China has agreed to help Laos build a national railway system, which will enable the landlocked nation to turn itself into a regional transport hub. The Chinese government has sign agreement with Laos to cooperate in building the railway on April 7. The line will run from the Chinese border to Vientiane and onto Thakhek in Khammuna province before turning to the Lao-Vietnamese border. The document is a legal foundation for the two nations to establish a joint venture company to invest in the project. Funding for the railway and associated facilities would come from the Chinese government in the form of a long-term loan. The initial estimations put construction costs at just above US$ 4 billion. The Lao government hopes to complete the railway within the next five years. Once complete, the railway would connect to the Kunming-Singapore railway network, bringing many benefits to Laos, China and other Asean nations in the form of access to cheaper transport. Once the railway was complete, Laos would welcome trains from China, and it would be easier for people to travel between the north and south of Laos, as well as to China and Vietnam.
Source: Vientiane Times
