This project is a first generation intervention of a long-term engagement in towns of the GMS economic corridors, and is aligned with the strategic framework of the GMS Economic Cooperation Program, 2012-2022, approved by the Fourth GMS Summit on 19 to 20 December 2011. It is also in line with the Asian Development Bank (ADB) country partnership strategy 2012-2016 for the Lao PDR and supports ADB’s urban operational plan (2012 -2020) and water operational plan (2011-2020). The project will enhance the competitiveness of towns along the East West Economic Corridor (EWEC), and will complement years of work on trade facilitation and cross-border trade agreements. The project will transform the corridor towns of Kaysone Phomvihane, Phine, and Dansavanh into economic hubs by improving urban environmental infrastructure and strengthening the institutional capacity of provincial and local authorities.