Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
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Ministry of Public Works and Transport
Department of Planning and Cooperation
Lanxang Avenue, P.O.Box 11225,
Vientiane, Lao PDR
Tel & Fax (856 21) 41 22 67
No..................../ MPWT-DPC
Vientiane Capital, date.........................
8th INFRASTRUCTURE SECTOR WORKING GROUP (ISWG) MEETING,
Monday, 21 September 2015, Landmark Mekong Riverside Hotel,
REPORT TO DIC OF MPI
I. ORGNISATION
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SWG name: Infrastructure Sector Working Group (ISWG)
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SWG Chair: H.E.Dr. Bounchanh Sinthavong,
Minister, Ministry of Public Works and Transport (MPWT).
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SWG Co-Chairs:
- H.E Hiroyuki Kishino,
Ambassador of Japan to Lao PDR,
- Ms. Sandra Nicoll, Country Director, ADB Lao PDR Resident
Mission,
- Ms. Sally Burningham,World Bank Country Manager, Lao PDR.
SWG Secretariat / Government:
1- Dr. Oulay Phadouangdeth, Director General (DG), DPC, MPWT;
2- Mr. Phetsamone Viraphanth, Deputy Director General (DDG), DPC, MPWT;
3- Mr. Chanthaphone Phanvisouk, Director, Division of Cooperation and Investment,
DPC, MPWT;
4-Mr. Chanthavong Bounsombath, Officer, Division of Cooperation and Investment,
DPC, MPWT;
SWG Secretariat / Development Partners (DP):
1-Mr. Hideyuki Onishi, Counselor, Embassy of Japan,
2- Mr. Takashi Kurihara, Second Secretary, Embassy of Japan
3-Ms. Akiko Kishiue, Project Formulation Adviser, JICA
4- Mr. Soulinthone Leuangkhamsing, Senior Economics Officer - ADB
5- Mr. Phomma Chanthirath, Senior Project Officer - ADB
6- Mr. Sombath Southivong, Senior Infrastructure Specialist - WB
The ISWG is divided in 3 Sub-SectorWorking Groups (SSWG), namely:
1. Infrastructure Development Sub-Sector Working Group,
- Chair:
H.E.Dr. Bounchanh Sinthavong,
Minister, Ministry of Public Works and Transport (MPWT).
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Focal Points:
- Dr. Oulay Phadouangdeth, Director General,
Department of Planning and Cooperation (DPC), MPWT.
-Mr. Inthapada Sithimolada, Officer, Department of Roads (DOR),
MPWT
2. Transport Development Sub-SectorWorking Group
- Chair:
H.E.Lattanamany Khounnivong, Deputy-Minister,
Ministry of Public Works and Transport (MPWT).
- Focal Points:
- Mr.Viengsavath Siphandone, Director General,
Department of Transport (DOT), MPWT.
-Mr.Puttasay Sirisack, Officer Department of Transport, MPWT
3. Water and Sanitation Development Sub- SectorWorking Group
- Chair:
H.E. Mrs. Vilaykham Phosalath, Deputy-Minister,
Ministry of Public Works and Transport (MPWT).
- Focal Points:
- Mr.Phetsamon Vilaphan, Deputy Director General (DDG),
Department of Planning and Cooperation (DPC), MPWT.
- Ms. Dr Saysavanh Phongsavanh, Officer Department of Housing
& Urban planning (DHUP), MPWT.
II.
ISWG Goal
The general goal of the ISWG is: tosupport the implementation of the NSEDP and to achieve
the MDGs related to ISWG sector, namely: MDG 1: to end poverty and hunger by 2015, and
to graduate Lao PDR from Least Development Countries (LDC) by 2020.
III.
Infrastructure development SWG Achievement in FY 2014-15 and Action Plan for
2016-2020
A- Roads and Bridges
A1 - Roads and Bridges : achievement in FY 2014-2015
1.1.
Three Mekong bridgescompleted projects:
1. Lao-Thai Friendship Bridge 3 (Khammuan-Nakhon Phanom),
2. Lao-Thai Friendship Bridge 4 (Huaixay-Xiengkhong), and
3. Lao–Myanmar Friendship Bridge
1.2.
Roads Construction Projects:
1.2.1. Around 2,200 km of National Roads (NR) have been improved. These includes:
- NR9: Savannakhet-Densawan,
- NR2W : Muong Ngeun-Pak Beng,
- NR2E : Muong Khua-Tai Chang,
- NR13N : Nateuy-Odomxay,
- NR1D : Muong Khoun-Pa Kha,
-NR1B : Pak Nam Noy-Ban Yo,
- NR4 : Xieng Ngeun-Kenthao-Nakha,
- NR11 : Kaolieo-Namsang,
- NR15 : Napong-Saravan-Lao/Vietnam Border.
