Opinion | Can Laos profit from China rail link despite being US$1.5 billion in debt?
- Part of China’s Belt and Road Initiative, the high-speed railway will connect Kunming in Yunnan province to Vientiane by 2021, and subsequently to Malaysia and Singapore
- But Laos must plan well to benefit from the rail link’s operations and not fall into a debt trap
All the bridges, tunnels and other structures have been built; what remains is to lay the track and install signalling and other mechanics necessary for operations. The first trains are expected to be running around two years from now.
The 420km line cuts through northern and central Laos, starting at Boten on the Laos-China border, passing through Luang Namtha, Oudomxay, Luang Prabang and Vientiane provinces before terminating at a station still to be built near the country’s capital, Vientiane.
Its construction has been a colossal undertaking, requiring 150 bridges and more than 70 tunnels, which account for almost 200km of the line. It will have 10 stations in Laos, including one at the former royal capital of Luang Prabang, allowing for both domestic passenger and freight use.
