ADB funds rural projects in Laos

VIENTIANE  The Asian Development Bank has pledged to provide a USD40 million loan of USD43.57 million to develop rural and road Infrastructure in Lao PDR as part of a wider strategy to support the Greater Mekong Sub-region’s tourism.
The Lao News Agency reported the loan agreement was signed on Monday at the Ministry of Finance between Vice Minister of Finance, Thipphakone Chanthavongsa, and ADB Country Director, Sandra Nicoll.
The ADB Country director was quoted as saying: “The project will act as a catalyst to encourage additional private sector investments in tourism infrastructure and services, boost tourism spending and create jobs in underdeveloped areas, while ensuring that the tourism growth is environmentally and socially sustainable.”
inside no 1 The GMS Tourism Infrastructure for the Inclusive Growth Project will focus on paving rural roads in Champassak, Khammuan, Luang Prabang, and Oudomxay to open new areas for tourism.
The finance vice minister cited tourism is one of the most important sectors contributing to the country’s socio-economic development.
“Although Lao PDR has widely dispersed cultural and natural tourism assets, the benefits are mainly concentrated in urban centres,” she said.
International tourist arrivals in GMS countries increased by more than 12% and generated close to USD50 billion in receipts in 2013, according to the report.
Though tourist arrivals are growing steadily in Lao PDR, the country has largely missed out on those gains due chiefly to underinvestment in tourism infrastructure beyond the major tourism gateways.
Last year, Lao PDR’s tourist arrivals reached 3.7 million and revenue touched USD595 million. Thailand, Vietnam, China, South Korea, US, France, Japan, UK, Australia and Germany are the top 10 source markets.

sourced:ttrweekly.com