realistically there was no other way it was going to get built

This is satire, right?

The situation in Laos is the same as in all so-called ‘partner’ countries of China’s BRI, the Belt and Road Initiative: Laos is suffering under a huge debt burden while the benefits of these investments are unevenly spread in favor of China.

The report clearly says that:

Laos owes more than half of its public debt to China … The International Monetary Fund (IMF) estimates Laos’ total debt to be 118 per cent of its 2025 gross domestic product (GDP), and projects it to reach 127 per cent by 2029 [this means the debt/GDP ratio has doubled since 2018]

The article continues:

A large amount of the debt incurred … went into a major expansion in hydropower to serve the domestic energy market, not for export. This has resulted in more electricity being produced than domestic demand can absorb, with excess overcapacity now being explored for cryptocurrency mining.

We must stress that overcapacity is a strong feature of Chinese investments, at home and abroad.

In additon, we must stress that Laos’ ambition has been to become the “battery of Southeast Asia” by selling electricity to boost foreign earnings. This was a major - maybe even the - reason why the countries attracted Chinese investments back then. But China has other plans, and they don’t want independent partners. Now Laos is stuck.

The result has been major financial losses for [Laos] state-owned utility Electricite du Laos (EDL), which was the subject of a US$555 million lawsuit by a subsidiary of PowerChina […] in March over unpaid dues. EDL had already ceded majority control of its transmission unit to the state-owned China Southern Power Grid in 2020 over mounting debt and Laos’ strained public finances.

As a result:

The Lao economy is now almost entirely dependent on debt deferrals from China to prevent it from plunging into default like Sri Lanka or Zambia.

Like Sri Lanka and Zambia, the Laos government was seduced by futuristic infrastructure and the promise of low-interest loans with seemingly few strings attached.

This. It’s the same story everywhere. These low-interest loans come with a lot of strings attached, especially with opaque clauses, collateral demands that are curbing Laos and other countries’ ability to manage their finances, which helps China also to shape domestic politics of Laos and other countries as well as increase pressure in international bodies such as the United Nations where Beijing can pressure indebted countries to vote in favor of the Chinese Communist Party.

Undoubtedly, the cost is high. More than half of Laos’ revenues go towards servicing debt, money that could otherwise be spent on healthcare and education. Increasing numbers of young Laotians are eschewing university, leaving for menial jobs in factories and farms in Thailand and South Korea which pay more than typical starting graduate salaries at home.

We must also note that thousands of families have been displaced to build the railway, and many other reports in recent years have been saying that many displaced weren’t fairly compensated. These and other Laotians suffer for China.

While most Laotians are not fully aware of the poor state of the country’s finances, Mr Phouthasone said the LCR had not improved the lives of ordinary workers, himself included, who are hard hit by the devalued kip.

[Edit to insert the link.]