Assets-to-capital scheme generates 47 billion kip
Assets-to-capital scheme generates 47 billion kip
Vientiane has generated revenue of about 47 billion kip from various projects under the government's ‘turning assets into capital' initiative from 2009-2014, according to the Vientiane Finance Department.
The department has actively collaborated with various departments and districts, notably the Vientiane Planning and Investment Department, to collect statistics and information on the projects and inspect whether they are being implemented properly to ensure revenue flows into the state budget.
Vientiane authorities have been actively implementing the ‘turning assets into capital' initiative, according to the Director of the Vientiane Finance Department, Mr Khamphan Malabandith.
He said the scheme was a significant and complicated undertaking which required coordination between various sectors and local authorities.
Speaking at the Sixth Congress of the Vientiane Party Committee recently, Mr Khamphan said the initiative has been implemented effectively, resulting in inflows to the state budget and contributions to socio-economic development.
In 2009-2010, Vientiane generated 25 billion kip from the scheme, 2 billion kip in 2010-2011, 8 billion kip in 2011-2012, 8 billion kip in 2012-2013, and 4 billion kip in 2013-2014.
Over the five years from the 2009-10 financial year to the 2013-14 financial year this amounted to a total of 47 billion kip or a little under US$6 million.
Mr Khamphan said the authorities are monitoring projects at the Natural Resources and Environment Department valued in excess of 18 billion kip, projects worth more than 54 billion kip at the Energy and Mines Department and projects worth more than 89 billion kip at the Department of Information, Culture and Tourism.
In addition, there is the That Luang market project worth 46 billion kip, as well as land along the 450 Year Road and land along the road from Donnokkhoum village through That Luang marsh to the 450 Year Road.
All of these projects and others as well are subject to inspection and monitoring.
The Government Office issued an announcement on December 18, 2014, imposing a temporary suspension of the initiative after learning that previous implementation was ineffective due to improper analysis and calculations, resulting in the loss of money.
Members of the National Assembly have said that no state department should have the right to hand over state assets in such a form of exchange, suggesting that the conversion of state assets into capital must ensure that all of the assets remain in the ownership of the state rather than being passed on to an individual.
In light of this issue, the government temporarily suspended the implementation of the initiative and instructed the Ministry of Finance to draw up regulations to give uniform and effective guidance on the initiative in the future.
