On the 21st of February, a procurement agreement was signed for the US $92-million expansion of Chi Nai Mo Water Supply Plant in Vientiane Capital.
The project will be funded with a low-interest loan from the JICA (Japan International Cooperation Agency).
The signing ceremony took place at Crowne Plaza Vientiane between Director of the Vientiane Public Works and Transport Department Mr Dethsongkham Thammavong, Director of the Lao Water Supply Enterprise Mr Khampheuy Vongsakhamphoui and Director of Oriental Consultants Global Asia Ryohei Ishii, in the gracious presence of Vientiane Capital Vice Mayor Mr Keophilavan Aphailath, Deputy Minister of Public Works and Transport Mrs Vilaikham Phosalath, Deputy Minister of Finance Mrs Thipphakone Chanthavongsa, representatives of JICA and other officials.
Vientiane has set an ambitious plan to increase the number of households with access to water supply to 80% for suburban areas and 90% for the entire population in the country’s capital, according to the Manager of the Vientiane Water Supply Expansion Project Mrs Bouavone Luangkhod.
“We assigned the Department of Public Works and Transport and the Vientiane Water Supply Enterprise to conduct a feasibility study with JICA into the waterworks expansion project in 2014. And based on our estimates, the project will be able to provide safe water to 160,000 people and increase the daily production of the Chi Nai Mo water supply plant from 40,000 cubic meters (current capacity) to 380,000 cubic metres by 2025,” said Mrs Bouavone.
The financial loan provided by the Government of Japan will be divided into two amounts; the first one being spent on consultancy for the project and another one for the construction of infrastructure and facilities.
Under the agreement, the Vientiane Water Supply Enterprise is required to pay the debt within 30 years.