Villagers Use Crowdsourced Funding to Pave Their Own Road

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November 28, 2017

Savannakhet Villagers Build Their Own Roads

Laos doesn’t have too many pristinely paved roads. While there are a few diamonds in the rough, many of the roads are not built to last and worse, poorly maintained. Lao road contracts are generally won by local construction companies with influential government connections that prioritize personal profits over public satisfaction. Public funding management for road construction is already constrained and inefficient.

Unhappy with the state of public roads, many citizens make their voices heard through the government hotline, most of us take to social media, while others just simply accept the status quo.

But for one group of frustrated villagers of Huahart in Savannakhet, accepting the way things were was not an option. This group banded their labor and savings totalling approximately 77,131,250 million kip (approximately USD 9300) to pave a road stretching 400m long in the district of Xayphouthong. This phenomenal communal effort will bear fruit in the form of a 13cm thick, 5.6m wide cement road. Construction started in mid-November and is slated to be complete by mid-January 2018.

Savannakhet Villagers Building Their Own Road

This is not the first time that the denizens of Huahart had pooled together their resources. Not so long ago, they crowdsourced 52 million kip to create a 250m stretch of road (5.10m wide). This method of crowdsourced funding did not strictly mandate village members to contribute but was rather a community campaign driven by voluntarism and the shared desire to see better road conditions for all. Peasants and businessmen alike gave within their means to realize this common goal.

Source: Laos Update

Thai Border to Collect Toll from all Foreign Vehicles

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Laotian Times

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November 28, 2017

Foreign vehicles entering Thailand by way of border will be expected to pay an ‘Asean road toll’ fee that the country plans to implement by the end of 2018.

Thailand plans to collect the toll from foreign motorists entering the country via border checkpoints due to increased road travel on the Southeast Asian mainland, which has caused frequent road maintenance and safety concerns.

Thailand’s Office of Transport and Traffic Policy and Planning is currently conducting a study on toll collection, which is expected to be completed by year end. It will then take less than a year to gain state approval.

The toll will be applied to foreign four-wheel vehicles passing through 28 border checkpoints, from Myanmar, Malaysia, Cambodia and Laos.

Motorists will pay a 100-baht fee for an electronic tag which will be valid for five years, as well as a toll of 42 baht per trip.

Officials plan to have private companies invest in installing the toll collection system, with the entire project estimated to cost around 525 million THB (over 16 million USD) and employ up to 260 officials.

The office’s deputy chief insists that the tolls are necessary since the establishment of the Asean Economic Community has resulted in more vehicles entering Thailand. Thailand authorities have indicated that the country now has to bear higher costs in road maintenance and road accidents.

According to the Office of Transport and Traffic Policy and Planning office, there were 2.1 million trips made by car through 28 checkpoints last year. Most came from Laos (755,000), followed by Malaysia (596,000), Myanmar (495,000) and Cambodia (322,000).

Statistics show that the Thai government spends on average 15 billion THB on repairing and maintaining roads annually, with most of the damage resulting from heavy goods transportation. Road accidents also cost the country around 2.4 billion THB every year.

Source: The Nation

Laos’ Internet Among World’s Priciest

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Laotian Times

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November 28, 2017

Laos Among World's Most Expensive Broadband Internet Prices

A study of broadband pricing in 196 countries reveals vast global disparities in the cost of getting online. And Laos ranks among Asia’s highest at USD 231.76, second only to Brunei.

Data over 3000+ individual broadband packages was gathered by BDRC Continental and compiled and analyzed by Cable.co.uk during an 8-week period up to October 12th, 2017.

Iran offers the world’s cheapest broadband, with an average cost of USD 5.37 per month. Burkina Faso is the most expensive, with an average package price of USD 954.54.

Six of the top ten cheapest countries in the world are found in the former USSR (Commonwealth of Independent States or CIS), including the Russian Federation itself.

Within Western Europe, Italy is the cheapest, with an average package price of USD 28.89 per month, followed by Germany (USD 34.07), Denmark (USD 35.90) and France (USD 36.34). The UK came in 8th cheapest out of 28, with an average package price of USD 40.52 per month.

