Instruction PMO NLMA Management of State and Communal Land Eng, unoff. transl

[Unofficial translation]

Lao People’s Democratic RepublicPeace Independence Democracy Unity Prosperity

~~~~~~~~~~~~ Prime Minister’s OfficeNational Land Management Authority No. ……/PMO.NLMA

VCC, Date: ……………

InstructionOn the Management of State and Communal Land

- Pursuant to the Land Law No. 04/NA, dated 21/10/2003.- Pursuant to the Law on State Assets No. 09/NA, dated 12 October 2002- Pursuant to Decree No. 88/PM, dated 3 June 2008, on the implementation of the Land

Law.- Pursuant to the Prime Minister’s Decree No. 343/PM, dated 25 September 2007, on

the implementation of rewards to those who have high achievement in the national revolutionary tasks.

- Pursuant to the Prime Minister’s Decree No. 67/PM, dated 18 May 2004 on the establishment and functions of the National Land Management Authority;

Minister to the Prime Minister’s Office, Head of NLMAHas issued this Instruction as follow:

Part 1General Principles

1.1 ObjectivesTo materialize the party’s policy and the state’s laws and regulations in the management

and administration of state and communal land to be applied centrally and uniformly throughout the country, with the aim to effectively implement Article 23, 24, and 25 of the Prime Minister Decree No. 88/Pm, dated 3 June 2008 on the implementation of the Land Law; and Decree No. 343/PM, dated 25 September 2007 on the implementation of rewards to those who have high achievement in the national revolutionary tasks, as well as to ensure that the use of state and communal land are consistent with the objectives, in compliance with the laws and regulations, and can build revenue into the state budget.

1.2 Definition of Term1.2.1“State Land” refers to all land parcels, including natural resources, which are

available within the territory of the Lao PDR, excluding the land for which the state organization has already issued the land use rights certificate, in the form of legitimate Land Title, to any individual or juridical entity.

1.2.2“Communal Land” refers to all land parcels for which the state has granted the right to collectively use by villages, land which are commonly used for organizing traditional event by ethnic groups, such as: cemetery, sacred forest, village use forest, village pond and swamp, school, dispensary, temple, market, sport yard, public park, seasonal production land, and other village land with collective characteristic.

Communal land is managed by the state but Communal Land Title was granted to villages and ethnic groups to be used as cemetery, sacred forest, etc.

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Communal land is prohibited for the sale-purchase, assign to other person, use as collateral, give out for lease or concession, etc. Communal land is being allowed for the protection and development for the collective interest only.

1.2.3“Land Utilization Rights” is the right to use land in certain objective in response to the need of the land utilization right holder, in accordance with the land allocation plan of the state.

Individual or organization who acquires the land utilization right is not entitled to sell the land to other persons, put on lease or concession, assign, transfer of ownership, use the land as collateral, put in capital or share in a joint-venture at all, but will only have the rights to protect, inherit and use, until there is decision to transfer the right as specified in Articles 23, 24, and 25 of the PM Decree No. 88/PM, dated 3 June 2008 on the implementation of the Land Law, and PM Decree No. 343/PM, dated 25 September 2007 on the implementation of rewards to those who have high achievement in the national revolutionary tasks.

1.2.4“Land Use Rights” refers to the right of a person, a legal entity, or an organization who acquires land use rights through assignment, exchange, sale-purchase, and inheritance. Land use rights consist of: land protection right, land utilization right, land usufruct right, right to transfer land use rights, and right to inherit land use rights. The legitimate land use right holder is the person whose name is shown in the Land Title.

Part 2State and Communal Land Management System

2.1 State and Communal Land Management SystemThe National Land Management Authority is assigned by the Government to be in

charge of the management of state and communal land in centralized manner throughout the nation, in order to serve land parcel registration, legal document registration, and collection of statistic on state and communal land inventory from agencies involved in the management of different types of state land use, as specified in the Land Law. Each land use management agency must review and set regulations for the management, protection, and development in compliance with the objectives.

The management of state and communal land consisted of 2 systems: State and communal land register management system and state and communal land inventory management system.

2.1.1State and Communal Land Register Management SystemThe State and Communal Land Register Management System is an important

system in the land management and administration in order to protect the state and public interests, and to build revenue for the state budget.

This system comprises of 2 stages: Land parcel registration for issuing land title and registration of legal document related to land.1) Registration of State Land and Communal Land

The registration for issuing state land title is the process of certifying the legitimate land utilization right for individual, organization, village and ethnic group who have commonly practiced of customary land use. To avoid falsification of the right to use state and collective land, and to facilitate land management and protection to be uniformly implemented throughout the country, land zoning, land categorizing, and land objective setting must be done for each plot of land.

The registration for issuing State land title and communal land title involves the adjudication and collection of detail information concerning land, such as: location,

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boundary, type of land, zone, land utilization right, name of individual or juridical entity or state organization, village, ethnic group and other relevant information recorded in various components of land parcel registration.

Land parcel registration consist 2 methods: systematic registration and sporadic registration. Such methods of registration are implemented in compliance with the Ministerial Instruction No. 564/PMO.NLMA, dated 6 August 2007 on Adjudications Pertaining to Land Use and Occupation for Land Registration and Land Titling.2) Registration of Legal Document Related to State Land

The registration of legal document related to state land is the process or recording all transaction and changes made to the state land utilization right, such as: granting state land utilization right, the transfer of state land utilization right into the land use right of individual or juridical entity, the lease or concession of state land, put state land in share in joint-venture, land exchange and compensation.

The transaction of communal land can be registered but if the communal land is required by the state to be used in certain purpose for the common interest, there must be the land expropriation or the compensation must be provided.

