Laos is setting up a joint company with China to oversee the construction and financing of a multibillion-dollar, high-speed railway project that will link the two neighboring countries and extend to Thailand, according to a transport ministry official.
“The process is ongoing, and we need the contract to be signed as soon as possible,” said the official, who declined to be identified because he is not authorized to speak about it. He added that the ministry was gearing up to start marking the railway’s 420-kilometer (261-mile) route through the country. “The joint company that will be established will be responsible for the project management, land concession, construction [and] fare collections. It means the Lao government must borrow money, so the company will borrow money, but the cost of project is lower than USD 7 billion.” Landlocked Laos expects the Laos-China railway project and another high-speed line to lower the cost of exports and consumer goods while boosting investment in the impoverished nation of nearly 7 million people.
Photo: www.rfa.org
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