Boten Golden City to become casino-free zone

Boten Golden City, a new urban development on the Lao-Chinese border, will become a casino-free zone after the government approves in principle a policy to restructure the special economic autonomous region.

The Lao National Committee for Special Economic Zones met on Monday to discuss the draft of a prime ministerial decree, which would transform Boten Golden City in Luang Namtha province from a gambling town into a commercial centre.

The meeting also approved in principle the reclassification of Boten Golden City, changing it from a special economic zone to a specific economic zone. The move gives the Luang Namtha provincial administration greater power to control soci al and security issues in the zone.

Under the previous concession agreement between the Lao government and the developer of the Boten Golden City special economic zone, the zone management not only had the power to approve investment projects in the zone but also had the right to set up security systems.

The Lao government decided to revamp the administration of Boten Golden City after the project developer decided to sell the venture to another Chinese investor.

No reason has been given for the developer's decision to back out of the Boten Golden City project. However, there has been speculation over criminal activity in the gambling town, which forced the government to close the casino.

According to officials responsible for drafting the prime ministerial decree on the Boten Golden City Specific Economic Zone, the new Chinese investors in the project have expressed their intention not to operate a casino.

Officials said the new investor wanted to transform Boten Golden City into a tourism destination showcasing the Lue culture. The Lue ethnic group lives along the Lao, Thai and Chinese borders.

The investor has already successfully put the Lue culture on stage in Xishuangbana in Yunnan province, China, and in Chiang Mai province of Thailand, as a tourism product, the officials said.

Under the draft prime ministerial decree on the Boten Golden City Specific Economic Zone, the existing zone administration would be abolished. The government will only permit the existence of the zone management board, which is chaired by the investor.

The zone management board chairman will focus on economic affairs, such as approving investment projects in the zone. The Lao government will appoint a deputy chairman, who will have the right to administer social and security matters in the special economic zone.

Officials said the government will allow Luang Namtha provincial authorities to send their officials to work alongside the zone management as part of the government's decentralisation efforts.

De puty Prime Minister Somsavat Lengsavad said the government will not allow any more special economic zones to contain casinos, after finding such operations created serious problems for Laos, especially in regard to security.

Mr Somsavat said the casino had been built before the Lao National Special Economic Zone Committee had been set up, so it was impossible for the committee to close it.

Laos has several special economic zones, but only the Golden Triangle Special Economic Zone has a casino.

By Times Reporters

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