The details for implementation were specified in Part 3,4,5 of this Instruction.2.1.2State and Communal Land Inventory Management System

In the system of state and communal land inventory management, the NLMA is assigned the responsibility to centrally manage the state and communal land in uniformed manner throughout the nation, and each agency involving in the management of each type of state land use must prepare detailed inventory for submitting to land management agencies.

Every plots of state land under the management of state organizations, political organizations, Lao Front for National Construction, mass organization, and state economic organization must be recorded in a detailed inventory using the standard form for state land statistic prepared by the Land Department, NLMA, before forwarding to land management agency to summarize. State land managed by any agencies under the district, municipality must be submitted to the Land Management Authority at provincial/municipal level to summarize, agencies under the province, city must be submitted to the Land Management Authority at provincial/city level to summarize, and for agencies under the central level (Government), this must be summarized by the Land Department, NLMA.

Village land unit is responsible for making detailed inventory of state land and communal land under its jurisdiction by classifying in types based on the statistic table of state land and communal land, then reporting to the District/Municipal Land Management Authority for summarizing.

District/Municipal Land Management Authority forward the inventory of state an communal land to the Provincial/City Land Management Authority. The Provincial/City Land Management Authority then summarize the inventory of state and communal land of each district, municipality under its jurisdiction before forwarding to the Department of Land, NLMA for further summarize centrally throughout the country.

Land Management Authority at each level has the right to acquire the information on state land and communal land from agencies in charge of managing state and communal land in office hour based on the requirement of the work through the written assignment of staff to carry out data collection on state and communal land.

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Part 3Procedures and Sharing of Responsibilities in Granting State Land Utilization Rights

3.1 Procedure for Granting State Land Utilization Rights- In implementing the rewarding policy for transferring land utilization right to

government staff, the state allow the grant only one parcel to one person, depending on the type of land.

- Any individual being granted state land utilization right from the Land Management Authority at the central level, shall be banned from acquiring any additional state land utilization right from local administrative authority, exceptional for the cases that special consideration being made by higher level.

- An individual is entitled to be granted state land utilization right for only one parcel for each type of land

- Individual or organization who has been granted state land utilization right is not untitle to sell and assign the land utilization right, use the land as collateral, exchange or transfer the land utilization right to another persons, give land on lease or concession, and perform other legal transaction on land without the authorization from the concerned land management authority, except for the case of inheritance.

3.3 Authorization of Land Utilization RightsSince the promulgation of the Land Law, any individual and organization who is

willing to use state land must submit an application through the village land unit, then to further forward to the Land Management Authority at district/municipal level for review and submit to the district/municipal Administrative Authority for consideration based on their scope of rights.

Those who has occupied land during the past period, which are not covered in the provision stated in paragraph 1 and 2 of Article 6 of Decree No. 88/PM, if land has been developed but utilization right has not yet been granted, the occupier should inform concerned authority to request land utilization right, in accordance with the regulations.

3.3.1 The Survey of State and Communal Land for MappingEvery time of granting state land utilization right to individual, juridical entity or

organization, a State Land Survey Certificate must be attached with the authorization document in order to certify the location, boundary, area, type of land and other detailed information related to the individual, juridical entity or organization who has obtained such utilization right.

In the area where State Land Title or Communal Land Title were already issued by the Land Titling Project, the survey information recorded in the Land Title can be applied unless additional information are required, such as:1) Large plot of state and communal land which has been granted the right to lease out

or for common use.2) Conflict between neighboring land users or between state land users3) The change in land use or nature of land, such as: road construction; irrigation or

necessary infrastructure development.In case of un-registered land, the State and Communal Land Management Unit at

the central, provincial, city level, in collaboration with the local administrative authority at village and district level, must undertake the inspection, survey, delineation, in order to create Sate Land Survey Certificate and issue land use authorization. This is to protect state land and communal land from being lost.

3.2.2 Criteria and Requirement for Obtaining State Land Utilization RightsCriteria for the person who can obtain the state land utilization right should be in

compliance with Article 25 of the Instruction No. 2085/MoF, dated 01 October 2004, on

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the implementation of the Law on State Asset. The criteria and requirement are listed below:1). Government staff, with high position but the duration of joining revolutionary

task is less than 20 years, should be entitled to state land utilization right as follows:- At the central level: from Deputy Director of Division upward.- At provincial, city level: from Deputy Head of Office upward.- At district level: from Unit Head upward.

2). Government staff in general (no position), with the duration of joining revolutionary task continuously for more than 20 years, should be entitled to state land utilization rights as follows:- A person who has outstanding achievement in performing the tasks by obtaining certification from concerned organization.- Join the revolutionary (working with the government for over a period of continual 20 years).- Has never been granted awarding policy on land from the Government.- This awarding policy is implemented based on the actual ability of the state and the good behavior of the government staff.

3.3 State Land for Which Land Utilization Rights Cannot be GrantedLand for which land utilization rights cannot be granted consists of the following types of land:

- State land – house for which utilization rights given to government staff during the period he is assigned to certain position.

- Land where the government office is located, national protection area, jungle, watershed forest, land in mine area, archaeological and cultural site, natural tourism area, state conservation area, and other types of land prohibited by the government.

3.4 Sharing Responsibilities concerning the Process of Authorizing State Land Utilization Rights.

1) At Central LevelRegarding the request for authorization to utilize state land and for privatizing

state land into the land use rights of individual or juridical entity at ministry, government office, ministry-equivalent agency at the central level, the Department of Land is charge with issuing the State Land Survey Certificate and the State Land Utilization Authorization, in accordance with the Decision of the Minister to the Prime Minister’s Office, Head of NLMA.

