The Cabinet meeting approved providing financial assistance or a loan to the Lao PDR government for the construction of the Chiang Khan - Luang Prabang bridge.
On 8 September 2026, Ms. Ploytale Lakshamisangchan, Deputy Spokesperson for the Office of the Prime Minister, revealed that The Cabinet approved financial assistance to the Lao People's Democratic Republic (Lao PDR) government for the Chiang Khan - Luang Prabang bridge construction project in Lao PDR. (The Chiang Khan bridge construction project), as proposed by the Ministry of Finance, as follows:
1. Approved the Economic Cooperation Office with Neighboring Countries (Public Organization) (ECO) to proceed within the project scope, funding sources, financial methods, and conditions for providing financial assistance to Lao PDR, amounting to 1,783,671,500 baht for the Chiang Khan bridge construction project.
2. Approved the Budget Bureau to allocate an annual budget from fiscal years 2028 to 2031, over four years, covering 50 percent of the loan portion totaling 891,835,750 baht.
3. Approved ECO's plan to borrow 891,835,750 baht from domestic financial institutions under specified terms and conditions.
4. In case of Lao PDR defaulting on debt payments, ECO will consider using its reserve funds to repay principal and interest on loans from domestic financial institutions first. If ECO faces liquidity issues, it may request additional budget allocations from the government to support liquidity, which will be reimbursed to the Treasury once ECO recovers the debts.
5. Assigned the ECO director to sign the financial assistance contract with Lao PDR after the Cabinet's approval of the financial support for the project.
The expected benefits are as follows:
1. The Chiang Khan - Luang Prabang bridge construction aligns with Thailand's strategic emphasis on enhancing transportation connectivity with neighboring countries, promoting economic cooperation in the Greater Mekong Subregion.
2. Cross-border trade benefits between Thailand and Lao PDR will expand opportunities for trade between Nan Province and Luang Prabang city by reducing travel time between the two locations by at least 30-45 minutes, making goods transportation easier, more convenient, and safer when crossing the river.
3. Tourist numbers and revenue in Nan Province are expected to increase. Historically, Thai tourists have traveled to Luang Prabang via Nan using the route through Hongsa - Chom Phet - Chiang Khan village, crossing the Mekong River by ferry. With the bridge, travel time for a 3-day, 2-night trip costs about 4,500 baht per person through Thai tour companies. It is projected that in the first five years, annual tourist visits to Nan will increase by an average of 80,000 people, generating an average annual income increase of 360 million baht.
4. The project will strengthen good relations between Thailand and Lao PDR and demonstrate sustainable regional cooperation.