Stora Enso, one of the world’s largest papermakers, has gained approval to grow eucalyptus trees on an area of 812 hectares in Ta Oy district, Saravan province. A ceremony to sign a land concession agreement was held at the Lane Xang Hotel in Vientiane last Thursday and attended by representatives of the Lao National Land Management Authority and Stora Enso, a Finnish-Swedish company. According to a press statement released at the ceremony, the land concession agreement between the Lao government and the foreign firm is valid for 50 years. The company will pay US$ 10 per hectare per year under the concession agreement. The Saravan provincial Land Management Authority will be responsible for collecting land concession fees from the company. The authority expects to receive fees of about US$ 8.120 per year. The Stora Enso Company has agreed that it will pay an additional US$ 1 per hectares every five years for the period of the agreement.
Source: Vientiane Times