The Implementing Process of Authorizing State Land Utilization RightsThe flow of Document Requesting for State Land Utilization Rights Consist of 5 Steps:

- Step 1: A Person who has the intent to seek permission to use state land fill out an application form purchased from the State and Communal Land Management Division, Department of Land, NLMA, then to get the form certified by Naiban of the village where the land is located and by organization where such person works.

- Step 2: After the application form prepared by the person who seeks permission was completely certified, the form should be submitted to the Reception of the Cabinet, NLMA, in order to record in the Doc-In book before being delivered to the Department of Land.

- Step 3: Department of Land receives the application and record in Doc-In book, then to consider with the regulation and coordinate with relevant sectors to undertake a survey, prepare document file, draw state land map, calculate the area and other technical works, and conduct a technical study and prepare the report of the Department of Land to be submitted to the Minister to the Prime Minister’s Office,

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Head of NLMA in order to seek direction or to issue a Decision for authorizing the state land utilization rights to the requested person, follow the laws and regulations.

- Step 4 : Upon receiving the technical study paper, report and other relevant documents from the Department of Land, the Minister to the Prime Minister’s Office, Head of NLMA will take into consideration and give direction. If the requested person is found to have criteria specified in the regulations, a Decision for granting the utilization rights to such person will be issued and sent to the Department of Land.

- Step 5: Once receiving such Decision from the Minister to the Prime Minister’s Office, Head of NLMA, the Department of Land will calculate the fee for document registration and other fees based on the regulation, along with the payment notice for such person to pay at the NLMA by clearly separating between different batch of revenue (which batch to be put in the national treasury, which batch to be kept for future used by the National Land Management Authority). After that the Land Department will register document to acknowledge the state land utilization rights, and the Director General of the Department will be requested to sign the State Land Title and the State Land Use Authorization to such person, in accordance with the regulations.

Documentation to be Prepared When Applying for State Land Utilization Rights:1). An application to request state land utilization rights2). Biography of Staff – Government Official3). Certificate from concerned organization4). Other Decisions, if any5). Background of the land6). Certificate of other performance, if any.

2) At Local LevelRegarding the request for permission to use state land by the Government official

and the request for privatization of state land utilization rights into the land use rights of individual or juridical entity at district, province, city, office, agency and organization level under the province, it is the task of the Provincial/City Land Office to carry out technical review before presenting to the Head of the Provincial/City Land Management Authority who will further report to the Provincial/City Governor to issue a Decision on granting the state land utilization rights and the privatization of state land utilization rights into the land use right of individual or juridical entity.

The Implementing Process of Authorizing State Land Utilization RightsThe flow of Document Requesting for State Land Utilization Rights Consist of 5 Steps:

- Step 1: A Person who has the intent to seek permission to use state land fill out an application form purchased from Provincial/City Land Management Authority, then to get the form certified by Naiban of the village where the land is located and by organization where such person works.

- Step 2: After the application form prepared by the person who seeks permission was completely certified, the form should be submitted to the Reception of the Office, Provincial/City Land Management Authority, in order to record in the Doc-In book before being delivered to the Land Office.

- Step 3: Once the Department of Land receives the application and record in Doc-In book, then to consider with the regulation and coordinate with relevant sectors to undertake a survey, prepare document file, draw state land map, calculate the area and other technical works, and conduct a technical study and prepare the report of the

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Provincial/City Land Management Authority to the Provincial/City Governor to seek direction or to issue a Decision for authorizing the state land utilization rights to the requested person, follow the laws and regulations.

- Step 4: Upon receiving the technical study paper, report and other relevant documents from the Department of Land, the Provincial/City Governor will take into consideration and give direction. If the requested person is found to have criteria specified in the regulations, a Decision for granting the utilization rights to such person will be issued and sent to the Provincial/City Land Management Authority.

- Step 5: Once receiving such Decision from the Provincial/City Governor, the Land Office will calculate the fee for document registration and other fees based on the regulation, along with the payment notice for such person to pay at the Provincial/City Land Management Authority by clearly separating between different batch of revenue (which batch to be put in the provincial treasury, which batch to be the technical revenue), then to register in order to acknowledge the state land utilization rights, and to propose the Head of Provincial/City Land Management Authority to sign the State Land Survey Certificate and the State Land Use Authorization for such person, in accordance with the regulations.

Documentation to be Prepared When Applying for State Land Utilization Rights:1). An application to request state land utilization rights2). Biography of Staff – Government Official3). Certificate from concerned organization4). Other Decisions, if any5). Background of the land6). Certificate of other performance, if any.

Part 4Procedures and Responsibility Sharing

In Privatization of State Land Utilization Rightsinto the Use Rights of Individuals or Juridical Entity

4.1 Procedures for transferring state land utilization rights to individual land use rights - A government official is entitled to the awarding policy for transferring state land utilization rights into individual land use rights (for construction land only), in accordance with the Prime Minister’s Decree No. 343/PM, in the area less than 800 m 2, the exceed area should be bought 100% from the government based on the price set by the Land Valuation Committee. In case that the state land utilization rights granted to one person consist of 2 or more plots but with the total area not over 800 m2, every parcels can be transferred to such person. In case that the area of every parcels together exceed 800 m2, the exceeded area should be bought 100% from the Government based on the price set by the Land Valuation Committee.

- Government official who obtains the awarding policy for transferring state land utilization rights into individual land use rights (construction land) and has been joining the revolutionary since 1976 to the present, as specified in Article 24, and land of those who fled which has been protected by their close relatives, as specified in Article 25, of Decree No. 88/PM on the implementation of the Land Law, has to buy

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such land from the government (100%) based on the price set by the Land Valuation Committee.

