InvestmentsLao Economy

Developer Spends US$100 Million On That Luang Marsh SEZ

The Chinese developer has spent over US$100 million to build infrastructure facilities and condos at That Luang Marsh Specific Economic Zone (SEZ) in Vientiane.

The infrastructure projects include a 50-hectare lagoon, road access to the zone, installation of electricity and water supply facilities and a drainage system.

Vice president of the zone’s management board Mr Pheng Inthilath told Vientiane Times yesterday that the construction activities of the US$1.6 billion That Luang Marsh SEZ has seen progress as scheduled .

The government and Chinese developer Wan Feng Shanghai Real Estate Company aim to ensure the That Luang Marsh project becomes a model for SEZ development in Laos.

Many delegations from Laos and foreign countries have visited the project site to witness firsthand the progress of the project.

Early this week National Assembly (NA) members, led by NA Vice President Mr Somphanh Phaengkhammy, took the opportunity of their attendance at the NA ongoing session to visit the project.

Mr Pheng said a Chinese delegation would come to Laos to visit the project later this month.

The Chinese developer is now focusing on building 12 condominium blocks with 18 floors. The company is expecting to spend US$14.5 million to build each block and plans to sell them within 5 years after completion for US$17 million each.

The condo project is now 2 5 percent complete and is scheduled for completion in October 2016. The condos are designed by Shanghai Design Institute in cooperation with China Academy of Building Research and China Building Technique Group Company.

Mr Pheng said the developer would begin construction of a US$320-million shopping centre in October this year, aiming to create options for Vientiane shoppers to buy different products.

The government has appreciated the progress made at That Luang Marsh SEZ which will contribute to further boosting the country’s economic growth.

The Lao government signed a land concession agreement with the Wan Feng Shanghai Real Estate Company in 2011, aiming to urbanise the marsh and generate job opportunities for Lao people.

The project is being built on an area of 365 hectares. It covers the six villages of Nonvai, Meuang Noi, Nonkhor Neua, Phonthan, Phonpapao and Donekoi in Xaysettha and Sisattanak districts.

The ground-breaking ceremony for the project took place in December 2012 and the company expects to spend between 15 and 20 years working on it.

When finished the project will include a large residential area, public parks and green spaces, a lake, roads and drainage, a sports complex and a commercial centre. There will also be five-star hotels, shopping centres and entertainment venues.

There are now 10 operating SEZs in Laos, covering an area of more than 13,500 hectares and creating about 8,000 jobs.

Source: Vientiane Times