CSG Ensures Power Supplies for New Laos-China Railway

Vientiane - On a clear November day in the jagged mountainous areas of Northern Laos, construction work for the Laos-China Railway continues to press forward.

Within two years, trains are expected to speed through these rugged areas on railways linking between China and Laos and to make this effort a 100% success, these high-speed electric railways require a reliable source of power … and an extensive power supply project spearheaded by China Southern Power Grid is not only timely but crucial for the Laos-China Railway to open on schedule.

In early November, a new joint venture, known as the Laos-China Power Investment Company, was announced during a ceremony held here in Vientiane.

The Company is jointly capitalized by CSG Yunnan International Co., Ltd. and Électricité du Laos, the state corporation of Laos that owns and operates the country's electricity generation, electricity transmission and electricity distribution assets.

The new Laos-China Power Investment Company is responsible for the investment, construction, operation and maintenance of the power supply for the Laos-China Railway.

The Laos-China Railway is slated to begin at the Mohan-Boten border gate in northern Laos and ends at Lao capital of Vientiane in the far south of the nation.

With a total length of 414 km and a design speed of 160 km/h, the Railway began construction in December 2016 and is expected to be open for traffic by the end of Year 2021. This joint venture marks the first overseas railway project mainly invested by Chinese companies and jointly operated and connected with the railways of China.

The key to the success of this new scheduled railway operation is the reliable supply of electrical power.

Earlier this year, in the presence of Chinese and Lao leaders, Mr. Meng Zhenping, Board Chairman of CSG and Mr. Boun Oum Syvanpheng, Managing Director of Électricité du Laos signed an “Shareholders Agreement between CSG and EDL on Power Supply Project for the Laos-China Railway”.

The Power Supply Project is the first BOT project for the Laos-based power grid.

The ambitious project calls for 10 new traction substations to be built and connected to the power grid in Laos; 268 km of 115-kV transmission lines will be newly built and 11 transmission line bays will be upgraded.

All projects are slated to be completed and placed into operation by the end of March 2021.

Additionally, the launch of the Laos-China Power Investment Company marks an important “first step” for the power supply railway project and lays a firm foundation for  project completion and an on-time, on-schedule and on-budget operation.

China Southern Power Grid, with its unique geographical advantages, has long been promoting the connectivity of electric power services among Lancang-Mekong countries.

Since Year 2004, with neighboring countries accumulating more than 56 billion KWH electricity trade, CSG has mitigated power shortages in northern Vietnam, Laos and Myanmar, substantially contributing to their socioeconomic growth and earning the trust of neighboring countries along this important corridor of the Belt and Road Initiative.