Chinese Government provides RMB 139.14 million grant for Phase 1 of Rural Poverty Alleviation Facility Construction Project

Project narrative

On April 9, 2019, the Chinese Government and the Government of Laos signed a feasibility study agreement for the Rural Poverty Alleviation Facility Construction Project. The agreement was signed by Wang Qihui, economic and commercial counsellor of the Chinese Embassy in Laos, and Saysana Sithiphone, chief of cabinet of the Laos-China Cooperation Commission. Then, on October 23, 2019, the parties signed a project implementation agreement. China’s Ministry of Commerce (MOFCOM) issued a grant worth approximately RMB 139.14 million to facilitate the implementation of this project. The purpose of the project is to help 30 villages (including Vangbong, Xienglom, and Pakchim) along the China-Laos Railway in Vientiane Province and Luang Prabang Province improve their digital TV, lighting, health, and water supply infrastructure. More specifically, the project involves the construction and rehabilitation of asphalt roads, solar street lights, village halls, health clinics, school playgrounds and dormitories, water wells, and steel bridges in a set of villages that are situated along the China-Laos Railway. China Yunnan Construction and Investment Holding Group is the contractor responsible for implementation. However, MOFCOM refers to this project as ‘China's first aid project to be implemented in the model of self-construction by the recipient.’ A groundbreaking ceremony took place on March 30, 2021. At the ceremony, Khemmani Pholsena, Minister and Head of the Lao President's Office and a member of the 11th Central Committee of the Lao People's Revolutionary Party, said ‘China's overall victory in the fight against poverty has not only brought a better life to the Chinese people, but also brought real benefits to the people of the world, because China's success experiences can also be practical reference for all countries in the world, especially the developing countries. The project was completed on June 15, 2022.