Laos High Speed Train : ລົດໄຟຄວາມໄວສູງ

[AsianDragons]

i think a high speed rail from vientiane to hanoi to nanning- guangzhou is better, bigger cities than kunming

[Wisarut]

^
China wanna make an inland development, so the route to Kunming is a big must - inclduing the building of the new track by abolishing the old meter gauge track built by the french capitalists ...

[Wisarut]

Originally Posted by 7freedom7

This better do it.

Honestly seeing the post 37, I'm freaking looking forward to the report from FreeAsiaRadio how Lao farmers will be compensated by the Lao - Thai railway project.

The extension from Tha Nalaeng to Vierngchan is just 7.75 km so the compensation is quite low - out of 1.65 Billion Baht budget (about 330 Million Yuan)

[Wisarut]

Now, Radio Free Asia has come up with the web page dedicated to the High Speed Railway Project in Laos to be seen here:

http://www.rfa.org/lao/railroad_project

Originally Posted by AsianDragons

i think a high speed rail from vientiane to hanoi to nanning- guangzhou is better, bigger cities than kunming

Now Laos has signed the contract with Malaysian firm for the new 220 km railway line from Savannakhet (Opposite to Mukdahan) to Vietnamese border as the way to facilitate the ore and timber exportation through Vietnamese port of Vinh

[Wisarut]

Laos Links Rail to Neighbors

RFA - 9 Nov 2012
The landlocked country cements plans to link up with Vietnam, Thailand, and China.


The proposed railway will cross southern Laos from Savannakhet to Lao Bao.
Laos has inked an agreement to build a railway connecting Thailand and Vietnam, just after sealing plans for a rail link to China, in ventures that will cost a combined whopping U.S. $12 billion.
By linking the landlocked nation to its giant neighbor China and mainland Southeast Asia, officials say the high-speed rail network will help open up the impoverished and resource-starved nation to development.
A Malaysian company, Giant Consolidated Ltd., was this week awarded a contract to construct and operate the 220 kilometer (140 mile) railway from Savannakhet, on Laos’s southwestern border with Thailand, to the Lao Bao border gate with Vietnam in the east.
An official from Laos’s Public Works Ministry said work on the U.S. $5 billion railway project, which will runs parallel to the Route 9 highway, will begin next year and be completed in five years.
“The construction work will start next year, from Savannakhet to Vietnam’s Quang Tri province,” the official told RFA’s Lao service, speaking on condition of anonymity.
“It is a double-track railway for passengers and for merchandise transport,” he said, adding that it will run mostly through rice fields.
Giant Consolidated has been granted a 50-year concession for the project and will submit an environmental impact assessment and other studies for government approval, Lao state media said this week.
Lao Prime Minister Thongsing Thammavong and Malaysian Prime Minister Najib Tun Abdu Razak witnessed the signing of the agreement between Giant Consolidated and Laos’s Ministry of Planning and Investment on Monday, on the sidelines of the 49-nation Asia-Europe Meeting in Vientiane.
The investment is the largest yet in Laos by a company from Malaysia, Laos’s ninth largest investor, and follows other joint venture projects including a special economic zone near Savannakhet.
Laos-China line
The planned line will form a new branch of the proposed Southeast Asia network through which Laos aims to link up with its neighbors and China.
Last month, the Lao parliament approved plans to launch a 420 kilometer (261 mile) line from Vientiane to southern China’s Yunnan province.
A Chinese company was originally planned to build the railway line but it backed out of the deal.
China will, however, finance the U.S. $7 billion project through a loan from Exim bank.
The planned line will link the Lao capital Vientiane to the country's Luang Namtha province along the border with China, with the network linked further to Yunnan’s capital of Kunming.
The state-run Vientiane Times said that Laos had decided to assume sole ownership of the project because “transforming the country from being landlocked to a land link is central to the future of the nation’s development.”
Laos opened its first international rail route, the 3.5 kilometer (2 mile) Thanaleng-Nongkhai track linking Vientiane to the Thai border, in 2009.

