The Lao People's Democratic Republic (PDR) has signed a $25m agreement with the World Bank to further improve its road maintenance systems and road connectivity across the country.

The Lao PDR Road Sector II Project is reported to be part of the Lao PDR’s national programme that includes construction of climate resilient roads and infrastructure.

Lao PDR Public Works and Transport Minister Bounchanh Sinthavong said: “Our partnership with the World Bank on road maintenance has resulted in better and safer roads.

"Better roads will help prevent disaster-related road closures, ensuring better connectivity and access to income opportunities and basic social services."

"With this new agreement, people in rural areas will benefit from more reliable roads throughout the year.”

The Road Sector II Project works include road maintenance in six provinces, which are exposed to flash floods, landslides, and other natural disasters.

These provinces include Phongsaly, Houaphan, Oudomxay, Xiengkhouang, Xayabouly and Bolikhamxay.

Lao PDR is one of the ASEAN countries, which is reported to be most susceptible to floods, droughts and storms with local transport infrastructure exposed to the severe climatic conditions and natural disasters.

World Bank Southeast Asia country director Ulrich Zachau said: “The World Bank is pleased to continue supporting Lao PDR in building stronger, safer, weather and climate change resilient roads.

“Better roads will help prevent disaster-related road closures, ensuring better connectivity and access to income opportunities and basic social services.”

World Bank will finance the project through International Development Association, the World Bank’s fund for developing nations.

The project will also receive financial assistance from the Government of Lao PDR and the Nordic Development Fund.

Additionally, the European Investment Bank (EIB) has also expressed interest to finance the project.