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AIIB approves first project in Laos

Xinhua | Updated: 2019-04-05 17:31
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A view of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in Beijing, Jan 13, 2016. [Photo/IC]

BEIJING - The Asian Infrastructure Investment Bank (AIIB) has approved the bank's first project in Laos and expects it to directly benefit over half a million people.

The bank approved a loan of $40 million to improve a critical section of National Road 13, with 58 km of it expected to be repaired to improve functionality, safety and climate resilience.

Of the main beneficiaries, over 239,000 are women who live in 471 villages and 11 districts in Vientiane Capital and Vientiane Province, the AIIB said in a statement.

The project will also benefit individuals and commercial road users who need to travel to and from the eight northern provinces of Lao PDR, as well as to Vietnam, Thailand and China.

"For our first investment in Lao PDR we chose a project that will have both local and regional impact," said AIIB Vice President and Chief Investment Officer D.J. Pandian.

"This investment will improve one of the most vital transport routes in the country. The updates to the road will enable quicker and safer transportation of goods and people, which will promote socio-economic development within the country and improve connectivity with its neighbors."

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