- Regarding the land where preserved house is located and the land reserved by the state, such land can be used as residence but ownership must not be granted. In case such land is needed for other purpose, the state will find land in another location to replace but the value of new land should not exceed the previous one.

- Regarding the transferring of state land utilization rights into the land use rights of juridical entity, such land must be bought 100% from the state, based on the price set by the Land Valuation Committee.

- Regarding the transferring of state land utilization rights in the individual land use rights for agriculture land, forestry land and other types of land (except for construction land), specific regulations will be applied.

4.2 Sharing of Responsibility for Implementing the Awarding Policy of Transforming State Land Utilization Rights into the Land Use Rights of Individual or Legal Entity

4.3.1At Central Level1) Ministry of Labour and Social Welfare

Department of Pension and Handicap is charged with certifying the performance and number of years joining the revolutionary of government staff, pensioner, soldier, police, competitive combatant, national hero, and senior revolutionary veteran who have outstanding performance in serving the national democratic revolutionary tasks before submitting to the National Land Management Authority where the Department of Land is the implementing body.

2) National Land Management Authority- After receiving application for transferring land utilization right, the Department of Land will check the documents, standard and criteria as specified in Decree No. 343/PM, then to prepare a delivery note and submit to Ministry of Labour and Social Welfare in order to certify the work performance and years of joining the revolution before sending back to the National Land Management Authority for consideration and approval.- Department of Land is the centre of coordination with concerned sectors to collect information, re-inspect land area and carry out land valuation. Such information will be reported to the Minister to the Prime Minister’s Office, Head of NLMA or to the leading bodies of the NLMA for consideration and approval.- Once the Decision of the Minister to the Prime Minister’s Office, Head of NLMA was issued, state land use right can be definitely granted or the definite land use right can be sold out to the person entitled to the awarding policy, then the State Land Survey Certificate and the authorization for state land utilization rights will be cancelled.- The Cabinet of the National Land Management Authority send notification to the Provincial/City Land Management Authority, cancel state land title then register and issue land title for individual or juridical entity, in accordance with Decree 23, 24, 25 of the Decree on the implementation of the Land Law No. 88/PM, dated 3 June 2008, and suggest the Sate and Communal Land Management Unit at Provincial/City level to delete from the state land inventory.- The Department of Land prepares a contract on state land transfer, takes part in the State Land Valuation Committee as well as calculate the fees and service charges on transferring state land utilization rights into the land use right of individual or juridical entity, in compliance with the regulations.

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- The Department of Land has its functions to monitor, rushing out to fully claim debt from the transfer of state land utilization rights into the land use rights of individual or juridical entity or to impose fine in case of violating the term of contract.

3) Ministry of Finance- The Department of State Asset is charge with accepting application for transferring ownership for house and other structures located in the state land, inspecting documents, standard and criteria as specified in Decree 343/PM, and other regulations of the State Asset Sector.- The Ministry of Finance (Department of State Asset Management) is the implementing body for transferring ownership concerning state house and structure to become the ownership of individual or juridical entity within the state land. After the settlement being done, the certificate of payment must be fully prepared before proposing to the NLMA to further carry out the transfer in accordance with the regulations.

4.3.2At Provincial/City Level1) Division of Labour and Social Welfare

To certify the performance and number of years joining the revolutionary tasks of staff, pensioner, soldier, police, competitive combatant, national hero, and senior revolutionary veteran who have outstanding performance in serving the national democratic revolutionary tasks before submitting to the Land Office, Provincial/City Land Management Authority.

2) Provincial/City Land Management Authority- After receiving application for transferring land utilization right, the Land Office will check the documents, standard and criteria as specified in Decree No. 343/PM, then to prepare a delivery note and submit to the Department of Labour and Social Welfare in order to certify the work performance and years of joining the revolution before sending back to the Provincial/City Land Management Authority, Land Office.- Land Office is the centre of coordination with concerned sectors to collect information, re-inspect land area and carry out land valuation. Such information will be reported to the Head of Provincial/City Land Management Authority or to the Provincial/City Governor for consideration and approval.- Once the Decision of the Provincial/City Governor being issued, state land use right can be definitely granted or the definite land use right can be sold out to the person entitled to the awarding policy, then the State Land Survey Certificate and the authorization for state land utilization rights will be cancelled.- The Provincial/City Land Management Authority send notification on the cancellation of the State Land Title then register and issue land title for individual or juridical entity, in accordance with Decree 23, 24, 25 of the Decree on the implementation of the Land Law No. 88/PM, dated 3 June 2008, and suggest the Sate and Communal Land Management Unit at Provincial/City level to delete from the state land inventory.- The Provincial/City Land Management Authority prepares a contract on state land assignment (sale of state land utilization rights) based on excess land policy and issue an order for provide cash into the state budget.- The Land Office calculates the fees and service charges for transferring state land utilization rights into the land use rights of individual or juridical entity, in accordance with the regulations.

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- The Department of Land has its functions to monitor, rushing out to fully claim debt from the transfer of state land utilization rights into the land use rights of individual or juridical entity or to impose fine in case of violating the term of contract.

3) Provincial/City Finance Department- The State Asset Management Office is charge with accepting application for transferring ownership for house and other structures located in the state land, inspecting documents, standard and criteria as specified in Decree 343/PM, and other regulations of the State Asset Sector.- The Department of Finance, Office of State Asset Management is the implementing body for transferring ownership concerning state house and structure to become the ownership of individual or juridical entity within the state land. After the settlement being done, the certificate of payment must be fully prepared before proposing to the Provincial/City Land Management Authority to further carry out the transfer in accordance with the regulations.

