LAO PDR Long Term Transport Development Plan

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LAO PDR Long Term Transport Development Plan Presented by Math Sounmala Director General, Dept. of Planning and Cooperation Ministry of Public works and Transport, Lao PDR Email: mathsml@laotel.com

The Greater Mekong Sub-region (GMS) Myanmar Land area: 677 thou sq km Population: 55 M GDP per capita: US$255 (2005) Thailand Land area: 513 thou sq km Population: 68 M GDP per capita: US$3,133 Yunnan and Guangxi of PRC Land area: 633 thou sq km Population: 98 M GDP per capita: US$1,135 Viet Nam Land area: 332 thou sq km Population: 90 M GDP per capita: US$724 Lao PDR Land area: 238600 sq km Population: 6.3 M GDP per capita: US$ 985 Mekong River in Laos 1850km The GMS in 2007 Land area: 2.6 M sq km Population: 332 M GDP per capita: US$1,453* * excludes Myanmar Cambodia Land area: 181 thou sq km Population: 15 M GDP per capita: US$510

Transport Sector Development Policy I. To provide an enabling, safe, and efficient transport throughout the country with low transport cost to support the Government effort to graduate from LDC by 2020 and to meet MDG by 2015 II. To transform from a land-locked country to a land-bridge country in the GMS by: - Providing efficient and reliable transport infrastructure and facilities, particularly on transit transport routes and - Facilitating cross border transport of goods and people between and among neighboring countries

The 7 th Five Year Transport Development Plan 2011-2015 of MPWT 1. Upgrade and construct the national roads for regional connection and the provincial, urban, district, and rural roads for internal connectivity ( all Provincial Capitals connect with Vientiane with all paved roads) 2. Improve the public transport (street bus) in Vientiane Capital and long distance public transport to provinces. 3. Construct the airports and improve air transport services. 4. Upgrade and construct river ports, improve land and river transport services. 5. Transit transport facilitation. 6. Construct railway line from Boten to Vientiane Capital, and carry out detail design of railway line from Thakaek to Muya to connecting with Vietnamese Railway network.

Lao Road network Total of Road network: 39.546 km National roads: 7,235km Provincial roads: 7,923km Other Roads: 24,388km Seven (7) ASEAN Highway Routes(AH) in Lao PDR: AH13 NR. 2 AH-3 NR. 3 AH-15 NR. 8 AH-16 NR. 9 AH-131 NR.12 AH-11, AH-12 NR.13 AH-132 NR.18. (total approx. Length=2859 km)

I. Lao Road Networks and ASIAN Highways in Laos AH3 AH 13 AH11 AH12 AH15 AH16 LTSWG-16Sept. 2011 6

Current Road data in Lao PDR Road Type Total Length (km) Percentage (%) National 7.235 19 Provincial 7.923 20 District 5.129 14 Urban 1.915 4 Rural 16.440 41 Special 904 2 TOTAL 39.546 100 LTSWG-16Sept. 2011 7

Current Roads data in Lao PDR (by type of pavement in Km) Types Paved Gravel Earth Total National 4.433 2.191 611 7.235 Provincial 697 4.165 3.101 7.923 District 183 2.633 2.313 5.129 Urban 575 895 445 1.915 Rural 85 3.666 12.689 16.440 Special 143 324 437 904 TOTAL 6.116 13.874 19.596 39.546 LTSWG-16Sept. 2011 8

I. GMS Corridors LTSWG-16Sept. 2011 9

Existing and Proposed GMS Corridor for Lao PDR 1 East-West Economic Corridor ( EWEC) Da Nang (VN) passing across Savannakhet (Laos) to Myanmar 6 North-South Economic Corridor (West) NSEC(W) Kunming-Bangkok Via Northern Lao PDR/Myanmar 8 Northeastern Corridor( NEC) Nanning-Hanoi (VN) Vientiane (Laos) -Bangkok/Laem Chabang 9 North South Corridor via Laos to Cambodia Kunming-Mohan-Luang Prabang-Vientiane-Pakse-Phnom Penh/ Sihanoukville

Existing Regulatory Framework in Transport (Software components) 1. National laws, rules, and regulations. 2. Bilateral Transport Agreements with all neighbors 3. ASEAN Framework Transport Agreements. 4. GMS Cross Border Transport Agreement (CBTA) (17 Annexes and 3 Protocols). 5. Quadripartite Commercial Navigation Agreement. on the Upper Mekong and Lancang River. 6. Air Service Agreements

Development Plan (2011-2015) of Road Network: On-going improvement of National and GMS Roads Projects 1. National Road 1B (Paknamnoy-BanYo) ; WB financed. 2. National Road 15A (Saravan-Napong) ; Local Private financed 3. National Road No. 4, 368 km, upgrading, incl. Mekong bridge; ADB, OFID, Ausiad, EDCF (ROK) to be completed by 2014, 4. National Road 13 N,79km (Nateuy Oudomxay) ; grant from PRC 5. National road 13 N, 80km (Oudomxay Pakmong) grant from PRC ; survey, design is on-going 6. National Road 2E, 69km ongoing, grant from Vietnam, 7. National Road 6, 6A and 6B, appr.146km, assisted by ADB, now procurement consultant for survey and detailed design on-going, LTSWG-16Sept. 2011 12

Development Plan (2011-2015) of Road Network: On-going Improvement of National and GMS Roads Projects 8. National Road 11 (Tadthong-Nam Sang) ongoing appr. 82km, assisted by NEDA 9. National road 16 B, 95km, Local Private financing. 10. 3 rd Friendship Mekong river bridge, (Thakhek-Nakhonphanom), grant form Thai Government, opening ceremony on 11-11-11. 11. 4 th Friendship Mekong Bridge, (Houysay-Chiangkhong), 50-50 grant from Thailand and PRC. 12. Mekong Bridge (Khok khaodo-paklay), Local financing. 13. National road 1D, 268km, Local financing 14. National Road (Kasi Mouang Nan), 70km, Local Financing LTSWG-16Sept. 2011 13

