MCDF Coordination Committee Discusses Lao PDR Road Network Program as a Case Study

Multilateral Cooperation Center for Development Finance (MCDF) Coordination Committee (CC) members discussed the MCDF-supported Road Development Program in Lao PDR as a case study during a roundtable held as part of their meeting hosted in Beijing and virtually on 23 June.

Paving the way for the roundtable, the CC meeting chair, Mr. Gianpiero Leoncini, Development Bank of Latin America and the Caribbean (CAF) Executive Vice President, opened the proceedings by underscoring the value of information sharing and collaboration among CC members and partners for realizing high-quality connectivity infrastructure investment. MCDF CEO Zhongjing Wang and staff also provided updates on MCDF’s recent activities to take this partnership work forward.

The roundtable spotlighted the progress of the Road Development Program in Lao PDR, which has been supported by a USD735,000 project preparation grant approved by the MCDF Governing Committee in 2022 and implemented by the Asian Infrastructure Investment Bank (AIIB). It seeks to sustainably enhance the transport capacity and resilience of National Road 13 (NR13), a critical trade route connecting landlocked Lao PDR with neighboring Cambodia, China, Thailand, and Viet Nam.

The ensuing project is currently under implementation with USD40 million in financing from AIIB and co-financing from the Abu Dhabi Fund for Development in the form of a USD20 million concessional loan.

Mr. Souksahkhone Soutannouvong, Coordinator for the NR13 South Extension Improvement and Maintenance Project at Lao PDR’s Ministry of Public Works and Transport, described MCDF’s grant funding for an environmental and social impact assessment, a resettlement action plan, and implementation and management capacity development. This has helped align the project with International Financial Institution (IFI) standards, enabling it to receive IFI financing, he noted.

Mr. Wenyu Gu, Senior Investment Officer and Project Team Leader of the Road Development Program in Lao PDR at AIIB, detailed the project delivery next steps after the loan agreement was co-signed with the Government of Lao PDR on 2 June 2025.

With this MCDF grant-facilitated breakthrough, the discussants said they expect the high-quality improvement and maintenance of the NR13 South Extension will become a reality. This will drive the more efficient movement of people and goods along NR13, boosting economic opportunities for businesses and raising living standards among local communities.

It will also ensure safer and more resilient traffic flows, the discussants added. This will be achieved through features such as the introduction of pedestrian overpasses in Lao PDR for the first time, helping to reduce accidents alongside schools and other populated areas, and technical measures to mitigate increasing flooding risk due to climate change.

Roundtable participants agreed on the importance of accelerating MCDF’s grant support for high-quality connectivity infrastructure projects and sharing related experiences and lessons to further deepen the impact of this work for sustainable development.