China-Laos railway achieves tech breakthrough
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Laos-China Railway to be green and low-carbon railway
Friday, 03 Sep 2021 8:29 PM MYT
VIENTIANE, Sept 3: The China Southern Power Grid Company has completed the installation of electricity transmission poles along the Laos-China Railway, saying the railway will be a green, low-carbon electrified railway, reports Laotian Tmes.
The external power grid project along the Laos-China railway has been completed and is now ready to supply power to the railway, which is scheduled to officially open in early December this year.
The project includes 2,220 transmission poles with a total length of 936 kilometres with links to 24 traction substations, according to KPL.
The project has been conducted by the China Southern Power Grid (CSG), as well as Electricite du Laos Transmission Company Limited (EDLT), a joint venture company formed last year to operate the power grid in Laos.
According to Chinese experts, the Laos-China Railway is a symbol of the Belt and Road Initiative and a critical component in Laos’ transformation from a landlocked to a land-linked country.
Yang Yonghui, Chair of the Board of Directors of Lao-China Electric Power Investment Co., Ltd., said, “We will work with Electricite du Laos (EDL) to build trust in the supply of electricity to the Laos-China Railway, and we will work with all sectors to ensure prosperous development.”
Speaking of the completed project, Huang Wun Kang, Director of Electricite du Laos Transmission Company Limited, said “the mountains and rivers of Laos and the mountains and rivers of China are the heritage of both nations, and therefore we have built this railway to be a green, low-carbon railway that will become a path for development this century that will bring many positive developments.”
Meanwhile, Director-General of the China Southern Power Grid Company (CSG), Zhong Xiaotao, says the Laos-China Railway will be a green and low-carbon electrified railway that will contribute to further development in many areas.
He says the significance lies in environmental and ecological protection by using the same building standards and cutting-edge technology utilized in China to decrease environmental risks, while the electricity transmission pole project has helped train local people in grid operation and management with the goal of creating jobs and assuring power supply.
Laos and China began the country’s first build-operate-transfer power grid project for the Laos-China railway in early last year.
The project, running along the China-Laos railway through five provincial administrative regions in northern Laos, has seen 20 circuits of 115kV transmission lines.
The Laos-China Railway will run some 426 kilometres, including 198km of tunnels, and will traverse 62km of bridges.
It will run from the Boten border gate, connecting Northern Laos to China, down to Vientiane Capital, with an operating speed of 160km per hour, and is now over 90% per cent complete.
Friday, 03 Sep 2021 8:29 PM MYT
VIENTIANE, Sept 3: The China Southern Power Grid Company has completed the installation of electricity transmission poles along the Laos-China Railway, saying the railway will be a green, low-carbon electrified railway, reports Laotian Tmes.
The external power grid project along the Laos-China railway has been completed and is now ready to supply power to the railway, which is scheduled to officially open in early December this year.
The project includes 2,220 transmission poles with a total length of 936 kilometres with links to 24 traction substations, according to KPL.
The project has been conducted by the China Southern Power Grid (CSG), as well as Electricite du Laos Transmission Company Limited (EDLT), a joint venture company formed last year to operate the power grid in Laos.
According to Chinese experts, the Laos-China Railway is a symbol of the Belt and Road Initiative and a critical component in Laos’ transformation from a landlocked to a land-linked country.
Yang Yonghui, Chair of the Board of Directors of Lao-China Electric Power Investment Co., Ltd., said, “We will work with Electricite du Laos (EDL) to build trust in the supply of electricity to the Laos-China Railway, and we will work with all sectors to ensure prosperous development.”
Speaking of the completed project, Huang Wun Kang, Director of Electricite du Laos Transmission Company Limited, said “the mountains and rivers of Laos and the mountains and rivers of China are the heritage of both nations, and therefore we have built this railway to be a green, low-carbon railway that will become a path for development this century that will bring many positive developments.”
Meanwhile, Director-General of the China Southern Power Grid Company (CSG), Zhong Xiaotao, says the Laos-China Railway will be a green and low-carbon electrified railway that will contribute to further development in many areas.
He says the significance lies in environmental and ecological protection by using the same building standards and cutting-edge technology utilized in China to decrease environmental risks, while the electricity transmission pole project has helped train local people in grid operation and management with the goal of creating jobs and assuring power supply.
Laos and China began the country’s first build-operate-transfer power grid project for the Laos-China railway in early last year.
The project, running along the China-Laos railway through five provincial administrative regions in northern Laos, has seen 20 circuits of 115kV transmission lines.
The Laos-China Railway will run some 426 kilometres, including 198km of tunnels, and will traverse 62km of bridges.
It will run from the Boten border gate, connecting Northern Laos to China, down to Vientiane Capital, with an operating speed of 160km per hour, and is now over 90% per cent complete.
