EIB to help protect 1,400km roads in rural Lao PDR from climate change

Mr. Luca Lazzarolli, Director General of the European Investment Bank, formally agreed new support to improve 1,400km of currently unpaved roads in six provinces. This will enable parts of the national road network most vulnerable to a changing climate to be paved, elevated and stabilised.

During the three-day visit to the Lao PDR, Mr. Lazzaroli signed a EUR 5 million Grant Agreement with H.E Dr. Kikeo Chanthaboury on behalf of Government of the Lao PDR. The grant will be used alongside the European Investment Bank’s EUR 20 million loan for the Lao Resilient Rural Roads project. Once complete the upgrading work will better protect rural roads from flooding, storms, and drought across Laos.

“The European Investment Bank, as the EU Bank, is committed to supporting climate action and supports transformational infrastructure projects that protect against a changing climate. Rural communities in Laos are amongst the most vulnerable anywhere in the world to extreme weather. The EIB is pleased to provide EUR 20 million for rural road investment essential to improve the livelihoods of thousands of people across Laos and welcome the EUR 5 million grant support from the European Union. This project will be a model for Lao P.D.R. and the rest of the worldб” said Mr. Andrew McDowell, European Investment Bank Vice President responsible for lending operations in Southeast Asia.

The rural road upgrading scheme is expected to be completed by 2021.

Original source: EIB
Published on 01 April 2019