In the Near East region, war-torn Syria came in cheapest with an average monthly price of USD 12.15 per month (and ranked fifth overall), with Saudi Arabia (USD 84.03), Bahrain (USD 104.93), Oman (USD 147.87), Qatar (USD 149.41) and the United Arab Emirates (USD 155.17) providing the most expensive connectivity in the region.

Iran is the cheapest in Asia (as well as the cheapest globally) with an average package price of USD 5.37 per month, followed by Nepal (USD 18.85) and Sri Lanka (USD 20.17) – all three ranked among the cheapest in the world. The Maldives (USD 86.08), Laos (USD 231.76) and Brunei (UD 267.33) provide the most expensive package price per month.

Mexico is the cheapest country in Central America with an average broadband package cost per month of USD 26.64, whereas Panama is the most expensive with an average package price of USD 112.77 per month.

In North America, Canada offers the cheapest broadband on average (USD 54.92), coming in 21 positions ahead of the United States globally (USD 66.17). Bermuda provides the most expensive packages in the region with an average price of USD 126.80 per month.

Saint-Martin offers the cheapest broadband in the Caribbean, with an average package price of USD 20.72 per month, with the British Virgin Islands (USD 146.05), Antigua and Barbuda (USD 153.78), Cayman Islands (USD 175.27) and Haiti (224.19) at the most expensive end, both regionally and globally.

Sub-Saharan Africa fared worst overall with almost all countries in the most expensive half of the table. Burkina Faso charges residential users a staggering USD 954.54 per month for their ADSL. Meanwhile Namibia (USD 432.86), Zimbabwe (USD 170.00) and Mali (USD 163.96) are among the 10 most expensive countries.

All 13 countries in Oceania were found in the most expensive half of the global table. Generally, larger landmasses such as Australia and New Zealand are cheaper than smaller islands in the region. Fiji, however, is actually the cheapest in Oceania with an average cost of USD 57.44. Vanuatu (USD 154.07), Cook Islands (USD 173.57) and Papua New Guinea (USD 597.20) are the most expensive in the region, with the latter coming in second-most expensive in the world.

In a previous report, Cable.co.uk analysed over 63m broadband speed tests to rank nearly 200 countries by the average internet speed they offer. If you wish, you can couple figures from this research to identify countries that are, for example, both slow and expensive or cheap and fast.

Source: Cable.co

Tourists Complain of Construction Blocking Vang Vieng View

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Laotian Times

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November 28, 2017

Lao news media has received complaints from both foreign and domestic tourists about a new multi-level building under construction on the far bank of the Nam Song River in Vang Vieng.

The building is over seven levels in height, and although incomplete, has already begun to obscure the beautiful view that has made Vang Vieng famous.

One Australian tourist commented, “I’ve been to Laos many times and always visited Vang Vieng. I brought my friends with me this trip and was saddened to see this new building blocking the view, which is normally spectacular.”

Vang Vieng is located in a valley, and is known for its breathtaking natural scenery. Clouds float across the karst formations in the distance, with the Nam Song River and lush green farmland in the foreground. It is this view that brings thousands of tourists to the small town each year.

Development, however, has clearly begun to encroach.

An employee of the National University of Laos visited Vang Vieng recently for a conference, and took the above photo of the building. He asked, “had the authorities that authorized this construction project forgotten about the beautiful scenery behind it?”

Source: Lao Post

Laos Urban Expansion a Cause For Concern

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Laotian Times

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November 27, 2017

With Laos being one of the primary countries set on a fast track towards urbanization, experts have raised concerns over the common challenges that cities in the Mekong River region are facing.

The experts on urban design and planning from Thailand, Laos, Cambodia and Vietnam believe that these cities are witnessing their heritage vanish as they evolve too quickly, leaving residents reeling in the wake of their disappearing culture. Some argue that locals in the region don’t have the opportunity to set their own path for urban development.

