Deal #6586 Version #76220

2015-08-03

Vientiane Times report on 03/08/2015: "The government has approved the establishment of Khonphapheng waterfall and the surrounding area in Khong district of Champassak province as a new special economic zone (SEZ) in Laos. Senior officials in charge of the project gave confirmation of the approval recently. Governor of Champassak province Dr Bounthong Divixay told Vientiane Times on Friday that the next step is to seek developers and establish the management board of the zone. “Our government has signed for the establishment of the zone which will pave the way for the next stage of the project development,” Dr Bounthong said. Entrepreneurs have strongly expressed investment interest in this zone for years pending the government’s decision to approve the establishment of the zone. [...] The provincial authorities have allocated 7000 hectares for the potential development, which will be divided into four zones: Zone A (480 hectares), Zone B ( 797 hectares), Zone C (2120 hectares) and Zone D (3678 hectares). [...]"

Lao gov't approve Chinese company to conduct SEZ feasibility study

2017-08-02

A memorandum of understanding was recently signed between the government and the Chinese company, Guangdong Yellow River Industrial Group, in Vientiane, Vientiane Times online reported Tuesday. The move will allow the company to conduct a feasibility study for this project as well as project designs and other activities within six months.

Greater Mekong Subregion: Capacity Development for Economic Zones in Border Areas

2018-08-01

In 2017, the government of Lao PDR signed a MoU with the Chinese company Guangdong Yellow River Industrial Group to conduct a feasibility study to develop the Khonphapheng area. To date, the project has been approved by the district and provincial authorities but still requires approval from the national government. According to the deputy governor of Champasack province Mr. Buasone Vongsongkhone, the concession agreement is likely to follow only after the national government has approved the project (Vientiane Times, 2018). To date, no formal management structure has been established since the project has not been finally approved. According to various media reports, the investment volume in the zone would be USD 10 billion of which USD 9 billion would be spent on infrastructure development (Vientiane Times, 2018). The total size of the area is not yet finally determined. Whereas the company estimates that around 9,000 ha are needed, the provincial authorities have allocated more than 7,000 ha for the potential development, which would be divided into four zones (Xinhua Net, 2017). The project would develop an entire city built around tourism development. This would include hotels, restaurants, a trade center and other tourism-related businesses. In the first phase of the project (2018-2025), the company would focus on building the necessary infrastructure including roads, water supply and drainage. The second phase may include an airport and other larger infrastructure (Xinhua Net, 2017).

Green Light for Belt and Road-backed Laos Project

2018-10-18

Belt and Road Initiative - (BRI) backed infrastructure upgrades in Laos have enjoyed a busy few months of late. Not only has it been announced that work on the Chinese mainland-funded US$6 billion Laos-China Railway project had passed the 20% completion mark, but it has also transpired that the Lao government and Guangdong Yellow River Industrial Group (GYRIG) have come to an agreement on the proposed development of a Special Economic Zone (SEZ) in the country's Champassak province. The formal announcement follows the August 2017 signing of a memorandum of understanding between the two parties, which saw the GYRIG agree to review the overall viability of the project and to work on initial design concepts. With that review now completed, apparently to the satisfaction of all the parties concerned, GYRIG has formally committed to covering at least part of the $10 billion cost. With the project officially designated as the Khonphapheng Special Economic Zone, it will be sited in the far south of the country, near the Cambodian border.

Chinese Development of Khonephapheng Area to Transform Champasack Province

2018-03-27

The results of a study on the potential of a Khonephapheng Special Economic Zone (SEZ), as it will be known, were presented to the Ministry of Planning and Investment in January this year. The company which undertook the study, Guandong Yellow River Industrial Group, has said it would invest US$ 10 billion into the project. The company says they will construct hotels and restaurants, a shopping center, and other peripheral tourism businesses. The project has been approved by provincial authorities, who are interested in the project, and who said they would allocate over 7,000 hectares of land for the company. Local authorities believe the project will help to improve the livelihoods of local people, and would boost tourism in the region. Villagers displaced by the project would need to be relocated, however, and would be provided with new residences and employment, which could be provided by the project.