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A major Chinese investment that will see That Luang wetland and surrounds developed into a new urban centre is still going ahead, according to senior Vientiane officials.

Vientiane Integrated Development Project Director, Mr Sihoun Sithileuxay made the confirmation yesterday to play down widespread speculation that the investor had withdrawn from the US$1.1 billion “new town” development project at the wetland.

“The new town project at That Luang wetland and the construction of the National Sports Stadium are inseparable,” he told Vientiane Times after attending a seminar on That Luang Wetland Management at Lao Plaza Hotel in Vientiane .

At the end of last year, the Food and Agriculture Organisation (FAO) proposed the preservation of 20 square km of That Luang wetland, with the stated aims of protecting existing hydrology, fauna and flora, livelihoods as well as the cultural and historical values of the area.

The proposal and debate around it has raised questions among the public regarding whether the planned investment and project had been cancelled.

There has also been little visible evidence that the construction will start soon.

Mr Sihoun said the Vientiane Administration had completed demarcation of 670 hectares for the project,

He said the government was in discussion with investors on the acquisition of funds to compensate people who have to leave the project area.

Once the two sides can conclude discussions, the new town development project will move forward to the next phase, he said.

“We can not say exactly when the two sides will complete their discussions on the issue,” he said, adding that compensation will cost more than US$100 million (more than 847 billion kip).

Another official responsible for the planned new town project, Mr Saythavy Nhaengvannavong, said the Lao government would not change its mind regarding the development of the That Luang wetland area, as the agreement had been made by the two sides.

However, he was unable to confirm when construction would begin.

He said the China Development Bank would provide funds of about US$1.1 billion for Chinese companies to develop the new town, which will include schools, hotels, a hospital, shopping centre and some light industry.

Lao government also will provide 100 hectares of land in Dongphosy area and 430 hectares at Km 18 for the Chinese companies to develop the new urban centre.

The policy of the Lao government is to be active in mobilising investment into the country to secure continuation of economic growth and provide sufficient jobs and income for the nation's growing population.

 

By Times Reporters
(Latest Update January 27, 2010)