Version 76222 Version 88286
Intended size
7β€―000 ha
9β€―846 ha
Comment on land area
The provincial authorities have allocated 7,000 hectares for the potential development, which will be divided into four zones: Zone A (480 hectares), Zone B (797 hectares), Zone C (2,120 hectares) and Zone D (3,678 hectares). Each zone is designed to accommodate different business activities.
Another source reported that Sithandone SEZ will cover an area of more than 9,846 hectares and it will have its own airport. Source: Future Southeast Asia
Intention of investment
  • [2015-01-01, current] Tourism (7000.0 ha)
  • [2015-01-01, current] Tourism (7000 ha)
Comment on negotiation status
A Memorandum of Understanding was signed between the government and the Guangdong Yellow River Industrial Group in August 2017 allowing the company to conduct a feasibility study for the development as well as project designs. When this MoU ended and the company presented the results of the study, the provincial government approved but, as of January 2018, the company is still waiting for approval from the national government. In October 2018,
A Memorandum of Understanding was signed between the government and the Guangdong Yellow River Industrial Group in August 2017 allowing the company to conduct a feasibility study for the development as well as project designs. When this MoU ended and the company presented the results of the study, the provincial government approved but, as of January 2018, the company is still waiting for approval from the national government. In October 2018, The master plan of this SEZ highlighted a number of tall buildings that will serve as hotels, restaurants, a shopping center and other tourism-related businesses. In the first phase of the project (2018-2025), the company will focus on building the necessary infrastructure, including roads, water supply and drainage. The second phase may include an airport. [Source: People’s Daily]
Comment on implementation status
According to the strategic agreement between the Laos authorities and the mainland contractor, the SEZ will be built in two phases, with the first scheduled to be completed by 2025. This initial stage will focus on ensuring all the zone's required infrastructure is in place, including roads, utilities and drainage facilities. The second phase will then involve the construction of the actual on-site commercial properties, including several restaurants, a shopping centre and range of other tourism-related businesses. Over the long-term, there are also plans in place to construct a dedicated air-transport facility.
According to the strategic agreement between the Laos authorities and the mainland contractor, the SEZ will be built in two phases, with the first scheduled to be completed by 2025. This initial stage will focus on ensuring all the zone's required infrastructure is in place, including roads, utilities and drainage facilities. As the news reported by March 2021, the source said that Sithandone SEZ has already completed 21 villas as part of a resort complex, a new hotel building, an after-sales service center, as well as the 43-km concrete ring road around Don Khong. [Source: Laotian Times] The second phase will then involve the construction of the actual on-site commercial properties, including several restaurants, a shopping centre and range of other tourism-related businesses. Over the long-term, there are also plans in place to construct a dedicated air-transport facility.
Comment on investment chain
The project also known as β€˜Laos Maha Nathi Sithandone’ or β€˜The Sithandone SEZ’ [Source: Future Southeast Asia]
Community reaction
Rejection
Comment on community reaction
At least 140 families from eight villages in the Khong district of southwestern Laos’ Champasak province are refusing to sell their land or relocate to make way for a special economic zone planned for their area. [Source: RFA]
Comment on displacement of people
Villagers displaced by the project would need to be relocated and would be provided with new residences and employment, which could be provided by the project.
Villagers displaced by the project would need to be relocated and would be provided with new residences and employment, which could be provided by the project. Villagers of Hinsiu, Phon, Hang Khong, Don Khong, Muang Sen, Phon Kao, Thakhob, and Houakhok villages officially refused to give up their land (according the RFA report on 9th May 2019) β€œThe company wants people’s land, but people don’t want to just hand it over,” said the chief of an affected village. [Source: RFA]
Negative impacts for local communities
Environmental degradation, Socio-economic, Cultural loss, Eviction
Comment on negative impacts for local communities
Land loss, impact to the livelihood, local community losing their jobs on fisheries, impacts to the local tourism service. In the beginning of 2020, the Champask provincial authorities have revoked licences previously issued for several tourism projects in Champassak province so the land can be used to create the Maha Nathi Sithandone special economic zone. [Source: LIWG]
Promised compensation (e.g. for damages or resettlements)
The Chairman of the Champassak provincial SEZ Authority, Mr Khamphon Nuansengsy, told that β€œthe company is also committed to paying compensation worth US$6.5 million to businesses that hold tourism services concessions at Khonphapheng Waterfall.” [Source: RentsBuy]
Received compensation (e.g. for damages or resettlements)
The land survey conducted by company between 2018 – 2019, however villagers reported that they still did not know how much compensation they would get or if they will be compensated or not. [Source: RFA Lao]
Materialized benefits for local communities
Financial support
Comment on materialized benefits for local communities
According the Chinese News Agency, People Daily reported that β€˜the government of Laos will try to ensure priority is given to communities when it comes to job allocation and agriculture production for the project.’ [Source: People’s Daily]
Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
Villagers who refused to give up the land launched a complaint to the People’s Council insisting that they did not want to give up their land as they had lived there for generations. [Source: RFA]
Fully updated
No
Yes

