Megamall dispute nears resolution
Megamall dispute nears resolution
A dispute between contractors over the planned construction of a US$40 million shopping centre in Vientiane is undergoing a resolution process, a government official said yesterday.
The government gave the green light a few years ago to Singaporean and Lao investors to develop the joint venture Regal Megamall City project, which was originally slated for completion this year.
But construction work on the five-storey shopping mall, to be located on a 2.4ha lot on Souphanouvong Avenue in Sikhottabong district's Sikhay village, still has not commenced.
So far, only a three-storey sales office has been built and no sign of any other construction work is visible.
A Ministry of Planning and Investment official said the delay was due to an internal dispute between project contractors, but did not elaborate on the nature of the issue.
He said all parties involved were in the process of resolving the dispute, and a result should be reached within the next two weeks.
The official said the ministry was compiling a report on the current status of the project for the Government Office.
According to initial plans, the mall was to house branches of well-known overseas retailers including Tesco and Robinson.
Under the plan, 130,000sq m of gross built-up area would be provided, with five stories dedicated to retail outlets and parking available for 1,000 vehicles.
More than 1,000 shops were envisaged, including major brand names.
Boutique shops, international-standard restaurants, a fitness centre and childcare centres were included in original plans, as was a karaoke television centre, a mega-supermarket, a department store and five cinemas.
Well-known fast food franchises were set to open, along with shops selling goods from all over the world.
The Regal Megamall City project is one of many private- or state-owned projects which investors have halted construction of, despite having received government approval.
Deputy Minister of Planning and Investment, Dr Bounthavy Sisouphanthong, told Vientiane Times recently officials were looking at the situation and the government would cancel approvals for projects which had not begun within an appropriate timeframe.
He admitted there had been many examples of such projects, and said the majority were in the mining sector followed by rubber and eucalyptus plantations.
Officials have said many investors have booked projects to sell to other investors and enjoyed lucrative profits without actually taking action on their development.
vientiane times