Prioritized National Road Projects (Need fund) 1. National road 4B, 128km (Hongsa-Xiengmen), NEDA is assisted in carrying out F.S. 2. Mekong Bridge in Luang Prabang, to be proposed to NEDA for F.S. 3. National Road 1A, (Lantoui-Bounneua), 142km, has been proposed for PRC soft loan 4. National Road 1E, (Khamkeut-Ngommalad), 93km, Contract Agreement being prepared for Local Private financing 5. National road 17B (Mouangsing-Xiengkok) 97km, This is the only road to connect with Myanmar. 6. Mekong Bridge at Pak Beng, on NR2W, proposed for PRC soft loan. LTSWG-16Sept. 2011 14

Prioritized National Road Projects (Need fund) 7. Mekong ridge in PakBeng, on NR2W, proposed for soft loan From PR.China 8. Some Missing Links along the National Road No.1 NR 1F (Ngommalad-Xetammoak),133km, NR 1G (Mouanphin-Saravan),129km, NR 1J (Attapeu-Cambodia Border), 81km, 9. Urgent need for upgrading to 4 lanes due to traffic congestion: - NR13N, (Vientiane Capital to Phone Hong 70km - NR13S, (Vientiane Capital to Ban Hay), 40km LTSWG-16Sept. 2011 15

Prioritized Provincial Road Projects: (Need fund) Roads Projects from the Provincial Municipality to the District Centers to be upgraded to DBST (Class IV standard) 1. Phongsaly 6 Est. cost MUSD: 9.909 2. Oudomxay 3 7.600 3. Louangnamtha 15 6.984 4. Bokeo 6 5.338 5. Sayaboury 12 30.771 6. Louanprabang 8 30.840 7. Houaphan 2 3.625 8. Xiengkhouang 7 14.696 9. Vientiane 5 27.520 10. VTE Capital 14 216.960 LTSWG-16Sept. 2011 16

Prioritized Provincial Road Projects: (Need fund) 11.Bolikhamxay Project s 6 Est. cost MUSD: 11.000 12. Khammouan 6 13.490 13. Savannakhet 10 63.420 14.Saravan 4 30.360 15. Champasack 3 6.820 16. Sekong 4 12.490 17. Attapeu 7 39.700 Total 118 215.033 By completing the above mentioned National and Provincial road projects Lao PDR will achieve its goal and objectives in its sociodevelopment effort, particularly leading to meet basic requirement targets for the poverty eradication. LTSWG-16Sept. 2011 17

DEVELOPMENT OF RAILWAY TRANSPORT The existing 3.5 km railway line between Thanaleng (Laos) - Nongkhai (Thailand) has been in operation since March 2009. This line was assisted by Thailand. Ministry of Public Works and Transport of Lao PDR signed an MOU with Ministry of Railway of China for the 425 km railway line development. The line passes through difficult and mountainous terrains about 66% (279km) from China border to Vientiane Capital. There are 165 bridges with total length of 279 km and 69 tunnels of 187 km. This line is the middle corridor of the Pan Asia Railway Network. The project will be 30%(Lao) and 70%(China) Joint-Venture in the investment and operation.

Development of Water Transport The Mekong River, about 1850 km in Lao PDR, is commercially navigable in three sections : - Luang Namtha Houei Sai section, - Luang Prabang - Vientiane section, - Vientiane - Savannakhet section. Each section has different depth for commercial water transport due to rapids and sandbars. The water transport between Luang Namtha Houei Sai section is in operation under the China-Lao-Myanmar-Thailand joint commercial water transport agreement along the Upper Mekong (332km) and Lancang Rivers, after the completion of the channel improvement assisted by China.

Development of Air Transport Airports Development 4 international airports are being developed and upgraded : 1. Wattay Int l airport, 2. Luang Prabang, 3. Savannakhet 4. Pakse Int l airport. Presently only Vientiane Wattay Int l Airport is able to accommodate up to 747 aircraft, while Luang Prabang and Pakse can handle up to Airbus 300 types. Air transport Operation Lao Airlines is the only National Flag carrier. Regular flights to major cities of neighboring countries are available such as to Bangkok, Hanoi, Phnom Penh, Kunming and Nanning, Singapore. Lao Central Airline

Development Partners in transport sector 1. Bilateral Assistance Friendly countries Financial organizations Norad, JICA, KfW, NEDA(Thailand), AUSAID, EDCF(ROK), AFD(France) 2. Multilateral Assistance ADB, WB, OPEC, EU, ACMECS..,

VI. Opportunities 1. Regional Transport Cooperation Framework (GMS, ACMEC, ASEAN, etc.) 2. Multi Donor Cooperation supported from the international financial institutions, Neighbouring and Friendly nations, 3. Clear Development goal direction from the Government 4. Public Private Participation (PPP) 5. Local fund from Road Maintenance Fund (RMF) LTSWG-16Sept. 2011 22

VII. Challenges 1. Regional integration & development require more multi-modal transport systems 2. Development demand exceeds available funding 3. Local Roads (PR & DR) largely under-funded 4. Transport services below international standards 5. Frequent Natural Disasters (Land slides, Erosion, Flood) 7. Need to strengthen institutional capacity from all level from strategic planning & sector management LTSWG-16Sept. 2011 23

Thank you very much for your kind attention