Land is being cleared for construction of the Nongtha Urban Development Project in Chanthabouly district, Vientiane, after the groundbreaking ceremony took place last year.
Vientiane residents are eager to see the progress of the development project.
The project will see the transformation of 74.85 hectares of land in the Nongtha wetland area into an urban development that has essential infrastructure, houses, and environmental protection measures, at an estimated cost of about 1,996 billion kip (US$250 million).
Due to financial issues on the part of the investor, the Ha Do Group of Vietnam, construction has been delayed until now, Chanthabouly district Deputy Governor Mr Sengphone Souvanny told Vientiane Times yesterday.
Work has just now started on building a road on land for which the group has paid compensation to the former occupiers, he said.
Most of the people who had land within the project area have agreed to compensation of US$4 per square metre, but the group is considering paying more to people who have lost both land and housing.
The Ha Do Group has paid the Lao government US$1.5 million to compensate people who have had to move out of the area.
If the cost of compensation rises above this figure, the group will pay an additional 10 percent or US$150,000.
Now that the group's finances are in order, Mr Sengphone said he believed the project would continue to make progress.
The Ha Do Group holds a 50-year concession on the site, which lies within Nongtha Tai and Neua, Dondeng, Phonsavang and Houayhong villages.
The first phase of the project will see US$80 million invested in turning the site into a modern urban area.
The project is one of many such developments taking place in Vientiane to further the overall socio-economic and residential development of the city.
According to the developers, the project will see the construction of roads, hotels, guesthouses, rental properties, restaurants and tourist facilities incorporated into a leisure park.
Vientiane residents have been waiting for this development for a long time and are keen to see how their former home will be transformed.
Several companies have investigated the possibility of developing the Nongtha area in recent years but none have actually gone ahead.
The development of the wetland into an area of premium accommodation replete with tourist facilities has long been considered a possibility due to its proximity to the city centre.
The wetland is an attractive area and it is hoped its development will bring in visitors and residents both from within the country and overseas.
