Abu Dhabi Fund for Development (ADFD) has signed a financing agreement with the Government of the Lao People’s Democratic Republic. The fund aims to support the development of the Southern National Road 13. It is funded with AED 73.5 million (US$20 million).
The project aims to strengthen Laos’ transportation infrastructure by enhancing road quality and improving traffic safety. The project supports the nation’s economic growth while promoting environmental sustainability and enhancing internal and cross-border connectivity.
Mohammed Saif Al Suwaidi, Director-General of ADFD, and Phouvong Kittavong, Deputy Minister of Finance of the Lao People’s Democratic Republic, signed the agreement virtually. The agreement was signed in the presence of senior officials and representatives from both parties.
Al Suwaidi said, “This agreement reinforces the fund’s ongoing commitment to supporting development initiatives in emerging economies. It aims for financing strategic projects that contribute to social stability and enhance quality of life.”
He added that this project is a crucial initiative within Laos’ infrastructure sector. It marks a significant step in expanding ADFD’s multilateral partnerships and fostering regional integration. Such projects aim to empower communities to help overcome development challenges while pursuing long-term stability and prosperity.
Al Suwaidi further emphasised that through its global partnerships, ADFD remains committed to adopting a development-driven approach, prioritising sustainable and high-impact financing across key sectors including transportation, energy, water, and healthcare.
These efforts enhance partner countries’ capacities to implement their national development plans and deliver lasting socio-economic outcomes.
Kittavong expressed the country’s appreciation for the effective partnership with the UAE and ADFD, underscoring the fund’s role in supporting and enabling development initiatives. He noted that the Southern National Road 13 project is a strategic initiative. It directly benefits citizens by enhancing transport accessibility, improving efficiency, and strengthening both local and regional economic integration.
He further emphasised that the new route plays a key role in supporting the development of the agricultural sector in Laos by improving farmers’ access to markets and reducing transport costs, thereby enhancing food security and increasing household income. He added that the project also supports the enhancement of public services and contributes to providing citizens with sustainable development solutions.
Furthermore, he reaffirmed the country’s strong interest in expanding collaborative partnerships with ADFD across additional economic sectors in future phases of development.
The project covers the construction and upgrade of around 50 kilometres of road. It includes expanding 20 kilometres from two to four lanes with pedestrian sidewalks, and upgrading another 30 kilometres of existing roadway.
It also includes traffic safety enhancements, measures to ease congestion, improved stormwater drainage, the installation of two truck weigh stations, and support for technical capacity-building initiatives.
The expectations indicate that the road will benefit over 48,000 households each year, positively impacting more than 255,000 individuals. It aims to advance economic activity, enhance access to essential services and markets, reduce travel time, and lower transportation costs.