4) District/Municipal Land Management Authority- District/Municipal Land Management Authority has a function to participate in the Committee for transferring state land utilization rights into the state land use rights of individual or juridical entity.- Head of District Land Management Authority certifies the background of the state land.

5) Village Administrative Authority- Naiban of the village where the land is located has the duties to participate in the Committee for transferring the state land utilization rights into the land use rights of individual or juridical entity.- Naiban certifies the basic background of state land within the jurisdiction of the village.

4.4 Standard and Requirement for Implementing Rewarding Policy Concerning Construction Land

1) For government staff who had joined the revolution from 1954 backward, national hero, competitive combatant, after their deceases their land will be inherited to their heirs.

- The Government has a rewarding policy to transfer the state utilization rights into the land use right as a gift, in the area of 800 m2/person,

- If the land utilization rights obtained from the government prior to this policy exceed 800 m2, if such person needs to use the excess land he has to buy it from the state (pay 100% to the state) based on the actual price set out by the Land Valuation Committee for different zone, and type of land entitled to such policy.

2) The Government staff who had joined the revolution from 1955-1965 is entitled to be given land with the area not to exceed 800 m2/person by paying 40% to the state based on the actual price set out by the Land Valuation Committee for different zone, and type of land entitled to such policy.

- If the land utilization rights obtained from the government prior to this policy exceed such specified area, if such person needs to use the excess land he has to buy it from the state (pay 100% to the state) based on the actual price set out by the Land Valuation Committee for different zone, and type of land entitled to such policy.

3) The Government staff who had joined the revolution from 1966 – 1975 is entitled to be given land with the area not to exceed 800 m2/person by paying 60% to the

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state, based on the actual price set out by the Land Valuation Committee for different zone, and type of land entitled to such policy.

If the land utilization rights obtained from the government prior to this policy exceed such specified area, if such person needs to use the excess land he has to buy it from the state (pay 100% to the state) based on the actual price set out by the Land Valuation Committee for different zone, and type of land entitled to such policy.

If the Government staff entitled to this rewarding policy possesses several plots of land, he has to choose one of them since every plots will not be entitled to the policy. If he wants to get all of them, he has to buy from the state with full rate (100%) based on the market price at that time.

4) The Government staff who has joined the revolution since 1976 up to the present, but is not entitled to the rewarding policy specified in Decree No. 343/PM, should follow the Article 24 of the Prime Minister’s Decree No. 88/PM, dated 3 June 2008, on the implementation of the Land Law, which should pay back to the state 100% of the actual price calculated by the Land Valuation Committee.

5) A person who protects land and house of those who fled in which the state allow their close relatives or other persons to protect and use peacefully and regularly for a period more than 10 years, should follow Article 25 of the Prime Minister’s Decree No. 88/PM, dated 3 June 2008 on the implementation of the Land Law, which allow to buy from the state with the rate of 100% of the actual market price at that time (through the Land Valuation Committee).

4.5 The State Land Valuation Committee for the Transferring of State Land Utilization Rights into the Land Use Rights of Individual or Juridical Entity

4.5.1At Central LevelThe State Land Valuation Committee at the central level comprises of :

1) Representative from Department of Land, Division of State and Communal Land Management

2) Representative from Department of Land Policy and Inspection3) Representative from Division of Land Register (DoL)4) Representative from Department of State Asset Management (MoF)5) Representative from District Land Management Authority6) Representative of the Policy Awarding Committee from ministries, organizations,

offices surrounding the central where such person is assigned to.7) Representative from the VCC Land Management Authority8) Naiban of the village where the land is located

4.5.2At Local LevelThe State Land Valuation Committee at the Local Level comprises of:

1) Representative from Land Office, State and Communal Land Management Unit2) Representative from Land Conflict Resolution Office3) Representative from Land Register Unit (Land Office)4) Representative from State Asset Management Office (Finance Division)5) Representative from District Land Management Authority6) Representative of the Policy Awarding Committee from departments,

organizations, agencies within the province, city where such person is assigned to.7) Naiban of the village where the land is located.

4.6 Steps of Transferring State Land Utilization Rights into the Land Use Rights of Individual or Juridical Entity.

1) At Central Level

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The flow of documents requesting the transfer of state land utilization rights into state land use rights of individual or legal entity consist of 7 steps as follow:

- Step 1: A person who expects to seek authorization for transferring state land utilization rights into the land use rights of individual and juridical entity should fill out the application form bought from the Division of State and Communal Land Management, Department of Land, NLMA, get the form certified by Naiban of the village where the land is located and by organization where such person is employed.

- Step 2: After the documentation being prepared and fully signed, it can be submitted to the Doc-In - Doc-Out Counter of the Cabinet, NLMA in order to record the information in the Doc-In book before being delivered to the Department of Land.

- Step 3: After the document reached the Department of Land and was recorded in the Doc-In book, the research will be conducted based on the regulations, in coordination with concerned line agencies, to get ready for the field survey using technical procedures as follow: to prepare standard forms, such as Form A for survey and Form B for adjudication (in case such land parcel has not yet been issued a Land Title yet) but if the land parcel already has a Land Title, it should refer directly to the information obtained from the survey which exist in the document file of the Provincial/City Land Management Authority) then to pass to the Land Valuation Committee, as well as to prepare a technical research and a delivery note to Ministry of Labour and Social Welfare (Department of Pension and Disability) to further issue a certificate of performance and number of year joining the revolutionary tasks, and the rate of rewarding policy to be entitled.

