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LAO PEOPLE’S DEMOCRATIC REPUBLIC

PEACE INDEPENDECE DEMOCRACY UNITY PROSPERITY

WATER SUPPLY LAW
This draft approved by National Assembly in
September 2009.
(Unofficial English Translation)

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TABLE OF CONTENTS

Chapter I
General Provisions

Article 1 Objectives
Article 2 Water Supply
Article 3 Definition of Terms
Article 4 State Policy on Water Supply
Article 5 Principles of Water Supply Activities
Article 6 Scope of Law
Article 7 International Relation

Chapter II
Water Supply Activities Operation

Section 1
Water Supply Activities

Article 8 Water Supply Activities
Article 9 Water Supply Activities Development Planning
Article 10 Feasibility Study for Water Supply Project
Article 11 Water Supply Infrastructure Survey and Design
Article 12 Construction and Installation of Water Supply
and Sanitation Infrastructures
Article 13 Operations
Article 14 Creation of National Water Supply Data and Information System

Section 2
Water Supply Structure System Standards

Article 15 Water Supply Infrastructure Construction and Installation Standards
Article 16 Water Supply Equipment Standards
Article 17 Water Supply Quality Standards

Section 3
Water Source and Environment Protection

Article 18 Water Source for Water Supply Production
Article 19 Water Source and Environment Protection

Section 4
Water Supply Infrastructure
Maintenance and Development

Article 20 Water Supply Infrastructure Maintenance
Article 21 Water Supply Infrastructure Development
Article 22 Water Supply Infrastructure Development Fund

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Chapter III Water Supply Business Operation Section 1 Water Supply Business Article 23 Types of Investments Article 24 Enterprise Establishment Article 25 Investment in Water Supply Business Article 26 Technical Approval on Water Supply Infrastructure Construction Article 27 Concession Article 28 Conditions for Concessionaires Article 29 Rights of Concessionaires Article 30 Obligations of Concessionaires Article 31 Concession Duration Article 32 Concession Termination Section 2 Investment Promotion Article 33 Policy on Profit Taxes Article 34 Policy on Customs and Other Taxes Article 35 Policy on Access to Investment Sources Article 36 Specific Promotion Policy Section 3 Water Supply Business Regulation and Tariff Determination Article 37 Objectives of Water Supply Regulation Article 38 Water Supply Regulation Article 39 Water Supply Tariff Policy Article 40 Water Supply Tariff Determination Article 41 Water Supply Tariff Review and Adjustment Article 42 Water Supply Tariff Authorization Section 4 Rights and Obligations of Service Providers. Service Users and Firemen Article 43 Rights of Service Providers Article 44 Obligations of Service Providers Article 45 Rights of Service Users Article 46 Obligations of Service Users Article 47 Rights and Obligations of Firemen Chapter IV Prohibitions 3 .

Municipality Offices of Public Works and Transport Article 62 Rights and Duties of Others Authorities Concerned Section 2 Water Supply Activities Supervision Article 63 Supervision Authorities Article 64 Rights and Duties of Internal Supervision Authorities Article 65 Contents of Supervision Article 66 Forms of Supervision Article 67 External Supervision Chapter VII Awards and Sanctions Article 68 Awards Article 69 Sanctions Article 70 Educational Measures Article 71 Discipline Measures Article 72 Fining Measures Article 73 Civil Measures Article 74 Penal Measures 4 . Capital Divisions of Public Works and Transport Article 61 Rights and Duties of District.Article 48 General Prohibitions Article 49 Prohibitions for Service Providers Article 50 Prohibitions for Service Users Article 51 Prohibitions for Firemen Chapter V Disputes Resolution Article 52 Forms of Disputes Resolution Article 53 Mediation or Conciliation Article 54 Administrative Resolution Article 55 Arbitration Article 56 Resolution by Court Article 57 International Character Resolution Chapter VI Management and Supervision of Water Supply Activities Section 1 Water Supply Activities Management Article 58 Water Supply Management Authorities Article 59 Rights and Duties of Ministry of Public Works and Transport Article 60 Rights and Duties of Provincial.

Sign and Seal Article 76 Implementation Article 77 Effectiveness 5 . Chapter VII Final Provisions Article 75 Uniform.

