PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY

EMBASSY OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC
2222 S. Street, N. W. 
Washington, D. C. 20008
Tel: (202) 332-6416
Fax: (202) 332-4923 
NEWS BULLETIN
January  - February, 2002
CONTENTS
  1. President Appoints New Lao Ambassadors Abroad 
  2. NA Debates On Constitution Amendment 
  3. Front President Talk To Christians 
  4. Army Celebrate 53rd Anniversary 
  5. Laos GDP Reaches 6.4 Percent In 2001 
  6. Phoudoi Firm Comes Under Finance Ministry 
  7. Ministry Urged To Adopt Measures To Boost Domestic Economy 
  8. Electricity Network To Reach Remote Luang Prabang 
  9. Nam Ngum Dam Celebrate Thirty Years Of Operations 
  10. Sixty Percent Of Khammouan To Get Light By 2003 
  11. Electricity Expansion Around Nationwide 
  12. Road No.11 To Link Municipality And Province 
  13. Laos Was Considered To Develop Into Regional Transit Hub 
  14. New Mobile Player Enters Telecom Sector 
  15. High-Growth Lao Telecom To Keep Its Market Share 
  16. Japanese Ambassador Recognized For Contribution 
  17. ADB To Fund Remote Poor Communities 
  18. Lao-Myanmar Agro-Forestry Cooperation 
  19. Malaysian Company To Develop Paksong Resort  
  20. Lao-Belgian Cooperation  
  21. Laos To Step Up Drug Control Efforts 
  22. People Of Nongchanh Marsh Area To Move Out 
  23. 30 Years On, UXO Casualties Still High 


PRESIDENT APPOINTS NEW LAO AMBASSADORS ABROAD

President Khamtay Siphandone, on January 30, at the Presidential Palace in Vientiane presented appointment papers to 11 new Lao Ambassadors.

The newly appointed include Lao Ambassador to Japan Mr. Soukthavone Keola, Ambassador to China Mr. Thongsai Phonthisane, Ambassador to the USA Mr. Phanthong Phommahasay, Ambassador to Singapore Mr. Done Somvorachit, Ambassador to France Mr. Souksakhone Pathammavong, Ambassador to Cambodia Mr. Thouane Vorasane, Ambassador to Indonesia Mr. Leuane Sombounkhan, Ambassador to India Mr. Kharnpasong Douangsithi, Ambassador to Australia Mr. Vichit Sindavong, Ambassador to Cuba Mr. Phouangkeo Langsy, and Ambassador to Germany Mr. Khouanta Phalivong.

President Khamtay Siphandone urged the new ambassadors to use their diplomatic
positions wisely in order to further promote the friendship and cooperation between Laos and the countries of their respective postings.
 
 


NA DEBATES ON CONSTITUTION AMENDMENT 

The National Assembly on December 25 held a session chaired by its President Samane Viyaketh to exchange views on the need to amend the 1991 Constitution so as to make it more responsive to the present situation both domestically and internationally.

Opening up the debate, Mr. Samane said the current Constitution had served its political purpose well at the time when the Party renovation policy was introduced in a comprehensive manner and the conduct of the state was managed by the Constitution and the laws. He said thanks to the Constitution, the nation has seen political stability and good social order; there is socio-economic development and the living conditions of the multi-ethnic people have gradually improved.

However, now that the situation in Laos and the world has changed, there are certain features of the Constitution that do not correspond well with the changing times, Subsequently, the Politburo of the Party CC has recommended that the Constitution be improved and amended.

The President of the National Assembly said amendment is to be made to the preamble and 34 articles of 9 chapters. He said that seven articles would be added to the Constitution.

The task of amending would need to bear in mind the following: the resolution of the Seventh Congress of the Party, the current socio-economic reality in the country, lessons drawn from many years of implementing the current Constitution, international situation in which Laos needs to integrate.

Additionally the amendment needs to adhere to specific characteristics and standpoints: the state is the state of the people, by the people and for the people; it is a people's democratic regime and its political regime that is led by the Party; the State manages and the people are the masters. The state power consists of the Legislative branch, the judiciary branch and the executive branch; all of them are under the guidance of the Party.

Furthermore, the President of the National Assembly said the improvement of the Constitution needs to reflect the national characteristic, class, the populace, democracy, and internationalism.
 
