Chinese firm to spend US$1.5b to develop That Luang marsh
The government has given the green light for a Chinese company to develop the 365-hectare That Luang marsh area of Vientiane as a specific economic zone, to stimulate socio-economic development in Laos.
The agreement to develop the marsh was reached yesterday in Vientiane between the government and the Wan Feng Shanghai real estate company of China.
Minister to the Government Office and Vice President of the Lao National Committee for Special Economic Zones (NCSEZ) Ms Bounpheng Mounphosay and Vice Mayor of Vientiane Mr Anouphab Tounalom represented the government in signing the agreement.
The Chinese side included Wan Feng Shanghai President Mr Guo Ping Huang and company representative Mr Wei Ping Zhou. The signing was witnessed by Deputy Prime Minister and NCSEZ President Mr Somsavat Lengsavad, Chinese Ambassador to Laos Ms Bujinguo, and other high ranking officials.
Under the agreement, Wan Feng Shanghai will spend 12,000 billion kip (more than US$1.5 billion) to develop the marsh into a tourist attraction and cultural centre.
The company will create a large lagoon in the centre of the new urban area and develop infrastructure in line with the government's plan to ensure that waste water is properly drained off.
Wan Feng Shanghai will build the new zone on 303 hectares and leave 62 hectares undeveloped. The project site includes six villages in Xaysettha and Sisattanak districts - Nonvai, Meuang Noi, Nonkhor Neua, Phonthan, Phonpapao and Donekoi.
The development will include open spaces, a public park, lagoon, drainage, roads, a sports centre, and trade and service centres that contain five-star hotels, shopping centres and entertainment venues.
The project will also include a residential area and facilities that it is hoped will attract tourists to Laos.
Mr Guo Ping Huang said the company believed it would take 15 to 20 years to complete the development.
The first phase is expected to start in February next year, when some facilities will be built for the Asia-Europe Meeting Summit in November.
It is envisaged that the project will provide an exciting new feature for Laos while creating an attractive environment that everyone can enjoy.
The project will not only generate revenue for Laos and boost economic growth but will also create jobs and enable local people to ease their poverty.
Plans to turn Vientiane’s That Luang marsh into an attractive urban development envisage an area of green spaces, wetlands, a public park, new roads, residential areas, and commercial centres.
An artist's concept of the That Luang marsh developoment in central Vientiane.
A Japanese company has drawn up plans that are intended to serve as a guideline for the sustainable development of the marsh until 2030.
Government officials gathered in Vientiane on Friday to finalise the plan before submitting it to the government for approval next year.
The plan would divide That Luang marsh into five zones, covering an area of 2,200 hectares, of which 660 hectares would be dry land and the rest wetlands.
A commercial zone is planned in the vicinity of the That Luang stupa and the Lao Stock Exchange. A second zone is located near to a planned railway station and includes a residential area and trading centres.
The third zone is close to the marsh itself and includes cultural attractions and residential areas, as well as green spaces. The fourth zone is designed to be a peaceful area that features a residential area, along with commercial and government offices.
The fifth zone is an industrial zone that will be located near the Lao-Thai Friendship Bridge and also include an amusement park and residential area.
Officials told Vientiane Times the plan also incorporates 27 roads, of which three will be six-lane roads.
One of these six-lane roads will link the Phonthan T-junction through the marsh to the villages of Nonvay and Nakhuay and then join the 450 Year Road. Construction work is expected to begin soon.
Vientiane authorities estimate that total investment of at least one trillion kip will be needed to develop this a rea. It is envisaged that about 55,000 people would live in the new development.
As stipulated in the plan, the level of the marsh will be lowered by one metre by digging down to that depth. Some participants at Friday’s meeting presented plans on how canals would drain the water so as to prevent flooding in Vientiane.
That Luang marsh is considered to be the lungs of Vientiane and the sink that drains the city’s waste water. The marsh helps to prevent Vientiane from flooding, so it is essential that sound plans are drawn up for its development.
According to a 2009 survey, Vientiane covers 3,920 sq km and has a population of 795,000. Authorities believe the population will double by 2030.
The capital is already experiencing traffic problems as most offices are located in the town centre. The roads cannot be widened as they are lined with buildings.
The authorities plan to create several urban sub-centres to address these issues and make the city more liveable and ensure that facilities are accessible to local residents.
Most people agree that if That Luang marsh is developed as planned, Vientiane could be one of the most liveable and sustainable cities in the region.
