Infrastructure
Moving from land-locked to land-linked
Because Lao PDR is land-locked and mostly mountainous, the development of an efficient transport system is paramount for regional integration and socio-economic development. Transport is vital in supporting resource development and can assist in raising rural incomes.
Lao PDR depends primarily on road transport and, to a lesser extent, on river and air transport. Although transport demand is growing, the transport of passengers and goods is constrained by an inadequate transport network that is further limited in coverage by its poor physical condition.
In 2006 the road network accounted for 98% of passenger-km of travel and 86% of freight traffic (ton-km). At 0.2% air freight is negligible, however domestic-passenger air transport serves 2% of demand and plays an important role in linking the main urban centres and key tourist destinations.
Achievements
In the past five years there has been a significant expansion in linkages between sub-regional growth, including the building of roads, which have been extended from 33,803 to 37,769 km. Additionally, Lao possesses over 3,000 km of inland waterways, more than 20 ports along the Mekong and 13 airports (9 domestic and 4 international). A railway has been constructed between Thailand and Lao.
Further, work continues in the energy and telecommunications sectors, with significant expansion of the rural electrification program and the 19,503 km of electricity transmission lines across the country.
Improved infrastructure means that there are now 119 post offices, 99 telephone centres and 3,589,379 telephone connections across the country.
Future directions
The Government aims to strengthen the public works and transportation sector to increase efficiency in production, so that it becomes a fundamental factor for modernisation and industrialization, as well as improving connections with economic transport corridors.
To support infrastructure development, the Government of the Lao PDR aims to: increase available funding, strengthen macro-management by formulating regulations, rules, decrees and necessary technical standards; promote the use of modern technology, and strengthen the capacity of staff, personnel and organization in the public works sector.
To enable a strong, effective and aligned transport plan for the Lao PDR, the Government, through the Infrastructure Sector Working Group and relevant line ministries has implemented the: Transport Sector Strategic Program, Urban Master Plan, Environmental and Social Safeguards Plan, Rural Transport Infrastructure Program, Urban Wastewater Management Strategic Plan, Water Supply and Sanitation Strategic Program, Inland Waterway Strategic Program, Civil Aviation Strategic Program, Railway Development Strategic Program, and the Road Safety Strategy and Action Plan. (Note - these will need to be linked)
Three new Dams – Nam Mung 3, NT2 and Sesad have now been completed and pilot electricity production has begun. A further nine are currently under construction (due for completion 2010-2012), with the aim of achieving 80% electricity coverage of households.
Future targets
- increase aviation growth by 8-10% per year
- increase water supply to cover 67% of urban population
- expand network and communication service to rural areas, providing 90% coverage.
- build and expand road connectivity (920 km), particularly roads that connect with priority areas and Kumban development areas.
- Complete the construction of road transport connecting to Vietnam’s sea port (Vung Ang port)
- Conduct transport feasibility studies at four airports.
- Increase total freight volumes to reach 23 million tonnes or on average, increase by 7% per year.
- Increase product flows to reach 2.2 billion tonnes-km, or an average increase of 7% per year