The government has cancelled a plan to provide land at That Luang marsh for a Chinese company to develop a new urban area due to high compensation cost and concerns over adverse environmental and cultural impacts, according to officials.
Instead, about 1,000 hectares of land near the National Sports Stadium at Km16 will be set aside for the project, an area that is less densely populated and does not contain any valuable heritage sites, they said.
Deputy Director of the Vientiane Integrated Development Project, Mr Somphone Khounvilom confirmed the government's decision yesterday, adding that the new town at Km 16 will consist of residential, commercial and industrial buildings.
The wetland is not only a rice cultivation area but also plays an important role in storing water after heavy rains and preventing floods in the city during the wet season, he said. The area also contains remnants of an ancient wall that once surrounded Vientiane.
The total cost of compensation for people who currently occupy the land at That Luang marsh is more than US$100 million, making the investment project impossible, the officials said.
Although the government insisted That Luang wetland belongs to the state, people who had built residential and commercial buildings in the area demanded high compensation from the government if they were forced to move, they said.
The Lao government initiated the “new town” project a few years ago after agreeing with Chinese authorities to provide land for the project in return for assistance to construct a sports stadium. The stadium was built for the 25th SEA Games, which were held Vientiane at the end of 2009.
Under the agreement, the Lao government provided land at Km16 for a Chinese investor to build the National Sports Stadium, and at That Luang to build a new urban area. The Chinese investor completed construction of the stadium but has been unable to develop the “new town” because the government failed to provide land at That Luang wetland after facing strong public criticism about the project.
Mr Somphone said that after careful study and consideration the government had decided to relocate the project in order to protect and preserve the That Luang wetland.
The World Food Organisation has been an active advocate of conserving the marsh because of its importance both environmentally and as source of food for local residents.
China has expressed an interest in helping the government develop the wetland as a cultural tourism site through a pilot cooperation development project between the two countries.
By Ekaphone Phouthonesy
(Latest Update July 21, 2010)
Author
Topic: Development of That Luang marsh cancelled (Read 679 times)