 


FRONT PRESIDENT TALK TO CHRISTIANS 

Speaking at the Evangelical Church in Saphangmor, Vientiane suburb, Mr. Sisavath Keobounphanh, President of the Lao Front for National Construction, praised various Christian denominations in particular the Evangelical Church for their efforts in rallying their flocks throughout the country to be united in the cause of building the society.

At the church gathering of more than 700 people, the President of the Front said that there are some churches and Christian activists who try to undermine the law and order of the country by trying to split up the state of harmony and unity enjoyed by Lao people of different ethnic groups. These bad elements also try to slander the Party and Government's policy by groundlessly and in an unfriendly matter claiming that freedom of worship is not tolerated, that Laos does not respect human rights and lacks democracy.

Mr. Sisavath cited cases whereby some preachers and believers organized unauthorized meetings, and bribed people to convert to their religion. He also said that there have been cases of people who were arrested on charges of trafficking drugs and then turned around and accused the authority that their "crime" was only their different religious belief. He also said that there have been cases of people whose studies abroad are sponsored by religious organizations to the ignorance of the education authority.
 
 


ARMY CELEBRATE 53RD ANNIVERSARY 

A get-together to celebrate the 53rd anniversary of the founding of the Lao People's Army was held in Vientiane on January 18 and attended by officials and soldiers. 

Speaking at the opening ceremony, Major General Douangchai Phichit, Minister of National Defense reviewed the work of the Lao military and said that 53 years ago on January 20, 1949 the Lao Isara Army or Lao People's Army was established in Houaphanh province under the leadership of former President Kaysone Phomvihane. The Lao People’s Army and people defeated enemy and liberated the country on December 2, 1975. 

A group of senior officials from the Ministry of Defense also laid a wreath at the Monument of the Unknown Soldier on January 19.
 
 


LAOS GDP REACHES 6.4 PERCENT IN 2001 

During 2001, the successful implementation of the national socio-economic development plan produced a record GDP of 6.4 percent, according to the Pathet Lao Daily newspaper.

The GDP was prompted by a 10% increase in industry production, a 7 % increase in the service sector and a 4.5 % increase in the agriculture and forestry sector.

The average annual per capita income of the Lao people also increased to 2.8 million kip or US$ 327, growing by 13 % on 2000.

In addition, the national export value for 2001 was US$ 325 million, an increase of 1% compared to the same period in 2000. However, the national trade deficit rose to US$ 200 million, 16.4 % higher than in 2000.
 
 


PHOUDOI FIRM COMES UNDER FINANCE MINISTRY 

The Phoudoi Development Company has now come under the Ministry of Finance following the transferal ceremony held recently. Previously, the company runs under the Defense Ministry.

This move is part of efforts to upgrade management capabilities and to cam more revenue from its business operation in future.

The formal handing over ceremony was held in Vientiane. The company was presented by Lieutenant General, Mr. Ai Souliyaseng, Vice-Minister of Defense and received by Finance Minister, Mr. Soukhan Mahalath. Deputy Prime Minister and President of the Planning and Cooperation Committee Thongloun Sisoulith was on hand.

After the transfer of the company to the Finance Ministry, reforms to business administration should build stronger performances and more profit to the firm, said a state enterprise business inspection official.

The Vice-Minister of Defense said that the company was established in 1984. The objectives of the firm from the outset was to develop the remote area of KM 20, Khamkheud district, Bolikhamsay province. Now the district has become a small city with roads built all the way to Vietnam.

Seventeen years ago the company was under the control of the Defense Ministry and it completed infrastructure constructions, which were deemed important basics for developing economy and society. It built schools, hospitals, craft workshops and factories.

The Finance Minister at the transferring ceremony said that Phoudoi company has performed well economically. It is important to continue to build peace in remote areas.

Turning the Phoudoi company over to the control of the Finance Ministry will help the economy at present and the government need to make every state enterprise stronger and reduce subsidiary of the government.

The Deputy Prime Minster said: "From now on the company has to improve business operation to coincide with economic development for the new era and urges the firm to find a way out of its debts.” 
 
 


MINISTRY URGED TO ADOPT MEASURES TO BOOST DOMESTIC ECONOMY 

The Commerce Ministry should adopt strictest possible measures to protect domestic production and to reduce disputes over business operations between producers and importers, said a Vientiane municipality trade department official.

