Suspension of electricity and mineral investment project incorporations

On 10 July 2019, the Department of Investment Promotion of the Ministry of Planning and Investment (“DIP”) issued Notice No. 189 (the “Notice”) regarding the suspension of the incorporation of electricity and mineral investment projects.
Per the Notice, the DIP has instituted a nationwide suspension of the acceptance of applications for investment projects involving the exploration and extraction of minerals, and electricity from now until 2020. The Notice covers the following:

1. Electricity projects:

• Hydropower
• Coal
• Solar
• Wind
  • There is an exception for medium- and large-sized investment projects that will produce electricity for its own use or has confirmed markets in which to sell the electricity under an agreement with or letter from the buyer.

2. Mineral projects:

• Investments regarding the exploration and/or extraction (in rivers and on land) of gold and minerals
  • There are some exceptions for which investors can submit investment applications:
  • Necessary minerals used for a company’s own industrial and construction needs, such as:
    • Minerals used in industry
    • Minerals for construction
    • Fuel power minerals
    • Liquid minerals
  • Old concession areas where the government has canceled the contract:
    • Companies interested in investing in an area where the government approved a project but then canceled or terminated it (by a cancellation letter or project termination agreement), can submit investment applications and the government will consider them on a case-by-case basis.

3. Projects/activities that are not consistent with the control or concession activities specified in Decree No. 03 dated 10 January 2019:

• For any such project/activity, a request needs to be made to the Enterprise Registration and Management Department, the Ministry of Industry and Commerce, or the Division of Industry and Commerce of the province or Vientiane Capital.

If you have any questions about this alert, or need more information, please contact the undersigned or your usual VDB Loi adviser.