China Railway signs US$ 1.2 billion deal for Laos rail link
By Mike Hayes13 September 2016
China Railway Group (CRG) has signed a RMB 8.1 billion (US$ 1.2 billion) agreement to build the first three sections of the Boten-Vientiane Railway Project.
When completed the 414 km line will run from Boten, on Laos’ northern border with China, to the country’s capital, Vientiane, on the border with Thailand in the south.
The 60-month project will be undertaken by three subsidiaries of CRG; it follows the awarding last year of a RMB 2.3 billion (US$ 344 million) rail project in Laos, to another of its subsidiary companies.
Chenyi Lu, a senior analyst at credit rating firm Moody’s, said the deal was “credit positive,” adding, “The award demonstrates the group’s strong capabilities with cutting-edge technologies in railway, bridge and tunnel construction to win large-scale and complex projects overseas.”