The official offered his advice to the ministry while participating in a preparatory meeting to open the second commercial conference in early 2002. The first conference was held in late 1990.

Head of Vientiane municipality Trade Department said, "the ministry has to implement sound policies to promote domestic producers."

Currently, various imported goods are invading the domestic markets and causing hardship for local producers. Problems with production and sales among local producers are one reason why the economy is not growing at a faster rate.

Rattan handicrafts producer from Hongkae village wishes the Government to stop imports of products that the country could produce itself, especially handicrafts. If the Government continues to allow importers to bring furniture products to interfere with local markets, then local producers would simply close shop and leave, thus producing a loss of human resources.

Imported goods often sell for cheaper prices than domestic merchandise. Handicraft producers need the ministry to tighten controls in order to cut problems.

Deputy Head of Savannakhet Trade Service, who joined the debate said, "the control of goods prices is not being implemented or seriously enforced in Savannakhet."

The Ministry should give greater powers to each department and district to assist in the controls. The ministry previously opened a new service to police controls but the service does not have enough staff or support to be able to pursue its practice successfully. The ministry remains committed to improving the environment for domestic production, but it also has to consider other policies, which involve poverty eradication and exports in the future. 
 
 


ELECTRICITY NETWORK TO REACH REMOTE LUANG PRABANG 

To supply electricity for use throughout Luang Prabang province, the electricity authorities of the province are installing an extensive electricity network in remote area. 

They have completed the construction and installation of 545 km of transmission lines, worth over 546 million kip in Ban Leksip and the Chang-Ouan area.

They are continuing the construction and installation of a medium voltage network system-stretching 8.3 km, costing over 902 million kip.

At present, officials are constructing and installing electricity networks in four villages, valued at over 384 million kip and local people have contributed over one million kip.

In 2002 the province plans to expand this electricity network to 61 villages, inhabited by 3,196 families located along the road from Luang Prabang to Ngoy district.
 
 


NAM NGUM DAM CELEBRATE THIRTY YEARS OF OPERATIONS

The famous Nam Ngum dam is now 30 years old. This dam has provided many advantages in terms of electricity for the country’s socio-economic development. The first phase of the Nam Ngum dam construction was complete in 1971, and it had a production capacity of 15 Megawatts.

The second phase of construction began in 1973 and installed two more power engines to increase electricity production from 30 to 110 megawatts. The third phase involved the installation of a fifth engine, which began installation in 1983 and was completed in 1984. The Nam Ngum dam could produce an average of about 960 million kilowatts of electricity per year and could export 700 million kilowatts abroad.

After the dam had been in operation for some years, the Japanese Government agreed to wipe debt owed on loans for the construction of the dam.

Though only 30 years old, the dam has already improved electricity production in the Lao PDR. It has supplied sufficient electricity to irrigate the Vientiane plains.
The Government has earned about US$ 20 million from the sale of electricity to nearby countries. Of this profit about US$ 14 million came from the sale of electricity from the Nam Ngum dam. 
 
 


SIXTY PERCENT OF KHAMMOUAN TO GET LIGHT BY 2003

The Electricity of Laos (EDL) branch in Khammouan province will extend the electricity grid to Bouarapha district, the last district among the nine districts in this central province by next year.

A 22-Kv medium voltage link will be extended for 65 km from Panam village in Mahasay district to Bouarapha district by the end of this year or early next year according to the EDL branch in Khammouan. The EDL is running an electricity expansion campaign in anticipation of the upcoming elections to be held on February 24, according to a director of the EDL in Khammouan, who is also a member of the Fourth National Assembly and candidate for constituency 12.

Among the 805 villages in Khammouan, only 42 percent of the population have access to electricity so far, said EDL director, adding that the electricity grid extension to rural areas will continue in 2003 to meet the demands of consumers and to assist the development of economic infrastructure. The grid extension will cover 60 percent of the entire population of the province, added the director.

At present the relevant EDL units are focussing on extending the low and medium-voltage grids to 25 villages in Gnommalard district, 12 villages in Mahasay district, and 14 villages in Saybouathong district. They are also linking a 58-km long medium-voltage grid between the powerhouse of the Theune-Hinboune hydroelectric station and the new Khonglor cave tourist site, which will benefit 39 villages in the area by late this year.
 
