Laos approves two road PPP projects

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Laos approves two road PPP projects

Laos' Ministry of Public Works and Transport has approved plans for two road public private partnership (PPP) projects as pilot for other future privately financed projects.

The projects are the following:

The Government has finally accepted the PPP model due to the lack of resources to implement projects on its own. According to the World Bank's latest economic outlook report, the country's fiscal deficit increased last year "due to a combination of a large increase in public sector wages and benefits, and a decline in grants and mining revenues".

The International Finance Corporation (IFC) is assisting the Government of Laos to select, through a transparent and competitive tender, a private investor/developer that will develop and improve the road projects.

Statistics from the ministry showed that in 2013, Laos had a road network 43,601 km in total length including about 6,496 km of paved road. The country has been expanding its national road network about 7% per year. The volume of road transport of goods grows by somewhere between 5-8 % per year, while the volume of passenger road transport grows by between 8-10 % yearly.

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