The agreement was signed between the Thai company's Chief Executive Officer Anuphong Rojnuckarin and the SEZA Governor Buakham Sisoulath.

"The Thai company will invest about US$48 million on the trade and service centre which will include three-to-five-star hotels, a trade centre, a national conference building, a sports centre, a bank and other buildings," Buakham said.

The Thai company will begin to develop infrastructure in the area soon, to prepare for construction of the new buildings, he added.

"The infrastructure in the area needs to be improved before construction takes place. The area still lacks many things, which we need to install before construction for example, water supply," said the Thai Airports Ground Adviser, Chamni Lohachitranond.

The project is located near the Second Lao-Thai Friendship Bridge . The Savan-Seno Special Economic Zone Authority allows Thai investors in the trade and service centre in the area called "Site A".

"We can't allow them to build factories on Site A because the government doesn't want visitors coming to Savannakhet over the bridge to see factories and possible pollution from them. However, it does allow attractive buildings like hotels and a business centre," said Buakham. Factories will be allowed on another part of the area "Site B".

Chamni explained that the entire 270-hectare area would be the principal development in the planned East-West Economic Corridor (EWEC).

The project would help provide work for more than 10,000 local people in construction, and later in the new buildings themselves, supporting government policy on poverty eradication.

"We will spend three years to develop infrastructure in the area, then we will start construction. We expect there will be many jobs for people in the area after construction is completed," said Chamni.

The Thai company also plans to build a new international airport in Savannakhet province to serve visitors to the region.

The Lao government is allowing the company a trade concession of 30 years and a services concession of 50 years, according to the economic zone authority.