Thakhaek economic zone to develop new modern city

KHAMMUAN (Vientiane Times/ANN) - Thakhaek Specific Economic Zone (TSEZ) in Thakhaek district, Khammuan province will be developed into a modern city over the next four years after four Lao and Vietnamese companies agreed to operate the project. 

A Memorandum of Agreement (MoA) for construction contracts of the zone’s A package of TSEZ was signed in Vientiane recently between Akane Development Lao SEZ Co., Ltd President, Somjith Aliyaphaphone and presidents of the Dautuxay Modular Block Container, Nguyen Van Minh, ABT Survey Design Construction and Promote Agriculture Co., Ltd, Bountemh Inthavong and Phuc Hung Tin, Nguyen Song Tung.

The agreement was witnessed by PMC Manager, Mat Zain Bin Ismail and Lawyer, Viengxay Phommalasavong, with participation by TSEZ authorities, government officials and company representatives.

The A package of the zone construction project will comprise two buildings and apartments, with a height of 45 floors, five storey healthcare centre and necessary infrastructure development.

The project is expected to cost more than US$200 million over the four years of construction, according to the agreement.

Under the project implementation, the companies also aim to promote the zone’s infrastructure development and help close-by communities in order to encourage sustainable development and environmental protection.

At the occasion, Somjith Aliyaphaphone from Akane Development Lao SEZ Co., Ltd signed a loan agreement with Mohd Firdaus Bin Abdullah, representative for Malaysian financial institution Naga Oriental Limited.

TSEZ development project is one priority of the Khammuan provincial management organisation, which aims to develop land in the area of the third Lao-Thai Friendship Bridge between Khammuan and Nakhon Phanom, a zone official reported.

Total land area for the development covers 1,035 hectares which will become the Special Economic Zone in line with the Investment Promotion Law.

The main objective is to develop the zone into a new modern city in order to attract domestic and foreign investment.

Akane Development Lao SEZ Co., Ltd is one of 22 companies to invest in the zone, with the company having a 75 year concession over seven hectares of land which can be extended for a further 15 years.

The company plans to invest a total of US$5 billion aiming to develop the land concession into a trading and service area.

The project includes a 65 floor financial institution, 40 storey and 35 storey five and four star hotels, two 45 floor apartment blocks, a five storey shopping mall, five floor healthcare centre, along with ground floor parking and other necessary infrastructure development.     

In April this year, Akane Development Lao SEZ Co., Ltd signed a MoA for construction contracts for the zone’s B and C packages with the three companies.

The B package construction project of the zone includes a 65 floor financial building, 40 floor five star hotel, plus necessary infrastructure development worth US$250 million; while the C package includes a 35 floor four star hotel, a five storey shopping mall and other necessary infrastructure development worth US$120 million.

The projects are expected to take four years to construct, according to the agreement. 

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