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cochine
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Laos the latest China debt trap victim
Laos set to cede majority control of its national power grid to China to service Belt and Road debts
By BERTIL LINTNERSEPTEMBER 14, 2020
Lao President Bounnhang Vorachith (L) shakes hands with Chinese President Xi Jinping (R) ahead of a bilateral meeting at Diaoyutai State Guesthouse in Beijing, May 16, 2017. Photo: AFP/Wu Hong
CHIANG MAI – The US$6 billion China-Laos highspeed railway is on track for completion in just over a year, with the first train scheduled to arrive in the capital Vientiane on Lao national day, December 2, 2021.
The day traditionally commemorates the communist takeover in 1975 and the economic and social progress achieved under the Lao People’s Revolutionary Party, but next year’s event will also herald a certain loss of sovereignty to its giant neighbor to the north.
Recent reports suggest Laos is the latest nation to fall victim to a Belt and Road Initiative (BRI) debt trap, whereby nations are pressed into making sovereignty-eroding concessions after defaulting on their infrastructure-related debts owed to Beijing.
asiatimes.com
Laos set to cede majority control of its national power grid to China to service Belt and Road debts
By BERTIL LINTNERSEPTEMBER 14, 2020
Lao President Bounnhang Vorachith (L) shakes hands with Chinese President Xi Jinping (R) ahead of a bilateral meeting at Diaoyutai State Guesthouse in Beijing, May 16, 2017. Photo: AFP/Wu Hong
CHIANG MAI – The US$6 billion China-Laos highspeed railway is on track for completion in just over a year, with the first train scheduled to arrive in the capital Vientiane on Lao national day, December 2, 2021.
The day traditionally commemorates the communist takeover in 1975 and the economic and social progress achieved under the Lao People’s Revolutionary Party, but next year’s event will also herald a certain loss of sovereignty to its giant neighbor to the north.
Recent reports suggest Laos is the latest nation to fall victim to a Belt and Road Initiative (BRI) debt trap, whereby nations are pressed into making sovereignty-eroding concessions after defaulting on their infrastructure-related debts owed to Beijing.
Laos the latest China debt trap victim - Asia Times
CHIANG MAI – The US$6 billion China-Laos highspeed railway is on track for completion in just over a year, with the first train scheduled to arrive in the
asiatimes.com
艹艹艹
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Connecting with Laos
As the opening of a rail link with China nears, promising new possibilities for economic development are emerging.
PUBLISHED : 20 SEP 2021 AT 04:30
Landlocked but rich in natural resources and geographically diverse, Laos has a lot to offer. Significant investments from neighbours including China have helped the country achieve economic growth of 6-7% a year over the past decade. Yet, inadequate infrastructure and the absence of a skilled workforce are among the reasons Laos has yet to fulfil its potential.
But with the imminent opening of a 471-kilometre railway linking its capital Vientiane with the Chinese border at Boten, Laos is looking forward to changing its status from landlocked to land-linked and opening new economic horizons.
The high-profile rail line, the most expensive infrastructure project in the country's history, is expected to boost exports and attract investment as well as tourists once it is officially opened on Dec 2, which is Lao National Day, says a high-ranking official.
"One of the major policies of the government is to develop the country to be land-linked. And we have realised that it is difficult to achieve the target outlined by the government without the railway," said Soulivath Souvannachoumkham, director-general of the External Finance and Debt Management Department at the Ministry of Finance.
"We all know that one of the bottlenecks to the economic development of Laos is that we don't have sea transport, making it difficult for shipments between cities and districts, and for trade and economic development. Once the railway is completed, it will help reduce transport costs by about 50%," he told Asia Focus during a small group interview.
Construction of the rail line, he said, has progressed according to plan despite earlier concerns that it might be delayed because of the Covid-19 pandemic.
Laos has reported only 17,905 cases of Covid-19 with just 16 deaths since the pandemic began last year, thanks to strict lockdown and quarantine measures. So far, 2.6 million people or 36% of the population have received their first Covid jab while 1.9 million or 26% are fully vaccinated.
"So far, big projects in Laos haven't seen much impact from the Covid outbreak because the spread has mainly occurred among communities in urban areas, not so much at construction sites, so those projects have been able to continue," said Mr Soulivath.
The economic and trade impact of the railway is going to be substantial. The cost of shipments from Vientiane to Kunming in the southern Chinese province of Yunnan will be cut by 40-50% or US$30 per tonne, along with a 20-40% cost reduction on domestic routes, according to a World Bank report -- From landlocked to land-linked: unlocking the potential of Lao-China rail connectivity.
Exports from Laos to China were worth $1.7 billion in 2019 and could expand by about 20% per year, a report by UN Comtrade has said.
The governments of Laos and China have signed an agreement for China to import more goods from Laos, especially agricultural products such as corn, bananas, cassava and beans, beef and other products, by shipping to Yunnan, said Mr Soulivath.