[Wisarut]

High Speed Train is still in the Plan
by Sode Me
RFA - 8 Nov 2012

Lao China High speed train project from Kunming to Viengchan with the exrtension to
Nong Khai is still right on the track will be started in 2015 - ready for AEC

Thai Consul General in Kunming City has told the press that High Speed Project with
max speed of 200 kph from Yuxi in Yunnan to Laos and Nong Khai is according to the plan.
After reaching Nong Khai, it can go further to BKK, Rayong, Malaysia ... in addtion to the
High Speed railway track from China to Burma and vietnam can cambodia

Lao China wailway will be financed by 7 Billion Dollar loan (44.25 billion Yuan) from
EXIM Bank (China) to be approved and started soon ... with 30 year payment with the
hope that the revenue from the first year will be at 95 Million Dollar to be increased to
16300 Million Dollar in the next 50 years

//--------------------------------------------------------------------

Vietnam - Laos starting next year
Avari
RFA - 9 Nov 2012


Lao - Vietnam railway along Highway No. 9 from Savannakhet to Lao bao Checkpoint started in 2013.
PM Thongsing Thammavong and PM Rajib Rasak have signed up the Lao - Vietnam Railway contract with
Malaysian company (Giant Consolidated Berhad) from from Kraison Phromviharn District of Savannakhet to Laobao checkpoint along
Highway No. 9 at Lao ITTEC in Viengchan on 5 Nov 2012.

Giant Consolidated Berhad report that the Lao - Vietnam railway project along Highway No. 9 from Kraison Phromviharn District of
Savannakhet to Lao bao Checkpoint will be started Next year and ready for opening in 2018 - with the aim to reach
Quảng Trị province ... within 50 year of concession of passengers and
cargo railway.

This railway project will use seveal paddy fields of farmers along Highway No. 9 as there are lots of paddy fields housing along
this highway - according to the route survey ... However, we just wonder whether will make a connenction from Mukdahan in
Thailand to BKK at all ...

High Speed Railway Project: Chinese withdraw from the project
By Donchan - 3 November 2012 - 11:03 AM

China has withdrawn from Lao - China Highspeed project and offer Laos 7 Billion Dollars (44.25 Billion Yuan) of loan from EXIM Bank
at the rate of 2% a year - with the payment of 30 years and 10 year grace period - Lao government has laid the fundation stone during
ASEM 9 meeting in Viengchan Capital during 5-6 Nov 2012.

The max speed is 200 kph for passenger trains and 120 kph for cargo trains which is too different according to the condition of single track
of this project and cause the real difficulties for traffic controls, so the passenger speed have to be reduced to 160 kph for passenger trains
and 120 kph for cargo trains. National Assembly has approved this new project on 18 October 2012 with the consent from deputy PM
Somsavat Lengsawat which he has admitted that it will cause short term burden of debts but the long term benefit will be enormous to
turn Laos from Landlocked country to Landlink country for ASEAN countries which will be AEC in 2015 to realize the first High Speed rail
line in Asean.

The reason why Chinese have withdrawed from the project?
During the Lao - China meeting on 4 July 2012, Chinese party has withdrawned from the project due to the change within
Ministry of Railway - due to the Highspeed Railway Derails in China and accident in Shanghai Metro which force Chinese government
to transfer this project from Ministry of Railway to Minister of Commerce caused the project to be delayed.

Feasibility study which China has made from August 2010 and done in early 2011 has shown that China has no interest to invest on this
42.25 billion Yuan (7 Billion US Dollar) project but giving Financial Internal Rate of Return (FIRR) at merely 4.56% and take 38 years to
become profitable - including 17 year loss + 5 year of construction with just 50 year concession instead of 90 year concession as initially
request by Chinese investors while the annual interest rates for this investment is 5.87% which is too much for Laos.

