Laos, Vietnam join to study petrol warehouse and pipelines
Laos, Vietnam join to study petrol warehouse and pipelines
The Lao and Vietnamese governments have agreed to cooperate and build a petrol pipeline system and a petrol warehouse system from Vietnam to Laos.
The project feasibility study was signed in Vientiane last week by Chairman of the Lao Petrol Co. Ltd, Mr Somvang Vongvilay, Salavia Capital Energy and Commodities Chairman, Mr Pavel Horvath and Association of Vietnam Investors in Laos (AVIL) Chairman, Mr Tran Bac Ha.
The Minister of Planning and Investment, Mr Somdy Douangdy, the Minister of Public Works and Transport, Dr Bounchanh Sinthavong, the Minister of Industry and Commerce, Ms Khemmani Pholsena, the Minister of Finance, Dr Lien Thikeo, the Minister of Natural Resource and Environment, Mr Neulin Sinbandith and the Minister of Energy and Mines, Mr Sourivong Daravong attended the ceremony.
Governor of the Bank of the Lao PDR Mr Somphao Phaysith, Minister and Head of the Government's Office Mr Sinlavong Khoutphaythoune, Vietnamese Ambassador to Laos Mr Nguyen Manh Hung, officials of Vietnam's Quang Binh province along with Governors of Luang Namtha, Huaphan and Khammuan provinces, partners and representatives also attended.
The project consists of building a petroleum pipeline from Honla harbour, Quang Binh province, Vietnam to Thakhek district, Khammuan province.
According to the project's plan, the pipeline is estimated to be 270km long.
The pipeline will be installed along Road No. 12A in Vietnam to Road No. 12 in Laos and will actually consist of two pipelines. One will carry regular petrol and one will carry diesel.
The petrol warehouse in Thakhek district is expected to have a capacity of 200,000-300,000 tonnes.
The project is predicted to cost between US$200 million and US$500 million. However, it aims to reduce the cost of petrol transportation between Vietnam and Laos.
The project will borrow 85 percent of its funding from the European Union with the Salavia Capital Energy and Commodities company coordinating efforts to secure the balance from European partners.
The Lao Petrol Co. Ltd is coordinating with both governments on the official documents and juristic acts while AVIL consults with Vietnamese and Lao investors on the regulations and financial contribution to the project.
At the ceremony, the Salavia Capital Energy and Commodities representative, Mr Pavel Horvath, and Truong Thinh Group Chairman Mr Vo Minh Hoai also signed an agreement on the project's feasibility study and report as well as responding to a study of the project in Vietnam.
vientiane times
