Lao authorities say the construction of Route 3 will not be completed at the end of 2007 as expected, because a large section of the road was so severly damaged by the 2006 floods that it will take another six months to repair.
Route 3 is to link China's Yunnan Provice to Thailand's Chiengrai via Laos' Luang Namtha. The 228 km-long highway is funded by a $65 million-loan from the Chinese and Thai governments as well as the Asian Development Bank.
Lao officials are confident the highway will help develope trade and attract more foreign investors into Laos' northern provinces.
Listen to our Laos Today report for more details.