Furthermore, Laos refuse to allow any construction other than the construction related to Railway within 50 meter radius along the
railway track of 417.68 km which must be fenced ... Furthermore, the study results on geography and geology has found that
the railway trackj will have been through steep moutain with soft and unstable land so the railway track must withstand against
7 Richter earthquakes

Nevertheless, deputy PM Somsavat Lengsavat has report that Economic Internal Rate of Return (EIRR) to 31.97% - Good for
Macroeconomy after passing the first diffcult 17 years

Possibility of Chinese side
With the low FIRR like this and both side has become Strategic and Development Partners which has been signed by President of
LPDR and China in 2009, Chinese has offered 100% in from of Engineering Procurement and Construction (EPC) - hiring Chinese
Chinese companies to construct this railway track - which requires Laos to set up the new company to borrow from EXIM Bank of China
with Lao government has the one who guarantee that the assets along with income of the Lao - China project and income of 2 mines.

Trouble on Lao side
Lao government has reported to EXIM Bank of China that Laos has the financial constrains as Lao government has 3.5 Billion Dollars
with the debt ceiling not more than 45% of GDP while GDP of Laos is just 8.298 Billion Dollars - implied that Laos has already had
public of 42% of GDP. This will requires special condition of loan that China must help LPDR to write off the debts before obtaining
the loan.

Succession of negotiation.

After the negotiation with EXIM Bank (state enterprise of China), deputy PM Somsavat Lengsavat has admitted that the condition of loan
is quite tough to swallow which may require special arrangement to postpone the debt payments along with the debt restructure for Laos
after the loan for this railway line has been approved at all. This has forced Lao Politburo to send the committee headed by deputy PM
Somsavat Lengsavat to negotiate to lower interest rate, extend period of paying debts, delaying the debt payment period and the way
to pay off the debts. Let's see the negotiation result and the way they start the foundation stone laying durign ASEM 9 on 5-6 Nov 2012.

Originally Posted by Saythara

To Donchan, I still worred about the way they are going to run Lao-China railway who want to railize project but utterliry failed to maintain the project.

Originally Posted by vathana

To Saythara, better dig the natural resources alogn the track to pay debts ... but spend Chinese money to purchase
high speed rollign stocks from other place

Originally Posted by Bang Pho

To vathana, This news is not much different from Thailanders getting waken up with the news while Lao peopl getting
waken up by railway - big loss no matter how to realize the railways in Laos ...Even Hotel and Beer Lao, it is jsut putting "Lao" at the end
while Chinese enterpreneurs and Thai traders are Laughing all loud

Originally Posted by Ma Tor va

To Bang Pho, Even there is Beer Lao factory running by Thai investors, it is Lao people to keep them running.
It iwll be a big shame for Laos if they failed to run.

Originally Posted by vathana

To Donchan,
Chinese investors have never withdrawn the investment at all, they just come up with the new tricks ... so it is better for Laos to construct
the railway line from Viengchan to Luang Phrabang and transfer the duty of construction and track maintainance to each province.

[Wisarut]

Savannakhet - Lao Bao railway will increase more jobs for local people
Vientianemai – 08- November -2012
Malaysia’s Giant Consolidated to undertake US$5bil Laos rail project
The Star 6 Nov 2012


Map of Savannakhet - Lao Bao railway project

Savannakhet - Lao Bao railway project which has been signed up on 5 Nov 2012 is a concession project by Giant Consolidated Limited of Malaysia - with 5 Billion Dollars investment on LaoGiant Rail Company Ltd - 90% paid by the company and 10% wioll be paid by Lao government.

The line started at Ban Phon Savan, Kaisorn Phomvihan district of Savannakhet to end up at Lao Bao checkpoint with the total distance of 220 km by following Highway 9 route. The maximum speed of the track is 120 kph and there will be 13 stations including 4 major stations (Definitely at Ban Phon Savan and Lao Bao). This investment is not just for the railway tracks and stations along with railway facilities, they will consist of:

- Warehouses
- Hotels
- Shops
- Service Facilities
- Compensation payments to the people

It will create hundreds new jobs for the constructions and more will follow after realizing the project.

