Abu Dhabi Fund for Development (ADFD) has signed a financing agreement with the Government of Lao People’s Democratic Republic (Laos) to support the development of the Southern National Road 13.
With a fund of $20 million (AED 73.5 million) from ADFD, the project aims to strengthen Laos’ transportation infrastructure by enhancing road quality and improving traffic safety. Thereby, supporting the nation’s economic growth while promoting environmental sustainability, and enhancing internal and cross-border connectivity.
The agreement was signed virtually by His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and His Excellency Phouvong Kittavong, Deputy Minister of Finance of Lao People’s Democratic Republic, in the presence of senior officials and representatives from both parties.
HE Mohamed Saif Al Suwaidi Director-General – ADFD
“This agreement reinforces the Fund’s ongoing commitment to supporting development initiatives in emerging economies through financing strategic projects that contribute to social stability and enhance quality of life. This project, a crucial initiative within Laos’ infrastructure sector, 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.”
Promising Development Future
H.E. Phouvong Kittavong Deputy Minister of Finance of Laos expressed the country’s appreciation for the effective partnership with the United Arab Emirates and ADFD, underscoring the Fund’s role in supporting 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.
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 kilometers of road, including expanding 20 kilometers from two to four lanes with pedestrian sidewalks, and upgrading another 30 kilometers 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 road is expected to 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.
ADFD continues to finance strategic development projects in over 107 countries, reaffirming its long-standing commitment to fostering economic progress, ensuring global development, and shared prosperity.
