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Sunday, February 24, 2008

Cambodia to restore its historic rail links

The Asian Development Bank (ADB) and the Royal Government of Cambodia will be working together to restore around 600 kilometres of rail track between Thailand and Cambodia over the next two 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 at a ceremony in Sisophon, Cambodia. “Soon, trains will be running from Singapore to Sihanoukville.”

Another 48 kilometres of track near the Thai border will also be restored under the initiative.

Cambodia’s railway rehabilitation project will be funded by a $42 million concessional loan from the ADB. The authority will also appoint an international railway operator to operate, maintain and invest in the railway over the next 30 years.

The upgrade will not only revitalise Cambodia’s railways, but also enhance trade through reduced transport costs. The railway will also help ease traffic on Cambodia’s roads.

The project forms a vital component of the Greater Mekong Subregion’s southern corridor which links Thailand, Cambodia and Vietnam.

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