ppp project

PPP October Workshope

Ministry of Public Works and Transport Presents Business Case for National Road 13 Public-Private Partnership in Lao PDR


   Vientiane, Lao PDR, October 29, 2014—Lao People’s Democratic Republic’s Ministry of Public Works and Transport made the business case to Government Meeting recently to implement the improvements of National Road 13 as a public private partnership project, bringing the country one step closer to achieving its land-linked vision. Approaching Road 13 as a public private partnership will support the Lao Government mobilize resources and fund its infrastructure needs.

  The business case highlighted that the project as a public-private partnership (PPP) will be most affordable to the Lao government and the private sector if pursued as a toll road. The Ministry plans to work with the World Bank Group to develop a toll policy, adapting international best practices to the Lao context, which should make the toll affordable to all road users.

 “A public-private partnership is a win-win solution for the project,” Oulay Phadouangdeth, Acting Director General of Planning and Cooperation Department, Ministry of Public Works and Transport (MPWT) .

 “Mobilizing funds and experience from the private sector will help the Government achieve its long-term infrastructure development goals.”

  The project aims to improve the national highway by upgrading it to regional ASEAN and international standard refer as American Association of State Highway and Transportation official standards (ASSHTO) to accommodate a growing amount of traffic in the country and the sub region . As the key artery into the capital Vientiane, National Road 13 is the busiest road in Lao PDR and improving its quality and safety is a priority of the Lao government.

  In a workshop held recently by the Ministry of Public Works and Transport and the World Bank Group, the Ministry explained to other involved government agencies how the project, if implemented as a PPP, will benefit the country socially, environmentally and financially. Additionally, by mobilizing private sector funds for the project, the Government may allocate scarce public funds to other road projects in rural areas as well as to projects in other sectors such as social sector.

  The project aims to meet social and environmental standards during construction and operations over the 25-year project life-cycle to reduce the impact on local communities during the construction phase, provide good services for road users and improve project sustainability. The Ministry has also been working to ensure that there is minimum resettlement and impact on livelihoods of affected communities.

  Alongside the World Bank Group, the Public-Private Infrastructure Advisory Facility (PPIAF), a multidonor trust fund that provides technical assistance to Government in developing countries, has supported the Government of Lao PDR by identifying this major roadway improvement project as a priority.

Lao PDR has some experience implementing PPP , with 16 projects that were finalized between 1993and 2011 primarily in the energy sector. The Government’s positive experience with PPP in the energy sector has indicated that the investment model may succeed in other sectors, including roads. Over the past year, the MPWT, supported by the World Bank Group, as led a project feasibility study that isexpected to be completed by the end of 2014. The tender process for National Road 13 is expected to be launched in early 2015, with the expectation to commence construction in 2016.

 “We are pleased to be supporting the Government achieve its land-linked-vision,” said Phongsavanh Phomkong, Head of IFC Office, Lao PDR. “Pursuing improvements to Road 13 as a PPP will support the Government’s goals to better maintain infrastructure, safety and efficiency while a competitive bidding process will ensure transparency and secure the best price.”


About the Ministry of Public Works and Transport


The Ministry of Public Works and Transport of Lao PDR is working to transform the country from land-locked to land-linked by improving all modes of transportation infrastructure ( Land, River, Air and Railway Transport ) and also responsible for Urban planning, housing and water supply development. The Ministry is responsible for ensuring that transportation infrastructure is sustainably built and maintained over the long-term. Public-Private Partnerships, supported by the World Bank Group, help the Ministry achieve the best quality roads at affordable costs, increase access to all road users and encourage private sector investment.


Project Map ( Location )



  The Government of Lao PDR (GoL) and the Ministry of Public Works and Transport (MPWT) are exploring Public-Private Partnerships (PPP) as a means to raise innovative finance to meet the significant infrastructure needs in the country’s road sector.