The construction can be started in Jan 2013 if the survey is done by the end of 2012 as the way to finish the project and opened the line on 2 December 2017. Otherwise, they have to wait until the end of rainy season of 2013 (November 2013) - which will force the schedule to be opened on 2 December 2018 instead.

There will be about 40 km extension from Lao Bao checkpoint to Dong Ha district of Quangtri province in Vietnam with the port ready to take a cargo. For the connection to Thailand, they have not take a consideration yet even though they will eventually take this into serious consideration.

//-------------------------------------
Laos concludes multi-billion rail agreement with Malaysian firm
Posted by LV on Monday, November 5, 2012 · Leave a Comment
Source: KPL Lao News Agency
By Phommouny
November 05, 2012

(KPL) The government of Laos signed an agreement on a US$ 5 billion railway project in central province Savannakhet with the Malaysian firm Giant Consolidated Limited in Vientiane yesterday.
The planned railway will link Savannakhet province to Lao Bao at the Lao-Vietnam border, providing a vital freight and passenger link between the two countries.

The signing ceremony of the master concession agreement concerning the railway construction and development was signed at the National Convention Centre yesterday, just a few hours before the opening of the ASEM 9 Summit, which was a historic event for Laos.

The signatories to the agreement were Minister of Planning and Investment, Mr Somdy Douangdy, Deputy Minister of Public Works and Transport, Mr Lathtamany Khounivong, Governor of Savannakhet province, Mr Souphanh Keomyxay, and President of the Giant Consolidated Limited, Mr Mohamad Fadzwi Bin Hamidun, and the directors of Giant Consolidated Limited Mr Tock Min Kin and Mr Aixinjueluo Yuhao.
The signing ceremony was witnessed by Lao Prime Minister Thongsing Thammavong and the Prime Minister of Malaysia Dato Seri Mohd Najib Tun Abdu Razak.

The multibillion dollar railway project is 220 kilometres long and construction is expected to take five years to complete.

//---------------------------

Malaysian firm to build east-west corridor in Laos
International Railway Gazettes
08 November 2012

LAOS: Watched by Malaysian Prime Minister Najib Tun Razak and Laotian Deputy Prime Minister Thongsing Thammavong, a contract was signed in Vientiane on November 5 for construction of a 220 km railway running east-west across Laos from the Thai to Vietnamese borders.

Under an agreement with the Laotian government worth US$4bn – US$5bn, Malaysian firm Giant Consolidated Group will manage construction of the double-track electrified line. It would start in Savannakhet on the Mekong river and run to the Vietnamese frontier at Lao Bao.

Although the second Laos-Thailand Friendship Bridge is located just north of Savannakhet carrying road traffic between the two countries, it is unclear whether the railway would be linked to the Thai network. However, Thailand’s Office of Transport & Traffic Policy & Planning submitted proposals earlier this year for a 336 km railway from Ban Phai to Nakhon Phanom, close to the border with Laos.

The Savannakhet – Lao Bao line would not intersect with the separate north-south route from Vientiane towards Kunming, construction of which will be funded through Chinese loans.

[Wisarut]

For the section from Savannakhet to Laobao with a price tag of 5 Billion US Dollar, .. There will 11 stations on 220 km track with 4 major stations each stations will have warehouses, schools, hospitals, hotels, markets ... the max speed is 120 kph which pass through 14 bridges without any tunnel ... the construction will be started in Jan 2013 or Nov 2013 if they cannot finished the survey by the end of 2012 ... Hope that this project will generate 20000 jobs in Laos which can be boosted up to 100000 jobs in Laos
http://www.ecom.org.la/teen/khao/1/11439

[Wisarut]

Laos-China railways ready to roll next year
The Nation Hot News
November 16, 2012 1:04 pm

Vientiane - Construction on a 7-billion-dollar railway linking Vientiane to the Laos-China border will start next year and be completed by 2018, state media reported on Friday.


