of the project is to build sustainable climate-resilient rural roads and other infrastructure as well as improving the maintenance of roads.

Local staff will be trained to complete tasks to build capacity within national structures as well as ensuring proper road maintenance management.

Kfw Country Director, Mr Lorenz Gessner has stated that the project will improve living conditions of the rural population in the project region.

A total of EUR 56 million was invested during the previous phases of the Rural Infrastructure Project, with EUR 50 million financed by the German government through KfW, and EUR 6 million contributed by the Lao government.

This amount was used to construct and rehabilitate over 800 km of rural roads, as well as more than 20 bridges and 12 regional markets in seven provinces.