Laos, China set date to launch train project

Laos, China set date to launch train project

VIENTIANE - A long-delayed railway project linking Laos and China will finally be marked with a groundbreaking ceremony in December to herald its launch.

The national committee responsible for the project agreed at a meeting in Vientiane on Wednesday to hold the ceremony on Dec 2, as the country celebrates the founding of the ruling Lao People's Revolutionary Party, the Vientiane Times reported on Friday.

The date was set despite unsettled financial agreements with China on the estimated construction cost of US$6.8 billion.

The two governments will each meet 40% of the cost and the rest be borne by their state enterprises.

Beijing has offered a $500 million loan to Vientiane but the Vientiane Times reported on Oct 30 that Laos wanted to negotiate with China to lower the interest rate.

The line will start from the Lao-Chinese border in Luang Namtha province and run through the old capital Luang Prabang to Vientiane, a distance of 417 kilometres with 31 stations along the route.

The single track is planned to accommodate train speeds up to 160 kilometres per hour for passenger trains and 120 km/h for freight carriers. It will connect another delayed Thai-Chinese train project in Nong Khai province.

The Lao communist party's founding date this year also marks its 40th anniversary.

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