Public Works and Transport Ministry deputy minister Lattanamany Khounnyvong said Laos and China were "ironing out the details of the loan agreement with EXIM Bank of China, to cover the cost ofconstruction," said the Vientiane Times.

Laos will soon choose a Chinese contractor to build the rail link.

The 420-kilometre railway project was initially to be done as a joint venture between China and Laos, but will now be 100-per-centowned by the Lao government. The project got the go-ahead from the National Assembly last month.

On November 5, the Lao government also signed a 30-year concession [Actually 50-year concession] with Malaysia’s Giant Consolidated Limited to build a 220-kilometre-long train track linking south-eastern Laos to Vietnam and Thailand, via Savannakhet province.

Construction of that railway line is scheduled to begin in January, to be completed within four years. The project will cost an estimated 5 billion dollars.

The China-Vientiane railway project will use a standard-gauge track of 1.435 metres and require the construction of 76 tunnels and 154 bridges.

Lattanamany said a project feasibility study of the proposed route had already been completed.

Plans to build the railway as a China-Laos joint venture ran into opposition as the agreement required handing over vast tracts of land to the Chinese contractor as part of the deal.

The government of Laos, an impoverished landlocked country, has set the goal of turning itself into a "land-linked" country with itsneighbours with railways.//DPA

[SeeMacau]

http://travel.iafrica.com/bulletinboard/828009.html

New railway for Laos

Construction of a $7-billion train link between Laos and China will go ahead next year after a Chinese bank threw a financial lifeline to the stalled project, state media reported Friday.

The two countries had initially agreed to jointly fund the line, which will run from the Chinese border to Vientiane, but Beijing pulled out over reported concerns about profitability.

Chinese state-run EXIM bank has now stepped in with a loan offer for Laos, an official from the public works and transport ministry told the Vientiane Times, adding the pair were "now ironing out the details" of the loan.

Another official at the ministry confirmed to AFP that discussions on the details of the loan were underway along with consultations over the route.

"The work has not started yet, but we plan to finish it in five years," said the official, who did not want to be named.

A Chinese firm will carry out the construction, the Vientiane Times report said, describing the project as the biggest ever infrastructure scheme undertaken by communist Laos.

It will be a link in a vast network set to connect the southwestern Chinese city of Kunming with Singapore.

Landlocked Laos, one of Asia's poorest countries, has no railway apart from a short stretch of track near the Thai border.

Under current plans the new Boten-Vientiane line will be 420 kilometres long and require 76 tunnels and around 150 bridges to be built as it carves through Laos, the report said.

Passenger trains, which will run at up to 160 kilometres an hour, will stop at 31 stations once work is complete, it added.

The scheme has stirred controversy in Laos with the proposed route likely to force thousands of people to move from their homes.

Construction on a separate $5-billion 220-kilometre line linking southern Laos and Vietnam is set to start in January, the Vientiane Times reported on Thursday, after financing from a Malaysian investor was secured.

[SeeMacau]

Laos-China railways ready to roll

http://www.bangkokpost.com/breakingn...-ready-to-roll

Construction of a US$7 billion (270 billion baht) railway linking Vientiane to the Laos-China border will start next year and is scheduled for completion in 2018, state media reported on Friday.

Deputy Public Works and Transport Minister Lattanamany Khounnyvong said Laos and China were ``ironing out the details of the loan agreement with the EXIM Bank of China, to cover the cost of construction,'' said the Vientiane Times.

Laos will soon choose a Chinese contractor to build the rail link.

The 420-kilometre railway project was initially to be done as a joint venture between China and Laos, but will now be 100% owned by the Lao government. The project got the go-ahead from the National Assembly last month.

