Vientiane will establish a housing complex that will allow public servants to rent or buy affordable housing, according to Vientiane 's Vice Mayor.

Mr Somvandy Nethavong on Tuesday said Vientiane authorities would work with private companies in a venture to develop a 100-hectare area in Nonsomboun village of Xaythany district. The new village will be located 20km from the city centre, close to the new National Stadium.

“Many private companies have expressed interest in joining our project but we prefer local companies because we want to promote them,” he said.

If approved, the new village will consist of several four to five-storey buildings, houses, a school and hospital, recreational parks and other public facilities.

Authorities will provide land for the project and a private company will be responsible for building the housing. Preference for housing will be given to government staff and authorities hope to form an agreement with a company to allow officials to pay lower prices, particularly those with low incomes.

There would also be an arrangement to allow officials to buy accommodation by paying it off over several decades using their government salary, he said. The level of accommodation people can access will be dependant on their income and capacity to pay off the debt. Low-level public servants would be able to access modest housing.

Mr Somvandy said authorities were aware the price of accommodation in Vientiane was increasing, and some government officials may be finding it hard to afford housing. If government officials did not have a place to live they would not be motivated to work for the country.

“We are developing a policy, but I can't go into details yet,” he said.

In addition to housing officials, the village would also provide housing for people who sacrificed their land for government investment projects.

Mr Somvandy said 100 hectares would be big enough to accommodate thousands of families, and each family would receive a small plot of land to cultivate.

Mr Somvandy said authorities had completed an initial design and map of the development area and believed construction would begin next year. The number of houses would be based on demand, and government officials seeking rooms or houses in the planned development should consult with the Vientiane authorities.

The project would be a business operation, so it would only be sustainable if all officials paid off their debts, he said.

By Ekaphone Phouthonesy
(Latest Update July 31, 2008)