The Representative of the Department of Roads, Ministry of Public Works and Transport exchanges the contract agreements with the Contractors.

Contract signing ceremony for the improvement of national Road No. 12 to boost east-west corridor connectivity

Thakhaek, Khammuan province – Local communities here are set to benefit from a major infrastructure development under the Improvement of National Road No. 12 project, backed by financial support from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA).
An agreement on the project was signed on Thursday between a representative from the Department of Roads under Laos’ Ministry of Public Works and Transport and two construction joint venture companies.
The contract 01 was signed between Mr Mr Vongphet Vongphachan, Project Manager from the Department of Roads, Ministry of Public Works and Transport and  Pannee Worakij Construction and Transport Company Limited, in joint venture with Manyxup Development Construction and Trading Import-Export Sole Co., Ltd., represented by Mr Patarachai Banchawattana, Managing Director of Pannee Worakij Construction and Transport Company Limited.

Participants gather for the agreement signing ceremony on Thursday, 22nd May 2025.

In addition, the contract 02 was singed between Mr Santi Phiuvanna, Project Manager from the Department of Road, Ministry of Public works and Transport and Vivat Construction Co., Ltd., in joint venture with PA Construction Sole Co..,Ltd represented by Mr Wirat Konglikit, Managing Director of VIVAT Construction Co.,Ltd .
The signing ceremony was attended by the Minister of Public Works and Transport Mr Ngampasong Muongmany, the Governor of Khammuan province, Mr Vanxay Fongsavanh, the Thai Ambassador to Laos, NEDA representatives, and senior officer from the Lao Ministry of Public Works and Transport.
The project will upgrade a section of National Road No. 12 from Thakhaek to the Na Phao control facilities, a key segment connecting Laos with Thailand and forming part of a vital east-west economic corridor through northern Laos.
The upgrade will enhance regional trade and transport links with Vietnam, China, and Thailand and spans a total length of 143.508 kilometres, including expansion of the Thakhaek bypass road over a distance of 3.964 km.
In addition, a parking facility will be built at the Road No. 1E intersection in Yommalath district, border checkpoint facilities at Na Phao will be expanded, including offices, truck weighing station, and public utility systems, along with the upgrade of access roads to tourist attractions along the corridor.
According to Mr Vongphet Vongphachan, Project Manager Contract 1, the initiative is a strategic move to improve transport connectivity and promote economic integration in the Greater Mekong Subregion (GMS).
Construction is divided into two major contracts: Contract 1: Thakhaek to the Yommalath Junction (61.5 km) and Contract 2: Yommalath junction to Na Phao control facilities (86 km).
The National Road No. 12 Improvement Project is part of the Lao government’s 2021-2025 five-year development plan and the 2019-2023 Lao-Thai transport cooperation programme, as outlined in a Memorandum of Cooperation signed in December 2018.
The initiative is also part of the 2022-2024 strategic assistance plan between Laos and Thailand.
While the feasibility studies and detailed designs were funded through grants from the Thai government, construction will be financed through a low-interest loan from NEDA, in accordance with Financial Assistance Agreement No. LFA 022-2024, signed on May 30, 2024.
The upgraded road will meet ASEAN Highway Class 2-3 standards, with a design speed of 80 km/hour, road widths of 9-10 metres in suburban areas and 12 metres in residential zones, as well as enhanced structural capacity to accommodate heavy truck traffic.
Traffic studies have shown a dramatic increase in road use, from 21,232 private vehicles per day in 2022 to 43,758 per day in 2024, highlighting the urgent need for infrastructure improvements.
The project is expected to significantly benefit local residents through improved access and mobility; farmers and traders via better logistics; and tourism and businesses, due to enhanced infrastructure and connectivity.
The regional economy will also benefit by reinforcing Laos’ role as a key land link within the GMS.
This initiative marks another step forward in strengthening cross-border cooperation and positioning Laos as a transportation hub for mainland Southeast Asia.

By Times Reporters
 (Latest Update May 27, 2025)