Malaysian company commits funding to Laos-Vietnam rail link
Malaysian company commits funding to Laos-Vietnam rail link
The Giant Consolidated Limited group has handed over US$1.3 million in funding to the government as a preliminary budget for work on the Savannakhet Lao-Bao high speed railway.
The company's president, Mr Mohammad Fadzwi Bin Hamidun, handed over the cheque to Minister of Planning and Investment, Mr Somdy Duangdy, in Vientiane on Friday. Several senior government officials and company executives were on hand to witness the event.
Speaking at the ceremony, Mr Mohammad Fadzwi Bin Hamidun said the company was giving the funds as a sign of its commitment to building the 220km long railway, which will link Laos, Thailand and Vietnam.
“This is to show our commitment to the project,” he told those present, while handing over the cheque to Mr Somdy.
Officials told the Vientiane Times the government will use the money to undertake preparatory work on the US$5 billion project to ensure it is pushed through to a successful conclusion.
“The government will use the money to facilitate implementation of the project but will not return it if the company fails to implement the project,” an official said after attending the ceremony.
Mr Somdy said the Ministry of Planning and Investment would be happy to coordinate with Savannakhet authorities so that local officials can help move the project forward.
A senior company executive said the Malaysian firm will send a team of Chinese engineers to Savannakhet province early next year to carry out a survey and design of the railway, hoping to start construction at the earliest possible date.
The Lao government reached agreement with the Malaysian company to develop the Savannakhet–Lao Bao railway at the beginning of last month.
A signing ceremony for the construction and development of the railway project took place in Vientiane prior to the 9th Asia-Europe Meeting Summit, with Lao Prime Minister Thongsing Thammavong and Malaysian Prime Minister Datuk Seri Najib Razak in attendance.
At present, public transport on the Savannakhet-Lao Bao road is limited to the 15 bus stations situated between Savannakhet and the Laos-Vietnam border, with the road running through Phin, Xepon and Nong districts and the Savan-Seno Economic Special Zone.
The Savannakhet-Lao Bao railway will be located on the east-west corridor linking Thailand, Laos and Vietnam. Once complete, the rail link will provide cheap transport among the three nations and also connect with the north-south railway linking Asean with China.
The Lao government is working to transform Laos from a landlocked country into a land link. To this end, the National Assembly recently gave the green light for the government to request a loan from the Chinese EXIM bank to fund the US$7 billion north-south railway project.
vientiane times