 


ELECTRICITY EXPANSION AROUND NATIONWIDE 

According to the Ministry of Industry and Handicrafts electricity supplies will be extended to reach about 40% of the national population in 2002. The expansion will be an increase of about 5% on current levels of electricity use.

To attain the goal the ministry will have to focus on the development of basic infrastructure, in order to allocate high, medium and low voltage electricity networks to rural and remote areas. The ministry plans to expand high, medium and low voltage transmission lines from Sepone district in Savannakhet province to Dakchueng district in Sekong province. It will also expand the transmission lines from Houaysay district to Tonpheung district in Bokeo province and construct new power stations in these remote areas of the country.

The ministry also plans to install transmission lines for a high voltage system running from the Nam Luek hydropower dam to Xieng Khuang province. It intends to install high voltage transmission lines from Hinheub district to Sanakham district in Vientiane province and further transmission lines for a high voltage system from Sieng-Ngeun district in Luang Prabang province to Sayaboury province.

The ministry will also assess the possibility of the construction of an electricity network from Luang Prabang province to Oudomsay province, including the construction of an electricity network from a medium voltage-producing source to link with electricity networks at the Nam Ngum dam. This supply would be run to the northern provinces if it were found to be feasible. 

The Electricity network, in the central and southern provinces are also the subject of feasibility studies to ensure that existing systems are expanded where needed.

The ministry plans to install a solar-power system in some parts of the northern provinces in order to supply electricity in accordance with the demands of the people in terms of their production activities and the need to address their poverty.
 


ROAD NO.11 TO LINK MUNICIPALITY AND PROVINCE 

The construction of Road No.11 along the Mekong river bank beginning from Kaolio village in Sikhottabong district to Sangthong district in Vientiane municipality and linking to Sanakham district in Vientiane province has been completed.

The first phase of the reconstruction project was conducted by the Phattanakhet Phoudoi company. The Vientiane Communication, Transportation, Post and Construction Service owns the project. The construction started in November last year and was completed on January 12. The construction cost 500 million kip to complete.

The road is 41 km long and even though it has not been laid with asphalt, it is a good communications link between Vientiane province and municipality in both seasons.

In the past Road No.11 was often un-navigable during the wet season due to rain inundation. Many wholes appeared in the road and some areas were completely destroyed or heavily damaged by flooding. The frequent use of the road by large trucks and other vehicles also added to the need to provide the area with regular maintenance. If roads are not maintained then large vehicles can cause a lot of damage. Chief of the Vientiane Communication, Transportation, Post and Construction Service said that, a second phase in the road would begin construction soon.

The second length will stretch from Sangthong district to Houayla village. This part of the road is 12 km long and the construction will cost 200 million kip.
 
 


LAOS WAS CONSIDERED TO DEVELOP INTO REGIONAL TRANSIT HUB

Transforming Laos into a regional transit center for trade and travel between the countries in the Mekong region was the main topic of debate at the monthly government meeting, held in February under the chairmanship of Prime Minister Bounnhang Vorachit.

The meeting also discussed a number of draft strategies and debated emerging issues for the 2002 period.

The strategic plan for the development of the nation as a regional transit area was presented by the chairman of the Planning and Cooperation Committee. The main objective of the plan is to explore and use the potential resources of the country to attract foreign investors, to upgrade the service sector and to encourage a wave of the economic growing. The plan also aims to promote the trade cooperation between Laos and it’s neighboring countries.

The meeting considered the main factors needed to make the country a modern industrial state. Government members emphasized the importance of a long-term socio-economic development outlook. The main objective is to make the country's economy independent and its industry self-sufficient in order to be able to graduate from the group of least developed countries

The meeting also discussed and considered the decree on the promotion of domestic and foreign investment and the decree on a draft investment law in Laos.
 
 


NEW MOBILE PLAYER ENTERS TELECOM SECTOR 

Swedish company Millicom international Cellular has received the go-ahead from the Government to enter the Lao telecommunications sector and set up a new nationwide mobile phone network.

The company entered a joint venture agreement with the Lao Government on January 23, 2002, and plans to set up business in Laos this year.

The Deputy Director General of the Department of Post and Telecommunications said that a third telecommunications company in Laos is a very positive step for the development of this sector. "The more companies, the better the price and service and the greater the choice for the consumer," said the Deputy Director. 

