Lao and Korean investors are considering spending US$2 billion to develop a 3000 hectare site near the World Heritage listed town of Luang Prabang .
If it proceeds the project, known as Diamond City , will be located in Chomphet district of Luang Prabang province and will include tourism, financial and recreational services.
The prospective investors are four Lao companies, represented by Nakornluang New Century Company, and 10 Korean companies, represented by KPL Development Company.
They signed a memorandum of understanding in Luang Prabang this week to outline their own cooperation, and will now prepare documents seeking government approval to be presented to the Planning and Investment Ministry next week.
Nakornluang New Century Company Managing Director, Mr Thongphanh Rattanasamay, said pending government approval, the site would be developed to include a five-star hotel, apartments, resorts, banking services, a trade centre, agricultural facilities and other businesses.
To complete the project the investors will establish utilities such as electricity, water and telecommunications, in addition to building a public park and a road from Chomphet district to Hongsa district in Xayabouly province.
They will also build a bridge across the Mekong River from Luang Prabang town to Xiengman village in Chompet district.
Mr Thongphanh said the proposed site was state-owned land which was outside the World Heritage listed area and was not occupied by many houses.
The investors will seek a land concession period of 50 years with the option of extending this period by an additional 20 years before ownership is transferred to the Lao government.
Mr Thongphanh said if the project went ahead it would create a new city in Luang Prabang.
“The Lao companies will be responsible for coordinating activities and documents in Laos , while the Korean companies will provide funding to the project,” he said.
“It is very big project and a huge investment, which the investors hope to recoup through income generated by the facilities to be built, such as hotels, bridge fees and other services.”
Luang Prabang Planning and Investment Department Director, Mr Bounnhang Phongphichit, said the project was still in the very early stages.
“We will have more discussions with those companies before any progress can be made,” he said.
The Korean companies expressed an interest in investing in Laos after reading a Lao government website which listed Chomphet district as a district the government wanted to develop.
By Panyasith Thammavongsa
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