Malaysia’s Giant Consolidated to undertake US$5bil Laos rail project
Malaysian company Giant Consolidated Ltd (GCL), which has been awarded a 50-year concession to construct and operate a 220km electrified double track railway in Laos.
The company is expected to invest US$5 billion (RM15 billion) on the rail project over 10 years, which will eventually link Savannakhet in the west to Lao Bao in the eastern part of Laos that borders Vietnam in 2017.
The project will open up land travel in land-locked Laos that is expected to boost economic activities for the country.
GCL Director Tock Min Kin said the company has been awarded a 50-year concession to construct and operate the railway project which would connect Savannakhet in the west to Lao Bao in the eastern part of Laos that borders Vietnam.
The Memorandum of Understanding (MoU) to build, operate and transfer the electrified double track railway was inked in 2008, which will also involve the construction of four main stations, seven general stations, a maintenance yard and a training centre.
The Master agreement was signed in Vientiane yesterday witnessed by Prime Minister Datuk Seri Najib Tun Razak and his Laotian counterpart Thongsing Thammavong.
GCL Director, Tock Min Kin, who is also the Chairman of TMK Holdings Sdn Bhd, the main contractor for the project, said with the signing of the master agreement, the company would be ready to commence work.
LaoGiant Rail Company Ltd in which the Laotian government would be allocated a 10% equity, would be established to manage the 50-year concession, he said.
Tock said he and GCL President and Chief Executive Officer, Mohd Fadzwi Hamidun and their Laotian partners Dr Aixinjueluo Yuhao and Bounmy Thepphavong of Asia Economic and Trade Cooperation Council (AETCC) had worked hard to realise the rail project in view of the huge potential in accelerating economic activities in the republic.Adapted from StarBiz 6 Nov 2012
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