The Government of Lao PDR (GoL) through its Ministry of Public Works and Transport(MTPT, ex MCTPC) entered into a Financing Cooperation with the Federal Republic of Germany (FRG) through Kreditanstalt für Wiederaufbau (KfW) in 1994, for support to the Road Sector.

The first support consisted in the Rehabilitation of National Road nr 6, Samneua Province.

Later in 2001, a Rural Road Rehabilitation Project started in Bokeo Province.

Based on the experience developed through these 2 projects, the Rural Infrastructure Programme for North Lao PDR was signed on 09/01/2006.

The Project Area is located in 3 provinces of Luang Nam Tha, Bokeo and Oudomxay, i.e. in the districts of Nalae, Sing, Namtha and Vieng Phou Kha (Luang Nam Tha), Houn and Pakbeng (Oudomxay), Meung and Pha Oudom (Bokeo). Some project activities also secondarily concern the districts of Houaixay and Long.

Luang Namtha province presents a total area of 9,052 km2 ranging between 500 and 2,058 m.a.s.l. While the mountains cover some 85% of the area and are distributed through-out the province, the small portion of lowlands is concentrated in the southern and south-eastern parts.
Luang Namtha has a total population of approx. 145,000 inhabitants (2005), which gives an average population density of less than 16 inh./km2. Its population is predominantly rural (more than 90%) with a low literacy rate (40%) and low employment in the traditional sectors, most people being subsistence farmers of different ethnic origin.
The economic base is small, with predominance of agricultural and very limited industrial activities, but is rapidly growing and diversifying, particularly in the urban centres along the national road network in the province, which is currently being upgraded. The average income per person was 280 US$ per year in 2005. The majority of the population derive their income from agricultural activities (mainly shifting cultivation), the extraction of non-timber forest products (NTFP), and from livestock rearing. The main agricultural cash income is obtained from the sale of rice, sugarcane, maize, soybeans, cardamom and sesame.
The classified road network in Luang Namtha Province comprises approx. 1,540 km of roads (2006), of which 238 km (15%) are paved and 386 km (25%) gravel roads, generally of inferior quality of the gravel and not always trafficable throughout the year. In contrast to this, the majority (almost 60%) are unengineered earth roads, not passable during the rainy season.


Bokeo, with an area of 6,196 km2 is about two thirds the size of Luang Namtha province. More than 90% of Bokeo is mountainous, generally at altitudes above 500 m. Less than 30,000 ha (5%) is cultivated. There are some plains which offer good potential for paddy cultivation, but most of these have been developed already, partly to accommodate people from resettled villages elsewhere in the province and from abroad (e.g. Luang Namtha). Much of the land in the province is covered by forests, which are generally second-graded. Slash-and-burn agriculture is still practised in several parts of the province.
The average population density in Bokeo is 23.6 inh./km2, with considerable variations by district and within the districts. Only 15% of the households are classified as being poor, but with considerable variations by district.
Farming characteristics are similar to Luang Namtha, but the indications are that the Bokeo farmers are doing relatively better, e.g. there is a higher share of paddy rice and of cash crop production. This holds true particularly for the low lying areas near the Mekong River in Houayxai and Tonpheung districts, which strongly impact the provincial average. In the national context, however, the farming sector in Bokeo is clearly below average. The average area per holding is only 1.06 ha (1.57 ha in the country), of which 0.85 ha is cropped area (1.65 ha in the country due to higher cropping intensity), 0.80 ha of which being rice (paddy, upland and dry season). Only 0.05 ha per family is devoted to crops other than rice (vegetables and small cash crops), in comparison to 0.55 ha in the country.
The classified road network in Bokeo comprises approx. 887 km of roads (2003), of which 51 km (6%) are bitumen and 372 km (40%) gravel roads, generally of inferior quality of the gravel and not always trafficable throughout the year. Half of the network (464 km) is made up of unengineered earth roads, not passable during the rainy season. 170 km (19%) of the roads are classified as national roads, 300 km (34%) as provincial roads, 46 km (5%) as district and 298 km (34%) as rural roads; the remainder (73 km) are urban or special roads. Only a minor part of the national roads and none of the provincial roads are paved. Due to the poor condition of the road network, with most roads being of poor gravel or earth standard and impassable during the rainy season, the majority of the population is left without suitable access for nearly half of the year.