Location #o8HdRmxR

Comment
Khonphapheng waterfall and the surrounding area in Khong district of Champassak province
Khonphapheng waterfall and the surrounding area in Khong district of Champassak province Khonephapheng is the biggest waterfall in Southeast Asia, about 80 km from the provincial capital Pakxe and close to the Cambodian border.

Data source #t7h3GKl_

File
nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
Railways Urban Rail Transit Four Thousand Islands New Area – The Sithandone SEZ in Southern Laos
Date
2018-06-29
Name
James Clark
Organisation
Future Southeast Asia
Comment on data source
comment on land area & name of investment project

Data source #g3Sv87O2

File
nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
Lao gov't, Chinese investor finalizing SEZ pact in southern province
Date
2019-04-16
Name
Xinhua News Agency
Organisation
People's Daily
Comment on data source
negotiation status and materialized benefits

Data source #lPy9NU5K

File
nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
First Phase of Sithandone SEZ Development Project Underway
Date
2021-03-01
Name
Phayboune Thanabouasy
Organisation
Laotian Times
Comment on data source
implementation status

Data source #N57ssCmY

File
nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
Lao Villagers Refuse to Yield Land for SEZ, Now Contend With Access Road
Date
2019-05-09
Organisation
RFA
Comment on data source
contracts, community reaction, displacement of people, presence of

Data source #29OPaFdc

File
nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
Sithandone SEZ offically signed
Date
2018-07-02
Organisation
RFA Lao
Comment on data source
contract & received compensation written in local dialect

Data source #3KsQBLUX

nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
Tourism project licences revoked to make way for special economic zone
Date
2020-01-14
Name
Vientiane Times
Organisation
LIVVG
Comment on data source
negative impacts on local community &

Data source #OqeJ3VOy

File
nid
unknown field
Type
Other
Url
Keep PDF not public
No
Publication title
Chinese investor gears up to develop Khonphapheng SEZ
Date
2020
Organisation
Rents Buy Property
Comment on data source
promised compensation

Data source #eA_HE4KI

nid
unknown field
Type
Media report
Url
Keep PDF not public
No
Publication title
Affected people do not know if they will get compensation
Date
2021-10-03
Comment on data source
recieved compensation

Contract #4jsxQKJK

nid
unknown field
Date
2017-06-20
Duration of the agreement
99 years
Comment on contract
The Laos Mahanathy Siphandone (Hong Kong) Investment Co. Ltd is providing 80 percent of the funding, while the Lao government is supplying the rest. The company and the Lao government signed a memorandum of understanding on June 20, 2017, for the first phase of construction, according to project documents. [Source: RFA] However, some sources say the concession period is 50 years. [Source: RFA Lao]