VIENTIANE, April 30 (Xinhua) -- Lao President Bounnhang Vorachit has issued a presidential ordinance promulgating the new Law on Railways, which provides guidance on railway development, local media reported on Tuesday.
The 50-page law defines principles, regulations and measures to manage, follow up and inspect railway affairs. These are aimed at ensuring the effectiveness, efficiency, modernization, sustainability and environment-friendly development of railways, local daily Vientiane Times reported.
The objective is to make sure that railway operations and transport are convenient, safe and fast, and that Laos' railway network and services can integrate with regional and global networks smoothly.
According to Article 4 of the law, Laos encourages local and foreign individual investors, legal entities and organizations to invest in its railway infrastructure development and transport in various ways, such as public-private partnerships, and concessions.
The state encourages railway operators to benefit from various policies in line with the country's laws, which facilitate access to financing to enable operators to strengthen their business operations. It also supports human resource development, research, and the use of modern science and technology in railway operations, the report said.
The Lao government attaches great importance to the development and operation of a railway network as this will drive efforts to transform Laos from a landlocked country into a regional land link, and provide easier access to sea trade routes, it added.
The construction of the 414-km Laos-China railway connecting Lao capital Vientiane to the Lao-Chinese border is now more than 60 percent complete, with full completion slated for the end of 2021.
The Lao government also has plans to build several other railways to create links to neighbor countries. The new Law on Railways will provide legally binding guidance for the pursuit of these ambitions.
The law specifies the steps that developers are obliged to fulfill, including carrying out a feasibility study, a survey, drawing up plans, and rehabilitation and repair plans. Under Article 41, compensation for property that has been appropriated by a railway project must be disbursed before the land is given to a developer. The compensation process must also ensure that displaced households enjoy better living standards than before, and that compensation must be awarded in a fair and transparent manner.
The law also defines principles and regulations for the management of railway services including passenger and freight transport, as well as logistics services.
