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The government of Germany has approved a grant of EU4 million to the Lao Government to help the second phase of the upgrade of national road No.6 in Xiengkhuang and Houaphan provinces. The project is already being carried out with Germany financial aid through the German Development Bank (KFW).

The government of Germany has approved a grant of EU4 million to the Lao Government to help the second phase of the upgrade of national road No.6 in Xiengkhuang and Houaphan provinces.
The project is already being carried out with Germany financial aid through the German Development Bank (KFW).
The projected cost of this project was an initial EU5.5 million in construction and maintenance works, with EU1.5 million contributed by the Lao Government.
The contract signing ceremony for the road upgrade project was attended by Mr Sommad Pholsena, Minister of Communication, Transport, Post and Construction, Mr Zailer, Deputy Germany Ambassador to Laos, Mr Thamla Amkhathongkham, Deputy Governor of Houaphan province, Mr Khamsouk Xayasone, Vice Governor of Xiengkhouang province and officials concerned in Vientiane Capital.
The 268-km long Road No. 6 passes through mountainous terrain in the northern-eastern provinces Xiengkhuang and Houaphan province from Muang kham district Road No.7 via Phoulao village, Xam neua district, and Viengxay district to Namneo village at the border crossing Namneo to Vietnam.
It was expected that the project would provide a sustainable and economic all-weather connection to the national and regional road network.
This will create access to government services and local, national and regional markets, contributing to the socio-economic development process and promoting the regional integration of Laos.
Avoiding resettlement in northern provinces of Laos is a policy of the government, which has observed the hard living conditions in mountainous areas and the isolation of the population.
Several mountain villages have emerged and resettled in the valleys under a government program.
The Rehabilitation of National Roads project is being undertaken with the close cooperation with German Agency for Technical Co-operation (GTZ) in this area.
The project has been implemented within the framework of German Financial Co-operation with Laos since 1994. This directly contributes to the implementation of the National Poverty Eradication Program, which cites investment in infrastructure as an essential component for a successful fight against poverty.