In case that the Government staff working at the central level is granted utilization rights of state land located in other province and has the intention to transfer into the land use rights, the Provincial Land Management Authority (Land Office) must conduct technical research, such as Form A (survey), Form B (adjudication), land valuation, then to submit such documentation to NLMA (DoL) to summarize and report to the Minister to the Prime Minister’s Office, Head of NLMA for consideration and approval. After that the NLMA will submit the whole documentation, including the Decision, to the PLMA to carry out the land registration and land tilting, in accordance with the regulations.

- Step 4: Ministry of Labour and Social Welfare (Department of Pension and Disability) reviews and issues a document to certify the performance, number of year joining the revolution, and the rate of rewarding policy to be entitled, then submit to the DoL (NLMA) to prepare a report from the DoL to the Minister to the Prime Minister’s Office, Head of NLMA to seek guiding direction or a Decision for approving the transfer of state land utilization rights into the land use right to the person entitled for the rewarding policy, in accordance with the regulations.

- Step 5: After receiving a technical study, a report and other relevant documents from DoL, the Minister to the Prime Minister’s Office, Head of NLMA makes consideration and gives direction, and will issue a Decision to transfer state land utilization rights into land use rights if the request meet with the requirement, then to submit to the DoL.

- Step 6: After receiving a Decision from the Minister to the Prime Minister’s Office, Head of NLMA, the DoL prepares a contract on transferring state land utilization rights into land use rights of individual or juridical entity, and a payment notice to for such person to make a full payment to the state budget through the national treasury. After that the NLMA issue a notification to cancel the sate land survey certificate, the

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state land utilization rights authorization, then to delete them from the state land inventory within the period of 15 days. Upon the deadline, the DoL will calculate the fees and service charges based on the regulations, and write a payment notice for such person to make a payment at the Cabinet of NLMA,by clearly separating between different batch of revenue (which batch to be put in the national treasury, which batch to be the technical revenue), then to register at the DoL the transferring of state land utilization rights into land use rights of individual or juridical entity. After that DoL will propose the Cabinet of NLMA to issue a notification together with a Ministerial Decision, and other document files concerning the application to the Provincial/City Land Management Authority.

- Step 7: Upon receiving a notification from the Chief of Cabinet of NLMA concerning a Decision to transfer state land utilization rights into land use rights, the Provincial/City Land Management Authority where the land is located issue individual or juridical Land Title to the requested person, in accordance with the regulations.

Documentation Requesting the Transfer of State Land Utilization Rights into Land Use Rights of Individual or Juridical Entity- Application for transferring of state land- Biography of Government staff – state official- Certificate of Residency, Retirement Card, Title, Disability Card and etc.,- State Land Utilization Rights Permit, State Land Survey Certificate issued by the former state asset management sector or the land sector (at the present)- Letter of ownership assignment for state house, pursuant to Decree 194/PM, with the approval of the Minister of Finance or the transfer of house, in pursuant with Decree 343/PM.- Certificate of full payment for house from the national, provincial, and city treasury- Certificate of performance and years of joining the revolution from Ministry of Labour and Social Welfare.- Other Decisions (if any)

2) At Local LevelThe flow of documents requesting the transfer of state land utilization rights

into state land use rights of individual or legal entity consist of 6 steps as follow:- Step 1: A person who expects to seek authorization for transferring state land

utilization rights into the land use rights of individual and juridical entity should fill out the application form bought from the Land Office, Provincial/City Land Management Authority, get the form certified by Naiban of the village where the land is located and certified by the organization where such person works and to get his performance certified by Ministry of Labour and Social Welfare.

- Step 2: After the documentation being prepared and fully signed, it can be submitted to the Doc-In - Doc-Out Counter of the Office of the Provincial/City Land Management Authority, where the information will be recorded in the Doc-In book before being delivered to the Department of Land.

- Step 3: After the document reached the Office of the Provincial/City Land Management Authority and was recorded in the Doc-In book, the research will be conducted based on the regulations, in coordination with concerned line agencies, to get ready for the field survey using technical procedures as follow: to prepare standard forms, such as Form A for survey and Form B for adjudication (in case such land parcel has not yet been issued a Land Title yet) but if the land parcel already has a Land Title and the size of land has not been changed, it should refer directly to the information obtained from the survey which exist in the document

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file of the Land Office) then to pass to the Land Valuation Committee, as well as to prepare a technical research and a delivery note to the Provincial/City Department of Labour and Social Welfare to further issue a certificate of performance.

- Step 4: After receiving the delivery note from the Provincial/City Land Management Authority, the Provincial/City Labour and Social Welfare Department reviews and issues a document certifying the performance, then submit to the Provincial/City Land Management Authority to prepare a report to the Provincial/City Governor in order to seek guiding direction or a Decision for approving the transfer of state land utilization rights into the land use right to the person entitled for the rewarding policy, in accordance with the regulations.

- Step 5: After receiving a technical study, a report and other relevant documents from the Provincial/City Land Management Authority, Provincial/City Governor makes consideration and gives direction, and will issue a Decision to transfer state land utilization rights into land use rights of such person if the request meet with the requirement, then to submit to the Provincial/City Land Management Authority.

- Step 6: After the Provincial/City Land Management Authority receive a Decision from the Provincial/City Governor, the Land Office prepares a contract on transferring state land utilization rights into land use rights of individual or juridical entity, and a payment notice for such person to make a full payment at the Office of the Provincial/City Land Management Authority. After that the Provincial/City Land Management Authority of the province where the land is located issue a notification to cancel the state land survey certificate, the state land utilization rights authorization, then to delete them from the state land inventory within the period of 15 days. Upon the deadline, the Land Office will calculate the fees and service charges based on the regulations, and write a payment notice for such person to make a payment at the Office of the Provincial/City Land Management Authority by clearly separating between different batch of revenue (which batch to be put in the national treasury, which batch to be the technical revenue), then to send to the Land Office for registration the transfer of state land utilization rights into land use rights of individual or juridical entity, as well as to issue Land Tile for individual or juridical entity, in accordance with the regulations.