On Nov 5, the Lao government also signed a 30-year concession with Malaysia's Giant Consolidated Limited to build a 220-kilometre-long train track linking Savannakhet province to Vietnam.

Construction of that railway line is scheduled to begin in January, to be completed within four years. The project will cost an estimated 5 billion dollars.

The China-Vientiane railway project will use a standard-gauge track of 1.435 metres and require the construction of 76 tunnels and 154 bridges.

Mr Lattanamany said a project feasibility study of the proposed route had already been completed.

Plans to build the railway as a China-Laos joint venture ran into opposition as the agreement required handing over vast tracts of land to the Chinese contractor as part of the deal.

The government of Laos has set the goal of turning itself into a ``land-linked'' country with its neighbours with railways.

[Wisarut]

^
Wonder why do you have to make a separated post from here:
http://www.skyscrapercity.com/showthread.php?t=1494039

BTW, the construction of Lao - China Railway [AKA Boten - Viengchan railway] is going to be started in July 2013 after securing the Loan approval from EXIM Bank of China ... but the way to pay the loan along with the payment for the compensation to those who have to give up their land for the construction is ONLY GOD KNOWS ...

http://www.rfa.org/lao/railroad_proj...012170613.html

[Wisarut]

Construction of Lao - China Railways will help boosting up Lao Economics
By Sid Mee
Radio Free Asia
20 November 2012

Thai Journalists on Economic and Chamber of Commerce Affairs said Lao - China High Speed Railway Project to be constructed in July 2013 will the key to raise the economic growth of Laos by boosting up the employment and it will The Great Leap Forward on the economic development of Laos to bring the real development that force Lao people to change by raising the status - at least the more employment and force Lao people to be in Knowledge society. Lao - China Railway project may cause the little loss of Lao interests on Natural Resources and Environment due to the tunnels along the way from Viengchan to Bo Ten ... but the connection with Thailand and China will encourage more investors to set feet in Laos more which is good for LPDR in the long term.

However, Lao people and intellectuals have seen otherwise. They have seen Lao - China Railway Project as the thing not so useful for Lao people and Lao Nation as claimed since LPDR is NOT producing industrial and agriculture products so much while China and Thailand are the countries truly benefit from Lao - China Railway Project. In previous great projects of the government, the foreign investors have brought their own workers more than Lao workers since the investors have seen Lao workers as inferior workers and we consider that Lao - China Railway Project will follow the same pattern.

[Wisarut]

Borrowing 7 Billion Dollars for Lao - China High Speed Train while GDP of Laos is just 8.3 Billion Dollars is the real pain as IMF has warned that borrowing such a huge amount of money in comparison to GDP will push Lao economics into dangerous zone. This kind project financed by such a huge borrowing is unavoidable due to the demands for political tie from Mainland China ... and even Moody’s Credit Rating Agency has shown positive sign for this kind of project since it boosts up the export to China
http://www.rfa.org/lao/railroad_proj...012131113.html

[หม่องวิน มอไซ]

Laos Faces Rail Loan Squeeze
Radio Free Asia 2012-12-02

Vientiane will have to pay massive interest on Chinese loans for an ambitious rail project.

Laos may have to pay a whopping U.S. $3 billion in interest payment for a U.S. $7 billion loan it will obtain from China to build an ambitious Laos-China high-speed railway project, according to an official of the Lao Ministry of Finance.

The interest fee of nearly half the principal sum could result in Laos having to divert its precious share of revenue from Chinese-owned gold and bauxite mining operations to repay the massive loan, the official said, speaking on condition of anonymity.

He calculated the interest payment to be around U.S. $3.33 billion, basing it on a two percent compounded interest rate to be imposed on the 30-year loan from Exim Bank of China.

At least nine legislators in one party communist state Laos have expressed opposition to the project, concerned that the Chinese loans could saddle the resource-starved country with financial problems and tighten Beijing grip on Laos, sources have said.

