Oji Lao Plantation Company signed an agreement for Land Concession with Lao Government
- Created on 12 January 2014
- Written by Super User
- Hits: 3267
A Japanese investor, Oji Lao Plantation Forest Company, signed an agreement in Vientiane on Friday to expand its concession of state-owned land on which to plantation industrial trees in Bolikhamxay and Khammuan Provinces.
The agreement, signed with and Environment, extends the land concession from 22,434 to 50,000 hectares,The company initially set up developed 22,434 hectares by end of 2010. The plantations were established on degraded land, which was surveyed and inspected by the relevant governmental authorities. Director of Oji Lao Plantation Forest Company Mr. Eng Kouangmanivane said the company has a concession period of 50 years for the land. Our company will invest more than US$70 million to plant trees in these provinces, while the Lao government will provide about 15 percent of the total investment. We have already spent about US$53 million, Mr. Eng told Vientiane Times. The tree plantations assist in the development of these provinces, especially in regards to infrastructure development to help reduce poverty. Most of the trees are eucalyptus and acacia, which will be used to supply wood to Japan, China and other countries. Currently, about 2,500 people in the two provinces are working to plant trees on the concession land each day, Provinces are working to plant trees on the concession land each day. People living in the project area have been able to earn a good living from growing and cutting trees, he added. So far, the company has helped to develop infrastructure in about 200 villages, especially in building paths between villages. In addition, some villages have been provided with electricity, and also some money towards their village funds. The plantations increase forest cover, acting as a carbon sink to reduce air pollution. The trees also catch rainfall and slow the flow of contaminated storm water towards surrounding areas.