Economic and Social Development Programme:
Strengthening the Logistics Infrastructure of the Landlocked Country of Laos

Prompt procurement of equipment required for national road repairs

In Laos, land routes are an important infrastructure that supports logistics. Yet the country’s national roads are seriously deteriorating and becoming damaged, and the overloaded vehicles that come from neighboring countries are accelerating this deterioration. Research shows that approximately 55% of the national roads in Laos have a lifespan of just three years or less. Meanwhile, the actual restoration work undertaken is limited, and road conditions are worsening year by year. To enable the urgent repair work to be carried out, a procurement contract was concluded with the supplier about four months after the Exchange of Notes (E/N) between the two national governments. The requested equipment was delivered quickly thanks to the cooperation of the supplier, manufacturers, and all other parties involved.

Road stabilizers being inspected prior to shipment

Training on the operation of motor graders
Together with the end-user, the National Road Route 8 Public Corporation

(Courtesy: Marubeni Protechs Corporation and Komatsu Ltd.)

Selection of equipment that meets the needs of the Government of Laos and is environmentally friendly

Using a road stabilizer, which is some of the equipment procured, allows for carrying out the process of regenerating the roadbed while crushing and using the existing pavement at the same time. This leads to a reduction in construction time and costs as well as environmental conservation through a reduction in road waste. In compliance with the laws of Laos and prioritizing the effective use of the equipment by end-users on-site, we held multiple discussions to finalize the tender specification, while also considering the introduction and promotion of construction machinery equipped with cutting-edge technology in the country. After all the equipment has been de-livered, JICS will manage the support to ensure that it is used smoothly on-site.

Project Overview

Procurement of Cutting-Edge Road Maintenance and Repair Equipment

As effective maintenance and repair work is required to restore national roads that are deteriorating due to age and damage, the Government of Japan has decided to provide grant aid to the Government of Laos to introduce and promote the use of cutting-edge construction machinery.

Counterpart of Agent Agreement	Ministry of Public Works and Transport, Lao People’s Democratic Republic
End-user	National Road Route 8 Public Corporation
Grant amount	¥800 million
Exchange of Notes (Bilateral Agreement)	December 22,2022