1.3. Current of Statusof Road NetWorks from Dec. 2013 to Dec. 2014
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Road Type
National
Provincial
District
Urban
Rural
Special
Total
Dec 2013
Dec 2014
7,378 km
8,209 km
5,642 km
2,215km
20,258 km
2,122 km
45,824 km
Increased
7,448 km
8,377 km
6,403 km
2,720 km
23,838 km
594 km
49,380 km
3,556 km
Percentage of
2014 total
15.08
16.96
12.97
5.51
48.27
1.20
100.00
A2 – Road and Bridge : vision for 2016-2020
 Upgrading transit and links for regional integration such as
- NR8/AH15 : Ban Lao-Nam Phao
- NR17 : Lao Myanmar Frienship Bridge – Luang Nam Tha
- NR13S/AH11 : VTC-Veun Kham
- NR13N/AH12 (VTC – Nateuy),
- NR2W/AH13 : Muong Ngeun – Pang Hok Checkpoint
- NR9 / AH16 : Savannakhet – Densawan
Total estimated cost: 37,062 bil kips ($4 bil).
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Construction of bridges across Mekong River:
- Paksan–Beungkan (Bolikhamxai Province),
- Paktaphan – Oubon (Saravan Province), and
- Konteun (Bokeo Province)
Total estimated cost : 1,200 bil kips ($150 mil).
A3 – Road and Bridge : challenges
- Shortage of funds for road construction and maintenance;
- Vulnerability of unpaved roads to deterioration in the wet season;
- overloading;
B- Waterways
B1- Ongoing projects
1- JAPAN
- Technical Cooperation for Riverbank Protection Work Phase II (2010-2014).
- Capacity building of MPWT and DPWT staff for river engineering (riverbank
protection works) – survey, planning, design, construction, M&E and maintenance.
- Civil works for Riverbank Protection: Soda Mattress in Luang Prabang Province
(2013-2014), total costs of US$ 371,257, shared by GoL 70% (US$ 267,166) and
Japan 30% (US$ 104,091).
2- China Exim-Bank: Mekong River Ports Projects in:
- Xiengkok (Luang Namtha),
- Pakbeng (Oudomxay), and
- Luang Prabang.
 Total estimated cost : USD58.6 Million
 Progress to date : Feasibility study approved by MPWT; Plan for 2016-2018: Loan
negotiations, Loan Agreement and Construction.
3- ADB : Embankment Protection Sub-project under GMS Flood and Drought Risk
Management and Mitigation Project.
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Improvement of of 4km of existing dike and construction of 26.2 new dike cum
road, from Lao-Thai Mekong Friendship Bridge to Mark Hiao River.
Civil works: 12 Million USD
Detailed design completed.
Loan and grant (effective in 2013)
Procurement of contractor (on-going).
Construction (2016-2018)
KOREA : Master Plan for Integrated Flood Management in the Mekong River.
Establishment of efficient Master Plan for flood and erosion control; and
Provision of systematic and phased plan for implantation of relevant projects; and
Promotion of cooperation between the two countries in flood and erosion management
sector.
 Feasibility is on-going.
 Plan for 2016-2018 : Loan negotiations, loan agreement and construction
5- WORLD BANK : Southeast Asia Disaster Risk Management Project (P149149) with
estimated cost of US$ 2 Million.
• Study for River Improvement and Urban Drainage in Xay District (Oudomxai Prov.)
and Smakkixay District (Attapeu Prov.).
Plan for 2016-2019: Finalize the project; preparation of FS; loan negotiations and loan
agreement.
C- Railways
1. Lao-Thai Railway Construction Project Phase 2
Project cost: 1.65 bil THB: 30% grant and 70% soft loan from NEDA.
• Construction contract (THB 591 mil) signed in Sep 2013 (18 months) for construction
of container yard and facilities, upgrading signalling and telecom system at Thanaleng
station.
• Consultancy services contract (THB 28 mil) signed in May 2013 (24 months).
2. Vientiane – Thakhek – Mu Gia Railway Project (450 km)
• Pre-FS completed in Mar 2011 by Chung Suk Co,. (aid granted by Republic of Korea);
• FS for the Vientiane-Thakhek-Mu Gia-Vung Ang Railway is expected to start by the
end of 2015 under the financial assistance from ROK (US$ 3 mil) in the ASEAN-ROK
cooperation framework.
3. Savannakhet - Laobao Railway Project (220 km)
• Pre-FS completed in Sep 2009 by Giant Group Co. Ltd;
• A concession (BOT)granted to Giant Group in November 2012.
4. Lao – China Railway Project from Boten – Luang Prabang - Vientiane (417 km)
• FS completed in June 2012 by China Railway Eryuan Engineering Group Co. Ltd;
• Financing: under discussion with China.