Oudomxay province, with a total area of 15,370 km2, is the 9th largest in Lao PDR. The provincial topography is very mountainous with deeply dissected relief and altitudes ranging between 300 and 1,850 m.a.s.l. The small portion of lowlands is concentrated in the middle part and south-western parts.
Oudomxai has a total population of approx. 269,300 inhabitants (estimates for 2006), which gives an average population density of 17.5 inh./km2. The natural population growth rate is now 2.4% per year, down from 3.2% only 10 years ago. There has been a large influx of people into the province during the last 10 to 15 years, most of which settled in Xay, Houn and Pakbeng Districts.
More than 40% of the families in the province are classified as being poor. Average life expectancy is 54 years and is higher for women than for men. The average illiteracy rate is 18% (women 20%). Income per person averaged 349 US$ p.a. in 2005. The majority of households derive their income from agricultural activities (mainly shifting cultivation), the ex-traction of non-timber forest products (NTFP), and livestock rearing. The main agricultural cash income is obtained from the sale of rice, maize, soybeans, cardamom and sesame.
The classified road network in Oudomxai Province comprises 1,417 km of roads (2006), up from 1,020 km only 7 years ago. 319 km (22%) of the roads are of bitumen standard and 660 km (47%) of gravel standard, generally of inferior quality of the gravel and extended periods of non-trafficability during the rainy season. The remaining 438 km (31%) are unengineered earth roads, not passable during the rainy season even with 4wd vehicles. 22% of the roads are classified as national roads, 20% as provincial roads, 30% as district and 22% as rural roads; the remainder is classified as urban or special roads. While all the national roads in the province are paved, this is not the case for any of the provincial roads. Due to the poor condition of the roads especially in rural areas, where most roads are of poor gravel or earth standard and impassable during the rainy season, the majority of the population is left without suitable road access for nearly half of the year.

The objective is to support the GoL in its efforts to improve the living conditions of the rural population in Northern Lao PDR, i.e. Luang Namtha, Bokeo and Oudomxay Provinces, through sustained rehabilitation of priority rural roads to moderate standards and to implement the Road Maintenance Management System (RMMS) developed under World Bank (WB) and Swedish International Development Co-operation Agency (SIDA) funding to ensure the sustain-ability of the improved rural roads.

In particular:

• the overall objective is to contribute to an improvement of socio-economic living conditions of the rural population in northern Lao PDR
• the specific objective is to gain an adequate utilization of rural programme-roads throughout the year.

The initially expected results consist of 168 kms (phase 1) and 140 kms (phase 2) of roads rehabilitated to moderate standards, i.e. proper alignment, profile, geometry, drainage, gravel wearing course and safety appurtenances.

The project shall also achieve 286 meters of Bailey and concrete bridges along these roads.

Moreover, the project shall built capacities at provincial department level for road design, implementation and maintenance. Village based road maintenance contracts shall also be organized in concerned areas.

Finally, efforts shall be put at national level towards harmonization of road maintenance systems.

In particular the project shall achieve the following:

• The selected rural roads and pertaining bridges are rehabilitated to all-year standard.
• Improved and sustainable management/execution of rural road maintenance in the project region.

The Programme is targeted at the poorer segments of the population in Northern Lao PDR, in particular those with ethnic minorities and other deprived groups in the remote areas of the region.
This will be done in an integrated approach with two on-going GTZ Projects in the two provinces, RDMA (Luang Namtha) and RDP Bokeo (Bokeo)

Main beneficiary groups consist of Khamou people (Nalae, Houn, Pakbeng, Pha Oudom, Meung, Vieng Phou Kha)

and Akkha people (Sing & Long).

A total of 44,000 habitants are directly benefiting from the project.

The MTPT of GoL is the Executing Agency of the project, delegating the implementation to the Provincial DTPTs of Luang Namtha, Bokeo and Oudomxay.
KfW has contracted GITEC-Consult GmbH as Consultant to the implementation of the project.

The main office is located in Luang Namtha while sub-offices are operational/planned in Sing, Nalae and Houn.

The MTPT has assigned one Project Manager in Luang Namtha.
The provincial departments have assigned / will assign one Deputy Project Manager per province.
The Consultant is hiring/planning to employ 16 people in the field, i.e. 2 drivers, 7 site inspectors, 3 site engineers, 1 quantity surveyor, 1 office manager, 1 Deputy Team Leader and 1 Team Leader.
The Consultant is managing and monitoring the project from Germany through 3 people, i.e. 1 Project Director, 1 socio-economist, 1 project accountant.
The Executing Agency has designed GITEC as Authorized Third Party for financial management of the German Funds.

Phase 1 of the programme has started in June 2006 for a period of 30 months.
The second phase is planned to start early 2008, overlapping the first phase, for an estimated period of 37 months.


Bridges are mainly scheduled for the second phase once access to bridge sites is granted through phase 1 works.
Due to a Hydropower project on the Namtha river overlapping the part of the project area between Nalae DC and Oudomxay border Southwards, road sections in that area are rescheduled for phase 2.

The total planned budget is 9,582 MEuros, as follows:

M Euros	Phase 1	Phase 2
German funding	4,73	4,00
Lao funding	0,28(*)	0,581
Total	5,01	4,581

(*) 0.9 provincial funds