The new MIC venture will compete with Lao Telecom and the recently established Enterprise Telecommunication Lao. MIC hopes to develop modern technologies and start investing in the Lao economy in the near future.

MIC is a company owned by the Kinnevik Group from Sweden, which operates 60 telecommunications companies around the world. The company had submitted its proposal in 1997 to invest in Laos, but was initially denied access. "We did not allow the MIC company to invest at that time because we still had a five-year monopoly contact with Lao Telecom. Now the contract has expired, the Enterprise Telecommunication Lao has entered the market and the MIC will follow to truly internationalize the sector," explained the Deputy Director. 

The telecommunication sector, as a service sector, is one of the major contributing factors that helps create favorable infrastructure necessary for social and economic development as well as for attracting more foreign direct investment into Laos.
 
 


HIGH-GROWTH LAO TELECOM TO KEEP ITS MARKET SHARE 

The Lao Telecom enterprise saw high growth over 2001, according to a press release available at its nationwide annual meeting.

The press release stated that over the year the enterprise invested enormously in network expansion using new technology.

"By the end of 2001, the number of telephone users reached 75,000 or a 36% increase compared to the year before," said Lao Telecom Director General.

Lao Telecom has so far built 34 telecom centers nationwide. The number of telephone lines rose to 62,000 or an increase of 15,500 lines from the year 2000.

The numbers of public phone boxes have also increased to 312 across the country by the end of 2001. Lao telecom also provides Internet services. At present it has 2,160 registered users. Over the year the company made 221.5 billion kip or about 80% of the annual plan.

The meeting also set a plan for the company operations over the next year. According to the press release the company will expand its table phones to 63,400, an increase of about 12,240 from the year 2001. The mobile phones will rise to 47,200 or 17,200 units increased from the year 2001.

Lao Telecom is a joint venture between the State Telecommunication Enterprise and Thailand's telecommunication company, the Shinawatra. The company signed a contract with the Government to monopolize telecommunication services in the Lao PDR. The contract expired at the end of 2001. Being a monopoly, the company made several progresses in telecommunication development in the Lao PDR. Whatever the technology people all over the world can use, Lao people can too. However, several complaints were also experienced by the company about prices, poor, signals and the limits to the number of phone, users. The company invested little by little until last year the company signed a contract with Ericsson Thailand to purchase equipment necessary for the telephone network expansion. The purpose of the project was to expand base stations to provide better services and increase the number of customers. Nine stations were said to be installed in Vientiane municipality's Sikhay, Lak 3, Phontong, That Luang, Simuang, Don Noun, Nasaithong villages, Vientiane province's Phon Hong village and in Bokeo province. The total investment in the project is about US$ 1.3 million. The company also plans to use US$280,000 to purchase a microwave link system to link the Sailom switching center with the newly installed hops.

Lao telecom is no longer a monopoly. Another state-run company called Enterprise of Telecommunication Lao was founded recently. This new company is expected to be the largest telecom company in Laos. It has borrowed money from China to invest in all necessary facilities throughout the country and expects to provide services in March this year.

The ETL is Lao Telecom’s only local competitor and it is hoped that this competition will provide more Lao people with access to good quality telephone lines.
 
 


JAPANESE AMBASSADOR RECOGNIZED FOR CONTRIBUTION 

Deputy Prime Minister Somsavat Lengsavad presented a Friendship Medal to Japanese Ambassador Yoshinori Miyamoto on January 27 in recognition of his major contribution to enhancing the friendship and cooperation between Laos and Japan.

The Deputy Prime Minister said that the medal represented the appreciation and hearted-felt thanks of the Lao Government and people for the huge contribution made by the Japanese ambassador during his mission here.

Mr. Yoshinori Miyamoto's significant contribution included the facilitation of a myriad of meetings between high ranking delegations of the two countries, particularly the visit to Laos by the Prince of Japan.

The ambassador offered assistance to various projects, represented his government in clearing debt for the construction of the Nam Ngum Dam, and presented numbers of grant aid packages and technical assistance to the people of Laos. The ambassador had overseen improvements to National Road No. 9, human resource development, funding for the museum in Luang Prabang province, and the restoration of Vat Phou in Champassak province.

