PPIAF Supports Developing Highway PPPs in Lao PDR
Over the past several decades Lao PDR has experienced rapid economic development, averaging 8% annual GDP growth. To achieve the country’s development goals, strengthen regional trade links and reduce rural poverty, Lao PDR requires significant investment across infrastructure sectors. Traffic volume in the country has been growing significantly, mirroring the growth rate of the country’s GDP. The number of vehicle (including motorcycle) registered increased from 200,000 in 2002 to 1.3 million in 2012.
Since 2012 PPIAF has assisted the Government of Lao People’s Democratic Republic (Lao PDR) to attract much needed private sector investment and participation into the country’s under-served highway network. The government identified a priority PPP highway project in 2012 with the PPIAF assistance, and recently decided to move the project forward as the first road PPP in the country. PPIAF’s early-stage assistance has helped the country to realize its potential to attract private sector investments and has stimulated the government to develop an institutional framework to enable PPP projects to be delivered.
