Laos High Speed Train : ລົດໄຟຄວາມໄວສູງ

[Wisarut]

High Speed train slow down since it has to wait for the funds
Radio Free Asia
24 April 2013

Lao - China railway still in the darkness since the negotiation with China failed to materialize due to the following reasons.

1. Initially, 4 Chinese companies have come to fulfill the 70:30 contract [China 70% investment - Laos 30% investment] according to MOU 2010 but now those Chinese investors have withdrawn after learning that it will take 38 years to recoup the investment on this 420 km Lao - China railway.

2. Lao government still persists by asking for 7200 Million Dollar loan with 2% annual interest rate from EXIM Bank of China to be paid back in 30 years with grace period of 10 years. However, Lao government has reduced the specification from 200 kph max speed to 160 kph max speed as the way to cut the loan burden from 7200 million Dollars to 6000 million dollars with 2% annual interest rate to be paid back in 30 years with grace period of 10 years. However, EXIM bank of China has retorted back that reduce the specification is okay but the annual interest rate will be 5.8% instead of 2%

3. Worse, there is an assessment that even after obtaining the 7200 million Dollar loan, the interest payments, the cost for track maintenance, locomotive and rolling stock maintenance, power production and maintainance will cost Lao government another 30000 Million Dollars in 30 years which definitely beyond the capacity of Lao government to pay back.

4. On the other hand, 220 km Savannakhet - Lao Bao railway project [AKA Lao - vietnam railway project] with the investment of 5000 Million Dollars seems to be more materialized that Lao - China high speed train since Giant Consolidated [Malaysian investor] manage to obtain loan to finance the project even though the company need to invest 90% of 5000 Million Dollar investment while Lao government invests just 10% of that 5000 Million Dollar investment or just 500 million dollars ... while the specification is just 120 kph max speed which is the most appropriated investment at the time being.

With all of these shortcoming Lao China railways project seems to be at the dark without any certainty.

Originally Posted by Phao Lao from Lanxang Land

Well known fact, Lao politburo and LPDR men badly want to reap the benefits from that 7.2 billion Baht which now has been down to 6 billion Baht which is the main reason behind the strong supports from this project since they can reap the benefit to feed their families to become new millionaire family with virtually endless to the point that even after 10 round of news life, there are still some money left. On the other hand, people will have to pay endless taxes to support this project ... it is about time to terminate such a dream project ... Wanna see get shares from megaprojects ,... Just wonder whether you can bring money to bribe in a hell

Originally Posted by Xao-Na from Attapeu (Laos)

Bear in mind that at least 4% of 7 billions dollars = $280 millions will be devided among the Lao-Viet leaders.

[Wisarut]

New rail link from Nong Khai province to Bangkok
LNTV Lao News broadcast on 13 April 2013
Lao Voice 20 April 2013

Thai government announces it would build a new rail link from Nong Khai province to Bangkok

The construction of a high-speed railway from Vientiane to China has gained impetus after the Thai government announced it would build a new rail link from Nong Khai province to Bangkok.

Prime Minister Yingluck Shinawatra told visiting Deputy Prime Minister Thongloun Sisoulith that her government would build a high speed railway from Nong Khai province to Bangkok, which could connect with the planned railway from Vientiane to China.

The Thai government is formulating a law to authorise its finance ministry to obtain a loan to expand its rail network. However, according to Thai media, the government will build a Bangkok- Chiang Mai rail link before the Nong Khai-Bangkok connection.

Analysis of the situation reveals this will boost the confidence of Chinese bankers considering providing a loan of US$7 billion to the Lao government for the construction of the 421km Vientiane-Boten railway. China would benefit not only from a rail link through Laos, but is also looking to extend the connection southwards through Thailand and Malaysia to Singapore.

China hopes the high-speed rail link between Yunnan province and Singapore will not only boost trade cooperation with Laos but also with other Asean member countries after the two parties enacted a free trade agreement in 2010. The value of China-Asean trade currently stands at about US$360 billion.

Officials from the Ministry of Public Works and Transport and Ministry of Planning and Investment said the Lao government was discussing the loan agreement with China but could not confirm when the agreement might be finalised.

The Lao government has been considering building a railway for several decades, hoping that expansion of the transport network will turn the landlocked country into a land link within the region. In 2011, the National Assembly adopted high-speed rail construction as one of its mega investment projects.

The Assembly also gave approval for the government to seek a US$7 billion loan from China at the end of last year. The government hopes to start construction of the Laos-China rail link during the current 7th National Socio-Economic Development Plan which runs from 2011 to 2015.

The government believes that building a rail link at a time when the region is undergoing unprecedented integration will help to cut the high cost of transporting goods from Laos to world markets.

At present, Lao businesses have to ship exports via Thailand and Vietnam. Most of the goods are carried by truck, which is more expensive than train freight. The higher transport costs incurred by Lao businesses drives up the prices of their goods, making them uncompetitive in the export market.

