34 C
Vientiane
Friday, July 18, 2025
spot_img

Vientiane Steps Up Efforts to Re-pay Longstanding Public Investment Debts

This Week

Vientiane Capital has reaffirmed its commitment to settling longstanding public investment debts, starting with those incurred before 2015, which currently total LAK 307.92 billion (USD 14 million).

The plan was outlined during the 9th Ordinary Session of the Vientiane Capital People’s Council, where Bouavone Souklasaeng, Head of the Planning and Investment Department, reported that 44 priority debt cases from before 2015 are being addressed.

To tackle these, the city has adopted a multi-source funding strategy, drawing from the annual state investment budget, surplus revenue from 2023, and adjusted revenue-expenditure balances. This approach enabled the government to settle 25 projects by 2024, totaling LAK 103.71 billion (USD 4.7 million).

Beyond the pre-2015 cases, Vientiane is now reviewing all unpaid state investment debts. 

In total, there are 247 unresolved cases amounting to LAK 1.66 trillion (USD 76.3 million), including 45 older projects worth LAK 331.03 billion (USD 15.2 million) and 202 newer ones launched after 2016, valued at LAK 1,332.09 billion (USD 61.1 million).

To streamline the repayment process, Vientiane Capital has set up a special committee under the Mayor’s order. Bouavone noted that this has helped accelerate repayments and reduce debt levels.

For 2024, Vientiane approved a total investment budget of nearly LAK 191 billion (USD 8.7 million), with about LAK 25 billion specifically set aside for debt repayment. Additional funds were secured from last year’s surplus and adjusted budget balances.

Despite the progress, the capital still faces significant financial challenges. Around 250 state investment projects remain unpaid, with total outstanding debt approaching LAK 2,139.81 billion (USD 98.4 million). This includes both older and more recent projects launched after 2016.

Looking ahead, Vientiane Capital says paying off the 44 older debts is a top priority. 

By focusing on clearing old debts first, the city hopes to build trust and create a stronger, more organized plan for future spending and investment.

Latest article