Investor gets financing boost for Laos’ smart city development

Amata City Lao Company, a developer of smart cities in northern Laos, has received a financing boost to build the Amata Smart & Eco City in Luang Namtha province, Thai media reported.
The company on August 3 signed a Credit Facility Agreement with the Export-Import Bank (EXIM Bank) of Thailand under which the latter provides 150 million Thai baht as a loan for the investor to develop the industrial complex, Bangkokbiz News reported.
The funds will be used to buy land use rights and build a new industrial city in Natuey in the northern province, which borders China.
Thailand-based SET-listed Amata Corporation Plc (Amata), a leading industrial estate developer and operator, announced earlier last year its plan to allocate US$1 billion to develop the industrial complex in Natuey, through which the Laos-China railway passes.
The company said on its website that it has been granted a concession to develop the project’s first phase on 410 hectares of land with a potential site expansion of up to 200 square kilometres (20,000 hectares) in total.
The groundbreaking ceremony for the project took place on January 11, 2022, attended by senior Lao officials and company executives.
The new financing was granted as the EXIM Bank has envisaged the Thai entrepreneur’s promising business prospects for the construction of a smart and eco-friendly city following the zero-waste discharge policy in the Amata Smart and Eco City in Natuey, aiming to achieve the ultimate goal of a low carbon city that prioritises the protection of natural resources and the environment under the Amata Group’s ‘All Win’ philosophy.
This reflects EXIM Thailand’s role as a development bank committed to promoting industries of the future.  
EXIM Thailand President Dr Rak Vorrakitpokatorn said the Bank has sought to promote and support Thai entrepreneurs such as Amata City Lao in integrating both Thai and Lao SMEs into the supply chain and building an ecosystem to foster the development of future industries.
Thailand’s Bangkok Post quoted the chairman and chief executive of Amata, Vikrom Kromadit, as saying previously that his company would develop the industrial complex as a model for modern industrial parks, with energy-efficient infrastructure and sustainable environmental management.
The project is designed to serve international investors in various industries, including logistics and warehousing, machinery, rubber and plastic products, and food and beverage processing, as well as chemicals and pharmaceuticals.
Amata is one of three firms selected by the Lao government to build a dry port in Natuey to tap the growing potential of the area, notably the improved logistics and transport services resulting from the Laos-China railway, which is becoming an increasingly important trading gateway between China and Southeast Asia.
Amata also announced that it has secured a concession from the Lao government to develop another Amata Smart and Eco City in Namor district of Oudomxay province, which borders Luang Namtha.
The company plans to spend US$500 million on its first-phase development covering 8,075 rai through a joint venture, Amata City Laos Company, according to the Bangkok Post, citing Mr Vikrom as saying.

By Times Reporters
 (Latest Update August 9, 2023)