Surface water source means rivers. lake and others. displacement. bacteria and over-authorized combination of chemical substances to provide to the consumers for using in various targets. Article 2 Water Supply Water Supply is water treated from surface. procedures and stages of water supply production. underground and spring water sources. Qualified water means standardized water in terms of cleanness and safety for consumption accordingly to regulations issued by the Ministry of Public Health. and from other water sources into clean. Water supply service means transmission and distribution of water supply to users in sufficient and regular manners throughout the service areas at reasonable and payable tariffs. 3. installations. Process means methods. water supply production plants. including water-closet construction and human excrements disposal in avoidance to be flowed into the water sources and water supply system aiming at protection of human health. marshes. safe and standardized water in compliance with technical processes and procedures without any toxic substances. installed and used by water supply service providers for the purpose of supplying to service users and firemen. 6 . activities. 7. watercourses. Water supply activities concessionaire means legal entities which received authorization or powers of attorney to construct the water supply infrastructure and to run water supply business by contract. 6. ponds. 5. 8. Water supply service provider means concessionaire or person received authorization to operate water supply business. 2. disposal and treatment of wastewater from households and sewages from various water uses. regulations and measures on organization. Sanitation means carrying out of storage. transmission and distribution pipelines system together with facilities which are constructed. reservoirs. Water supply Infrastructure means buildings. Article 3 Definition of Terms Terms used in this Law shall have the following meanings: 1. promotion. LAW ONF WATER SUPPLY Chapter I General Provisions Article 1 Objectives The Law on Water Supply determines the principles. 4. management and supervision of water supply activities and business aiming at promoting the production and provision of water supply widely and sufficiently to the users in towns and rural areas in order to ensure the safety for health and to enhance the level of living standards of multi-ethnic people to contribute to social and economic development of the nation.

Water supply tariffs policy means declaration of Government on strategy to be applied in order to meet the targets on needed water supply tariffs and to notify all parties concerned on the logic and expectation of the Government on water supply tariffs period by period with the aims to ensure the effectiveness and sustainability of water supply infrastructure development and payable tariffs. Water supply equipment means water meter. reservoirs. components. Water supply network means water supply transmission system for sending water supply from production places to consumption places. 12. 13. 10. human resource development. water leakage control meter. valve manholes. State supports good management and use of modern technology in water supply production to increase quantity. operation. water gates. State encourages and mobilizes all people in the society to take part in planning. including community organizations to invest in water supply infrastructure construction. Regulation means State technical and economic regulations to ensure that the water supply business operators may run their business effectively and to ensure that the service users may consume qualified water supply at reasonable and payable tariffs. business operation in towns and in rural areas . distribution pipelines. water meter boxes. such as: fields. network expansion. both domestic and foreign sectors. water measure and control pressure meter. Moreover. offices. water analysis laboratories. maintenance and repair of water supply system. pipes. roads. construction. Article 4 State Policy on Water Supply Activities State promotes public economic sectors as well as others economic sectors. taxes. to improve quality and to enable the exportation. by implementing policies on credits. warehouses and others. Water supply service user means person or organization that uses water supply and pays water supply fees accordingly to contractual obligations made with water supply service provider. pumping stations. Service area means geographical area delineating the service for users in towns and rural areas or village clusters to ensure the sufficient and regular service of water supply. pumping machines. State recognizes the property of investors in water supply infrastructure pursuant to socio-economic plan in various regions throughout the country. data and information providing. maintenance. water pumping stations and pipes connected to the premises of water supply users. 15. 11. Article 5 Principles of Water Supply Activities Water supply activities shall be carried out in compliance with following main principles: 7 . which is comprised of transmission pipelines. Water supply activities facilities mean all things that support management. particularly in remote areas. customs. 9. electrical transformer stations. workshops. use and maintenance of water supply infrastructure in order to ensure the efficient and regular supply of water to all people in the service areas. accessories and others. 14.

drilling well-water and rainfall water which are not passed through comprehensive technical production processes and procedures. investment participation. 1. Ensure water supply technical and economic specification. relating to water supply production. technology. Coordinate all sectors and localities concerned in joint using of water sources by giving priority to water supply production. Article 6 Scope of Law This Law is applied to all persons and organization. 2. harmonization between rights. Comply with National Socio-Economic Development Plan and Urban Plan. Ensure the efficient and regular supply of water to users in service areas. survey and design. feasibility study. Article 9 Water Supply Activities Development Planning Water supply activities development planning is a research technical. strategic plans and investment plans for water supply construction. 4. capacity building and training of technicians. operation. This Law does not cover spring water. implementation of agreements and treaties of which Lao PDR is a Party. data and information. services. assistance. services and uses in towns and in rural areas. ensure the targets and socio-economic effectiveness and environment protection. socio-economic and environmental data and information to determine a master plan. 8 . 5. well-water. 3. obligations and benefits of service providers and service users. construction and installation of water supply and sanitation infrastructures. Use of modern technology in water supply production by using in sustainable manner all local water sources and water resources relating to water supply production in order to enable the users to consume and use water for other purposes economically and reasonably. regional and international relations and cooperation on water supply activities and sanitation in exchange of lessons. cleanness and safety of water for users. maintenance and establishment of National Water Supply Data and Information System. Chapter II Water Supply Activities Operation Section 1 Water Supply Activities Article 8 Water Supply Activities Water Supply Activities are comprised of development planning. Article 7 International Cooperation State widely opens external. science. both domestic and foreign.

