Lao officials have started the process of defining the area of Bung That Luang or That Luang marshland that has been promised to a Chinese company to develop into a new residential area and business center of the capital city. The process began in early April and is expected to be finished by the end of the month.
The 1,000-hectare area has been granted to a Chinese company on a 50-year concession in exchange for a new stadium and sports facilities that Chinese companies are building, at an expected cost of around 80 million dollars, for Laos to use when it hosts the 25th SEA Games in late 2009. An adjacent area of 600 hectares has also been granted and will be developed into a new water and recreation park. The total cost of both developments is expected to be around 800 million dollars.
The Lao government has said it will provide fair and adequate compensations to all property owners in the That Luang marshland area.
Mr. Somsavath Lengsavad, Laos' Standing Deputy Prime Minister said that, in return, Laos will be given a 5% share in the 800 million-dollar investment. In addition, Laos can buy more shares if it has enough money and at the end of the concession period, ownership of the project will be transferred to Laos.
Listen to our Laos Today for more details in Lao.