Japan allocates a USD77 million loan to Laos to fund Wattay International Airport’s expansion.
Lao News Agency reported the project was inaugurated, last week, with a groundbreaking ceremony. Overall the project will cost USD77 million and be completed in May 2018.
This project will use concessional loans of approximately USD77 million (9.2 billion Japan yen) based on a contract agreed upon in December 2013. The project is expected to be completed before May 2018, the report said.
The number of passengers for international and domestic flights almost doubled between 2000 and 2012 with 570,000 passengers using the airport for international flights and 250,000 using it for domestic flights. With this increase, the current space available for check-in counters and boarding gates is insufficient to accommodate passengers.

In addition, the domestic terminal was constructed about 50 years ago. It is outdated and needs to be demolished to make way for a new facility.
Passenger traffic will reach 1.51 million for international flights and 460,000 for domestic flights by 2023.
The project calls for an expansion of the international terminal and construction of a new domestic terminal in order to meet the future demand for air transportation and to improve the efficiency of the airport.
The airport plays a significant role as a gateway to the Lao PDR and a major generator of economic activity including tourism.
Ministry of Information, Culture and Tourism estimated 4.3 million international tourists travelled to the country last year increasing 4.88% from 4.1 million visits in 2014.
Luang Prabang is the main the tourist destination due to its World Heritage status while Vientiane is used as a gateway for travellers joining overland tours.