The rail link will also attract more investments from China and other countries, mainly in agriculture, livestock and mining. China is by far the top source of foreign direct investment (FDI) in Laos, accounting for 87.7% of cumulative FDI flows into the country or $967.7 million as of the end of 2020. Investors from Thailand and Vietnam were second and third with shares of 4.9% and 2.5%, respectively.
More investments from China will be drawn to sites in Laos along the rail line, particularly in special economic zones (SEZs), for products to be manufactured in Laos and sent to China for export via the rail network that now stretches from China to Europe.
Thailand's leading industrial estate developer, Amata Corporation, has won approval from the Vientiane government to develop a large-scale SEZ in northern Laos, said Mr Soulivath.
A memorandum of understanding has been signed and preparations are under way to secure funding for the construction, which would follow land preparation, including infrastructure and utility development, he said.
Amata executives confirmed the interest in developing the SEZ in Laos when asked by Asia Focus; however, they declined to offer further details. The listed Thai developer has stated previously that it had secured between 20,000 and 30,000 rai to develop the estate in northern Laos bordering China. To be wholly invested by Amata, it aims to attract manufacturers from Asian countries, notably Japan.
The China-Laos railway will also increase the number of tourists, especially from China, as it will significantly reduce travel time. Prior to the pandemic, Laos was attracting between 800,000 and one million tourists a year from China, and the figure is projected to expand by 40-50% once international travel resumes, said Mr Soulivath.
Meanwhile, work is continuing on a 445-kilometre highway linking Vientiane with Boten on the border with China. The first 113km leg from Vientiane to Vang Vieng is now open while work on the second leg from Vang Vieng to Luang Prabang (137 km) is expected to be completed in three years. A highway to Vietnam in the south is also being studied with the assistance from the Japanese government, and construction could start in 2023.
According to Mr Soulivath, the economy of Laos managed to grow by 3.3% in 2020, outpacing forecasts by the World Bank, the Asian Development Bank and the International Monetary Fund, which saw the economy contracting or growing by less than 1% at best. This year, the country expects GDP growth in a range of 3.8% to 4%, or at least in line with that of 2020.
"Although the second wave of Covid, which started in April this year, has caused significant impacts on the economy, many economic activities have been able to continue including major infrastructure, mining and energy projects," he said.
The government budget deficit was 5.3% of GDP last year as the pandemic affected revenue collection. But that was still better than the original forecast of 6% because authorities tightly controlled expenses and postponed some non-essential investments. This year, the government aims to cap the deficit at no more than 3% of GDP as revenue collection might still not be back to pre-pandemic levels, said Mr Soulivath.
POST-COVID RECOVERY
The World Bank now predicts the Lao economy to expand by 3.6% in 2021, although the forecast was trimmed from 4% projected in March.
"The Lao economy is on course for moderately improved growth in 2021, despite the second wave of Covid-19 denting the promising economic recovery made early in the year," the bank said in its latest Economic Monitor update released on Aug 20.
Agriculture and industry are driving much of the growth, with agricultural exports increasing, while electricity, mining and manufacturing exports have rebounded from the trade slowdown last year. In tourism, hospitality, transport and other services, however, lockdowns and the continued curbs on international travel mean that most firms are struggling, depriving the country of a major income source.
"Laos is doing well to contain the coronavirus and get vaccinations out across the population," said Alex Kremer, the new World Bank country manager.
"However, the risk of debt distress, a weak kip and low government revenues continue to limit the government's options for reviving the economy. Reforms that would boost private investment, tax payments and trade would help in this matter," he added.
To help the economy recover, Mr Soulivath said Laos aimed to manufacture more products, particularly agricultural goods, for import substitution. As well, small and medium enterprise (SME) development would be important to create a more sustainable future.
"In the past 10-20 years, Laos has relied heavily on natural resources for economic development -- for example, exports of coal, copper and exploration of other resources," he said.
"Although we achieved high economic growth of 7-8% a year in the past, that might not be sustained in the future. Thus, the government has now shifted its focus to quality growth or so-called green growth with natural resource protection and more effective use of those resources."
Besides, the government aims to diversify sources of growth with targeted sectors including services, industrial production and tourism.
"Energy is still our targeted sector with lots of potential, especially energy production for export to Thailand," said Mr Soulivath. "By focusing more on green projects, energy will remain the focus of the government to recover our economy."
Electricity is still the main export of Laos, worth $6.1 billion or about 30% of total export value in 2020. Generating capacity now totals 10,438 megawatts, 80% of it from hydropower.
Between 2016 and 2020, 53 power plants were developed with a combined installed capacity of 4,700 MW. Of the 86 plants now in operation, 73 are hydropower, eight solar, four biomass and one thermal plant.
Laos has an agreement to supply 9,000 MW to the Electricity Generating Authority of Thailand (Egat), of which 5,932 MW or around 65% are being delivered now, Mr Soulivath explained.