Japan is currently assisting in the construction of 700 schools and hospitals around the country, providing low interested loans for the second Mekong Friendship Bridge, and overseeing the construction of the Japan-Laos Cooperation Promotion Center for Human Resource development.

Japanese Ambassador Yoshinori Miyamoto was never far from the opening of a new facility or the signing of an agreement for a new Japanese-supported project. He represented the official face of the Japanese Government in Laos and the good will of the Japanese people.

The deputy prime minister expressed the sincere thanks of the entire Lao nation for his priceless assistance and wished him success in his new posting.
 
 
 


ADB TO FUND REMOTE POOR COMMUNITIES 

The Asian Development Bank (ADB) has provided a US$ 1 million grant from its Japan Fund for Poverty Reduction (JFPR) to help poor families in Laos, especially land-less households, secure alternative sources of income through increased involvement in farm-based production and related activities.

The signing ceremony for the grant was held at the Ministry of Finance on January 31. The grant will finance the Community-Managed Livelihood Improvement Project, which is designed to create sustainable, area-based, and community-owned alternative sources of income. The project will target approximately 2,000 households, many of whom live in highland areas, who have no land, or have land that cannot be irrigated. 

The project supplements the ongoing Community-Managed Irrigation Sector Project also financed by the ADB. The irrigation project is aimed at boosting rice production in the mountains where irrigation is limited. 

An official from the Ministry of Finance said that people in Vientiane,
Houaphanh, Xieng Khuang and Bolikhamsay provinces will benefit from the fund. The project will take about seven years to improve the lives of the target communities.

One crucial component of the JFPR-funded project is to involve women as much as possible, and include environmentally friendly approaches. The specific activities of the project will be selected and undertaken by the concerned beneficiaries in small villages. Such activities include development of livestock, an important source of income, especially for highland farmers. Basic veterinary services and skills will be developed within the communities, such as regular vaccination schemes and disease diagnosis.

Other activities which will be implemented by communities with the organizations include development of small fishponds, improvement of seed production of high-value vegetables, integrated pest management and weed control, and establishment of nurseries for fruit and timber trees.

In some areas, market facilities will be developed. Portable water supply systems will be, introduced, thereby reducing the workload of women who have to carry water over a long distance.
 
 


LAO-MYANMAR AGRO-FORESTRY COOPERATION

Trade cooperation in agriculture and forestry between Laos and Myanmar received a welcome boost with the opening of the Lao-Myanmar Friendship Agro-Forestry Development Center. 

The center will operate in the northern province of Bokeo, which shares a border with the Union of Myanmar.

The opening of the center was considered a significant event to strengthen cooperation in the agriculture and forestry sector between the two countries.

Attending the opening ceremony were Deputy Prime Minister and Minister of Foreign Affairs Somsavat Lengsavad, Myanmar Agriculture and Irrigation Minister Major General Nyunt Tin. Bokeo Governor, Lao Agriculture and Forestry Acting Minister Sitaheng Rasphone and ambassadors of the two countries.

"Although this is an initial achievement, it is a product of the cooperation between the two Ministries and Bokeo province," said Sitaheng Rasphone in his address to the audience assembled at the new center.

The center is a part of the whole Agro-forestry cooperation project between the two countries. Laos and Myanmar signed agreements in 1997 and 1998 to strengthen cooperation and the establishment of the project in 1999 was a result of cooperation.

According to a report from Bokeo Governor, the project includes the construction of the 250-meter Din Dam weir, the 580-meter Phak Koud weir, and the center itself and its facilities.

The project has an area of 600 ha to be used for agricultural development. The project has already spent about 16.5 billion kip and the total cost of the project is about 29.8 billion kip. Both sides contribute funds, materials, seeds, and fingerings to the project.

The project is now working on the construction of houses for chickens and pigs, fishponds, a seed drying square and other facilities. During its present probation period, the project has produced about 100 tons of maize in four seasons on a 47 ha area. It also tried to grow rice in three seasons on four hectares and the total output was about 10 tons. At present, the project has a 7-hectare fruit plantation, some 500 poultry, and some 50,000 fish.
 
 
 


MALAYSIAN COMPANY TO DEVELOP PAKSONG RESORT 

New investment opportunities are set to emerge around the popular southern plateau of Paksong after the go-ahead for the development of a resort, a golf course and agricultural activities was given on December 24, 2001.