5. Thakhek – Savannakhet – Pakse (324 km) Vangtau/Chong Mek (Lao-Thai Border)
• Pre-FS completed in Dec 2013 by TESO Engineering Co., Ltd (grant aid by ROK)
D- Civil Aviation
1- JICA:Civil Aviation Training Centre (CATC)
• JICA assisted to build the CATC and provided training equipment and technical
experts in 2005.
• Since then, more than 300 staffs (air traffic controllers, technicians, aviation security,
aviation English, pilots and crews) have been trained in this CATC.
• Department of Civil Aviation (DCA) proposes to donors, especially JICA, to help
building a dormitory and facilities (air traffic controller simulator) for the CATC.
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2- ADB: TA3968-LAO: Study and Preparation of Civil Aviation Master Plan (CAMP)
(2003 – 2013).
• ADB provided TA for the study and preparation the CAMP for ten year 2003-2013 in
2003.
• The CAMP needs to be revised and updated. DCA proposes ADB for further TA for
updating the CAMP for the next 10 years (2016 – 2026).
IV.
Transport Achievement in FY 2014-15 and Action Plan for 2016-2020
A- River transport
A1- Belgium: Lao-Flanders River Works Project
Achievement in FY 2014-2015
– English course for waterways staffs;
– Data base system for waterways transport;
– Ship registration program ;
– In house trainings at national training and research center such as: VTS, GPS
Radio communication, crew , pilots and etc.…
Plan for FY 2015-2016
– Overseas and in-house trainings at national training and research center such
as: ship registration, crew and pilot, ship inspection, english language, etc.…
A2- Quadripartite agreement on the Lancang-Mekong River:
Achievement in FY 2014-2015
– Revised Emergency Plan and Search And Rescue (SAR).
– Development Plan of International Navigation on the Lancang-Mekong River
(2015-2025), estimated investment of about 655 million USD.
Plan for FY 2015-2016
– To set up Technical Working Group for Development Plan of International
Navigation on the Lancang-Mekong;
– To recruit of Consultant to Carry out Feasibility Study ( by ASEAN-China
Cooperation Fund 100 Million RMB);
– To startthe Channel Improvement Project
A3- Mekong River Commission (MRC):
Achievement in FY 2014-2015
– Installation of GPS vessel guidance system and low water alert system;
– Installation of 24 sets of passenger landing facilities along the Mekong river;
Plan for FY 2015-2016
– To upgrade and extend GPS vessel guidance system and low water alert
system (Seeking Fund);
– Feasibility study on the Development of Selected Aids to Navigation Along the
Upper Mekong River(Seeking Fund);
B- Air transport
- In 2005, JICA granted to the Department of Civil Aviation new Civil Aviation
Training center building, training equipments and JICA’s expert.
- More then 300 staffs such as air traffic controllers, Technicians, Aviation Security,
Aviation English, Pilots and Crews have been trained from this CATC
- We propose to donors, especially JICA, to consider to build a dormitory and
facilitaties such as air traffic controller simulator .
C- Land transport
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2014-2015 achievements
- Vientiane Logistic Park, Thanaleng (JICA);
- Enhancing capacity of Vientiane Capital State Bus Enterprise, Phase I, (JICA)
- ASEAN Cross border of Transport Passenger Agreement (draft)
- Single window Inspection at Densawan–Laobao
- Weigh Stations improvement at
1- NR3, at Nateuy junction
2- NR9 Km 64, Donghen, Savannakhet (GOL);
3- NR13, at Ban Na Inn
- Transport Inspection Authority (issue no.11 from MPWT annual meeting)
- Single Window Inspection at Savannakhet–MoukdahanPublic Works and
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V-Water sanitation and urban planning
1. Finished implementing of urban development project in 12 districts such as: Xamneua,
Pek, Paksan, Vangvieng, Phongsaly, Namtha, Xay, Huayxai, Xayabuly, Saravan,
Ramam and Samakhixai.
2. Implementing the solid waste management project for sustainable cities in Vientaine
capital, Luangprabang and Xayabuly.
3. Finshed water supply and waste water management project for 5 districts such as:
Vientiane capital, Khaisone-Phomvihan, Xay, Paksan,Thakek and Pakse district.
4. Finished the construction of international border buildings such as: Phukeua in
Attapeu, Numheuang, Muang-Ngeun, Phudu and Muangkob in Xayabuly, NaphaoCholo in Khammuan, Nongnokkhian and Vangtao in Champasak and Lalay in
Saravan.
5. In 2014, 120 districts can supply water to the household, 93 districts are urban area
and 27 district are suburban area, which means we can supply water to urban
household totally 68%.
Challenges:
- The existing public water companies need to be improved. Water business is
relatively suitable to PPP if there is demand for water;
- To control constructions of large scale shopping centers which ignore city planning
criteria by establishing regulations.
