The Chinese government is providing a concessional loan for the building of a railway from Vientiane to the Laos-China border, the Ministry of Public Work and Transport has announced. According to its latest report on railway development, the ministry has signed a memorandum of understanding with China’s Ministry of Railways to build a rail link between Vientiane and Luang Prabang and on to Boten in Luang Namtha province in the north. China will pay 70 percent of the cost and the rest will come from a joint Chinese-Lao venture responsible for investing in and operating the railway, according to the MOU. The joint venture will generate income from railway service charges, which will be used to repay the Chinese loan. The total construction cost will be unveiled following a survey, Lao National Railway Authority officials said, adding that a feasibility study was already under way.
Source: Vientiane Times
