AWR Lloyd advises PTL on Joint Venture with DEOCA Group for the Laos-Vietnam Railway Project
Petroleum Trading Lao Public Company (‘PTL’) and DEOCA Group Joint Stock Company (‘DEOCA Group’) have signed a Joint Venture Agreement for the Laos-Vietnam Railway Project (‘LVRP’). AWR Lloyd is Project Advisor to PTL in relation to the project development and project finance of LVRP. AWR Lloyd assisted in the origination and development of the joint venture with DEOCA Group.
This transformational project aims to strengthen the two countries’ bilateral relations, further secure regional stability and provide Laos historic access to its own seaport granting the land-locked nation the ability to independently reach international markets. The two conglomerates will partner to complete the line from the Thakhaek district in the Khammuan province of Laos to a seaport in the Ha Tinh province, stretching a total distance of approximately 250 kilometers. Once complete, the line will marry the Vientiane Logistics Park spanning across 382 hectares in Laos’ capital city to a seaport in northern Vietnam, fully unlocking the west-east and north-east trading channels in the Greater Mekong Subregion.
The Department of Railways, Ministry of Public Works and Transport of Laos has issued a certificate of approval for feasibility studies, and Vietnam’s Transport Engineering Design Inc. is currently carrying out a pre-feasibility study on the Vietnamese side of the border. The project aims for LVRP to be fully operational in phases, starting from the first quarter of 2027.
At the signing ceremony on 27th February 2023, the President of the Petroleum Trading Lao Public (PTL) Company, Mr. Chanthone Sitthixay, made the following comments: “The construction of the Laos-Vietnam Railway is essentially the implementation of the connectivity initiative of the Party and government to achieve the vision of the Lao government and the country’s development strategy for the transformation of Laos from a land-locked to a land-linked country”.
Chairman of the Board of Directors of the DEOCA Group Joint Stock Company, Mr Ho Minh Hoang echoed this sentiment and added “Of course, numerous challenges, obstacles and problems lie ahead, but fortunately the continuing support from the governments of Laos and Vietnam will enable us to achieve our goals”.
About AWR Lloyd
AWR Lloyd has a 23-year track record providing project finance, M&A advisory and strategy consulting services to clients across the Indo-Pacific region from the Middle East, through South Asia to Southeast Asia. The firm is ranked by Vault as No.1 out of all consulting firms in the Asia-Pacific region in 2023 for Women and for Ethnic & Racial Diversity.
About DEOCA Group Joint Stock Company
DEOCA Group is a leading investment and transport infrastructure construction firm based in Vietnam. As a trusted developer for the Government of Vietnam, the firm has completed many national, government contracted projects across the country. Over the past decade the firm has built over 22km of tunnels, 300km of expressways and national roads, 6 major bridges and 15 toll stations.
About Petroleum Trading Lao Public Company
PTL Holding is an investment holding company headquartered in Lao PDR. The group has almost 30 years of experience operating in five key sectors, including trade and distribution of consumer goods, manufacturing of electronic items, logistics, fuel, and integrated infrastructure. Through its subsidiary, the group operates the IFC supported project, the Vientiane Logistics Park.