At a forum titled, “Cities in Transition in South East Asia, New Challenges for Urban Development” held in Bangkok, representatives from the four countries discussed urbanization trends in Bangkok, Chiang Mai, Vientiane, Luang Prabang, Phnom Penh and Ho Chi Minh City. It was noted that though each city had its own method of dealing with its problems, the issues that these cities struggle with are very similar.

One of the primary concerns raised was the rapid urbanization that has led to the authorities and business sector harming the city’s deep-rooted character.

Public Works and Transport Deputy Minister Bounleuam Sisoulath reported to the forum that this problem had already occurred in the World Heritage City of Luang Prabang. The minister explained that the city is becoming increasingly famous among tourists, which has boosted the local economy but has also had negative side effects for the traditional livelihoods of its citizens.

“As the city experiences a boom in the tourism industry, there are many new hotels and entertainment places for the tourists. The local people are alienated in their hometown and many choose to leave,” Minister Bounleuam stated. “Right now, both NGOs and the authorities are trying to preserve the cultural identity of the city and focus on helping the local communities to survive,” he added,

A geographer and urban planner contributed a similar story from Vietnam, sharing that Ho Chi Minh City’s rapid growth had already generated conflict between its local people and authorities over claims of unfair land expropriation, as the city needed more space to expand.

However, a former dean of Chulalongkorn University debated that cities have a life of their own and will naturally adapt over time. This raised the topic of how the past could coexist in harmony with the present.

Source: The Nation

Experts Warn China’s Railroad May Struggle with Future Funding

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Laotian Times

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November 27, 2017

China’s “One Belt, One Road” vision of connecting itself to the rest of ASEAN has started to materialize, as construction on the railway has progressed to more than 10 percent of the project linking China’s border to Laos.

However, one expert has cautioned that the Chinese government’s financial support for the “One Belt, One Road” project will likely diminish in the future.

In a keynote address at an international conference titled,“Belt and Road Initiative: Network Opportunities with CLMVT”, the vice chairman of the National Development and Reform Commission of China, stated that the Chinese government has given priority to building road and rail connections with Cambodia, Laos, Myanmar, Vietnam and Thailand (CLMVT).

China also wants to continue improving trade and tourism with all five countries, which experienced a 30 percent increase to $130 billion between January and August of this year.

Due to Yunnan’s close proximity to Laos, Myanmar, Vietnam, Thailand, Cambodia, Bangladesh and India, the Chinese province could potentially play an important role in sub-regional cooperation.

As a junction linking the Pacific and Indian oceans by land, Yunnan has set its sights on advancing construction of an international transport corridor, connecting China with neighbouring countries under the “Belt and Road” initiative. With a goal in developing a new high point of economic cooperation in the Greater Mekong sub-region, China is determined on opening up its South to Southeast Asia.

Currently, several routes have opened including the Kunming-Bangkok highway, an expressway from Kunming to the China-Myanmar border, China-Laos border and China-Vietnam border.

For water transportation, there is international shipping along the Lancang-Mekong river corridor.

A railway from Kunming to Hekou, a border city on the China-Vietnam border has also opened, while railways from Kunming to the China-Laos border and the China-Myanmar border are now under construction.

An official from the Lao National Railway State Enterprise has stated that the Laos section of the China-Laos-Thailand railway is about 13.5 percent completed after construction began in January.

The five-year endeavor is slated to be completed December, 2021 with an estimated total cost of $5.9 billion USD. Laos holds 30 percent of shares in the company while China holds a 70 percent stake.

The Export-Import Bank of China has been named the primary source of loans for the project, in which debt financing accounts for 60 percent of total expenses.

A co-convenor of the Asia-Pacific Structure Finance Association in Hong Kong, Ms Susie Cheung expressed concerns about funding the “Belt and Road” initiative due to limits to public funding, stressing that financing is a critical issue.

“Costs of bank loans are going to rise due to Basel rules and China’s liquidity is going to dry up,” she warned.

