Flood-damaged roads are neglected as Vientiane prepares for a major regional summit next year.
A monitoring mechanism is needed to ensure Laos honors its commitments, he says.
Viphet Sihachakr says he will appeal the decision at the Court of Arbitration for Sport in Switzerland.
The Lao government has done little to resolve outstanding cases of forced disappearances, critics say.
Rights groups say without assurances, the talks could prove meaningless.
The move comes in response to heavy public criticism about the high costs and low quality of thoroughfare upgrades.