Between 2020 and 2025, several more power projects are in the pipeline, including 10 developed by EDL-Generation Public Co (EDL-Gen) which is 51% owned by the Lao government. Nine other plants will export electricity, two will supply Vietnam, and an additional 27 projects will be for domestic consumption.
"We project that these power projects would generate total revenue of about $1.7 billion to the government in the next five years," Mr Soulivath said.
Mining is also a major revenue generator, but no new licences have been granted for the last five years as the government conducted a review of licence terms and taxes for iron ore, gold, copper and coal projects, he explained.
After the review, taxes, royalties and other fees paid by mining companies will double or triple. For iron ore, for instance, the government will get a lump sum of $20-30 per tonne, up from about $10 in the past, said Mr Soulivath.
Currently, authorities are reviewing 10 proposals by investors from China, Vietnam and Laos, who have all paid deposits to the government. They will be asked to ensure their operations use natural resources in a more efficient way, he added.
ASEAN BENEFITS
Now that the Laos-China rail line is nearly completed, there is great anticipation about a link in the other direction, starting in Nong Khai province opposite Vientiane, and eventually running to the Laem Chabang deep-sea port on Thailand's Eastern Seaboard. Work in Thailand is behind schedule but once completed, the line will be a boon to shippers moving goods between Thailand and Laos, Thailand and China, and also with Malaysia as well as Singapore in the future.
"Besides the economic benefits for Laos, Asean as a whole will also get a boost as China has a policy to increase trade and transport links with Asean member states," Mr Soulivath said.
Suwit Ratanachinda, president of the Thai Logistics Service Providers Federation, said the initial plan is for the rail line to be extended from Vientiane to a dry port in Thanaleng, next to the Thai-Lao Friendship Bridge on the Lao side of the Mekong River. The port was developed with loans from Thailand's Neighbouring Countries Economic Development Cooperation Agency (Neda) and a 2,000-rai logistics zone is being constructed to serve growing demand for goods transport spurred by the Laos-China railway.
"The first phase of the 2,000-rai logistics zone is also set to operate on Dec 2," said Mr Suwit, who took part in the groundbreaking ceremony for the Laos-China rail link and has been monitoring the development of the route over the past five years.
Sitthi Logistic Lao Co Ltd, the Lao firm that developed and operates the port in Thanaleng, has also secured financing for the 2.8km link between Vientiane and Thanaleng, he added.
In the future, Mr Suwit said, the highway linking Laos with Vietnam would open the way for more cargo to be shipped via a port on the Vietnamese coast. The Vietnamese government has awarded a concession to Laos to develop the project.
"The medium-speed Laos-China rail link, with speeds up to 160km per hour, would cut shipping time of goods considerably. Now it takes two days to ship products from Vientiane to Kunming by road. That would be reduced to only about 15-16 hours by rail," he told Asia Focus in a telephone interview.
With the new corridor from Thailand, through Vientiane, to Kunming, the reduced shipping time would especially benefit exporters of Thai fruits, including durian, to China where demand is high. "At the moment, Thai fruits are transported by trucks on the R9, R3 and R2 roads. From December 2 onward, they would be shipped to Vientiane and then put on the railway to go to Kunming," said Mr Suwit.
As well, the Laos-China railway would provide Thai exporters with "new opportunities" to reach markets in central Asia such as Kazakhstan and Uzbekistan, and also to ship to Europe in the future.
"Now it takes 35-40 days for shipments to central Asian markets and with the rail link, shipping time could be cut to only 15 days," he said.
As the opening of a rail link with China nears, promising new possibilities for economic development are emerging.
PUBLISHED : 20 SEP 2021 AT 04:30
Landlocked but rich in natural resources and geographically diverse, Laos has a lot to offer. Significant investments from neighbours including China have helped the country achieve economic growth of 6-7% a year over the past decade. Yet, inadequate infrastructure and the absence of a skilled workforce are among the reasons Laos has yet to fulfil its potential.
But with the imminent opening of a 471-kilometre railway linking its capital Vientiane with the Chinese border at Boten, Laos is looking forward to changing its status from landlocked to land-linked and opening new economic horizons.
The high-profile rail line, the most expensive infrastructure project in the country's history, is expected to boost exports and attract investment as well as tourists once it is officially opened on Dec 2, which is Lao National Day, says a high-ranking official.
"One of the major policies of the government is to develop the country to be land-linked. And we have realised that it is difficult to achieve the target outlined by the government without the railway," said Soulivath Souvannachoumkham, director-general of the External Finance and Debt Management Department at the Ministry of Finance.
"We all know that one of the bottlenecks to the economic development of Laos is that we don't have sea transport, making it difficult for shipments between cities and districts, and for trade and economic development. Once the railway is completed, it will help reduce transport costs by about 50%," he told Asia Focus during a small group interview.
Construction of the rail line, he said, has progressed according to plan despite earlier concerns that it might be delayed because of the Covid-19 pandemic.
