Investment in Vientiane development projects exceeds budget
Investment in Vientiane development projects exceeds budget
The value of investment in deve lopment projects in Vientiane is 65.52 percent in excess of the plan for the fiscal year 2014-15, the Vientiane Planning and Investment Department has reported.
Vientiane's socio-economic development plan had a target investment of 14.7 trillion kip this year, but more than 24.33 trillion kip has been spent over the 11 months of the year so far, the department reported on Friday.
The initial investment plan of 14.7 trillion kip included state expenditure of about 134 billion kip, local and foreign investment of about 12 trillion kip, grants and loans of about 700 billion kip, and bank loans of about 1.86 trillion kip.
The actual 24.33 trillion kip invested over the 11 month period includes state expenditure of over 282.03 billion kip, local and foreign investment of more than 9.92 trillion kip, grants and loans worth over 1.26 trillion kip, and bank loans of more than 13.01 trillion kip, according to the report.
State expenditure of over 282.03 billion kip went towards more than 600 projects, of which 151.03 billion kip came from overseas sources and the remaining 131 billion kip came from local sources. Most of the expenditure went into the economic sector with 111 projects, along with 210 projects in the socio-cultural sector, and 282 projects involving infrastructure development.
Grants and loans worth over 1.26 trillion kip went towards 18 projects, including the construction of bridges in Pakngum and Xaysettha districts.
Bank loans worth more than 13.01 trillion kip were spent mainly on road and bridge construction, production, services, and agriculture, including livestock breeding.
Local and foreign investments totalling 9.92 trillion kip were spent on 523 projects (over the first nine months of the fiscal year), including 514 general investment projects and land concessions on 257 hectares.
The general investment projects were mostly in trade and services, while land concessions were awarded for real estate development and shopping centres.
The shopping centres include the Vientiane Center at Nongchanh in Sisattanak district and That Luang Square which opened in April in Xaysettha district, while a new development comprising a shopping centre, offices, apartments and a car park located in Sisattanak district is now about 22 percent complete.
Other developments are also in the pipeline after the Planning and Investment Department approved land concessions for local and foreign investors to build golf courses, five star hotels, shopping centres, urban precincts, commercial centres, offices, apartments and car parks.
Some investors have signed memorandums of understanding and are now carrying out project feasibility studies.
Investors are also buying into real estate, property, mining, construction, telecommunications and energy distribution.
