Govt goes full steam ahead with Laos-China rail project
The Lao government will proceed with the construction of a US$7 billion Laos-China high-speed railway even though China has withdrawn from the joint venture.
At an extraordinary session yesterday, National Assembly members decided to approve the project, after concluding that it is essential for national development at a time when economic integration is viewed as the future of the region.
( From left ) National Assembly Vice President Dr Xaysomphone Phomvihane, NA President Ms Pany Yathortou and NA Vice President Mr Somphanh Phengkhammy chair the extraordinary session of the National Assembly in Vientiane yesterday.
Laos and China had previously planned to jointly undertake the railway project, which would connect Vientiane with the Laos-China border in Luang Namtha province.
However, the project was delayed when the Chinese construction company pulled out because they felt it would not be profitable enough.
Laos has now decided to assume sole ownership of the project, as it considers that transforming the country from being landlocked to a land link is central to the future of the nation's development.
The railway is now set to go ahead without any other direct stakeholders, but will be financed by a loan from China.
Deputy Prime Minister Somsavat Lengsavad reported on the project to the National Assembly yesterday, recounting developments to date.
He stressed how important the railway is in terms of turning Laos into a land link within the region, attracting more foreign investment, and boosting economic growth.
Mr Somsavat said the EXIM Bank of China will provide a loan to cover the cost of construction, which is considerable given the scale of the project.
The ground-breaking ceremony is expected to take place during the 9th Asia-Europe Meeting Summit on November 5-6 when top ranking leaders from both Laos and China will be present.
Mr Somsavat said the railway will be about 420 km long, with a standard gauge track of 1.435 metres. The cost of construction is estimated to be about 44.25 billion yuan (about US$7 billion).
A 50-metre wide section of land will be cleared along the length of the railway on either side, and will be fenced off for security reasons.
At tunnels, however, the width of the land cleared will extend to 100 metres, while at major train stations parcels of land measuring 3,000 by 250 metres will be allocated for development.
In the original project agreement, passenger trains running at speeds of up to 200 kph were planned but the Lao government has decided to reduce this to 160 kph for safety reasons, partly due to the hilly terrain. Goods trains meanwhile will travel at a maximum speed of 120 kph.
Mr Somsavat said passenger trains might be able to reach a speed of 200km per hour between Vientiane and Vangvieng where the land is relatively flat, but more studies are needed.
The railway will be designed along similar lines to existing projects in China, which has considerable experience in building high speed rail links.
The railway will require 76 tunnels and 154 bridges to be built, including two bridges across the Mekong River. The tunnels and bridges alone represent more than 60 percent of the total route, such is the mountainous nature of northern Laos. The project will include 31 stations in all, but the government plans to open 20 stations initially and the rest later on.
There will be seven major stations along the route, of which two will be in Vientiane. From there, the railway will run north to China, stopping at Phonhong and Vangvieng districts in Vientiane province, before continuing on to Luang Prabang Oudomxay, Luang Namtha and the Chinese border.
By Times Reporters (Latest Update October 19, 2012)
Le Laos envisage une ligneTGV de Khunming jusqu'a Vientiane, dont les travaux commenceraient 2012
Mais China propose de fournir la technologie le matérial, voie les financements de construction, pour les pays disposer à lui apporter des ressource naturelles
Fait l’étude avecattentivement, ce projet n'est pas gratuit
"Parliament in Laos has given the go-ahead for the construction of a U.S. $7 billion Lao-China high-speed railway line project despite China's withdrawal from the venture, according to a report.
A Chinese construction company has pulled out of the original 420 kilometer (261 mile) joint venture, but China will provide a loan to implement the project, a report in the state-run Vientiane Times said Thursday."
I rather see all $7billion spend on building train that can travel 100 kph for both freight and passenger but have it runs from Lao-China border to Pakse and have a branches leaving from Thakhek to the Vietnamese's port of Vung Ang. This would serve both human and cargo need. Like it or not, Vietnamese coast is the shortest route to the sea from almost any where in Laos.
Read what IMF (International Monetary Fund) said about Laos' current
account deficit :
"In a report after annual consultations with the Lao government, the Washington-based IMF said on Thursday that the country's current account deficit has widened and gross international reserves declined, covering only about two months of projected imports, the lowest level in almost a decade.
The Fund said that while Lao macroeconomic policies have remained generally sound, "low reserve coverage and rapid credit growth amid high lending rates have emerged as sources of vulnerability."
IMF Executive Board Directors stressed to Laos "the importance of replenishing international reserves, to be supported by tightening macroeconomic policies," among other steps"
Chinese is very smart when it comes to the business. It is nothing that Chinese will do without big profit . Laos should learn from south Korea not to depend on any nation such as Chinese and Vietnamese but try to build on their own hand and stand by her own feet and proud to be Lao.