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Lao-Chinese joint venture to develop Vientiane's Don Chan Island
Lao and Chinese companies will spend US$180 million to develop 25 hectares of land in the south of Don Chan Island in Sisattanak district of Vientiane into a modern urban area.
A contract signing ceremony for the development concession was held in Vientiane on Sunday between Vientiane authorities and the selected developer, CAMCE Investment (Lao) Company Limited, a joint venture between Lao and Chinese companies.
Director of the Vientiane Department of Planning and Investment Mr Visay Chavanhna represented Vientiane authorities to sign the contract with Chairman of the CAMCE Investment (Lao) Company Limited Ms. Luo Yan.
The event was witnessed by representatives of the business community and high-ranking officials from Laos and China, including Lao Minister of Planning and Investment Dr Sinlavong Khoutphaythoune, and Chinese Ambassador to Laos Ms. Bujianguo.
The agreement allows the company to develop the 25 hectares within a concession period of 50 years, which can be extended for another 40 years.
The proposed project will be an integrated mixed-use development containing residential housing, offices, a shopping centre, hotel, sports and entertainment complex, international school and medical centre. It will create a focal point along the Mekong River for both work and recreation.
The project will be divided into three phases. The company is expected to spend US$30 million in the first phase, US$100 million in the second phase and US$50 million in the third phase.
A cluster of 50 villas and conference facilities will be included in the first phase for use by heads of states and governments attending the Asia Europe Meeting (ASEM) to be held in Vientiane in November next year.
CAMCE Investment (Lao) Company Limited is a joint venture between Lao and Chinese companies that have already conducted several projects in Laos.
Mr. Visay said Vientiane authorities have allowed the company to develop the island based on a recommendation from the government.
“As we are aware, Laos will host the ASEM in 2012 so it is necessary to build facilities to accommodate country leaders. The development will include 50 villas and other facilities for the meeting.”
Ms. Luo Yan promised that the first phase will be completed before the meeting late next year.
She said her company came to Laos in 1996, and has since carried out several projects through the use of low-interest loans from the Chinese government.
The company will be in charge of compensating villagers affected by the project in cooperation with Vientiane authorities.
Of the island's 36 hectares, five will be allocated to affected villagers to enable them to continue their livelihoods.
The government has assigned local authorities to work closely with villagers to calculate the amount of compensation for each villager based on their proposals.
Some 163 households are thought to have land on the island, with some villagers having lived there for more than a decade without land titles and others having bought land plots from villagers despite them not having land titles.
Authorities have allocated 40m by 40m land plots for affected families in the Dongbanxay area of Xaythany district, about 18km from the city centre.
vientiane times
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