Cabinet Strengthens Gov Agencies Leeway To Act on Land Concessions

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Lao Government Revokes Land Concessions

Land Concessions, giving development and usage rights to various individuals and corporate domestic and international investors, has long been considered one of the critical levers to leverage local and foreign investment, economic activity and job creation in Laos.

A form of long term rental, the usage rights to state land have been ceded to investors for projects from shopping malls to banana farms.

As with all investments, the results have been mixed. Amid the successes, it is now those cases of incomplete and inactive investments, environmental pollution and failed developments that have long proved a recurring issue, leading to disquiet for those affected and headaches for Laos’ policymakers, legislators and regulating authorities as Laotian Times has previously reported.

The lack of progress on a total of 81,879 hectares held under some 201 land concession projects has spurred a new round of government efforts to resolve the discrepancies under the country’s laws and respective contract conditions.

Prompting the cabinet to act were the findings of a report indicating that some 240 state land concession projects had been causing environmental damage, the nation’s press representatives were informed on February 20, 2019.

Based on such revelations, country’s cabinet chaired by Prime Minister Thongloun has instructed the country’s state agencies to revoke the land concession licenses held by investors who fail to proceed with developments in accordance with their agreements.

The meeting also approved measures to encourage investors to develop the land for which they had received concessions.

Measures approved include the authorization for state agencies to cancel concessions or fine those companies that fail to utilize state property in ways they were required to under the agreements they signed, government spokesperson Dr Chaleun Yiapaoher told the press conference held at the conclusion of the monthly cabinet meeting held on Wednesday.

Other key topics discussed include measures to improve the business climate, tax collection, rural area development and urban planning for the future needs of the capital towards 2030 and beyond.

The latest moves by the government to regulate and in cases revoke rights for failure to abide by agreements in state land concession projects comes after National Assembly members debated the issue in December.

Foremost among several cases of complaints from local communities aired at the National Assembly regarded pollution caused as a result of the activities at banana plantations in several provinces.

It saw the NA resolve that the government agencies actively push such concession holders to ensure their investments and activities abide by contract conditions for the use of state land while complying with related laws and policies.

The cabinet directed state agencies and the Ministry of Natural Resources and Environment to improve assessment of all land in question following the laws and guidelines before granting investors the right to a concession.

This could also better permit the Ministry of Finance to collect revenue in the form of land concession fees from project developers, Dr Chaleun said.

Land concession projects could only be approved in accordance with national and provincial land development master plans approved by the relevant authorities, investors and agencies were reminded.

Relevant state agencies were also instructed to work together to ensure that forests and other wildlife habitat areas were protected from damage by investment projects.

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