Laos has reported only 17,905 cases of Covid-19 with just 16 deaths since the pandemic began last year, thanks to strict lockdown and quarantine measures. So far, 2.6 million people or 36% of the population have received their first Covid jab while 1.9 million or 26% are fully vaccinated.
"So far, big projects in Laos haven't seen much impact from the Covid outbreak because the spread has mainly occurred among communities in urban areas, not so much at construction sites, so those projects have been able to continue," said Mr Soulivath.
The economic and trade impact of the railway is going to be substantial. The cost of shipments from Vientiane to Kunming in the southern Chinese province of Yunnan will be cut by 40-50% or US$30 per tonne, along with a 20-40% cost reduction on domestic routes, according to a World Bank report -- From landlocked to land-linked: unlocking the potential of Lao-China rail connectivity.
Exports from Laos to China were worth $1.7 billion in 2019 and could expand by about 20% per year, a report by UN Comtrade has said.
The governments of Laos and China have signed an agreement for China to import more goods from Laos, especially agricultural products such as corn, bananas, cassava and beans, beef and other products, by shipping to Yunnan, said Mr Soulivath.
The rail link will also attract more investments from China and other countries, mainly in agriculture, livestock and mining. China is by far the top source of foreign direct investment (FDI) in Laos, accounting for 87.7% of cumulative FDI flows into the country or $967.7 million as of the end of 2020. Investors from Thailand and Vietnam were second and third with shares of 4.9% and 2.5%, respectively.
More investments from China will be drawn to sites in Laos along the rail line, particularly in special economic zones (SEZs), for products to be manufactured in Laos and sent to China for export via the rail network that now stretches from China to Europe.
Thailand's leading industrial estate developer, Amata Corporation, has won approval from the Vientiane government to develop a large-scale SEZ in northern Laos, said Mr Soulivath.
A memorandum of understanding has been signed and preparations are under way to secure funding for the construction, which would follow land preparation, including infrastructure and utility development, he said.
Amata executives confirmed the interest in developing the SEZ in Laos when asked by Asia Focus; however, they declined to offer further details. The listed Thai developer has stated previously that it had secured between 20,000 and 30,000 rai to develop the estate in northern Laos bordering China. To be wholly invested by Amata, it aims to attract manufacturers from Asian countries, notably Japan.
The China-Laos railway will also increase the number of tourists, especially from China, as it will significantly reduce travel time. Prior to the pandemic, Laos was attracting between 800,000 and one million tourists a year from China, and the figure is projected to expand by 40-50% once international travel resumes, said Mr Soulivath.
Meanwhile, work is continuing on a 445-kilometre highway linking Vientiane with Boten on the border with China. The first 113km leg from Vientiane to Vang Vieng is now open while work on the second leg from Vang Vieng to Luang Prabang (137 km) is expected to be completed in three years. A highway to Vietnam in the south is also being studied with the assistance from the Japanese government, and construction could start in 2023.
According to Mr Soulivath, the economy of Laos managed to grow by 3.3% in 2020, outpacing forecasts by the World Bank, the Asian Development Bank and the International Monetary Fund, which saw the economy contracting or growing by less than 1% at best. This year, the country expects GDP growth in a range of 3.8% to 4%, or at least in line with that of 2020.
"Although the second wave of Covid, which started in April this year, has caused significant impacts on the economy, many economic activities have been able to continue including major infrastructure, mining and energy projects," he said.
The government budget deficit was 5.3% of GDP last year as the pandemic affected revenue collection. But that was still better than the original forecast of 6% because authorities tightly controlled expenses and postponed some non-essential investments. This year, the government aims to cap the deficit at no more than 3% of GDP as revenue collection might still not be back to pre-pandemic levels, said Mr Soulivath.
POST-COVID RECOVERY
The World Bank now predicts the Lao economy to expand by 3.6% in 2021, although the forecast was trimmed from 4% projected in March.
"The Lao economy is on course for moderately improved growth in 2021, despite the second wave of Covid-19 denting the promising economic recovery made early in the year," the bank said in its latest Economic Monitor update released on Aug 20.
Agriculture and industry are driving much of the growth, with agricultural exports increasing, while electricity, mining and manufacturing exports have rebounded from the trade slowdown last year. In tourism, hospitality, transport and other services, however, lockdowns and the continued curbs on international travel mean that most firms are struggling, depriving the country of a major income source.
"Laos is doing well to contain the coronavirus and get vaccinations out across the population," said Alex Kremer, the new World Bank country manager.
"However, the risk of debt distress, a weak kip and low government revenues continue to limit the government's options for reviving the economy. Reforms that would boost private investment, tax payments and trade would help in this matter," he added.
To help the economy recover, Mr Soulivath said Laos aimed to manufacture more products, particularly agricultural goods, for import substitution. As well, small and medium enterprise (SME) development would be important to create a more sustainable future.
"In the past 10-20 years, Laos has relied heavily on natural resources for economic development -- for example, exports of coal, copper and exploration of other resources," he said.
