Concessions and Leases in the Lao PDR

Issues in land surveying for project approval result from a
number of weaknesses in general monitoring capacity,
quality control and review at higher levels. This case highlights
the low technical capacity for surveying, as well as poor
oversight within the land surveying process. A consequence of
these weaknesses is that they open a window for companies
to disregard certain stipulations which restrict and define their
access to and use of land.
Map A2: Comparison of mapped to developed area size
Map A1: Area approved under the contract
Case Study 2: The Singaporean “Outspan Company” was
issued a foreign investment license by the Champasack
provincial authority in September 2009 and applied in November
2009 for 800 ha land in Ban Thongwai, Houaymek, Latsasin,
Nongxouang and other villages in Paksong District. When the
PLMA surveyed the area in February 2010, they determined
1,172 ha to be available for approval and allocation (see Map
A3). The survey team also noted the land cover to be primarily
young fallow forest (pa lao on), barren land, old garden, bamboo
forest and old fallow (pa lao kae), but made no mention of
whether the land surveyed was used by villagers or not.
However, when the company was granted land, only 150 ha
were granted by the provincial authority. Despite this, the map
attached to the concession agreement was the initial PLMA
survey map, which depicts a much larger area than that granted,
instead of the granted area. This mistake went unnoticed,
therefore the company began clearing land based on the map,
effectively encroaching on villagers’ productive land. This
occurred partly because the site survey implementation was
performed without involving relevant actors, particularly
the local community, thus increasing the likelihood of
significant conflicts between villagers and investors. In
addition, the case shows low capacity among technical field
staff in land surveying, as the provincial government allocated
an area to the company which contradicts other relevant
documents and regulations. The company took advantage of
this lack of administrative oversight and cleared an area much
larger than that approved, disregarding potential consequences.
This incident also shows that no ground monitoring was
carried out by the relevant authorities during the clearing
process, as such monitoring clearly would have revealed the
issue.
82 Concessions and Leases in the Lao PDR: Taking Stock of Land Investments