As a result of nearly two years of intensive preparatory work and expertise as well as several rounds of negotiations in 2009 March 6, an “Agreement of the Establishment of a Financial Cooperation” was signed in Vientiane by the Government of the Hungarian Republic and the Government of the Lao People’s Democratic Republic. The agreement under aid credit serves the implementation of the priority program which is one of the priority development purposes of the Lao People’s Democratic Republic, through the three projects named in the Annex of the Agreement (e.g. the mini farm reconstruction and modernization in Nongteng, reconstruction and modernization of a mini farm in Namxuang b. c., reconstruction and facility upgrading of a farm in Naluang). The loan is indebted to the Ministry of Finance of the Lao People’s Democratic Republic, the provider is the Hungarian Eximbank, trade credit and political risk is ensured by MEHIB.
The total value of three projects to be implemented is 8.6 million, – USD, of which according to the 5th pursuant of the Agreement, the Ministry of Agriculture and Forestry of the Lao People’s Democratic Republic, as a buyer and our joint stock company, as a supplier made three separate commercial agreement in 2009 May 28..The value of Project Nongteng is 2,860,000 USD; 2.8 million USD of the project of Namxuang, and value of the project of Naluang is 2,940,000, USD. The final deadline for all the three projects is 2011 May 25. The projects are professionally summarized in four separate but closely related areas. Regarding the value and novelty the most significant are three major sites (Nongteng, Namba and Naluang) complete construction of manufacturing plants capable of producing fish, pig and poultry forage. Regarding the value the second area, which is also presented in three sites (Nongteng, Namhoum és Naluang) is the development and modernization of fisheries and aquaculture. The third area is also at three locations (Nongteng, and Namxuang Namtouan) implemented livestock (pigs, turkeys), modernization of plants and the development of animal product processing (hatchery plant and slaughterhouse). The fourth area of the projects covers, services, monitoring, and peer-related activities.
A complex agricultural program was built on the aid program, which most pronounced part is building three feed mix plants since from the raw materials made in Laos animal feed was prepared in Thailand and Vietnam as they did not have their own plants. The second pillar of the agricultural development program in Laos is building large poultry and pig farms, as well as establishing hatcheries and slaughterhouses. The third pillar is the fisheries; in this connection, fish hatcheries are established. Therefore in Laos, Vitafort builds three compounders, reconstructs 2- 3 pigs and poultry establishments, as well as constructs a hatchery and a slaughterhouse, and a complex fishery system, namely in a one and a half year period from the date of the contract.