Author Topic: Laos merely a bystander as China pushes Belt and Road ambitions  (Read 1635 times)

adroth

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Laos merely a bystander as China pushes Belt and Road ambitions

Costly China-led railway project offers questionable benefits to host
MARIMI KISHIMOTO, Nikkei staff writer
October 06, 2017 11:45 JST

https://asia.nikkei.com/Economy/Laos-merely-a-bystander-as-China-pushes-Belt-and-Road-ambitions

LUANG PRABANG, Laos -- An ambitious $6 billion high-speed railway project in Laos that would link China with the Laotian capital of Vientiane on the Thai border is meant to be a symbol of cooperation under Chinese President Xi Jinping's flagship Belt and Road Initiative. But with Beijing calling the shots and leaving out locals, it has instead become another example of the pitfalls faced by small Southeast Asian countries in relying economically on their much larger neighbor.

Situated about a 20-minute drive from this ancient former capital of Laos is a construction site that could be described as a little China. Workers' conversation is all in Chinese, as is an instruction manual for heavy machinery resting on a drum. No one at the site, not even the foreman, can speak the local language.

One worker, asked where he hailed from, curtly replied "China," adding that he was there only because his boss told him to go.

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Initial estimates indicated that building the railway would require 100,000 workers. For Laos, which lacks much notable industry aside from exporting hydroelectric power and mining such resources as copper and bauxite, this seemed like a golden opportunity to spur new activity and create jobs.

But these hopes have been dashed. All of the construction work was handed off to China Railway Group, and Chinese engineers and laborers have descended on the country in droves.

Not even the Laotian government is clear on the exact number of Chinese workers in the country. "We want to use local labor as much as possible, but ... " lamented Lattanamany Khounnyvong, vice minister of public works and transport, whose purview includes the rail project.

Lattanamany was alluding to the massive leverage held by China, which is shouldering 70% of the cost of the project. With no experience with railway construction, Laos "has no choice but to depend on China" for technology and personnel, Lattanamany said.

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Because of the country's mountainous terrain and many rivers, the project entails building dozens of tunnels and some 170 bridges. The total cost is nearly twice the Laotian government's $3.6 billion annual budget. How necessary the railway is for a country with a population of just 6.9 million is debatable.

The government is responsible for 40% of Laos' share of the costs, or $730 million. It is borrowing 65% of this sum from China -- a debt that will be burdensome to repay.

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The railway will enable Luang Prabang residents to reach Vientiane, now a day's travel away by bus, in two to three hours. And the direct link to China has the potential to transform how goods and people travel.

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adroth

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Re: Laos merely a bystander as China pushes Belt and Road ambitions
« Reply #1 on: December 14, 2019, 04:06:46 PM »
China-Laos railway rail-welding yard put into operation
Source: Xinhua| 2019-12-03 10:04:10|Editor: huaxia

http://www.xinhuanet.com/english/2019-12/03/c_138601711.htm

VIENTIANE, Dec. 2 (Xinhua) -- On the 44th anniversary of the funding of the Lao People's Democratic Republic on Dec. 2, 2019, the China Railway No.2 Engineering Group (CREC-2) has welded the first 500-meter-long rail for the China-Laos railway project in Lao capital Vientiane.

The rail, which is to be installed along the seamless China-Laos railway, is also the first long railway rail in the history of Lao transportation, of southeastern Asian transportation and is also the longest one in Asia so far, except in China.

The success of the welding also marked that the welding base for the China-Laos railway project was formally put into operation, laying a solid foundation for the railing of the China-Laos Railway.

Donchinda Sihalth, the executive deputy general manager of the Laos-China Railway Co., Ltd., which is responsible for the construction and operation of the China-Laos railway, said at the first welding ceremony that the Lao national day witnessing the success of the first long track's welding is worth of the warmest congratulations from the company, and from the Lao people.

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The CREC-2 rail-welding yard, with a range of around nine hectares, is to weld all the rails, welding every 20 25-meter-long rail sections into one 500-meter-long rail, for the China-Laos railway.

Hu Bin, the manager of the CREC-2 rail-welding yard, said to Xinhua "Since the groundbreaking on May 16, staff at the rail-welding yard's construction have overcome the difficulties and delays triggered by the long rainy season. We have been working day and night, and have completed the construction of the yard, equipment installation and commissioning on schedule, as to to ensure the smooth progresses of production."

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The project started in December 2016 and is scheduled to be completed and opened to traffic in December 2021.


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A worker works at the welding base for the China-Laos railway project in Vientiane, Laos, Dec. 2, 2019. (Photo by Kaikeo Saiyasane/Xinhua)





Workers work at the welding base for the China-Laos railway project in Vientiane, Laos, Dec. 2, 2019. (Photo by Kaikeo Saiyasane/Xinhua)