The Lao parliament gave the go-ahead for the estimated 420 kilometer (261 mile) rail project in October. Laos has decided to assume sole ownership of the project after a Chinese construction company pulled out of the venture.

The rail project will connect the Lao capital Vientiane to the country's Luang Namtha province along the border with China, with the network linked further to a line from Kunming, the capital of China's Yunnan province.

'Break-even point'

According to the finance ministry official, a study undertaken by China showed that it should take Laos 38 years to reach a "break-even point" for the project—a point when it can begin expecting to make money from the venture provided there are no hitches.

The official said that since Laos must pay back the entire loan with interest within 30 years, it is very likely that it will have to use proceeds from the Chinese-owned Sepone gold mine, and the Champassak bauxite mine, believed to be the largest in Asia, to make the repayments.

Laos and China are currently discussing the terms of the loan and officials say that the two sides still have considerable number of issues to be addressed.

Laos has also inked an agreement to build a U.S.$5 billion railway connecting Thailand and Vietnam. A Malaysian company, Giant Consolidated Ltd., was in early November awarded a contract to construct and operate the 220 kilometer (140 mile) railway from Savannakhet, on Laos’s southwestern border with Thailand, to the Lao Bao border gate with Vietnam in the east.

Approval for the Laos-China rail project was made after the Lao National Assembly concluded that it is essential for "national development at a time when economic integration is viewed as the future of the region," the Vientiane Times reported last month.

The Chinese construction company had pulled out of the project "because they felt it would not be profitable enough," it said. "The railway is now set to go ahead without any other direct stakeholders."

More foreign investment

Lao Deputy Prime Minister Somsavat Lengsavad had said the project would attract more foreign investment and boost economic growth.

Considering the mountainous nature of northern Laos, the railway will require 76 tunnels and 154 bridges, including two bridges across the Mekong River, according to the Vientiane Times report.

The rail project will likely use more workers from China than those from Laos, an official from the Lao Labor Ministry said.

“That’s the way it’s going to be as there’s not enough Lao labor. But details will have to be ironed out,” the official said.

He said that the exact number of workers needed for the project is not yet known, and the building contractor has not yet been selected either.

Before the project starts, according to the official, the government will have Lao workers trained to work with their Chinese counterparts.

“We already have a plan for training laborers and technicians right here in Laos,” he said.

Reported by RFA's Lao Service. Translated by Viengsay Luangkhot. Written in English by Parameswaran Ponnudurai.

[Wisarut]

Lao people from Suvannakhet telling Free Asia Radio that Lao workers must be allowed to participate in the construction of Lao - China railway and Lao - Vietnam railway instead of just Chinese workers and Vietnamese workers - at least to clear stone and stumps and Local workers will save lots of money for the projects
http://www.rfa.org/lao/railroad_proj...012234646.html

[Wisarut]

Vietnamese and Chinese faction who control LPDR Politburo have come up with their own version to railway to connect with their masters.

Boten - Viengchan route (220 + 40 km) is for connecting with Chinese masters.
Savannakhet - Lao Bao (421 + xxx km) is for connecting with Vietnamese masters.

New power balance and parity are in need though.
http://www.rfa.org/lao/railroad_proj...012172815.html

[Wisarut]

Officer from Ministry of Civil Works and Transportation telling Radio Free Asia that Lao - Vietnam Railway Project will eventually have a connection to Thailand at Mukdahan province which is to be done after realizing the connection to Vietnam but they have not decided for the terminal on Lao side yet.