Documentation Requesting the Transfer of State Land Utilization Rights into Definite Land Use Rights- Application for transferring of state land- Biography of Government staff – state official- Certificate of Residency, Retirement Card, Title, Disability Card and etc.,- State Land Utilization Rights Permit, State Land Survey Certificate issued by the former state asset management sector or the land sector (at the present)- Letter of ownership assignment for state house, pursuant to Decree 194/PM, with the approval of the Minister of Finance or the transfer of house, in pursuant with Decree 343/PM.- Certificate of full payment for house from the national, provincial, and city treasury- Certificate of performance and years of joining the revolution from Ministry of Labour and Social Welfare.- Other Decisions (if any)

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Part 5Compensation, Land Exchange, Land Classification,

and State Land Lease or Concession

5.1 CompensationWhen the use of land of individual or organization is required by the state in order

to serve public interest, national defense, national security or to use for certain development project of the government, there is the need for land expropriation but the compensation must be paid to such individual or organization in reasonable rate.

The compensation procedures should be in compliance with the Prime Minister’s Decree No. 192/PM, dated 7 July 2005 on Compensation and Resettlement of People Affected by Development Projects, and the Regulations for Implementing such Decree, No. 2432/STEA.PMO, dated 11 November 2005.

5.2 Land ExchangeLand exchange contract is an agreement reached by the contract parties in the form

of exchanging state land with the land of individual, juridical entity or organization to become the state land with the objectives to be used for public interest.

At the central level, the exchange contract shall be approved by the Minister to the Prime Minister’s Office, Head of NLMA, based on the review and suggestion of the DoL.At the local level, the exchange contract shall be approved by the Provincial/City Governor, based on the review and suggestion of the Provincial/City Land Management Authority.

Prior to the agreement to exchange, both plots of land must be undertaken land valuation by the Land Valuation Committee. If the value of state land is higher than the value of individual or juridical entity, such individual or juridical entity must pay the excess value to the state budget.

If the land of individual or juridical entity has value exceeding the value of state land, the state shall compensate through the negotiation or to compensate with other plot of land.

5.3 Land Lease or ConcessionThe Government, NLMA and the Provincial/City Land Management Authority

have the rights to give state land on lease or concession to other individual or organization, based on its scope of rights.

In the lease or concession contract of state land, the objectives, lease or concession rate, and the actual lease or concession rate must be specified. In addition, royalties must be also specified in the concession contract.

Lessee or Concessionaire must use state land in conformity with the lease or concession contract, the laws and regulations, and within the inspection of concerned authorities.

The rate for state land lease or concession are specified in the Prime Minister’s Decree.

5.3.1 Rights from the State Land lease or ConcessionLao citizens, foreign residents, stateless persons, foreign individuals and

organizations of such persons who have been granted the lease or concession by the state or by the Lao citizen, shall have the right to use such lease or concession contract as capital share or as collateral based on the remaining period of the lease contract or concession contract. However, it is required to have a prior consent from the state. With regards to the period of lease or concession contract, the provision in Article 13 and 65 of the Land Law shall be applied.

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5.3.2 Land Lease or Concession by Foreign Residents, Stateless Persons, and Foreign Individuals

Foreign residents, stateless persons, foreign individuals and organizations of such persons who live, invest or perform legitimate activities in the Lao PDR can request to lease or concede state land.

With regards to the rights and obligations in state land lease or concession of foreign residents, stateless persons, foreign individuals and organizations of such persons, the provision in Article 66 and 67 of the Land Law (amended version) No. 04/NA, dated 21 October 2003, shall be applied.

If the lessee or concessionaire fails to implement in conformity with the terms of the contract, cause the loss to the state and collective interest, the warning shall be given. In case of severe infringement, the rights on lease or concession shall be withdrawn and penalty shall be imposed to such persons in accordance with the laws and regulations.

5.3.3 Land for Which Lease or Concession Granted by the StateState land which can be given on lease are residential land, land for agricultural

production, industry, trade, tourism and services, including both developed and un-developed land.

5.3.4 Land for Which Lease or Concession Are not Allowed by the StateThe land which lease or concession are not allowed by the state comprise of the

following types of land:- State Land – House for Government Official during the period of his assignment to

certain position- Land in the National Protected Area, evergreen forest, water source forest, protection

forest, and other land areas prohibited by the Government.5.4 Using Land as Capital Share

The use of state land as a capital share is the process of taking the value of state land based on the land valuation through the Government’s agreement as a capital share in the joint-venture with other individuals, juridical entities, or foreign individuals who invest in certain businesses in the Lao PDR, by legally concluding the contractual obligations for joint-venture in accordance with the laws and regulations.

Part 6Fees and Service Charges

Related to Land in the Process of Authorizing State Land Utilization Rightsand the Transfer of State Land Utilization Rights into the Land Use Rights

of Individual or Juridical Entity

6.1 Fees and Service Charges for Issuing Authorization for State Land Utilization Rights.

- The fee collected for issuing an authorization for state land utilization rights is 30,000 kips which is the same rate as the land parcel registration fee as specified in the Presidential Decree No. 03/PrO, dated 19 November 2008, concerning fees and technical service charges.

