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NEWS UPDATES Asean Affairs             20  July 2011

Vientiane provincial capital project progresses

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Vientiane province will spend more than 33 billion kip (US$4.1 million) constructing infrastructure in the planned provincial capital in Viengkham district after authorities signed contracts with local companies last Monday.

According to information from local media, Head of the Vientiane provincial Department of Public Works and Transport Mr Theankham Thongbon represented the province in signing agreements with local companies.

“The agreements mostly focus on constructing and expanding roads in the urban centre, and some roads on the outskirts, of the provincial capital, as well as upgrading and sealing some roads.

We expect work to be completed this year,” said department Deputy Head Mr Phouvone Bounvilay. He added that contracts for the road works have been divided amongst local construction companies.

The work will be funded through the provincial budget and also by the Ministry of Public Works and Transport, he said.

“These signings follow on the contract signed by the Ministry of Planning and Investment and a local construction company early this month to build a bridge across the Ngum river from Pakkayoung village to Meuangkao village in Viengkham district,” said provincial Deputy Governor Ms Singkham Khongsavanh.

Ms Singkham said that construction of the bridge would cost US$16 million and the local company would have a concession period of 38 years.

“Today, we will sign a Memorandum of Understanding with a Chinese company to conduct studies on the construction of more roads, an electricity network, water supply system and several buildings in the urban centre of the provincial capital,” she said.

The province has already upgraded the three-way junction at Phonhong, the provincial National Assembly offices and office of the provincial public prosecutor, all of which fall under the project to establish a provincial capital, she said.

Vientiane province is the only province in Laos not to have a capital. Development of the new urban centre will take place in three phases.

The province is undertaking the change because the current capital has limited space for development and is located in a mountainous area.


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