Nophadol Bhandhugravi, president of the Neighbouring Countries Economic Development Cooperation Agency (Neda), yesterday signed a financial-assistance agreement with Lao Ambassador to Thailand Ouan Phommachack.

Nophadol said the renovation of Pakse Airport, in southern Laos opposite Ubon Ratchathani, would allow aeroplanes with up to 150 seats to land. The airfield now can accommodate only smaller domestic flights.

The government expects the project will help promote the tourism industry in the Greater Mekong Subregion.

Ouan said he hoped Pakse would soon welcome visitors from Bangkok and Phnom Penh to its two main tourist attractions: a World Heritage temple and a beautiful waterfall.

The financial deal consists of a Bt224-million loan and a Bt96-million grant. The 30-year loan carries an interest rate of 1.5 per cent and comes with a grace period of 10 years. It is conditional on Laos hiring a Thai consultant and Thai construction firms and importing raw materials from Thailand worth at least half of the project's total value.

The latest soft loan brings total financial assistance to Laos to Bt800 million.

So far, Neda has provided about Bt5 billion worth of financial aid to Burma, Cambodia, Laos and Vietnam. More aid will be extended to help these countries upgrade their infrastructure.

Wichit Chaitrong

The Nation