World Bank Approves USD 56 Million Climate-Resilient Road Project in Laos

The World Bank has approved the launch of the Climate-Resilient Road Connectivity Improvement Project in Laos on 1 October to improve road and transportation in impoverished areas.

This six-year initiative, valued at USD 56 million (LAK 1.23 trillion), aims to enhance transportation infrastructure in central and southern Laos, improving access to markets and essential services for approximately 600,000 people.

Funded by the International Development Association, part of the World Bank Group, the project targets low-income countries to strengthen their economic positioning. 

In Laos, the provinces of Khammouane, Salavanh, and Savannakhet have been selected for the project due to their poor road conditions, high vulnerability to flooding, significant poverty levels, and their importance in agricultural production.

Currently, road investments in Laos are primarily concentrated on highways and urban areas, leaving remote regions underserved. Around 40 percent of rural roads remain unpaved, with only 15 percent of roads in good condition. The project will focus on improving these neglected areas, which are particularly prone to natural disasters such as floods and landslides.

Alex Kremer, the World Bank Country Manager for Laos, emphasized the importance of reliable road access for rural communities, especially in ensuring access to markets, schools, and healthcare services. He noted that rural populations, including women and farmers, face the highest risks from climate change and would greatly benefit from consistent, year-round access to essential services.

In addition to infrastructure improvements, the project will prioritize community needs and address gender disparities in industries like transportation and construction. The government plans to organize workshops and provide six months of paid training to help residents, particularly women, gain the skills needed to secure employment in these sectors.

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