MOU Signing Expressway construction project Vientiane – Pakse Section 3 Savannakhet – Salavanh
Ministry of Public Work and Transport and Joint-Parties of Phousy Construction and Development Public Company (PCD) and China State Construction Engineering Corporation Ltd (CSCEC) signed Memorandum of Understanding (MOU) on Feasibility Study of New Expressway Construction Linking Vientiane Capital to Pakse, Champasack Province, Road Section III: From Road No. 9 (Xeno Junction) Savannakhet Province to Road No.15 (Napong Junction) Salavan Province; The primary length of the project is 128 Kilometers approximately.
The Signing Ceremony was held on 26th October, 2018, at the Conference Room of Ministry of Public Work and Transport, chaired by Mr. Pheng Douangngeun, Director General of DoR, on behalf of the Project Owner with investors led by Mr. Sitha PHOMMACHIT, Managing Manager of PCD and Mr. Meng Chao, Chairman of CSCEC. It is also honored to be attended by Dr. Bounchanh Sinhthavong, Minister of Public Work and Transport, Economic attaché of China Embassy at Lao PDR, Line Directors of Departments from other relevant Ministries with their staff, Representatives from State Enterprises, Banks and other technical officers from the two companies attended the Ceremony as witnesses.
The first benefit of the Expressway Construction Project from Vientiane to Pakse is in line with the Lao National Socio-Economic Development Plan and in compliance with the One Belt One Road (OBOR) Policy of the Chinese Government. Secondly, it reduces travel time (to and from Pakse). On the National Road 13, it normally takes 8-10 hours, but the future Expressway is expected to reduce traveling time to 6-7 hours only. Thus, being efficient for business operation. In addition, the Expressway shall create a new image for the Lao PDR from being a landlocked to a landlinked country, linking it with neighboring countries, the Laos-China Railway Project and other projects.
After the completion of MOU Signing, both companies such as PCD and CSCEC as investors will conduct a Feasibility Study on Expressway project for 16 months. It is expected that the technical feasibility study report will complete in 2020 and the Concession Agreement on Expressway Construction will be signed in a form of Built Operate Transfer (BOT) Model as determined in the MOU.