Concessions and Leases in the Lao PDR
Concessions and Leases in the Lao PDR
Concessions and Leases in the Lao PDR
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Map A3: Area be<strong>in</strong>g surveyed compared to that actually cleared for coffee production by Outspan Company <strong>in</strong> Paksong District<br />
Regulatory Issues<br />
Limitations on Area Granted<br />
Regulations exist for grant<strong>in</strong>g l<strong>and</strong> for <strong>in</strong>vestment <strong>and</strong><br />
development, but <strong>the</strong>ir impact depends completely on<br />
compliance <strong>and</strong> enforcement. Particularly important for<br />
<strong>in</strong>vestment projects <strong>in</strong> <strong>the</strong> forestry sector approved before<br />
2007 is <strong>the</strong> Forestry Law of 1996, which established <strong>the</strong><br />
division of responsibility for approv<strong>in</strong>g concessions <strong>and</strong><br />
leases. It set area ceil<strong>in</strong>gs for <strong>the</strong> authorization of l<strong>and</strong><br />
<strong>in</strong>vestments <strong>in</strong> forest l<strong>and</strong> to be converted <strong>in</strong>to o<strong>the</strong>r<br />
l<strong>and</strong> uses for different levels of government responsible.<br />
District authorities can grant up to three ha, prov<strong>in</strong>cial<br />
authorities up to 100 ha, <strong>the</strong> central government up to<br />
10,000 ha <strong>and</strong> projects greater than 10,000 ha require<br />
National Assembly approval. But s<strong>in</strong>ce newer regulations<br />
set <strong>in</strong> 2009, district level authorities are no longer allowed<br />
to grant l<strong>and</strong> for plantations, while prov<strong>in</strong>ce level<br />
authorities are allowed to grant only degraded forest<br />
up to 150 ha (500 ha for barren l<strong>and</strong>) to <strong>in</strong>vestors, <strong>and</strong><br />
<strong>the</strong> central government is limited to 150-15,000 ha (500-<br />
30,000 ha for barren l<strong>and</strong>); <strong>and</strong> anyth<strong>in</strong>g bigger than this<br />
must be approved by <strong>the</strong> National Assembly (PM decree<br />
No. 135/PM on L<strong>and</strong> <strong>Leases</strong> <strong>and</strong> L<strong>and</strong> <strong>Concessions</strong> 2009).<br />
In many cases, <strong>the</strong> <strong>in</strong>ventory team found that authorities<br />
on prov<strong>in</strong>cial or district levels were approv<strong>in</strong>g l<strong>and</strong> areas<br />
over <strong>the</strong> limit of <strong>the</strong>ir m<strong>and</strong>ate. For example, <strong>in</strong> Vientiane<br />
Prov<strong>in</strong>ce <strong>the</strong> <strong>Lao</strong>-Thai Hua Rubber Co. Limited was granted<br />
a l<strong>and</strong> area of 670 ha <strong>in</strong> 2006 by <strong>the</strong> prov<strong>in</strong>cial authority.<br />
O<strong>the</strong>r cases show that regulations can be evaded, as <strong>in</strong><br />
Xayabury Prov<strong>in</strong>ce <strong>in</strong> 2001, where <strong>the</strong> prov<strong>in</strong>cial governor<br />
approved a l<strong>and</strong> concession for a <strong>Lao</strong> company named<br />
“Y & P Agriculture CO. LTD” for Paulownia or Kiri tree<br />
plantation on an area of 300 ha <strong>in</strong> Kenthao District. In<br />
order to grant such large concession area at <strong>the</strong> prov<strong>in</strong>cial<br />
level, <strong>the</strong> l<strong>and</strong> was divided <strong>in</strong> several parcels <strong>and</strong> <strong>the</strong><br />
approvals were made <strong>in</strong> separate documents. Thus<br />
ultimately, ceil<strong>in</strong>gs on <strong>the</strong> area granted at different<br />
levels of government prove weak tools for regulat<strong>in</strong>g<br />
large-scale l<strong>and</strong> <strong>in</strong>vestments.<br />
ANNEX - Case Studies<br />
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