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Lao government will proceed with the construction of a US$7 billion Laos-China high-speed railway even though China has withdrawn from the joint venture.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.
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.
1. บ่อเต็น (Boten) - Major station at Lao - China border 2. บ้านนาธง (Ban NaThong) - not passing Luang Nam Tha at all - clearly for new economic developments
Passing through Ban Khon Luang tunnel with the length of 9,260 meter between ระหว่าง Ban NaThong and Ban Hua Nam
3. บ้านหัวน้ำ (Ban HuaNam) 4. เมืองไซ (Muong Xai) - Major station near the capital of Udomxai province with the roads to Pak Beng, Phongsali, Luang Namtha and Nam Bak
Passing through Phu Nguad tunnel with the length of 7,820 meter between Muang Xai and Nakhok Tai and Nuan river
5. บ้านนาโคกใต้ (Ban NakhokTay) Passing through Ban Phu Kluea tunnel with the length of 8,790 meter betweenNakhok Tai and Huoi Phoulai
7. หลวงพระบาง (Luang Prabang) - Capital of Luang Phabang Province ... Initially, Luang Phabang station will be in Mueang CHomphet to prevent the damage on Luang Phrabang city - can use ferry from Xiang Maen to Luang Phabang city ... it changes the mind to be at the eastern bank for more convenient transports.
8. เมืองเซียงเงิน (Muong XiengNgeun) - in Luang Prabang province on Nam Khan with the highway to Phu Khun and Xaibuli
Passing Phu Yai tunnel with the length of 11295 meter between Muong XiengNgeun and Ban Sen
9. บ้านแสน (Ban Sen) 10. กาสี (Kasi) - on Nam Lik in Viengchan province 11. บ้านบัวเผือก (Ban BuaPheouk) 12. บ้านผาตั้ง (Ban Phatang)
13. วังเวียง (Vang Vieng) - Major station on Xong river in Viengchan province - 160 - 170 km from Viengchan capital
14. บ้านวังมน (Ban VangMon) 15. บ้านมางขี (Ban MangKhi) 16. บ้านหินเหิบ (Ban HinHop บางแห่งสะกดว่า Ban HinHeup - ในเมืองหินเหิบ แขวงเวียงจันท์) 17. โพนโฮง (Phonh Hong - เมืองโพนโฮง แขวงเวียงจันท์) 80 km from Viengchan capital 18. บ้านสกา (Ban Sakha) 19. บ้านโพนสูง (Ban Phonh Sung) 20. เวียงจันท์เหนือ (Vientiane Neua) in Viengchan capital 21. เวียงจันท์ใต้ (Vientiane Tay) - Major station in Viengchan capital
165 Bridges with total distance of 92.6 km. 69 tunnels with total distance of 186.9 กม.
However, this will NOT become a reality unless Lao PDR and Chinese government has made the final settlement on the land along this railway line - Chinese government want 1000 meter on each side along the railway line as the collateral of 7 Billion Dollar loan but Lao government can give ONLY 400 meter on each side along the railway line.
Furthermore, Chinese government wants to increase the investment from 70% to 85% of the total 7 billion Dollar investment while Lao government will be limited to 15% investment since they cannot fully trust that Lao government can capitalize the project with 2.1 billion US$
