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‘Game changer’: Laos opens Chinese-built railway line against backdrop of debt concerns
- Route will connect Chinese city of Kunming to the Laotian capital Vientiane
- It’s a huge test for the mostly agricultural subsistence-based economy, which does not have a big merchant class, says academic
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Laos is set to open a US$6 billion Chinese-built railway on Friday, with debt concerns balanced against hopes it could boost the reclusive nation’s struggling economy.
The 414km (260-mile) segment took five years to construct under China’s trillion-dollar Belt and Road Initiative.
Analysts have acknowledged the potential economic boost, but have queried how infrastructure-poor Laos will pay its US$1.06 billion debt – and whether it is ready to exploit the state-of-the-art transport system.
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But Chinese foreign ministry spokesman Wang Wenbin said on Wednesday the “flagship project” would give a “boost to Laos’ strategy to convert itself from a landlocked country to a land-linked hub”.
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China-Laos railway set to open in latest advance for Beijing’s Belt and Road Initiative
China-Laos railway set to open in latest advance for Beijing’s Belt and Road Initiative
Laotian President Thongloun Sisoulith is expected to hold virtual talks with Chinese President Xi Jinping on Friday, with both expected to deliver speeches at the official opening ceremony.
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