The Malaysian Easier Progress Industries company will study the area and develop the resort thanks to the agreement with the Lao Government. The cool and comfortable climate of the plateau, its quality soil for vegetable production, and the popularity of the area for eco-tourism made the agreement for the development an encouraging one for both foreign investors and local businesses.

The Paksong plateau is one of the most popular areas for both domestic and foreign visitors to southern Laos. 

The agreement was signed between Deputy Chairperson of the Planning and Cooperation Committee Mrs. Khempheng Pholsena and Chief Executive Officer of the Malaysian company Mr. Cheok Tiam Chen.

The program will also include the possibility of a public park system to entice tourists. The original investment for the project will come entirely from foreign investors and the Government will take a 30 % share of the profits during the 30-year rental lease given the Malaysian company for the resort.

Paksong district is located in Champassak province, 50 km. south of Champassak city. It is a former volcanic area, and is famous for its coffee and tea production, exported to the world markets.
 
 


LAO-BELGIAN COOPERATION 

Belgium reaffirmed its development cooperation with Laos during the recent visit of Belgium's Deputy Minister of Cooperation and Development Mr. Eddy Boutmans.

The Deputy Minister was warmly received by Deputy Prime Minister and Foreign Minister Mr. Somsavat Lengsavad.

The Belgian Deputy Minister and his delegation informed Mr. Somsavat Lengsavad of their activities during their visit to Laos, especially of the outcome of their talks with the Lao Planning and Cooperation Committee.

Belgium has agreed to continue helping Lao with several projects including the rural development projects worth Euro 6.2 million in the districts of Nong, Sepone, and Thapangthong. Assistance is also being provided for the unexploded ordnance project in two districts of Champassak province. Belgium is helping to improve vocational schools in Luang Prabang and Champassak provinces, assisting with the embankment project in Khammouan province through the Lao National Mekong River Committee and working on small-scale rural development projects in both northern and southern provinces. Other project includes the improvement of water supplies, the training of agricultural, forestry and public health officials and the malaria prevention project.

Representatives from both countries are scheduled to discuss the detail of the cooperation again in May.
 
 


LAOS TO STEP UP DRUG CONTROL EFFORTS

Despite the rising demand for opium in Southeast Asia after the decline of output in Afghanistan, a Lao government minister said his country would push on with its "opium-free" scheme. "We still believe that with strengthened measures, drug production in the region could be under control," stated by the Minister to the President's Office Soubanh Sritthirath.  

Mr. Soubanh is responding to concerns over the fact that with the fall of the Taliban regime in Afghanistan, the decline of opium output in the world's former largest opium producer, has resulted in a drastic increase in poppy cultivation in the Golden Triangle, where Laos, Myanmar and Thailand border each other.

Mr. Soubanh, who is in charge of Lao drug-control agencies, said his government will dispatch officers to major opium growing areas throughout the country to block production and is planning to limit the areas of opium growing to 15,000 hectares by the end of this year.

Hundreds of Lao poppy growers, notably hill-tribe people, have quit poppy cultivation and volunteered to stop opium production this year, he said.

The minister emphasized that Laos' opium free campaign was conducted on a humanitarian basis.

"Poppy growers are poor and we cannot destroy their poppy fields without giving them an alternative choice for making a living," he said. However, Mr. Soubanh said his country still lacks financial support for anti-drug- efforts and needs at least US$ 80 million for achieving the goal of eradicating opium production by 2005.
 
 


PEOPLE OF NONGCHANH MARSH AREA TO MOVE OUT

Residents of the Nongchanh area, Sisattanak district, an eight-hectare area in central Vientiane municipality, are preparing to move away after the Government decided to restore the environment in this area and to build a public park.

After the completion of the new Nam Phu fountain and the public park in Saphanthong Neua village, the Government has moved on to restore the Nongchanh marsh area. The marsh has created many potential health hazards for its poor residents and environmental hazards for the municipality in general. This state of affairs is set to change with the redevelopment of the area and the creation of a public park. The park will improve the environment and the residents will receive better lives thanks to the provision of a new settlement in Nong Teng village, Sikkhottabong district.

