VIENTIANE, Sept. 16 (Xinhua) -- Twenty Lao companies will be selected as sub-contractors for construction work on the Laos-China railway, Lao daily Vientiane Times reported on Friday.
"These companies must be sub-contracted by Chinese companies, who will supervise their work and provide technical assistance to ensure high quality workmanship," said the report.
Director of the Laos-China Railway construction project and Director of the Lao National Railway Company, Koung Souk-Aloun, told media on Thursday, "We will try to ensure that this multi-billion project benefits local companies as well."
"The tasks that require very high technology, such as drilling tunnels, will of course need to be given to Chinese companies. But work that involves soil levelling, concrete and other processes that do not require advanced technology can be granted to Lao companies," he added.
Lao authorities are committed to working with the Chinese to ensure that work that can be undertaken by Lao companies will be allocated to them, according to the report.
Deputy Minister of Public Works and Transport, Lattanamany Khounnivong, told a meeting held at Lao People's Revolutionary Party Central Committee Office in Lao capital Vientiane last month that the railway will entail the use of sophisticated technologies.
This includes work related to tunnels, bridges, communication systems, and railroad track construction. The Lao Construction Association had put forward the names of 75 Lao companies for selection as sub-contractors, but only 20 were chosen.
"Agreement signings with six Chinese construction companies and six consultancy firms will be finalized next month, which will pave the way for the start of construction in December," said the report.
China has agreed to pursue agreements signed between the governments of both nations in which Lao companies will contribute to the supply of construction materials, machinery, labor, and food.
The two sides have agreed to set up a joint venture company to oversee the project with Laos holding 30 percent of the project share and China being responsible for the remainder, according to the report.
The Lao government has highlighted the significance of the railway in transforming Laos from a landlocked country to a land link and attracting more foreign investment and tourists to the country.
The railroad will also serve to boost production in Laos, both for export and to spur economic growth in general.
The planned single track Laos-China railway with a 1.435-metre standard-gauge rail network would have 33 stations, of which 21 would be operational initially, according to Lao Ministry of Public Works and Transport.
There will be 72 tunnels with a total length of 183.9 km, representing 43 percent of the project's total length. The line will also have 170 bridges of 69.2 km, accounting for 15.8 percent.
Passenger trains will travel at a speed of 160 km per hour, while the speed of rail freight will be 120 km per hour.
The railway in Laos will link with the track in Thailand to form part of the regional rail link known as the Kunming-Singapore railway, covering a total distance of some 3,000 km.
