33 C
Vientiane
Tuesday, June 17, 2025
spot_img

Laos Approves Cost-Cutting Road Policy to Boost Infrastructure

This Week

The National Assembly has approved a new policy aimed at promoting road construction and repair across the country, as proposed by the Minister of Public Works and Transport on 16 June. 

The new policy introduces a series of tax incentives and cost-cutting measures intended to reduce overall expenses associated with road projects. 

These include lower import taxes and customs duties on construction materials and machinery, a reduced value-added tax (VAT) rate for road construction, and decreased fees for the use of natural resources. Fuel taxes, however, will remain unchanged.

Government estimates suggest that the policy will reduce road construction costs by approximately 17.43 percent, making the sector more attractive for investment and more sustainable in the long term.

A key feature of the policy is the promotion of locally produced materials, such as cement and steel, to support domestic industries and reduce reliance on imports.

The National Assembly also approved pilot projects to upgrade major national routes, particularly in areas with heavy traffic and frequent damage. 

These upgraded roads will be designed to support loads of up to 11 tons per axle. The trial period for the upgrades will range from three to five years. Funding will be sourced from the state budget, with strong encouragement for private sector involvement.

To ensure transparency and uphold quality standards, the policy requires all road construction and repair works to comply with official regulations.

Additionally, a modern toll system will be introduced following the completion of repairs. The system aims to collect fair usage fees and generate funds for future road maintenance.

Vice President of the National Assembly, Sommat Phonsena, emphasized that road infrastructure plays a vital role in national development. While Laos has made progress in recent years, many roads remain in poor condition, the official noted.

With this new policy in place, Laos seeks to attract greater support, lower construction costs, and lay the foundation for a reliable and long-term transportation system.

Latest article