10 Nov 2017
LAOS: Investment Licences set to be Cancelled as Government Cracks Down on Systemic Abuse
Investment projects that fail to comply with internationally-recognised technical standards may have their permits rescinded as part of a government crackdown on abuses of the country’s existing investment programme. In line with this, any overly-delayed projects may also face losing their licences.
In an earlier sign of the Laos government’s commitment to further regulate investment practices, it recently cancelled the licences relating to 10 projects in the hydropower and mining sectors, deeming them to be in contravention of earlier agreements. The government is also keen to counter concerns that investment agreements are being sold on to third parties at a premium rather than being implemented in accordance with the original agreements.