Ms Cheung suggested China and other countries involved in the initiative should develop asset-backed securities (known as securitization) in order to tap international funding.

She urged the Chinese government to coordinate among countries to create a securitized asset class by introducing a standardized project document, harmonized rules and regulations and creating a credit rating agency.

The Chinese government’s initial 2013 Belt and Road Initiative envisioned a network covering 65 countries with 4.4 billion people and aggregate economic value to $21 trillion or 29 percent of global GDP.

The Asian Development Bank estimated that to bring it to reality, Asia would need to invest $26 trillion between 2016 and 2030 in order to maintain growth momentum. For Asean infrastructure alone, the investment would need to be about $3.2 trillion.

SOURCE: ANN

China Invests in Vientiane-Vang Vieng Expressway

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Laotian Times

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November 24, 2017

During a two-day visit to Laos by Chinese President Xi Jinping on November 13-14, an agreement was signed by officials from both countries to begin construction on the Vientiane-Vang Vieng expressway, which is slated to begin early next year.

The joint-venture agreement was among 17 cooperation documents signed during the state visit by President Xi Jinping to Laos.

According to an official, China will hold a 95 percent stake while the Lao government will hold the remaining 5 percent under the agreement. Both sides are set to begin negotiations on the concession agreement, which will specify the length of the concession.

The $1.2 billion USD road will link Sikeuth village in Naxaithong district, Vientiane, to a tourist hotspot in Vang Vieng district.

An official, citing the project’s Chinese developer, has stated that once construction on the expressway begins, it will take an estimated three years to complete the 113.5-km road. The new expressway, which will include a 679-metre tunnel at Phoupha Mountain, will be significantly shorter than the 156km route that currently exists using Road No. 13 North.

It was previously reported that the expressway would be developed alongside Road No. 13 North and the Laos-China railway, which is still under-construction.

Speeds on the expressway will be set at 100km per hour on flat terrain from Sikeuth village, Vientiane to Phonhong district, Vientiane province. The mountainous sections between Phonhong and Vang Vieng districts will be set at 80 km per hour. The bypass will save drivers a significant amount of time as they can reach higher speeds as compared to the present route, which is mountainous and winding.

Based on similar charges made by other countries in the region, drivers using the expressway can expect to pay 400-500 kip per kilometre, which will amount to 45,000-56,000 kip between Vientiane and Vang Vieng, according to an official.

The Vientiane-Vang Vieng expressway is the first section of the planned Vientiane-Boten expressway, which the Lao government and the Chinese developer, a state construction enterprise from Yunnan province, plan to jointly build to link Vientiane with the northern province of Luang Namtha, which borders China.

After construction of the Vientiane-Vang Vieng section has begun, authorities will survey the second section between Vangvieng and Luang Prabang province and then the third section linking Luang Prabang and Luang Namtha’s Boten.

The project will be financed and developed in the Build-Operate-Transfer (BOT) model, and the survey of all three sections is expected to reach completion by July, 2018.

Source:ANN

Thai Duo Attempts to Smuggle 105 Pangolins into Laos

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Laotian Times

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November 22, 2017

On Tuesday, November 20, two Thai men were arrested in Chaiyaphum, Thailand after police discovered over 100 live pangolins in the back of two Toyota SUVs heading towards Nong Khai.

With the intent of smuggling 105 pangolins across the border to Laos, Pramote Kerdlamool, 32, and Payao Supsinthu, 38 were placed under arrest at a road checkpoint in Chaiyaphum’s Kon Sawan district

on Tuesday morning. The 105 pangolins had a combined total weight of more than 1,000 kilograms.

During questioning, both men confessed that the pangolins were purchased from the Lad Lum Kaew district in Thailand, and were being transported to Laos where they would be sold and trafficked on the wildlife black market fetching a huge profit for the duo.

According to the Pangolin Wikipedia page, pangolins were added to the Zoological Society of London’s list of genetically distinct and endangered mammals in November, 2010. All eight species of pangolin are classified by the IUCN as threatened with extinction, while two are classified as critically endangered.

Source: The Nation