- The service charges for land survey should be collected in conformity with the Presidential Decree No. 03/PrO, dated 19 November 2008, concerning fees and technical service charges.

6.2 Fee Collection for Transferring State Land Utilization Rights Into Land Use Rights

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1) Government staff who has outstanding performance in accordance with the Prime Minister’s Decree No. 343/PM, dated 25 September 2007, concerning awarding policy to the persons who have good achievement in the national revolutionary tasks, and Article 24 and 25 of the Decree on the Implementation of the Land Law.

Fees and service charges should be calculated based on the criteria and condition specified in Part 4 (Point 4.4) of this Instruction, which comprises of:

- Fee for land parcel registration as specified in the Presidential Decree No. 03/PrO, dated 19 November 2008, concerning fee rates and technical service charges.

- The service charges for land survey should be collected in conformity with the Presidential Decree No. 03/PrO, dated 19 November 2008, concerning fee rates and technical service charges.

Regarding the payment based on the value of land authorized for transferring state land utilization rights into the land use rights of individual or juridical entity should be made following the agreement reached by both sides: Pay the whole amount at one time, or pay in monthly or yearly, but the duration must not exceed 10 years from the time a Decision was issued. The Land Title will be provided once the full payment is made 100% of the estimated value of right transferring.

Part 7Services

7.1 Collection of Statistic and Summarizing/ReportingThe collection of statistic and summarizing/reporting on the granting of land use

rights and land utilization rights to government officials from ministries, offices, organizations under the management of the central level is the responsibility of the Land Department, NLMA, to carry out the implementation, in collaboration with concerned line agencies, and also to submit the report to the NLMA Head on a regular basis.

The collection of statistic and summarizing/reporting on the granting of land use rights and land utilization rights is the functions of the Provincial/City Land Management Authority to implement in collaboration with concerned line agencies, as well as to submit the report regarding the implementation of authorizing land utilization rights, land use rights, land lease or concession to the Land Department on a regular basis, for further reporting to the NLMA Head. The report must be submitted regularly on a monthly basis or periodically basis based on the actual need. The content of the report must be in conformity with the standard form set out by the DoL.

7.2 Collection of Statistic for State and Communal Land at Village LevelThe District/Municipal Land Management Authority must collaborate with the

village land unit to collect statistic concerning the state and communal land, before reporting to the Land Office, Provincial/City Land Management Authority.

The Provincial/City Land Management Authority has the function to collect statistic on state and communal land in each district under its jurisdiction, then to submit annual report to the DoL, NLMA.

7.3 Request for Information Concerning State and Communal LandIndividual or organization can request detailed information regarding the state land

and communal land from any concerned land management authority of the area where the land is located by submitting a letter of request to the concerned land management authority.

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A requested person must use specific standard form issued by NLMA and must pay the service charges following the regulations. The Department of Land will provide detail advise regarding the methodology and procedures.

7.4 Safeguarding the Security of DocumentPersons without related responsibilities are banned to enter the storeroom keeping

state land document in order to search for any land files, and it is absolutely banned to remove land register book as well as other land files from the storeroom without permission in written form.

Any staff shall have no rights to remove the office land document from the office or unit by themselves, except for the official case where the permission is given. Discipline shall be imposed on staff violating such rules or litigation shall be made if any losses are involved.

Any practice of falsifying land information shall be punished and shall be proceed with legal action.

7.5 Staff Management and Discipline Imposed on ViolatorDirector of Land Department, NLMA has a function to give guidance to staff who

have level of capability and have been trained appropriately in technical or administrative field, and have been upgraded the ability to implement various procedures for state land management.

Head of Provincial/City Land Management Authority has a function to give guidance to staff who have level of capability and have been trained appropriately in technical or administrative field, and will be provided training to upgrade their skills to implement various procedures for state land management.

Any staff who makes use of position to wrongly perform duties which are in contradiction with this Instruction, will be imposed with punishment through warning, writing performance report, remove from position, or discharge based on the level of seriousness of the case, or if more serious the legal procedures shall be involved.

7.6 Discipline Imposed on State Land and Communal Land Users who Violate the Law.In case that individual or juridical entity being granted state land utilization rights

but the use of such land is not in conformity with the objectives and has caused the losses to the state and the society, such rights will be withdrawn by the state and the fines will be imposed on such persons based on the actual losses incurred from such action.

Any individual or juridical entity being granted land utilization rights from the state but fails to pay tax in 3 consecutive years after being warned, such person will loss the land utilization rights.

Any individual or juridical entity taking hold of state land or communal land by falsifying document and giving false statement to the authority will be imposed with criminal punishment and forced to pay compensation for the losses incurred.

7.7 Other IndividualsAny individual who hides the truth when informing information concerning land

and has caused consequential problem must take the legal responsibilities.

Part 8The Implementation

8.1 The ImplementationThe Department of Land, in collaboration with the Department of Land Policy and

Inspection and the Center for Research and Information of Land and Natural Resources, is assigned with the functions to carry out public propagation and give guidance to land

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management authority at local level to strictly implement this Instruction with effectiveness in conformity with the law and regulations.

Urging cabinet, departments, the Center for Research and Information of Land and Natural Resources, provincial/city land management authorities, district/municipal land management authorities to acknowledge and implement the role and functions set out for each sector in effective manner.

The Department of Land is charged with preparing a detailed manual for the technical implementation.8.2 The Effectiveness

This Instruction will come into effect from the date it is signed.Any Instruction and regulation which are in contradiction with this Instruction will

be void.

Minister to the Prime Minister’s Office

Head of NLMA

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Technology

Instruction PMO NLMA Management of State and Communal Land Eng, unoff. transl