Greater Mekong Subregion

Northern Economic Corridor Project (Loan 1989)

Overview

In December 2002, the ADB approved a loan of $30 million to Lao PDR -- Loan 1989 -- from ADB's Special Fund resources for improvement of the road from Houayxay to Boten in Lao PDR. This will create an international north-south corridor linking the People's Republic of China (PRC) and Thailand, which is a core road infrastructure element of the Greater Mekong Subregion (GMS) North-South Economic Corridor.

The objectives of the ADB loan are to:

• accelerate regional development through more efficient infrastructure networks (a direct link between the PRC and Thailand via Lao PDR will reduce transport costs in the regional project influence area, and increase the efficiency of vehicle, goods, and passenger traffic)
• link two remote provinces, Louang Namtha and Bokeo, of Lao PDR and help reduce poverty by providing access to markets, extension services, income, and employment opportunities, thus enhancing development potential

The project scope includes upgrading the existing 228-kilometer road between Houayxay and Boten, area development including a social action plan for the ethnic minorities, and capacity building in environmental and social monitoring.

Project Cost and Financing ($ million)

Status

Ongoing.

For detailed information on project status, email:

gms@adb.org