The government has amended a concession agreement with partnering Chinese companies to change the focus of the Boten development project from that of a casino to a commercial and tourism operation.
Ms Bounpheng Mounphosay ( right ) exchanges agreements with Mr Zhou Kun at the signing ceremony in Vientiane on Wednesday, which was attended by Mr Somsavat Lengsavad and other government officials.
Under the new agreement signed in Vientiane on Wednesday between the government and the developers, Boten, which is located on the Lao-Chinese border in Luang Namtha province, becomes a Specific Economic Zone. The former concession agreement designated the site as a Special Economic Zone.
The amendment of the agreement will also allow the Lao authorities to be in charge of managing security issues to facilitate business activities in the zone, while the zone management board will focus on economic affairs.
Under the agreement, the Chinese developers will increase their investment capital from US$130 million to US$500 million to develop the zone, which covers an area of 1,640 hectares.
Minister to the Government Office and Vice President of the Lao National Committee for Special Economic Zone (NCSEZ), Ms Bounpheng Mounphosay, on behalf of the government signed the agreement with the Chairman of the Yunnan Hai Cheng Industrial Group Stock Co., Ltd., Mr Zhou Kun, and Chairman of Hong Kong Fuk Hing Travel Entertainment Group Ltd., Mr Wong Man Suen.
Deputy Prime Minister and President of the NCSEZ Mr Somsavat Lengsavad and other government officials also attended the signing ceremony.
Boten was established under a concession agreement dated December 9, 2003, based on a Prime Minister's Decree relating to border trade zones dated December 8, 2002.
Under that agreement, Boten comprised 12 project activities, including a casino.
The development saw the remote region of Boten transformed into an urban area with new roads, electricity and water, hotels and other facilities built to attract investment in the zone.
But the government encountered some security issues under the 2003 concession agreement and issued another decree to manage the zone.
It became necessary to amend the 2003 concession agreement and exclude the casino to ensure sustainable development and order in the zone. The TK Support Company of Laos has been given permission to develop an electronic programme for use in the zone to facilitate business activities.
This aims to ensure that the zone management is conducted in a transparent, quick and accountable manner.
An agreement for the development of the electronic programme was also signed in Vientiane on Wednesday between the Chairman of the Yunnan Hai Cheng Industrial Group Stock Co., Ltd., Mr Zhou Kun, and TK Support Company Chairman, Mr Thatsakhone Thammavong.
The two agreements aim to ensure that development of the zone takes place in line with the Law on Investment Promotion, which seeks to attract foreign investment and generate job opportunities for local people.
Laos currently has fewer th an 10 Special Economic Zones, including Savan-Seno, Golden Triangle and Phoukheo.
More than 40 such zones are planned by the government, with 25 expected to be built by 2020.
