Laos 'not concerned' about debt from China's Belt and Road

Prime minister downplays fiscal risk from $5.8bn high-speed rail project

20180612 Laos Prime Minister Thongloun Sisoulith

Laos Prime Minister Thongloun Sisoulith speaks about his country's efforts to go from "landlocked" to "land-linked" at the Future of Asia in Tokyo on June 12. (Photo by Maho Obata) 

SHOTARO TANI, Nikkei staff writer

TOKYO -- Laos is unconcerned about the potential debt burden from a Chinese-led high-speed rail project, its prime minister said on Tuesday, describing the terms of the construction agreement as "favorable" to one of Southeast Asia's poorest countries.

The high-speed rail link, begun in 2016 as part of China's Belt and Road initiative, will connect Kunming in southern China and the Laotian capital of Vientiane, stretching through other Southeast Asian countries all the way to Singapore.

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