A transnational railway linking China and Singapore is set to be constructed.
The construction of the segment in Laos will start in November.
The Laos section, over 400 kilometers long, will take 5 years to complete and cost around 7 billion U.S. dollars.
The Lao National Railway Enterprise will joint venture with the Chinese companies to develop, manage and operate the project.
Meantime, governments of China and Laos have agreed to directly contribute 40 percent of the total investment for the project.
Enterprises of both countries will source the remaining 60 percent.
The project will form part of a single rail network connecting Kunming, capital of China’s Yunnan Province, and Singapore, via Laos, Thailand and Malaysia.
It has been designed to boost regional trade in goods and services as part of the “One Belt, One Road” initiative.