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. Thereby, supporting the nation’s economic growth while promoting environmental sustainability, and enhancing internal and cross-border connectivity.
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 said, “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.”
He added that 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.
Al Suwaidi further emphasised that through its global partnerships, ADFD remains committed to adopt 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 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 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, including 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 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.
