Nongchan marsh in central Vientiane is to be developed as an economic and trade centre in the next five years under a Lao-Chinese joint venture.
( From right ) Vientiane Mayor Soukanh Mahalath, Deputy Prime Minister Somsavat Lengsavad, Governor of Yunnan province Mr Li Jiheng and Chinese ambassador to Laos Ms Bujinguo and other officials attend a ground-breaking ceremony for the Nongchan development in Vientiane on Saturday.
A ground-breaking ceremony to mark the start of the project, to be known as the Vientiane Centre, took place in the capital on Saturday during an official visit by a delegation from Yunnan province.
The event was attended by high-ranking government officials, Vientiane authorities, business leaders and Chinese officials. Among those attending the ceremony was Deputy Prime Minister Somsavat Lengsavad.
The project will comprise a shopping centre, office buildings, apartments, conference facilities, restaurant, and pedestrian area. The development is expected to cost more than US$90 million.
Yunnan Construction Engineering Group Co., Ltd. will hold a 60 percent stake in the project and Kritaphong Group Co., Ltd. will own a 40 percent share.
The government has given permission for the project to go ahead on an area of more than 53,000 square metres. The concession period will run for 50 years with the option to extend for a further 20 years.
Development will take place in three phases. The first phase will run from now until April 2014 and will include construction of the necessary infrastructure, filling in of marshland, laying out the pedestrian area and building the shopping centre.
The second phase, from April 2014 to October 2015, will see the construction of conference facilities, office buildings, apartments and an exhibition centre.
The third phase will involve the construction of a multipurpose building and will run from 2016 to 2017.
Director of the Vientiane Department of Public Works and Transport, Mr Detsongkham Thammavong, said in a speech at the ground-breaking ceremony that the development of Nongchan marsh is one of the priority projects stipulated in the capital's development plans.
He said the project is a result of the government's policy to attract domestic and foreign investment to drive socio-economic development.
This area of Vientiane had become very run down and the authorities relocated residents to other parts of the city, to reduce congestion and improve living conditions.
I n 2005, the city authorities made further improvements to the area, creating an open space for leisure activities. In 2010, the authorities entered into an agreement with the Yunnan Construction Engineering Group Co., Ltd. and Kritaphong Group Co., Ltd. to develop the area.
Mr Detsongkham said “The project will create a new feature for Vientiane, with more and modern facilities. These facilities will not only serve tourists but will also contribute to the socio-economic development of Laos.”
Yunnan Construction Engineering Group Co., Ltd. is one of the largest key 17 provincial firms supervised by the government of Yunnan province.
The group has developed into a conglomerate and has businesses ranging from general construction contracting, real estate development, urban development investment, civil works, mechanical and electrical installation, roads, bridges, building science research, engineering survey and design, construction labour supply and so on.
