The government plans to set up a municipality as the main urban centre in Luang Prabang province to replace Luang Prabang district, in a bid to stimulate the development process, a senior official said yesterday.

According to the Deputy Head of the provincial administrative office, Mr Houmphanh Thammoungkhoun, preparations to establish the zone as a pilot project began in 2006. The new designation is expected to be officially announced next month, once the government has given its approval.

The provincial authority has allocated 68 villages in the town centre out of a total of 116 villages in the district for the new zone, while the rest will be incorporated into neighbouring districts.

Once the municipality comes into effect, Luang Prabang district will cease to exist, as will the position of district governor.

“The change is designed to facilitate fast development in all sectors in the municipality, including socio-economic and infrastructure development, and to foster a tourism hub,” said Mr Houmphanh.

Many organisations have been involved in the planning process to ensure it is in line with UNESCO's world heritage criteria. These bodies include the World Heritage Office, District Development and Administration Office, Public Works and Transport Department and the Governance Improvement Project, which have all collaborated in creating a development strategy.

“We must make sure that the development process is aligned to world heritage criteria,” Mr Houmphanh said. He explained that the new zone is divided into various sections, with specific areas dedicated to commerce and culture.

The administrative structure has also been improved, as several offices have been merged to streamline services and the provision of various permits. The Lao Women's Union , Lao Trade Union, Lao Youth Union and the Veterans' Office have been merged in one mass media organisation office.

This merger will not only streamline administrative services, but will help to reduce the administration budget, said Mr Houmphanh.

The pilot project is expected to be self-sufficient in terms of the budget needed for the development of the new zone. This means the authority should be able to use the money generated by various activities within the area for investment in development without requesting further budget allocation from the central and provincial levels.

“To begin with, it will be necessary to request funding from the provincial budget to develop the new zone, but once the economic situation is healthy we hope to be self-sufficient,” he said.

Mr Houmphanh said the establishment of the new zone would not affect any existing investments.

He explained that the authorities concerned have benefited from their experience in conducting such a project with Vietnam , where a similar venture was functioning well.


By Souksakhone Vaenkeo
Vientianetimes