VI. Effective Development Cooperation
1. Each year, ISWG organises its annual meeting, to which all development partners are
invited, to discuss the achivements of the year and the planning for the years to come.
This year, the ISWG meeting was held on 21 September 2015.
2. Some development partners assign an advisor to closely work with our Ministry (eg.
Japan).
3. Others have their regular review missions coming in to monitor the progress of works
and the actual status of the financing Ministry (eg. ADB, World Bank,...).
VII. Main points and comments raised during from Chair, Co-chairs and Floor
1- ISWG meeting was initiated in 2008. It’s a good forum to learn about progress on
infrastructure: roads, railways, aviation,…
2- ISWG meeting is a good framework for information sharing. Next year we should hold
Sub-sector meetings.
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3- there are more active DPs, such as China, Thailand,Vietnam, …They should be
ingaged in this ISWG process.
4- Lao PDR has made significant progress in infrastructure over the last two decades,
trying hard to move from landlocked to landlinked.
5-fund for maintenance of roads:
- we now have a total of 52,000 km of road, of which 7,000 are NR.
- Of these NR, 8 are ASEAN Highways (AH), with 2,860 km lentgh. Only NR3 and NR9
reach AH standard (NR9: only the section assisted by Japan).
- the total need for maintenance is 1,400 billion kip per year.
- the Road Maintenance Fund (RMF) can finance only 30% of the needs.
- We will update RMF Decree No.09 to make 30% of RMF revenue for local roads,
instead of 10% now.
- with the Fuel Levy at 520 kip/liter, the RMF revenue may reach 500 billion kip this year,
and will reach 900 billion in the next 5 years.
6- load control
- each year we spend nearly 200 m $ to repair roads and 6.6 m $ to repair broken bridges
- on 15 september 2015, the government agreed MPWT to re-install load control at 3 pilot
stations: NR3 at Nateuy, NR9 and NR13 (may be 2 sites on NR13). These will be permanent
stations, with high-tech, and CCTV.
- the province will be the executing agency. The money collected will be paid to the
department of finance of the province.
- the main probem is the budget to start the pilot stations. We therefore suggest DPs to assist
in this matter.
7-the Lao-China railway project
- Lao and China governments have agreed to this project. The Lao National Assembly has
also approved the project
- the feasibility was done, and the cost estimated. Laos will take 30%, and China 70% of the
cost.
- a Lao-China company will be set up
- on 18 Sep 2015, at China-Asean Expo, Deputy Prime Minister Somsavad Lengsavad
announced the construction may start in Nov. 2015.
- the Thai government will also cooperate.
- Laos will be the hub for integration
8- re-organisation of DOR: we will establish divisions needed in DOR.
9- there are various modes of transport: roads, railways, aviation,…and we don’t have
enough fund to do all at the same time. So we need to prioritise and have a good roadmap.
10- Very few countries develop roads and railways simultaneously. We need to analyse.
11- instead of buiding airports in every province, we should have airports only at main
centres, then have a good road network to connect between provinces.
12-for load control, there should be an inter-ministerial committee.
13-Prime Minister Abe of Japan announced a 110 million USD fund for quality
infrastructure.Japan is ready to cooperate.
14- I Owe You (IOU)-projects: we should be carefu, and try to avoid.
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15-we should involve more Private sector partnership
16-in the 8th five year NSEDP, potential infrastructure projects should be screened
17-Some financing models are not sustainable, and often be very expensive.
18-There is a need to involve the private sector. World Bank is supporting PPPsfor improving
National Road 13. ADB is supporting MPI in designing a general PPP policy and setting up a
PPP unit in theministry.
19-The maintenance of the infrastructure, especially roads, is very important. ADB has been
supporting MPWT with a project preparatory technical assistance on road sector governance.
The loan will be approved inQ1, 2016.
20-The traffic congestion in Vientiane Capital City is caused by rapidly increasing of number
of vehicles. ADB provided support for the Government to address the issue under Vientiane
Sustainable Urban Transport Project by providing Bus Rapid Transit (BRT).
21-The quality control of civil works, the axle load control, the road maintenance, especially
to drainage system,needs to be done regularly at least before and after raining season.
22-AEC will start this year. Road maintenance should be responsibility of Lao Government.
23-Laos now has 8 AH, of which 5 are designated Transit Transport Route (TTR).
Japan launched the Quality Infrastructure Fund. How Lao can tab that fund.
24-We should look at 3 points:
- 1.need to preserve existing assets
- 2.need to upgrade our AH to class 3 of AH standard
- 3.road maintenance: we should also focus on provincial roads, from centre of province
to centre of district, to centre of Koumban.
25-Tax revenue cannot meet demand. DPs want to know the exact budget.
26-MPWT’s 5 Year Plan is ready to be shared. But it’s in Lao language. Anybody is
welcomed to help translate into English.
Director General
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