Abu dhabi: Abu Dhabi Fund for Development (ADFD) has signed a financing agreement with the Government of Lao People's Democratic Republic to support the development of the Southern National Road 13, with a fund of AED73.5 million (US$20 million). The project aims to strengthen Laos' transportation infrastructure by enhancing road quality and improving traffic safety, supporting economic growth, promoting environmental sustainability, and enhancing connectivity.
According to Emirates News Agency, the agreement was signed virtually by Mohammed Saif Al Suwaidi, Director-General of ADFD, and Phouvong Kittavong, Deputy Minister of Finance of Lao People's Democratic Republic, in the presence of senior officials and representatives from both parties. Al Suwaidi stated that this agreement reinforces the fund's ongoing commitment to supporting development initiatives in emerging economies through strategic project financing that contributes to social stability and improved quality of life.
Al Suwaidi noted that this project represents a crucial initiative within Laos' infrastructure sector and marks a key step in expanding ADFD's multilateral partnerships, fostering regional integration. The projects aim to empower communities to overcome development challenges and pursue long-term stability and prosperity. He further highlighted ADFD's commitment to a development-driven approach, prioritizing sustainable and high-impact financing across key sectors including transportation, energy, water, and healthcare.
Kittavong expressed appreciation for the effective partnership with the UAE and ADFD, underscoring the fund's role in enabling development initiatives. He noted that the Southern National Road 13 project is a strategic initiative that directly benefits citizens by enhancing transport accessibility, improving efficiency, and strengthening both local and regional economic integration. The new route supports agricultural development by improving farmers' access to markets, reducing transport costs, and enhancing food security and household income.
Furthermore, Kittavong reaffirmed Laos' interest in expanding collaborative partnerships with ADFD across additional economic sectors in future development phases. The project encompasses the construction and upgrade of around 50 kilometres of road, including expanding 20 kilometres from two to four lanes, upgrading another 30 kilometres, improving traffic safety, and easing congestion. It also includes improved stormwater drainage, installation of truck weigh stations, and support for technical capacity-building initiatives.
The road is expected to benefit over 48,000 households annually, 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.