Mr Phongsavanh Sisoulath (right) and Ambassador Koizumi Tsutomu shake hands after signing the Exchange of Notes.

Japan pledges US$11.3m grant aid to finance socioeconomic development

The government of Japan, a key aid provider to Laos, has pledged financial support amounting to 1.707 billion yen (US$11.3 million) to finance development activities.
Japan’s Grant Aid project, titled “Economic and Social Development Programme” will finance and provide materials and heavy machinery to Laos for bridge rehabilitation and repair work caused by natural disasters, the Lao Ministry of Foreign Affairs said in a press release.
Lao Deputy Minister of Foreign Affairs Phongsavanh Sisoulath and Japanese Ambassador to Laos Koizumi Tsutomu signed the Exchange of Notes concerning the grant at the ministry on Thursday.
The grant aid project will bolster the government’s efforts to transform landlocked Laos into a land-link country, connecting it to regional and global supply chains.
The grant will largely finance the upgrade and repair of bridges that have been damaged by landslides, storms and floods.
The government of Japan has consistently extended support to infrastructure development in Laos. This includes construction of the second Laos-Thailand Mekong Friendship Bridge, a bridge across the Mekong in Pakxe in Laos’ southernmost Champassak province, and upgrades to Roads No. 9 and 1.
Speaking at the signing ceremony, Mr Phongsavanh praised Japan’s provision of the grant, which significantly adds fuel to the Lao government’s efforts to repair damaged infrastructure and improve connectivity during a time of financial constraints.
In recent years, Laos has experienced increasingly frequent natural disasters, including earthquakes, storms, and floods, which have damaged urban infrastructure and transport systems.
“This has created difficulties for people’s daily lives, travel, and nationwide freight transport, and has hindered socio-economic development,” Mr Phongsavanh said.
He underscored the importance of infrastructure development, saying it is fundamental to socio-economic development.
“Our government prioritises the improvement and upgrade of infrastructure to transform our nation from a land-locked country into a land-linked country, to enhance regional and international connectivity,” he said.
Acknowledging budget constraints, the deputy minister said “Therefore, this assistance from the Government and people of Japan meaningfully provides modern machinery to enhance the quality and efficiency of bridge repair work, making them more convenient, efficient, and environmentally friendly.”
The project will also significantly contribute to the upgrade of national highways to support travel, freight transport, and tourism services with neighbouring countries and across the region.
“It will play an important role in the Lao PDR’s economic and social development, particularly by improving the living conditions of people in remote areas,” he said.
Mr Phongsavanh expressed deepest gratitude to the Government and people of Japan for the kind support and assistance extended to Laos over past years.

By Times Reporters
 (Latest Update March 7, 2025)