The Capital of Phongsaly Province will be moved to Boun Neua

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New Phongsaly capital

Ten Lao companies that share holdings with foreign companies have proposed to invest in the development of basic infrastructure for the new provincial capital of Phongsaly, which will be moved to Bounneua district. The project was approved for implementation by the government in 2009 after the provincial authorities originally hatched the plan more than 20 years ago. The existing provincial capital is constrained by mountainous geography and a lack of water for irrigation and industry, and will therefore be relocated. The new capital in Bounneua district is suitable for development because it is a flat area and there is the Boun River nearby to supply the town, he said. The new capital in Bounneau district is about 42 kilometres from Phongsaly district and the chief town will comprise some 14 villages. Phongsaly is not the only province looking to move its capital.

The Phongsaly capital will be relocated to accommodate development. He said that the first assessment of the project cost is about 2,280 billion kip over a 10 year period. So far, the project has received a government budget of 36.2 billion kip for activities including roads construction, infrastructure studies and information collection on the impact on cultivation land. In the 2010-2011 fiscal year, the project received 12 billion kip, 11 bill ion kip in 2011-2012 and 13.2 billion kip for 2012-2013, Mr Thongsing revealed. “So far, we have completed only 34 percent of the 80-odd kilometres of access roads,” he said. “We are also studying and designing the infrastructure network to build the organisations and offices and collecting information on the impact on cultivati on land for compensation.” Recently, the provincial authorities signed an agreement with a company to construct the provincial administration office, which is one activity of the project and this land is now being cleared for construction.

Adapted from Vientiane Times
 
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