The government is preparing regulations on the use of land located along the 450 Year Road in Vientiane, according to a senior official from the central bank.
Bank of the Lao PDR Office Head Mr O Vilaphanh told Vientiane Times on Tuesday the bank had provided a loan of about US$80 million to Vientiane authorities to cover the cost of building the road.
The six-lane road linking the Don gdok area to the Lao-Thai Friendship Bridge in Dongphousy village, Hadxaifong district, opened for public use in November 2010 in the lead-up to the 450th anniversary of Vientiane as the nation’s capital.
The 20.3km road was part of the government’s policy to convert land into capital by reserving 50m of land on either side of the road for sale, to cover the cost of construction.
Vientiane authorities purchased land along both sides of the road from local residents and set it aside for sale to businesses upon completion of the road.
Authorities used the land titles, which cover an area of about 1.8 million square metres, as a guarantee for the loan it obtained from the central bank.
Mr O Vilaphanh said authorities have calculated the price of land along the road required to recoup construction costs as US$44.6 per square metre. This price means the project would break even.
He explained that businesses will be required to bid for land along the road and the price will start from US$44.6 per square metre.
As yet no commercial projects are operating along the road. The authorities are currently identifying commercial zones and discussing regulations regarding the use of land along the road.
A committee comprising officials from sectors such as urban planning, land management and commerce and industry, has been set up to discuss commercial zoning and regulations but the considerations have not progressed as anticipated.
“Many entrepreneurs are interested in investing in the area, but they can’t do so yet as we have to issue regulations on the commercial zone,” Mr O said. He could not give a timeframe for when commercial projects could get underway, saying it depends on the progress of the committee’s discussions.
The 450 Year Road is one of 21 focal projects that were undertaken to mark the capital’s anniversary and to reduce traffic congestion in Vientiane. The new road cuts 7km off the existing journey between Dongdok and the Lao-Thai Friendship Bridge. Motorists can save time and money by using the road, which enables them to bypass the capital’s urban centre.
Construction of the concrete road began in 2008.
The road’s surface is 33m wide and 23cm thick. It was initially planned to have four lanes paved with asphalt but after the SEA Games in December 2009, authorities decided to repave the road with concrete, for a longer lasting surface.
