Vientiane (VNA) – Laos has signed a memorandum of understanding (MoU) with a Malaysian group to accelerate the construction of a 3 billion USD express railway running from Savannakhet province to a border gate with Vietnam.

Under the MoU inked on November 10, Malaysia ’s Giant Group will conduct surveys prior to carrying out a feasibility study to submit to the Lao government in two years time.

The 220km-long railway section is designed to depart from Kaysone Phomvihan district, Sannavakhet province, and to end at the Lao Bao bordergate, in the central Vietnamese province of Quang Tri, via the Sava-Seno special economic zone.

The railway section, the Lao government’s prioritised project, is expected to play an important role in the country’s economic development.

Previously, the Lao government signed an agreement regarding a smaller railway project with Japanese investors.-Enditem