Laos is now a member of the World Trade Organisation and will be part of the Asean Economic Community in 2015. The government needs to improve transport infrastructure so that its citizens can benefit from the integration of the economy with that of the region and the world.

[Wisarut]

650 Million Baht (21.67 Million US Dollars) loan from NEDA for Second Phase of improvement on Tha Nalaeng station - 70% loan with low interest rate and 30% aids (BS 80 steel rails + turnouts) to construct container yards and facility to allow loading and unloading containers - cargo transport between Thailand and Laos indeed ... not to mention about allowing Nong Khai express to enter into Tha nalaeng station

http://www.ecom.org.la/teen/khao/2/14231

[Wisarut]

Going to lay the cornerstone for 220 km Lao bao - Savannakhet railway by the end of August 2013 and it takes 3 years to finish and opened the line in 2016 - with the aim to connect with Danang with 40 km extension and the connection to Mukdahan - only after Thailand has realized the Ban Phai - Maha Sarakham - Roy Ed - Mudahan - Nakhon Phanom line through 2.2 trillion Baht loan
http://www.rfa.org/lao/economy/railr...013132308.html

[chornedsnorkack]

Originally Posted by 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 ...

Yes, but the railway between Hanoi and Nanning exists, and is double gauge between Hanoi and border.

Wouldn´t Vientiane-Vietnam railway be more useful to Laos and Vietnam than Savannakhet-Vietnam one?

[Wisarut]

Originally Posted by chornedsnorkack

Yes, but the railway between Hanoi and Nanning exists, and is double gauge between Hanoi and border.

Wouldn´t Vientiane-Vietnam railway be more useful to Laos and Vietnam than Savannakhet-Vietnam one?

Well, there is 2 factions within LPDR Politburo, Chinese Faction and Vietnamese faction ... and 220 km Lao - Vietnam railway line with 120 km max speed will please Vietnamese Faction from Savannakhet without doubt

BTW, take a look at the government propaganda on Lao - China railway with 160 km max speed and 20 stations out of 31 stations will be constructed


Lao Government Propaganda on Lao - China High Speed train which has max speed reduced to 160 kph and build only 20 out of 31 stations


Discussion between PM Yinglux and PM Thongsin Thammavongse of LPDR at Le Meridian Hotel in Chiang Mai on SUnday 19 May 2013 on High Speed train from Bangsue Central to Viengchan and the 5th Friendship Bridge across Mekhong at Bueng Karn - PakXan along with the plan for proper maintenance of the 4th Friendship bridge across Mekhong at Chiang Khong - Huay Sai
http://www.manager.co.th/Politics/Vi...=9560000059852

[napoleon]

Thailand pushes for train project in Laos

Published: 19 May 2013

CHIANG MAI - Thailand has offered to convene a meeting with Laos and China on the high-speed train project linking the three countries, Prime Minister Yingluck Shinawatra said on Sunday.


The Thai and Lao ministers led by Prime Minister Yingluck Shinawatra, fifth right, and Lao Premier Thongsing Thammavong, fourth right, shake hands during the joint cabinet meeting in Chiang Mai province on Sunday. (Photo courtesy of Government House)

The proposal, tabled in talks between the Thai and Lao cabinets, underlines Thailand's concern about a delay to the project on the Lao side which could be a setback on the regional plan to build a railroad link.

Ms Yingluck said after meeting with Lao Prime Minister Thongsing Thammavong and his cabinet ministers that the host had relayed the delay concern to Laos.

Thailand will build four high-speed train lines, one of them from Bangkok to Nong Khai province. It will be linked to a train route from southern China to Vientiane, the Lao capital. The first phase of the Nong Khai train will be laid to Nakhon Ratchasima province.

China has offered to build the train project in Laos but it is being delayed because of unsettled details about Chinese support.

Ms Yingluck did not go into details of the proposed meeting but deputy government spokesman Chalitrat Chandrubeksa said Transport Minister Chadchat Sittipunt would have a key role in arranging the meeting on the tracks and train carriages to be used for the project.

The two governments also agreed to tackle narcotics, bolster trade and investment on Roads 8 and 12 in Laos, fight human trafficking and speed up border demarcation.

The two roads in Laos are connected to Thailand via the Mekong River bridge in Nakhon Phanom province.

Thailand upgraded the Phudu crossing in Ban Khok district of Uttaradit province from a temporary to a permanent checkpoint on Sunday to coincide with the meeting of the cabinets, the Thai News Agency reported.

The checkpoint in the northern province links Thailand with Laos' Xayabouri province. About 100,000 tourists used the pass, and trade totalled about 250 million baht, a year when it was a temporary checkpoint open only on Fridays and Saturdays.

Uttaradit governor Chalermchai Fuengkhon predicted trade and tourism would jump after the checkpoint was allowed to operate every day after the opening ceremony at the border on Sunday.

http://www.bangkokpost.com/news/tran...ojects-in-laos