Tuesday, 19 February 2008

RPT Cambodia to get 42 mln usd loan to upgrade rail network - ADB

AFX News Limited

MUMBAI (Thomson Financial) - (repeats to remove extra characters from header)
The Asian Development Bank (ADB) and the government of Cambodia have launched a project to restore rail traffic between Thailand and Cambodia by 2010, by rehabilitating around 600 kilometers of track and reconstructing another 48 km near the Thai border.

The ADB will prive a 42 mln usd concessional loan for the project -- a vital component of the Greater Mekong Subregion's southern corridor which links Thailand, Cambodia and VietNam -- from its Asian Development Fund.

In addition, the ADB will provide technical assistance to Cambodia to restructure the railway by appointing an international railway operator to operate, maintain and invest in the railway over the next 30 years.

'This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing,' said ADB President Haruhiko Kuroda. Railway services in Cambodia are presently intermittent, and unofficial trolleys with bamboo floors operate along portions of the railway.

Investing in rail upgrade, maintenance, and better service delivery will help revitalize Cambodia's railways, enhance internal commerce and international trade, reduce transport costs, and ease road traffic, the international agency stated.

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