Tha Ngone Bridge Project

cancelled

In 1992, the Government of Lao PDR granted a 15-year BOT contract to build and operate a vehicular bridge across the Nam Ngum River at Tha Ngone to a joint venture between Australina Transfield Holdings and the government. The project was a 200 meter steel box girder bridge to be a more cost effective and time efficient solution than the existing ferry. It was located on a major arterial route about 25 km outside Vientiane, Laos capital. Financing was arranged by Transfield on behalf of the joint venture company from a Laos bank on a project finance basis with some co-finance being provided by an Australian financial institution. Construction commenced in October 1993, and the bridge opened to traffic in July 1994. The project, which submitted by Transfield Holdings as an unsolicited proposal, had exclusive rights and, therefore, the ferry had to stop operating. The traffic volume was much lower than the expected by sponsors. Fewer logging trucks were crossing the bridge and many motorists were willing to take longer alternative routes to avoid paying tolls. Tolls increased to a point they doubled the cost of ferry. Such toll created many complaints for Laos government, which decided to exercise its option to buy out Transfield's share in bridge at a pre-agreed price in 1995. None None