The Nongchanh marsh was inhabited by 529 families with a total population of 2,546 people. Some of the villagers are traders and business people, and some are laborers and state employees, according to the Chief of the Nongchanh marsh settlement. He added that the Government has plans to move out only those people who have built houses on state-owned land. This amounts to about 400 families. The remaining 129 families live on their own land.

The Chief of Nongchanh said that many more families had moved out from the Nongchanh marsh, taking advantage of the Government organized land in Nong Teng, Sikhottabong district. "The new 15-hectare area includes a school, a hospital, electricity, an artesian well, roads, and a market," said the Chief. The settlement is being funded by the Danish development agency, DANIDA.

The land in the new Nong Teng settlement is being divided up according to the size of the families that had been settled in the Nongchanh marsh area.

The Government is also providing a resettlement payment to residents ranging from 5 million kip to 150,000 kip depending upon their specific circumstances.

He added that the Nongchanh marsh redevelopment would begin at the end of February to ensure environmental preservation in Vientiane municipality. The Government also has plans to move traders away from the Kuadine markets and to build a mini-mart in their place.

The project has received US$ 1.5 million in funding from DANIDA. If the project is successful DANIDA will provide US$ 10 million more to develop the area of Nongchanh as a public park.

Waste Water Management Project Director Bounchan Keosithamma said that the main purpose of the Vientiane Municipality Environmental Improvement Project (VMEIP) is, to improve and restore the quality of the, environment in Vientiane municipality. He added, that the Nongchanh marsh restoration and development project, as part of the VMEIP, would create a public park for the relaxation of the people in Vientiane. 
 
 


30 YEARS ON, UXO CASUALTIES STILL HIGH 

The Number of victims of unexploded ordnance (UXO) suffering death or injury from the bombs in nine provinces is increasing every year, according to Lao UXO.

A total of 122 victims including 87 injuries and 35 deaths occurred in 2001. The results of the 2001 survey were disseminated recently at the 17th Lao National UXO Steering Committee meeting on February 7. 

The meeting was held to report on the activities of the OXU program in the nine provinces where UXO teams are working, that including Xieng Khuang, Luang Prabang, Huaphanh, Sekong, Champassack, Savannakhet, Saravan and Attopeu. In 2001 the organization ran activities such as community awareness, training, surveys and UXO clearance.

According to the report last year's casualty number was high when compared to recent years. Most of the casualties occurred in rice fields, grazing, land village centers and forests. UXO explosions usually occur when people are doing essential daily activities. The incidents involving children have increased substantially in recent years.

In the year 2001 UXO Lao cleared 874 hectares and destroyed more than 82,000 bombs, which tied on and under the ground. UXO Lao has 1,200 staff and recently 241 staff upgraded their clearance skills, collected information and trained in nursing skills to be able to administer aid in the field.

Laos has the distinction of being the world's most heavily bombed nation. More than two million tons of ordnance was dropped on Laos during the Indochina war (1964-1973). Bombies are the predominant danger, unlike land mines and are designed to kill rather than injure. Up to 30 percent of the bombs dropped did not explode and are therefore still dangerous, according to a source from Lao National UXO program.

According to an official from the Xieng Khuang UXO program, between 1973 and 2000 there have been 1,594 casualties and 769 people killed by UXO. Over 600 of those accidents victims were children and of them 176 died. In the year 2000, there were 51 bomb incidents resulting in 15 deaths. Over 20 of those victims were children and four were killed.

As population growth is increasing so is pressure to clear more land. Over a half of the 80 percent of people who are engaged in subsistence agriculture live with the danger of UXO. They already know the contents of UXO and constantly fear death and injury but they have no choice because their lives depend upon the land where these bombs were dropped.

"Our village is starving because we cannot use much of our land around the village. We are aware of the danger of unexploded bombs planted under the ground, every time we clear more land there are more explosions," said a villager from Kaleum district, Sekong province in an interview with UXO staff.

Numbers of communities that are UXO aware are expanding but victim numbers are still high. The UXO teams have visited more than 182,000 people in 766 villages.

UXO Lao and UNICEF are working with provincial radio and other media to increase and diversify education channels. The awareness work in the village will continue using participation, puppet shows, drama and songs. Awareness activities will also be conducted in more affected districts.

UXO Lao was established as a humanitarian Organization in 1996 aiming to reduce the number of civilian casualties and increase the land available for food production and other development activities.
 
 

 



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