November 21, 2010
(KPL) A comprehensive development project of Vientiane Capital, a joint venture between the Lao and Chinese governments to develop an industrial area, inaugurated last week. A ground-breaking ceremony of the comprehensive development project and the launch of the Lao-Chinese Joint Investment Company were held in Vientiane Capital on 18 November. Taking part in the event were Standing Deputy Prime Minister Somsavat Lengsavad, Vientiane Mayor Sombath Yialiheu and a high-ranking delegation of southwest China’s Yunnan province, and other senior officials of both sides.
At the ceremony, Vice Vientiane Mayor Bounchanh Sinthavong who is also supervisor of the project, briefed on the output implementation of the comprehensive development project, which is the most significant project for the development of Vientiane town. This project was relative to the construction of the SEA Games stadium (KM16) in 2009. An agreement on the project was signed by representatives of the Ministry of Planning and Investment representing the Lao Government and of the Chinese Development Bank in 2006. Under the document, the two sides have established a Lao-Chinese joint investment company to execute the comprehensive development project on an area of 1,000 ha.
A committee in charge of the project was set up in 2008 with the representation of members of the Foreign Investment Company of Yunnan province and Vientiane Capital. The project is located at Nano village, Km-21 industrial zone, Saysettha district, Vientiane Capital. Another objective of the project is to make a joint investment in the construction of this comprehensive development project on 1,000 ha, in which 58 per cent of the project total area covers KM 21 industrial zone and 42 per cent of the nearby area. This project is to develop an industrial zone in Vientiane Capital which comprises processing industries, agricultural production and light industries for export.
Nearby the industrial zone will also spring up model houses in green area and other facilities. The facilities that will be built up include model rice mills with a production capacity of 500,000 tonnes per year. In the first phase, the rice mill will have an installed capacity of 200,000 tonnes yearly. In the joint venture, the Lao Government is entitled to land use on 1,000 ha, which is based on the value of land compensations and other building structures whose value does not exceed US$30 million. The Lao Government holds 25 per cent in the venture, while the Chinese side holds 75 per cent of shares, which are offset by the US$98-million investment in the earlier construction of the SEA Games stadium. The construction project with a total investment of US$120 million will take eight years.