Greater Mekong Subregion

East-West Corridor Project - Loans 1727 and 1728

Overview

In December 1999, the ADB approved loans of $32 million and $25 million to Lao PDR and Viet Nam -- loans 1727 and 1728 -- from ADB's Special Fund resources for rehabilitation of parts of the East-West Transport Corridor Project.

The objectives of the ADB loans are to

• promote economic activities and facilitate trade between and among the Lao PDR, Thailand, and Viet Nam, and
• improve the prospects for poverty reduction along the East-West Corridor.

The project forms part of the subregional project, R2: Thailand-Lao PDR-Viet Nam East-West Transport Corridor.

The ADB-financed Project covers three components:

• East-West Corridor Access
• Access for Poor and Disadvantaged Groups Living in Rural Communities
• Environmental and Social Governance

East-West Corridor Access

The Lao PDR component of the Project comprises:

• rehabilitation of Road 9 between Muang Phin and Dene Savanh at the border with Viet Nam -- about 78 km, and
• consulting services.

The Viet Nam component comprises:

• upgrading and improvement of Road 9 between Lao Bao at the border with Lao PDR and Dong Ha on Highway 1 -- about 83 km, including the upgrading of the Dong Ha Bypass, and
• consulting services.

Access for Poor and Disadvantaged Groups Living in Rural Communities

The rural community access improvement component will involve the construction and improvement of small bridges, river crossing systems, pathways, rural roads, and other infrastructure in the corridor influence area that will provide access to Road 9. The component is aimed at reducing poverty in the project influence area in Lao PDR by providing poor communities with access to markets, employment opportunities, and social services.

Environmental and Social Governance

Environmental and social governance will be strengthened through the implementation of the mitigation measures that have been built into the design of the Project. These mitigation measures include:

• avoidance of construction methods and practices that would negatively affect the ecological system,
• compensatory planting,
• resettlement of project-affected persons, and
• information and education campaigns on STDs and HIV/AIDS for construction workers.

Project Cost and Financing ($ million)

Status

Ongoing.

For detailed information on project status, email:

gms@adb.org