Work to develop the That Luang esplanade into one of the top tourist attractions in Vientiane is expected to start soon.
Beautification of the esplanade extension, enlarge -ment of the That Luang stupa fence and construction of a four lane road linking the rear of the stupa to Khamphaengmeuang Road is one of 21 projects outlined to mark the 450th anniversary of Vientiane as the nation's capital at the end of this year.
Director of the Vientiane Planning and Investment Department, Mr Bounpone Sisoulath, signed a memorandum of understanding in Vientiane on Monday with Sompaseut Construction Development Company and Lokiyapanya Comany to carry out the project, which is worth about 111 billion kip (about US$13 million).
The signing ceremony was attended by Vientiane Vice Mayor Anouphab Tounalom, senior officials, and staff from the two construction companies.
Under the MOU, the firms will enlarge the stupa boundary and build a new road and other infrastructure around the esplanade, at a cost of about 25 billion kip.
The companies will also provide a low interest loan of about 86 billion kip to Vientiane authorities to compensate people who will have to relocate to make way for the project.
Vientiane authorities have agreed to repay the construction debt and loan within five years.
An official responsible for the development project, Mr Khambay Onxayvieng, said the companies would start work in March and complete the project before the anniversary celebrations in November.
He said the compensation of people required to relocate would be finished soon, with nearly 200 households to be relocated from the That Luang area.
Compensation for lost land will range from about 400,000 kip to 2 million kip per square metre depending on location.
Mr Khambay said the government had arranged residential land at Km 21 for the relocated families.
This is the first time Vientiane authorities have allowed private companies to invest in a public project.
T he Bank of the Lao PDR previously provided loans for public investment projects but cancelled the policy last year over fears the move could cause inflation.
It is now government policy to allow the private sector to take part in public investment projects.