"Although we achieved high economic growth of 7-8% a year in the past, that might not be sustained in the future. Thus, the government has now shifted its focus to quality growth or so-called green growth with natural resource protection and more effective use of those resources."
Besides, the government aims to diversify sources of growth with targeted sectors including services, industrial production and tourism.
"Energy is still our targeted sector with lots of potential, especially energy production for export to Thailand," said Mr Soulivath. "By focusing more on green projects, energy will remain the focus of the government to recover our economy."
Electricity is still the main export of Laos, worth $6.1 billion or about 30% of total export value in 2020. Generating capacity now totals 10,438 megawatts, 80% of it from hydropower.
Between 2016 and 2020, 53 power plants were developed with a combined installed capacity of 4,700 MW. Of the 86 plants now in operation, 73 are hydropower, eight solar, four biomass and one thermal plant.
Laos has an agreement to supply 9,000 MW to the Electricity Generating Authority of Thailand (Egat), of which 5,932 MW or around 65% are being delivered now, Mr Soulivath explained.
Between 2020 and 2025, several more power projects are in the pipeline, including 10 developed by EDL-Generation Public Co (EDL-Gen) which is 51% owned by the Lao government. Nine other plants will export electricity, two will supply Vietnam, and an additional 27 projects will be for domestic consumption.
"We project that these power projects would generate total revenue of about $1.7 billion to the government in the next five years," Mr Soulivath said.
Mining is also a major revenue generator, but no new licences have been granted for the last five years as the government conducted a review of licence terms and taxes for iron ore, gold, copper and coal projects, he explained.
After the review, taxes, royalties and other fees paid by mining companies will double or triple. For iron ore, for instance, the government will get a lump sum of $20-30 per tonne, up from about $10 in the past, said Mr Soulivath.
Currently, authorities are reviewing 10 proposals by investors from China, Vietnam and Laos, who have all paid deposits to the government. They will be asked to ensure their operations use natural resources in a more efficient way, he added.
ASEAN BENEFITS
Now that the Laos-China rail line is nearly completed, there is great anticipation about a link in the other direction, starting in Nong Khai province opposite Vientiane, and eventually running to the Laem Chabang deep-sea port on Thailand's Eastern Seaboard. Work in Thailand is behind schedule but once completed, the line will be a boon to shippers moving goods between Thailand and Laos, Thailand and China, and also with Malaysia as well as Singapore in the future.
"Besides the economic benefits for Laos, Asean as a whole will also get a boost as China has a policy to increase trade and transport links with Asean member states," Mr Soulivath said.
Suwit Ratanachinda, president of the Thai Logistics Service Providers Federation, said the initial plan is for the rail line to be extended from Vientiane to a dry port in Thanaleng, next to the Thai-Lao Friendship Bridge on the Lao side of the Mekong River. The port was developed with loans from Thailand's Neighbouring Countries Economic Development Cooperation Agency (Neda) and a 2,000-rai logistics zone is being constructed to serve growing demand for goods transport spurred by the Laos-China railway.
"The first phase of the 2,000-rai logistics zone is also set to operate on Dec 2," said Mr Suwit, who took part in the groundbreaking ceremony for the Laos-China rail link and has been monitoring the development of the route over the past five years.
Sitthi Logistic Lao Co Ltd, the Lao firm that developed and operates the port in Thanaleng, has also secured financing for the 2.8km link between Vientiane and Thanaleng, he added.
In the future, Mr Suwit said, the highway linking Laos with Vietnam would open the way for more cargo to be shipped via a port on the Vietnamese coast. The Vietnamese government has awarded a concession to Laos to develop the project.
"The medium-speed Laos-China rail link, with speeds up to 160km per hour, would cut shipping time of goods considerably. Now it takes two days to ship products from Vientiane to Kunming by road. That would be reduced to only about 15-16 hours by rail," he told Asia Focus in a telephone interview.
With the new corridor from Thailand, through Vientiane, to Kunming, the reduced shipping time would especially benefit exporters of Thai fruits, including durian, to China where demand is high. "At the moment, Thai fruits are transported by trucks on the R9, R3 and R2 roads. From December 2 onward, they would be shipped to Vientiane and then put on the railway to go to Kunming," said Mr Suwit.
As well, the Laos-China railway would provide Thai exporters with "new opportunities" to reach markets in central Asia such as Kazakhstan and Uzbekistan, and also to ship to Europe in the future.
"Now it takes 35-40 days for shipments to central Asian markets and with the rail link, shipping time could be cut to only 15 days," he said.
Laos the latest China debt trap victim
Laos set to cede majority control of its national power grid to China to service Belt and Road debts
By BERTIL LINTNERSEPTEMBER 14, 2020
View attachment 775442
Lao President Bounnhang Vorachith (L) shakes hands with Chinese President Xi Jinping (R) ahead of a bilateral meeting at Diaoyutai State Guesthouse in Beijing, May 16, 2017. Photo: AFP/Wu Hong
CHIANG MAI – The US$6 billion China-Laos highspeed railway is on track for completion in just over a year, with the first train scheduled to arrive in the capital Vientiane on Lao national day, December 2, 2021.
