The government of Lao PDR provides trust and right for Petroleum
Trading Lao Public Company (PTL) to conduct a feasibility study and detailed
design on Laos-Vietnam Railway Development Project.
The MOU signing ceremony to complete the detailed design to develop the Laos-Vietnam Railway Project from Thakhek district, Khammuan province, Laos to Laos-Vietnam border between the government of Lao PDR and Petroleum Trading Lao Public Company
The development of Laos-Vietnam railway project from Thakhek district, Khammouane province to Vung Ang seaport in the Republic of Vietnam has significantly progressed after the government provides trust and right for PTL to conduct the detailed feasibility study on Laos-Vietnam railway project development in order to conveniently connect Laos internationally. Most recently, there was MOU signing ceremony on the detailed feasibility study-project design development. While the chairman of the PTL revealed that the survey shall be completed between 8 and 12 months and it is expected to initiate the construction at the end of 2021.
The Laos-Vietnam railway development project starts from Thakhek district, Khammouane province, Lao PDR to the Laos-Vietnam border and connects to Vung Ang seaport, Ha Tinh province, the Socialist Republic of Vietnam. The purpose of the project is to connect Laos to the ASEAN region as well as developing infrastructure and creating facilities for trade-investment and agriculture that are the potential for Laos to become a modern industrialization country. Also it will transform Laos from a landlocked to land-linked country, connecting regionally to realize the socio-economic development plan as the government gives the right for PTL to conduct the detailed feasibility study on the railway project development.
Most recently, there is MOU signing ceremony on feasibility study -design survey of railway project from Thakhek district, Khammouane province, Lao PDR to Laos-Vietnam border between PTL and the Lao government represented by the Ministry of Planning and Investment on 15 October 2019 in Vientiane.
The MOU was signed by Ms. Khamchan Vongsenboun, Vice-Minister of Planning and Investment and Mr. Chanthone Sitthixay, Chairman of PTL, witnessing the event were Mr. Bounchan Sinthavong, Minister of Public Works and Transport, Mr. Odai Soudaphon, The Governor of Khammouane Provice, Mr. Alounkeo Kittikhoun, Minister to Prime Minister’s Office, The Indonesian Ambassador to Laos and honorable guests.
Ms. Khamchan Vongsenboun, Vice-Minister of Planning and Investment
Mr. Chanthone Sitthixay, Chairman of PTL
On this occasion, during an interview, Mr. Chanthone Sitthixay, Chairman of PTL responded to the media that, “after we signed the MOU between the PTL and IRDC (Indonesian Railway Development Consortium) on 25 June 2019 on railway development project from Thakhek district, Khammouane province to Vung Ang seaport, Ha Tinh province, the Republic of Vietnam to connect and facilitate trading with the regions and internally as well as reducing cost of commodity transport and services as the potential for economic development while PTL is only a part to support the government policy and is given the right from the government to develop the project.
Mr. Chanthone Sitthixay added, “particularly the project distance between 240 km and 270 km initially will be surveyed from Thakhek district to Laos-Vietnam border. After obtaining the permission from the government of the Republic of Vietnam, the company will continue the survey from Laos-Vietnam border to Vung Ang seaport as approximately 150 km in Lao side and another 120 km in Vietnam side. The survey and design will be completed between 8 and 12 months. Later if we obtain the official permission from the Lao government and the government of Republic of Vietnam, the construction of the railway shall be initiated at the end of 2021 and expected to complete the within 3 years by 2024.
Regarding the railway size, it will be a single-track railway under international standard to accommodate transports and passengers with a speed between 90 and 120 km an hour using equipment and technology from Indonesia. While the investment form will be BOT or PPP, it shall depend on the survey-design output, by then we shall be able to provide more detail about the form of investment.
The project investment value shall be determined and announced during future press conferences.