Multilateral Cooperation Center for Development Finance (MCDF) CEO Zhongjing Wang and Lao PDR Minister of Public Works and Transport (MPWT) H.E. Mr. Ngampasong Muongmany and Vice Minister of Finance H.E. Mr. Soulivath Souvannachoumkham, respectively, discussed the progress of the MCDF grant-supported Road Development Program in Lao PDR during bilateral meetings in Vientiane on 14 January. They also explored new partnership opportunities to drive high-quality connectivity infrastructure. A team from the Asian Infrastructure Investment Bank (AIIB), which is implementing the Road Development Program in collaboration with the Government of Lao PDR, joined the meetings.
The meetings were held in the context of a USD735,000 grant approved by the MCDF Governing Committee (GC) in 2022 to assist MPWT with preparatory work for Lao PDR’s National Road 13 South Extension (NR13SE) Project in line with International Financial Institution (IFI) standards. The MCDF grant was also expected to fund activities to build the capacity of MPWT’s Department of Roads to manage the output and performance-based road contract to be used to implement the NR13SE Project, and to promote a new partnership with a potential co-financier of the NR13SE Project.
Minister Ngampasong Muongmany of MPWT noted that the overarching objective of the NR13SE Project is to better link Lao PDR’s capital, Vientiane, with towns and rural communities across the forested and mountainous Southeast Asian country of 7.63 million people. It is also critical for trade growth between landlocked Lao PDR and neighboring Cambodia, China, Thailand, and Viet Nam.
Vice Minister Souvannachoumkham added that MCDF’s grant for the Road Development Program will help ensure that the NR13SE Project’s financing and design meets IFI standards and more effectively enables inclusive and sustainable development.
CEO Wang thanked the Minister and Vice Minister for Lao PDR’s continued support for MCDF as a GC member and congratulated Lao PDR and AIIB on their Road Development Program implementation work. The focus is on meeting connectivity demand while incorporating elements such as climate change risk mitigation, road safety, and broader environmental and social safeguards.
CEO Wang also expressed appreciation for Lao PDR’s and AIIB’s strong collaboration with the MCDF Secretariat on the production of a new virtual reality (VR) video that will showcase the Road Development Program and associated project preparation activities funded by MCDF using immersive 360-degree footage and on-the-ground insights from program participants and beneficiaries.
“The momentum of the Road Development Program in Lao PDR reflects MCDF’s commitment to supporting high-quality cross-border connectivity infrastructure project financing and development through partnerships,” explained CEO Wang. “MCDF is excited to be working closely with Lao PDR and AIIB to highlight the connectivity and sustainable development impacts at a grassroots level.”
On 13 January at MPWT, Department of Roads Director General H.E. Mr. Vanthong Bouttanavong hosted a mission kickoff meeting for MCDF Secretariat staff and AIIB implementation team members for the Road Development Program. It set the tone for VR video shooting that was conducted along NR13 on 12-14 January.
The shooting included interviews with Mr. Souksahkhone Soutannouvong, the MPWT Project Coordinator for the NR13 south extension; Mr. Wenyu Gu, AIIB Senior Investment Officer and Project Team Leader of the Road Development Program in Lao PDR; Ms. Khamsy Chansamai, Environmental and Social Impact Assessment Consultant for the program; and a local farmer and local entrepreneurs.
“MCDF support for the Road Development Program in Lao PDR is significantly reducing risks associated with the National Road 13 south extension improvement and maintenance project while enhancing its overall quality,” said Mr. Gu. “The value of the MCDF grant is already apparent, paving the way for an impending AIIB loan agreement with Lao PDR to ensure the successful delivery of the National Road 13 project.”
In parallel with the week’s bilateral meetings and VR video field work, Lao PDR officials, the MCDF delegation, and the AIIB team discussed other road and rail projects in the country that could potentially be supported by MCDF grants in the future.














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