The day traditionally commemorates the communist takeover in 1975 and the economic and social progress achieved under the Lao People’s Revolutionary Party, but next year’s event will also herald a certain loss of sovereignty to its giant neighbor to the north.
Recent reports suggest Laos is the latest nation to fall victim to a Belt and Road Initiative (BRI) debt trap, whereby nations are pressed into making sovereignty-eroding concessions after defaulting on their infrastructure-related debts owed to Beijing.
Laos the latest China debt trap victim - Asia Times
CHIANG MAI – The US$6 billion China-Laos highspeed railway is on track for completion in just over a year, with the first train scheduled to arrive in the
cochine
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The article is from ASIA TIME, there is no envy, jealousy, hate. Just is the neutral viewpoint of third party. Laos could learn from this project. When the project is not effective, Laos people could been very upset, but the thing is too late. Laos people could been hatred to Chinese, bcz you had cheated them very seriously.
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China’s plan to help build Kenya’s first coal plant has been stopped—for now
AP PHOTO/KHALIL SENOSI
Under China's Belt and Road Initiative, several large-scale infrastructure projects in Africa have been funded. Some that degrade the environment.
FROM OUR OBSESSION
The climate economy
Every industry can be part of the solution — or part of the ongoing problem.
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Published June 27, 2019Last updated on July 8, 2019This article is more than 2 years old.
The scheme to build Kenya and east Africa’s first coal plant has been stopped.
Kenyan judges at the National Environmental Tribunal on Tuesday (June 25) said officials had failed to conduct a thorough assessment of the plant’s impact on Lamu, a historic and idyllic archipelago in the country’s northeast. The tribunal canceled the license issued by the National Environmental Management Authority and ordered developer Amu Power undertake a new evaluation.
The environmental court also faulted the Chinese-backed power plant for failing to adequately consult the public about the initiative, and cited insufficient and unclear plans for handling and storing toxic coal ash.
The ruling was a win for environmental activists and local communities, who for three years argued the coal plant would not only pollute the air but also damage the fragile marine ecosystem and devastate the livelihoods of fishing communities.
“It really is a great day for the people of Lamu,” said Mark Odaga, a lawyer with nonprofit group Natural Justice. “Theirs was a cry for their voices to be heard, for their concerns to be reflected so that this wasn’t a situation of people being anti-development.”
REUTERS/BAZ RATNER
Greenpeace and environmental activists protest the coal plant in Nairobi.
The judgment dealt a blow to Kenyan authorities who have argued that the coal-fired plant will help meet the country’s fast-growing demand for electricity. Even though president Uhuru Kenyatta announced plans to move the country to 100% green energy by 2020, some 975 acres of land had been set aside for the project, which was expected to generate 1,050 megawatts of power upon completion. The $2 billion plant is majority financed and built by Chinese firms alongside a Kenyan consortium.
The project has drawn protests since its inception, with environmentalists saying coal has no place in a country that already develops most of its energy from hydroelectric and geothermal power. Campaigners have also argued that the plant will devastate the island of Lamu, a major tourist attraction, a UNESCO heritage site, and the oldest and best-preserved example of a Swahili settlement in East Africa.
AP PHOTO/BEN CURTIS
“Yes to coral. No to coal.”
The project was another example of Beijing’s efforts to push its companies to develop coal-fired plants overseas. Even as China’s investment in renewable energy projects at home has soared, Chinese corporations have been building hundreds of coal plants abroad, some in countries that today burn little or no coal. This push has included African countries, where the promise of subsidized development was a draw for governments to welcome Chinese investment.
While the latest verdict delays the coal plant’s development, it doesn’t put an end to it. Amu Power can still apply for a new license or appeal the decision within the next month. For now, though, local communities are celebrating the win.
“We’re now old, but we inherited a clean and healthy environment from our fathers, and it’s our duty to give our children a clean and healthy environment as well,” said the vice chair of NGO Save Lamu, Mohammed Mbwana.
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China’s plan to help build Kenya’s first coal plant has been stopped—for now
“It really is a great day for the people of Lamu.”
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Most stations on Laos-China Railway now complete
Latest Update October 1, 2021
Most of the stations on the Laos-China Railway are now complete ahead of the planned opening of the railway in December.
Kasy Station in Vientiane province was the most recent to be completed and was officially unveiled on September 27.
The station was built by the China Railway Construction Group and is designed similar to a bus station, with one stop and three intermediate rail lines, and can accommodate up to 150 passengers.
The station covers an area of 1498.7 square metres and is a combination of traditional Lao and Chinese architectural styles.
