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People who gave up their land for construction of the 450 Year Road in Vientiane will get additional financial compensation, according to the capital's mayor.

But the former landowners will lose the right to repurchase the developed land along either side of the 20km road from Dongdok junction in Xaythany district to Thadeua Road in Hadxaifong district.

The government believes land occupation by individuals would delay development of the land for commercial and industrial purposes.

Vientiane authorities borrowed about US$65 million from the Bank of the Lao PDR to build the 33m wide road last year. They plan to sell the developed land along both sides of the road to individuals and businesses to recoup the cost of road construction and boost development in the area.

Vientiane Mayor Sombath Yialiher said last week the capital's authorities had agreed to increase compensation for the land occupiers who were supposed to return the land to the government for construction of the road.

The latest move is one of the measures to provide incentives for people who will be adversely affected by development to cooperate with the authorities, so construction of the road will be completed on time.

The compensation fee was based on the price of land in the area before road building began. Officials said land in the area was valued at about 20,000 kip per square metre because the area was farmland without road access or other facilities. They said the price of land in the area would have remained low if no development had taken place.

Vientiane authorities want to build the 450 Year Road as a monument to mark Vientiane 's 450th anniversary as the Lao capital at the end of this year.

Vientiane Land Manage-ment Authority Director, Mr Sounthone Silaphet, said the officials responsible for the project were drafting legal documents to enable them to revoke the land use rights of the people who owned land in the project area.

He also said officials expected payment of compensation would start in the near future and would be finished by April. “We are conducting a land compensation pilot project in Xaythany district,” he told the Vientiane Times on Friday.

Land officials said the Vientiane authorities had changed their minds about ownership of the land 50 metres along either side of the 450 Year Road after realising that occupation of the land by its former owners would hamper development.

They believe most of the former landowners would not invest to develop the land but would instead wait to sell it at a higher price.

The officials said companies would be allowed to develop the land for commercial and industrial use in accordance with the city's urban development plan.

Mr Sombath said the construction of the 450 Year Road was one of several pilot protects in line with the policy of the Lao People's Revolutionary Party to turn land into capital.

The policy had been made to realise the country's real estate potential.

He said the new road was necessary to reduce traffic congestion in the capital as the number of vehicles on the roads increased.

Vehicles entering Vientiane from the north will no longer need to travel through the city to reach the Vientiane-Nong Khai Friendship Bridge but will be able to bypass it using the 450 Year Road.

Mr Sombath urged local residents to cooperate with the Vientiane authorities in the road's construction as part of activities to celebrate the capital's 450th anniversary.

 

By Ekaphone Phouthonesy
(Latest Update March 1 , 2010)