Concessions and Leases in the Lao PDR

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Rubber Plantation, Long District, Luangnamtha Province
ANNEX Case Studies Introduction Despite the volume of investment in land concessions and leases in the Lao PDR, the governance mechanisms and capacities in place for approving, managing and monitoring state land rented out for development remains lacking in a number of areas. As a result of a range of institutional weaknesses in this respect, investing companies and individuals have been able to violate the approval process as well as the conditions agreed to upon approval. These violations often lead to grave social, environmental and economic impacts and a significant loss of government revenues. In this annex, several case studies encountered in the process of collecting data for the concession inventory are described in order to better highlight the current governance issues related to granting, allocating and implementing investment involving state land areas. The cases were encountered during the data collection and are provided in the form presented here by the Ministry of Resources and Environment (MoNRE) of the Lao PDR. Case studies serve to place this publication’s results and analysis into a wider context by discussing the process behind land concession and lease approval, the relationships and interactions across stakeholder groups, and the regulatory loopholes which allow for unsustainable natural resource exploitation in the Lao PDR. They also provide insight into potential future trends and highlight areas for improvement in decision making. Capacity Issues Case Study 1: Investment related issues begin with the initial process of surveying land and establishing boundaries for land granted to developers. In 2006, Yunnan Rubber Investment Company, Ltd. (Bolisaat Yunnan in Lao) was granted a 214 ha concession by the Luangnamtha provincial government in Ban Sobtoud, Luangnamtha District. A survey team from the provincial and district authorities conducted a land survey before granting land to the company. The team used an existing topographic map to demarcate the concession boundary and, based on the map, calculated a total area of 320 ha available for investment (see picture 1). In 2009, the inventory team found that the actual area the map depicted was an area of 3,411 ha in size instead of 320 ha (see Map A1). Calculations had been performed incorrectly, resulting in an area granted which was ten times the figure stated on the map attached to the contract. Fortunately, the investing company did not develop its concession according to the map. Still, it cleared an area of 345 ha, which is considerably larger than the 214 ha it was granted (see Map A2). ANNEX - Case Studies 81
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Concessions and Leases in the Lao P
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Concessions and Leases in the Lao P
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Table of Contents List of Figures L
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List of Maps Map 1: Locations of Co
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Acronyms BMZ Bundesministerium für
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Foreword The Lao PDR is rich in nat
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Executive Summary Investment in lan
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Outlook The findings of this public
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I - INTRODUCTION This publication p
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continuing data collection and data
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area data and cover 1.1 million hec
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II - RESULTS Chapter 2 presents an
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Map 1: Locations of Concessions and
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Table 2: Overview of Investment Pro
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Table 4: Overview of Investment Pro
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2.1.7 - Trends in Approvals over Ti
Page 33 and 34: eucalyptus are the main forestry pr
Page 35 and 36: 2.2.1 - Investment in the Agricultu
Page 37 and 38: Map 6: Investment Project Locations
Page 39 and 40: ventures in eucalyptus are the larg
Page 41 and 42: Table 8: Overview of Forestry Subse
Page 43 and 44: Map 8: Investment Project Locations
Page 45 and 46: as these are key to China’s expan
Page 47 and 48: Table 10: Overview of Mining Subsec
Page 49 and 50: In contrast to exploitation mining
Page 51 and 52: Table 13: Overview of Mining Explor
Page 53 and 54: Table 15: Overview of Secondary Sec
Page 55 and 56: Map 14: Investment Project Location
Page 57 and 58: III - CONTEXT OF INVESTMENT The gra
Page 59 and 60: Table 18: Elevation of Investment P
Page 61 and 62: Thai investments take place in regi
Page 63 and 64: domestic projects in these two subs
Page 65 and 66: Map 18: Poverty Incidence Map, Inve
Page 67 and 68: Table 22: Poverty Incidence by Subs
Page 69 and 70: 3.3.3 - Ethnicity in Areas under In
Page 71 and 72: 3.4 - Forest Categories The GoL has
Page 73 and 74: Figure 24: Area under Investment in
Page 75 and 76: In terms of the land cover classes
Page 77 and 78: Figure 27a: Area per Land Cover Cla
Page 79 and 80: IV - CONCLUSIONS The “State Land
Page 81: more, the fact that this data has b
Page 86 and 87: Issues in land surveying for projec
Page 88 and 89: Land Categories and Site Surveys Th
Page 90 and 91: Compensatory Activities Case Study
Page 92: Lignite Mine, Hongsa District, Saya
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