The construction company used BIM model construction technology and had to deal with challenges such as the rainy season, the Covid-19 pandemic, transport of construction materials, etc. But despite these difficulties, the main structure of the building was finished 15 days ahead of schedule.
The station is currently being inspected and is expected to open as planned.
The Laos-China Railway is a part of China’s One Belt, One Road initiative and will help to make landlocked Laos a land link, with the railway running from Kunming in Yunnan province, China, and ending in Vientiane. The next section will continue south through Thailand to Singapore.
There are 10 passenger stations in Vientiane, Phonhong, Vangvieng, Kasy, Luang Prabang, Nga, Xay, Namor, Natuey and Boten, as well as 22 freight stations.
The 422.4-km Laos-China railway runs between Vientiane and the provinces of Vientiane, Luang Prabang, Oudomxay and Luang Namtha, and ends at the Chinese border in Boten.
Construction of the US$5.986 billion (37.4 billion yuan) railway began in December 2016.
It is a strategic part of China’s Belt and Road Initiative and Laos’ plans to use its landlocked status to become a land link within the region.
When it is operational, the railway will cut the cost of transport through Laos by 30-40 percent compared to travel by road.
Laos Constructs Railway Vocational Technical College
September 29, 2021
Laos constructs railway vocational college (Photo: Vientiane Times)
Construction of a Railway Vocational Technical College has begun in Vientiane Capital that will produce graduates to work in the railway sector.
According to a report by Vientiane Times, the Lao Railway Vocational Technical College project, designed and constructed by China, includes the construction of school facilities and student dorms, as well as providing practical training for Lao students in China.
Located in Borkham Village, Xaythany District, Vientiane Capital, the college will be the first of its kind in Laos and is being constructed on over 14 hectares of land.
As part of the preparations for the new Lao railway college, the Ministry of Education and Sports has dispatched more than 30 instructors to China for training, according to Vientiane Times.
“One kilometer of the railway will require 15 people, including engineers and technicians for internal services and computers,” Deputy Minister of Education and Sports, Dr. Kongsy Sengmany was quoted as saying to Lao media.
The new college will offer six courses and enroll around 300 students each year when it opens. Courses will include train driving, station services, and electrical repairs and maintenance, among other aspects of railway machinery functioning.
Latest Update October 1, 2021
Most of the stations on the Laos-China Railway are now complete ahead of the planned opening of the railway in December.
Kasy Station in Vientiane province was the most recent to be completed and was officially unveiled on September 27.
The station was built by the China Railway Construction Group and is designed similar to a bus station, with one stop and three intermediate rail lines, and can accommodate up to 150 passengers.
The station covers an area of 1498.7 square metres and is a combination of traditional Lao and Chinese architectural styles.
The construction company used BIM model construction technology and had to deal with challenges such as the rainy season, the Covid-19 pandemic, transport of construction materials, etc. But despite these difficulties, the main structure of the building was finished 15 days ahead of schedule.
The station is currently being inspected and is expected to open as planned.
The Laos-China Railway is a part of China’s One Belt, One Road initiative and will help to make landlocked Laos a land link, with the railway running from Kunming in Yunnan province, China, and ending in Vientiane. The next section will continue south through Thailand to Singapore.
There are 10 passenger stations in Vientiane, Phonhong, Vangvieng, Kasy, Luang Prabang, Nga, Xay, Namor, Natuey and Boten, as well as 22 freight stations.
The 422.4-km Laos-China railway runs between Vientiane and the provinces of Vientiane, Luang Prabang, Oudomxay and Luang Namtha, and ends at the Chinese border in Boten.
Construction of the US$5.986 billion (37.4 billion yuan) railway began in December 2016.
It is a strategic part of China’s Belt and Road Initiative and Laos’ plans to use its landlocked status to become a land link within the region.
When it is operational, the railway will cut the cost of transport through Laos by 30-40 percent compared to travel by road.
Laos Constructs Railway Vocational Technical College
September 29, 2021
Laos constructs railway vocational college (Photo: Vientiane Times)
Construction of a Railway Vocational Technical College has begun in Vientiane Capital that will produce graduates to work in the railway sector.
According to a report by Vientiane Times, the Lao Railway Vocational Technical College project, designed and constructed by China, includes the construction of school facilities and student dorms, as well as providing practical training for Lao students in China.
Located in Borkham Village, Xaythany District, Vientiane Capital, the college will be the first of its kind in Laos and is being constructed on over 14 hectares of land.
As part of the preparations for the new Lao railway college, the Ministry of Education and Sports has dispatched more than 30 instructors to China for training, according to Vientiane Times.
“One kilometer of the railway will require 15 people, including engineers and technicians for internal services and computers,” Deputy Minister of Education and Sports, Dr. Kongsy Sengmany was quoted as saying to Lao media.
The new college will offer six courses and enroll around 300 students each year when it opens. Courses will include train driving, station services, and electrical repairs and maintenance, among other aspects of railway machinery functioning.
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