News and Events

New Overland Route Links Singapore to Beijing

VIENTIANE, LAO PDR (31 March 2008) – People’s Republic of China (PRC) Premier Wen Jiabao, Lao People’s Democratic Republic (Lao PDR) Prime Minister Bouasone Bouphavanh, Thailand Prime Minister Samak Sundaravej and Asian Development Bank (ADB) President Haruhiko Kuroda officially opened the Route 3 highway in Lao PDR today, the last remaining stretch of road in an overland route joining Singapore and Beijing.

Before construction commenced on the new route, the highway was closed four months each year during the rainy season, limiting communities’ access to basic social services, and impeding trade and employment opportunities in the region.

Now that the new route is complete, the highway will be open year-round, and the driving time from Bangkok to Kunming will only take a little over one full day.

“Revitalizing this ancient trade route and stimulating new business between these Mekong neighbors will bring more jobs and greater prosperity to the region,” said President Kuroda.

“Improved road networks in Lao PDR will also give families in the area easier access to health clinics, and give children better access to school,” he added.

Route 3 mirrors ancient “back door” trade routes that linked Southeast Asia to southern branches of the Silk Road in the 13th century. As late as the 1800s, caravan traders were carrying raw cotton and other commodities northwards in exchange for silk, tea, furs and other goods.

In Lao PDR, Route 3 passes by the ancient village of Khou Vieng, a former trading post from the 16th century.

The north-south road network from Kunming to Bangkok has been under development by Mekong nations and ADB for more than a decade.

In addition to enhancing business and employment opportunities for Lao PDR, Thailand, and the PRC, the new route is expected to expand the number of tourists visiting all three countries each year.

The total cost of Route 3 in Lao PDR is $97 million. ADB, the Government of Thailand, and PRC each contributed $30 million to the project, with Lao PDR contributing the remaining $7 million.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 67 members – 48 from the region. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.

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