Swedish International Development Agency (SIDA) will support the reconstruction of Laos’ National Road No. 8 with a grant of SEK 15 million, according to Mr. Songsinh Chaleunsouk, head of National Road No. 8 Project.
This road, which stretches from the west to east of Laos and linking Laos and Vietnam, is also considered as the ASEAN Road A15.
Mr. Chaleunsouk, who represented Laos’ Ministry of Communication, Transport, Post and Construction on March 15 in Vientiane signed a contract with the Construction Company, which was represented by its managing director Mr. Sompasith Sithpasay. Also witnessing the signing ceremony among others was Mr. Klass Rasmisson, Secretary of Swedish Embassy to Laos.
The contract covers reconstruction of National Road No. 8’s portion from Phouhai to the Laos-Vietnam border. The road will be repaired with two asphalted layers in addition to the repairs to 18 bridges, including the construction of one more bridge on the road at Napho village.
The reconstruction will go into effect after the signing ceremony and it will be operated by the construction company in co-operation with the LOCOGI company group, Mr. Chaleunsouk said.
He explained that the work would cost over US$ 115 million and last two years. In addition to SIDA’s grant of SEK 15 million, the reconstruction project will be funded with a loan of SEK 100 million with no interest. Lao government’s input for the construction is 5 per cent.
The Swedish government has also granted an additional SEK 11 million for the repair of other roads damaged during the last flood.
