Laos-China railway not losing speed
2012-12-05 11:28:00The Laos-China high speed railway has been delayed but its construction won’t take any longer than other large-scale investment projects, a high-ranking official has said.
Speaking at a meeting of Chinese expatriates in Vientiane on Thursday, Deputy Minister of Planning and Investment Dr Khamlien Pholsena said it took 10 years to build the US$1 billion Nam Theun 2 hydropower plant, so it is not surprising that the US$7 billion railway project has been delayed.
“The Nam Theun 2 dam cost about US$1 billion and took 10 years to build. The proposed high speed rail link will cost US$7 billion. However, this does not mean it will take 70 years to build,” Dr Khamlien said in response to questions from meeting participants.
Last year the government announced in the National Assembly that construction of the railway would begin in April, but the project was postponed. Government leaders are currently unable to confirm when construction will begin.
The 7th National Socio-Economic Development Plan lists the Laos-China railway as a ‘mega’ investment project. Officials say construction will begin within five years as the government is currently in negotiations with China regarding the project.
China wants to build the railway to link Yunnan province to Laos, Thailand, Malaysia and Singapore in order to maximise the benefits of the free trade agreement made with Asean member countries that came into effect in 2010.
Dr Khamlien said the delay is due to careful consideration of the scheme being undertaken by Laos and Thailand, adding that the project also has to comply with Chinese investment regulations.
China is the main stakeholder in the project and will supply its own technology. China and Laos have agreed a 70:30 split for the joint venture to build and operate the railway. The Lao government will provide the necessary land as its share in the project.