Growth of Boten Specific Economic Zone slower than expected
Growth of Boten Specific Economic Zone slower than expected
The Boten Specific Economic Zone on the Laos-China border in Luang Namtha province is seeing some activity but growth has not reached the level anticipated, according to provincial authorities.
Director of the Luang Namtha provincial Department of Information, Culture and Tourism, Mr Sivilay Pankeo, told Vientiane Times on Thursday that some progress had been made on the US$500-million project, including demarcating the boundary of the zone, building a warehouse and setting up an immigration checkpoint.
Other activities underway include building visitor amenities at a waterfall and other facilities for tourists.
Mr Sivilay said that since the Chinese developers changed their focus last year from running a casino to operating a commercial centre and tourism activities, there has been little development, even though this was promised by the companies concerned.
The provincial authorities are committed to coordinate and facilitate the companies, to ensure that developments progress as stated in the concession agreement, which was signed by the Lao government and the Chinese developers.
When the casino closed two years, the Hong Kong Fuk Hing Travel Entertainment Group Ltd sold an 85 percent share of its equity to the Yunnan Hai Cheng Industrial Group Stock Co., Ltd, retaining only a 15 percent stake in the project.
The Specific Economic Zone covers an area of 1,640 hectares with a concession period of 99 years. The Chinese developers have said they intend to transform the zone into a regional commercial and tourism centre, building a 4-star hotel, golf course, amusement park, and supermarket. They also plan to run tours to waterfalls and local villages, and other destinations in nearby protected areas.
The Boten Specific Economic Zone is located along Road No. R3 on the Laos-China border. This road connects Laos to China and Thailand across the Lao-Thai Friendship Bridge linking Bokeo province in Laos and Chiang Rai province in Thailand.
The Chinese developers were confident the project would encourage businesspeople and tourists from the whole region to do business and enjoy the facilities provided by the project.
Boten was established as a special economic zone in 2002-03 under a Prime Ministerial decree relating to border trade zones. 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 last year amended the agreement with the developer to exclude the casino.
The amendment will also allow the Lao authorities to oversee the management of security issues, while the zone management board will focus on financial affairs.
Laos currently has 10 Special and Specific Economic Zones, including Savan-Seno, Golden Triangle and Phoukhyo.
vientiane times
