Chinese company Green Partner Holdings Limited has proposed its intention to implement a master plan for infrastructure development in the newly established Xaysomboun province.
Chanthanom Vongsomchit ( left ), and Mr Samuel Huo ( right ) shake hands after signing the MOU.
A memorandum of understanding (MOU) on the proposal was signed on Saturday in Vientiane between the company and the province authority.
Under the MOU, the company proposes their intention to develop infrastructure within the province such as irrigation systems to support commercial agriculture production, roads, government buildings, new town development, an airport, hydropower and other projects in accordance with the needs of the province.
The company will draft a master plan of the development which will run for the period from 2016 to 2020, with a survey and study to be conducted on the province's potential based on its natural resources, which both parties agreed upon at the execution of the MOU.
Green Partner Holdings Limited will appoint the technical team and self fund the draft master plan, preliminary survey and cost estimation for the development projects.
The company will be the source of the loan for the province for projects it will develop with a 15 year repayment period at an interest rate of approximately 2 percent per annum.
Green Partner Holdings will also develop an additional loan with duration for repayment of around 15 years at an interest rate of approximately 5 percent per annum.
These loans will be based on the provisions of the guarantee of the Lao government and the provincial authorities, providing some specific development projects such as hydropower should be granted to the company to develop and then repay by the deduction of tariffs-tax to the company.
The MOU signing followed the official meeting held on February 10 between Xaysomboun provincial authorities, led by the province Governor Dr Sombath Yialiher and Green Partner Holdings Limited with the team led by Lao Law and Consultancy Group (LLC) Managing Director Ms Siri Bouddakham.
In his interview with media at the signing ceremony, Dr Sombath reminded those present of the potential in developing hydropower projects which he said still existed. It is hoped that such projects will bring income to the province, while pointing out the need of a concrete feasibility study.
Meanwhile, Ms Siri also emphasised the need to study the reporting to the government on the results afterwards, while promising to implement the projects prioritised by the provincial authorities.
The implementation of all the projects concerning the funding sources under the MOU will be based on Lao government approval only.
The province's Department of Planning and Investment Director Mr Chanthanom Vongsomchit, and Green Partner Holdings Limited Executive Director Mr Samuel Huo signed the MOU with Dr Sombath Yialiher also adding his signatur e.
Xaysomboun officially became the 17th province of the country on December 31, 2013. With a population of more than 81,800 people and an area of 8,500 square kilometres, the province is lagging behind the other provinces regarding infrastructure and human resources.
By Somxay Sengdara (Latest UpdateFebruary 17, 2014)
