Laos Govt signs development deal with Laos-China Railway Co Ltd

The Government of Laos has signed a memorandum of understanding with the Laos-China Railway Co Ltd to develop the surrounding areas of the railway stations located in Luang Prabang provinces, Oudomxay province and  others in the capital Vientiane, with a view to promote the development of industry and logistics.

Mrs Khamchan Vongsenboun, Deputy Minister of Planning and Investment; Mr Xiao Qianwen, the General Manager of the Laos-China Railway Company; and representatives of the four concerned regions have signed the agreement in Vientiane on Friday (Dec 11).

Additionally, Dr Viengsavath Siphandone, Deputy Minister of Public Works and Transport; Mr Bounmy Phoutthavong, Deputy Minister of Natural Resources and Environment; Mr Thongphat Vongmany, Deputy Minister of Agriculture and Forestry; and other guests witnessed the signing.

Mr. Xiao Qianwen said during signing at the event that the development of the areas around these railway stations will tap the potential of these areas and promote the growth of industry, commerce, logistics and local economy. He also confirmed that about 95 per cent of the work on the tunnel railroad, tunnels, and bridges has been completed, while 41.3 per cent of the rail lines and buildings have been completed, as of December 10.

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The targeted areas include a station in Vientiane, a station in the Xay district in Oudomxay province, a station in the Vangvieng district in Vientiane province and a station in Luang Prabang province.

The 422.4 km long Laos-China Railway connects Vientiane to the Chinese border and runs through the provinces of Vientiane, Luang Prabang, Oudomxay and Luang Namtha. According to the Laos-China Railway Co Ltd, the railway passes through 75 tunnels with a total length of 197.83 km.

The construction of the railway with the cost of US$ 5.986 billion started in December 2016 and is scheduled to be put in operations in December 2021. Compared with road transportation, the railway will reduce the transportation cost in northwestern Laos by 30 per cent to 40 per cent after completion.

The Laos-China Railway is a strategic component of China’s Belt and Road initiative and an effort from the government to transform Laos from being landlocked to a connected land in the area. It runs from the Boten border crossing in northern Laos, on the edge of China, to Vientiane, with the maximum speed of 160 km per hour.

The government is confident that the railway will stimulate socio-economic development and enable Laos to make greater progress in tourism and trade.