Nearly 300 families affected by the Lao-China Railway project are still waiting for compensation promised by the government, as ongoing challenges hinder the process. The issue was raised by Minister of Public Works and Transport Ngampasong Muangmani during the 18th Plenary Meeting on 8 January.
The railway project impacted a total of 6,711 families and involved the relocation of 8,472 plots of land for construction. To date, the government has only compensated 6,421 families and 8,182 plots, leaving 290 families in an uncertain position. The official did not disclose the specifics of the challenges faced.
Ngampasong also pointed out that delays in inspections and follow-up procedures have contributed to the backlog in compensation. In response, the Ministry of Public Works and Transport has initiated discussions with the Lao-China Railway Company and other stakeholders to expedite the process.
To address this delay, the government has formed a five-party committee, consisting of representatives from the State Inspection Agency, the Ministry of Public Works and Transport, the Chinese Embassy in Laos, the Lao-China Cooperation Committee, and the Lao-China Railway Company.
This committee is working on resolving 198 identified environmental and social concerns, nine of which have already been addressed. The remaining families will receive compensation once these issues are fully resolved.
The Lao government allocated LAK 465 billion (USD 21.3 million) to compensate the affected families. The Ministry of Public Works and Transport, with support from the State Inspection Authority, has been tasked with directing the management committee to explore additional solutions for the effective disbursement of the funds.
In 2022, the Lao government relocated 23 family units in Luang Namtha who were affected by the Lao-China Railway’s Natey station with new houses. The following year, the government relocated 103 families from Bouam-Or village, Luang Prabang to a new village with improved infrastructure, including roads, schools, health centers, water supply, and electricity.