Chinese loan paves way for Vientiane road upgrades

A loan agreement for US$6.7 million has been signed to finance upgrades to three roads that meet at the junction of Chormany, Nong Ngieng and That Luang Bridge in central Vientiane, to facilitate traffic flow during the Asia-Europe Meeting (ASEM) Summit in November next year.

Mr Phouphet Khamphounvong (right) and Mr Li Ruogu shake hands after signing the agreement.

The Lao government, represented by the Ministry of Finance, signed the loan agreement with the Export-Import Bank of China yesterday.

The agreement was signed by Finance Minister Mr Phouphet Khamphounvong and Export-Import Bank of China Chairman and President Mr Li Ruogu, in the presence of high ranking officials from both sides.

The roads to be upgraded cover a distance of about 5km and are all in the vicinity of the ASEM Summit venue.

On the same occasion, a Memorandum of Understanding (MOU) was signed between the Ministry of Public Works and Transport and the Export-Import Bank of China to provide funds for technical assistance and feasibility studies for other ministry projects.

The MOU was signed by Minister of Public Works and Transport Mr Sommad Pholsena and Mr Li Ruogu. The agreement provides for technical assistance by outside advisors to ensure the road upgrades meet the required standards.