The money will go for a feasibility study for a project to upgrade 200 kilometres of national highway in central Thanh Hoa province of Vietnam and 140 kilometres of national highways in Houaphanh province of Laos, according to the press release by the Manila-based bank on Thursday.

The study will provide detailed cost estimates and consider the environmental and social impacts of the Second Northern Greater Mekong Sub region (GMS) Transport Network Improvement Project.

"By improving the efficiency of transport in the GMS northeastern corridor, the project will increase economic growth and reduce poverty in two of the poorer provinces of Laos and Vietnam," said Jeffrey Miller, Principal Transport Specialist with ADB's Southeast Asia Department.

The project will also help promote sub-regional economic cooperation, one of the pillars of ADB Strategy 2020 development agenda.

Laos and Vietnam will provide US$150,000 each to help finance the feasibility study, which was estimated at US$1.6 million.

Xinhua - November 24, 2008

Laos seeks investors for the national railway network project

The government of Laos is now searching for investors willing to fund the national railway project to support the growing mining sector and heavy goods delivery, the Lao newspaper Vientiane Times reported on Friday.

The railway is planned to stretch 2,500 kilometres, with the total investment of more than 13 billion US dollars, said the Planning and Cooperation Department deputy director general Phetsamone Viraphanth.

The project calls for the laying of tracks from China's border city to Vientiane, and from Vientiane to the provinces of Khammuan, Savannakhet and Champassak. The proposed network will also be linked to Cambodia, Vietnam and Thailand, according to the government's plan.

"This step is necessary because industrial development projects, especially mining industry-related projects such as the mining of iron, copper, aluminum and gold ores, are booming and require improved infrastructure for goods and equipment delivery," said Phetsamone.

The present proposal is an elevated track 51 kilometres in length, with six stations at the Lao-Thai Friendship Bridge, Morning Market, Wattay International Airport, Thongpong, the National University of Laos and the new National Stadium, said Phetsamone.

The Lao government has already given permission to the governments of China and Vietnam to conduct studies and design the main lines, the backbone of the project. Branch lines will link to provinces and mining sites, said Phetsamone.

Xinhua - November 24, 2008