Rising petrol price hits third Mekong Bridge construction

The construction cost of the third Lao-Thai Friendship Mekong River Bridge Construction Project between Khammouane province of Laos and Nakhon Phanom province of Thailand will soar due to the rising price of petrol.

About 1.4 billion baht is available for the construction. The cost might increase to 1.9 billion baht due to the higher price of construction materials.

The Third Lao-Thai Friendship Mekong River Bridge Construction Project has been temporarily suspended because the price of construction materials has fluctuated as a result of the rising prices of oil and food prices; as well as labour cost, said local authority.

After the completion of the Second Lao-Thai Friendship Mekong River Bridge in Savannakhet province, the Lao and Thai governments decided to build a third bridge, the Third Lao-Thai Friendship Mekong River Bridge Construction Project.

It will connect Veuntay village, Khammouane province, Laos with Hom village, Nakhon Phanom province of Thailand. But the construction cost was set at 1.4 billion baht.

On this issue, Lao and Thai officials concerned need to inform the Thai government of the situation. According to their estimate, the construction cost will rise from 1.4 billion baht to 1.9 billion baht.

According to the Vientiane Steel Factory and the Lao Cement company, the price of steel increases from 8 million kip in 2007 to 11.7 million kip per tonne in 2008. Meanwhile the cost of cement also increases from 650,000 kip in 2007 to 850,000 kip per tonne in 2008.

Mr Nongsavanh Thammavong, Deputy-Director of the Third Lao-Thai Friendship Mekong River Bridge Construction Project in Khammouane province told KPL News yesterday that the survey and design of the third bridge was completed in early 2008 and the construction work should commence soon. However, because of the sudden increase in the prices, the project might be delayed for two months, he said.

He also added that after the announcement of the tender, many Thai construction firms bought the tender envelopes and submitted them but they would not open them because of the economic situation.

According to the timetable, the construction work should have commenced in September 2008 and will be over in 2011.

"If the Thai government agreed with the new estimate of 1.9 billion baht the project will start at the end of December 2008. This proposal is now considered reasonably", he said. Last year, the Thai government agreed to invest 1.4 billion baht in this project.

If the bridge, 780 metres long and 7 metres wide, is completed it would increase more opportunities in trade, investment, tourism and transport between Laos, Thailand and Vietnam since it will link the communication and transport between this central province with Vientiane capital, Vietnam to the east, and southern Laos.