 The GoL requested the World Bank Group (WBG) to assist in implementing a “pilot” PPP Project (Project) involving the selection of a private concessionaire toimprove, operate, and maintain a 136km section of the 13N road and 131km section of the 13S road. The WBG, including the World Bank, the Public-Private Infrastructure Advisory Facility (PPIAF), and the International Finance Corporation (IFC), will aim to provide assistance throughout the Project duration at the institutional level and transaction execution.

 The World Bank and the PPIAF will provide support for PPP regulatory framework development, capacity building and institutional strengthening of the MPWT for the pilot PPP. The World Bank will also explore opportunities for financing technical assistance for a longer-term supervision and management of any concession. In relation to the technical aspects of the Project, under the Additional Financing of the Lao Road Sector Project, the World Bank is currently financing the detailed feasibility study for the Project, including an Environmental and Social Impact Assessment.

 IFC will provide technical support to the MPWT in the commercial and environmental and social aspects such that the Project is prepared as per best international practice and ensure that the Project structure is a bankable one to attract the best international investors. IFC will also provide support for the legal aspects of the Project by providing drafts of the necessary contractual agreements and tender documents in accordance with international best practice and which may also be adopted for other future PPPs in the sector.

 For information requests or for clarifications, please contact MPWT Investor Relations at Mr. OulayPhadouangdeth at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. and Mr. SaysanaSaphakdy at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. with copy to Ms. Grace Miso at This e-mail address is being protected from spambots. You need JavaScript enabled to view it.



From: Vientiane Times 5 February 2014


From: The World Bank


World Bank Group Supports Public-Private Partnership for Major Roadway Improvement Project in Lao PDR

 Vientiane, Lao PDR, February 4, 2014—The World Bank Group and the Ministry of Public Works and Transport are reaching out to private sector investors for a public-private partnership aimed at enhancing the traffic capacity of National Road 13, a two-lane highway that serves as the main north-south thoroughfare in Lao People’s Democratic Republic. The project aims to increase the volume of trade and tourism in the country and improve the lives of the people living along the route who will benefit from increased connectivity. 

 Supported by IFC and the World Bank, the Ministry of Public Works and Transport is holding a workshop today for investors to learn more about investing in Lao PDR’s road sector and the benefits of public-private partnerships. The workshop is the first of several to be rolled out with the government over the next 12 months in Vientiane and across East Asia Pacific.

 “The government recognizes the need to expand and improve its national road network in response to a rapid increase in traffic, to improve road safety and to ease congestion. The project will ensure that the roads will be well-built and maintained, and affordable for its users,” said SommadPholsena, Minister of Public Works and Transport. “Improving National Road Number 13 through public-private partnerships is expected to serve as a benchmark for future projects in Lao’s transport sector.”

 The government of Lao PDR plans to invite bids for construction in March 2015. Today, Road 13 can accommodate up to 20,000 users. The new road development, expected to be completed in 2017, aims to increase road capacity to an additional 30,000 vehicles a day in order to cater for an anticipated 50,000 users during peak traffic by 2030. 

 Following the workshop this week, IFC will offer a tailored training to about 30 officials from the Ministry of Public Works and Transport focusing on the essentials of public-private partnerships from planning to managing a bid and implementing a concession.

 “We will support the ministry to build knowledge and understanding of public-private partnerships and work with the government to increase foreign investment in Lao PDR,” said Edgar Saravia, Manager of Public-Private Partnerships, IFC Advisory Services, East Asia and the Pacific.

 “The World Bank Group – IFC and the World Bank – is bringing our respective expertise to support the Lao government on designing and implementing a successful public-private partnership to expand and maintain Road 13, the national backbone highway,” said Keiko Miwa, the World Bank Country Manager for Lao PDR. “We hope this will serve as a model for other public-private partnerships in the country.”

 About the World Bank Group

 The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.ifc.org, www.worldbank.org, and www.miga.org.




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