There are 2 choices for the terminal on Lao side
1. Ban Pak Bo north of the existing Bridge across Mekhong
2. Special Economic Zone south of the existing Bridge across Mekhong at Ban Phone Savan

The construction of Lao - Vietnam railway will be started by Giant Consolidated from Malaysia in January 2013 to be done in 5 years, so the connection to Mukdahan will be started around 2018-19 though. Nevertheless, those officers and people in Savannakhet are talking recruiting Lao workers to deal with Lao - Vietnam railway projects as many as possible.

http://www.rfa.org/lao/news-about-la...012140800.html

[kvaaa]

Originally Posted by หม่องวิน มอไซ

Laos Faces Rail Loan Squeeze
Radio Free Asia 2012-12-02

Vientiane will have to pay massive interest on Chinese loans for an ambitious rail project.

Laos may have to pay a whopping U.S. $3 billion in interest payment for a U.S. $7 billion loan it will obtain from China to build an ambitious Laos-China high-speed railway project, according to an official of the Lao Ministry of Finance.

The interest fee of nearly half the principal sum could result in Laos having to divert its precious share of revenue from Chinese-owned gold and bauxite mining operations to repay the massive loan, the official said, speaking on condition of anonymity.

He calculated the interest payment to be around U.S. $3.33 billion, basing it on a two percent compounded interest rate to be imposed on the 30-year loan from Exim Bank of China.

At least nine legislators in one party communist state Laos have expressed opposition to the project, concerned that the Chinese loans could saddle the resource-starved country with financial problems and tighten Beijing grip on Laos, sources have said.

The Lao parliament gave the go-ahead for the estimated 420 kilometer (261 mile) rail project in October. Laos has decided to assume sole ownership of the project after a Chinese construction company pulled out of the venture.

The rail project will connect the Lao capital Vientiane to the country's Luang Namtha province along the border with China, with the network linked further to a line from Kunming, the capital of China's Yunnan province.

'Break-even point'

According to the finance ministry official, a study undertaken by China showed that it should take Laos 38 years to reach a "break-even point" for the project—a point when it can begin expecting to make money from the venture provided there are no hitches.

The official said that since Laos must pay back the entire loan with interest within 30 years, it is very likely that it will have to use proceeds from the Chinese-owned Sepone gold mine, and the Champassak bauxite mine, believed to be the largest in Asia, to make the repayments.

Laos and China are currently discussing the terms of the loan and officials say that the two sides still have considerable number of issues to be addressed.

Laos has also inked an agreement to build a U.S.$5 billion railway connecting Thailand and Vietnam. A Malaysian company, Giant Consolidated Ltd., was in early November awarded a contract to construct and operate the 220 kilometer (140 mile) railway from Savannakhet, on Laos’s southwestern border with Thailand, to the Lao Bao border gate with Vietnam in the east.

Approval for the Laos-China rail project was made after the Lao National Assembly concluded that it is essential for "national development at a time when economic integration is viewed as the future of the region," the Vientiane Times reported last month.

The Chinese construction company had pulled out of the project "because they felt it would not be profitable enough," it said. "The railway is now set to go ahead without any other direct stakeholders."

More foreign investment

Lao Deputy Prime Minister Somsavat Lengsavad had said the project would attract more foreign investment and boost economic growth.

Considering the mountainous nature of northern Laos, the railway will require 76 tunnels and 154 bridges, including two bridges across the Mekong River, according to the Vientiane Times report.

The rail project will likely use more workers from China than those from Laos, an official from the Lao Labor Ministry said.

“That’s the way it’s going to be as there’s not enough Lao labor. But details will have to be ironed out,” the official said.

He said that the exact number of workers needed for the project is not yet known, and the building contractor has not yet been selected either.

Before the project starts, according to the official, the government will have Lao workers trained to work with their Chinese counterparts.

“We already have a plan for training laborers and technicians right here in Laos,” he said.

Reported by RFA's Lao Service. Translated by Viengsay Luangkhot. Written in English by Parameswaran Ponnudurai.

When you have a 2% interest loan, you take it with your eyes closed, no questions asked. Whoever is opposed to the loan must be influenced by western pressure.

[Wisarut]

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The problem is all about Lao government's ability to pay off the debts .. they have to ask Chinese government to write off the debts with China from time to time though.