Every water supply project shall have a feasibility study with the participation of all sectors and local authorities concerned and of people. disposal and treatment of wastewater from households and sewages from various water uses. improvement. Article 11 Water Supply Infrastructure Survey and Design Survey and design of water supply infrastructure are a collection of data and information and comprehensive situation of the project. including water-closet construction and human excrements disposal. effectiveness of investments. economic. services and maintenance in regular manner. installation of machines and equipments for water production and water quality analysis. analysis. displacement. Article 12 Construction and Installation of Water Supply and Sanitation Infrastructures Construction and installation of water supply infrastructure is construction of water supply infrastructure which is comprised of plant construction. Construction and installation of sanitation infrastructure is construction of infrastructure. installation of transmission and distribution pipelines to the residences. including extension of pipes. detailed design in accordance with technical standards and objectives of the project. conceptual design determination. installation of machines and equipments for storage. service providers to ensure the economic. assembly. initial design. analysis. rural areas and intensive development points. installation of water meters. installation of components and accessories within the residences or buildings and premises in service areas in towns and rural areas. technical and service effectiveness. including cost evaluation and duration of the construction. financial and accounting data and information in order to support 9 . reservoirs construction. Article 13 Operation Operation is water supply production. including methods of remedies social and natural environments impacts. buildings and premises of service users. summary of technical. a socio-economic and environmental analysis. and then. appropriate water supply tariffs and project sustainability. Article 14 Creation of National Water Supply Data and Information System Creation of National Water Supply Data and Information System is a creation of database by collection. expansion and services in towns. a preparation of report to all sectors concerned showing technical options. Article 10 Feasibility Study for Water Supply Project Feasibility study for water supply project is a collection of data and information. Water supply activities development plans shall be harmonized with socio- economic development plans of others sectors and of local authorities concerned. improvement and expansion of water supply infrastructure in service areas of concessionaires.

health safety and durability. and shall be suitable to the actual conditions. Article 17 Water Supply Quality Standards Water supply shall be ensured in terms of cleanness and health safety in compliance with the water supply quality standards accordingly to the regulations issued by the Ministry of Public Work and Transport. Section 2 Water Supply Infrastructure Standards Article 15 Water Supply Infrastructure Construction and Installation Standards Construction and installation of water supply infrastructure shall be made in compliance with the construction engineering standards issued by the Ministry of Public Work and Transport in conformity with the environmental laws and regulations. the concessionaires and service providers shall reasonably use the water sources and shall have 10 . operation and maintenance of water supply infrastructure. Others sectors concerned supervise the quality of water equipments domestically manufactured or imported from abroad for water supply infrastructure construction and installation. monitoring. underground water. Individuals or organizations may have the rights of possession and use of water sources for water supply production only if they have receive the authorization from the sectors concerned with the approval of the water resources and environment sectors at the same level. Article 19 Protection of Water Sources and Environment During the water supply business operation. The Ministry of Public Work and Transport determines water supply equipment standards. the development. assessment of implementation of policies. Section 3 Water Sources and Environment Article 18 Water Sources for Water Supply Production Water sources for water supply production are surface water. spring water and other sources which are surveyed and collected data and information by others sectors concerned and served as a base or reference for investment in effective and sustainable construction. Article 16 Water Supply Equipment Standards Water supply equipments to be used in construction and installation of water supply infrastructure shall be ensured in terms of quality. strategic plans and operation relating to water supply activities operation. All water supply infrastructure construction and installation shall be supervised and quality certified by advisory engineers and approved by the public work and transport Sectors.

assistance. damages and breakage in order to ensure the regular operation and the sufficient supply of qualified water supply. the Government authorizes to establish the water supply development Fund. mainly in intensive development areas and in rural areas. The entrepreneurs. Management and use of the proceeds of Fund shall be complied with laws and regulations on State budget and others laws and regulations concerned. State investment. necessary measures to avoid or to reduce the social and natural environments impacts within the concession or business operation areas. Joint venture investment between State and private sectors. 2. domestic or foreign. Chapter III Water Supply Business Operation Section 1 Water Supply Business Article 23 Types of Investments Investments in water supply business operation consist of three types as follows: 1. both domestic and foreign. Article 21 Water Supply Infrastructure Development Concessionaires and service providers shall pay attention to improve and develop the water supply infrastructure by using modern science and technology with the aims to render water supply activities effective and to enable the expansion of water supply network for widely use by multi-ethnic people and to ensure the sustainability of the water supply infrastructure. including service providers. Sources of the water supply development Fund is derived from State budget. contribution of individuals and organizations. Section 4 Maintenance and Development of Water Supply Infrastructure Article 20 Water Supply Maintenance Concessionaires and service providers shall maintain the water supply infrastructure. including various facilities in conformity with laws and regulations issued by Ministry of Public Work and Transport and by others sectors concerned to avoid the depreciation. individuals and organizations shall take part in environment protection. Article 22 Water Supply Development Fund To ensure the effectiveness and sustainability of maintenance. improvement and development of water supply infrastructure. No wastewater and sewerage to be left behind and no damages to be caused to water sources. 11 .

Water supply infrastructure serving more than 20. Water supply infrastructure serving from and less than 20. Article 26 Technical Approval on Water Supply Infrastructure Construction Technical approval on water supply infrastructure construction is divided into two levels as follows: 1. .000 persons shall be technically approved by Ministry of Public Works and Transport. operate. wishing to establish the water supply enterprises shall apply for business running as provided for in the Law on Investment Promotion. Have experiences or technicians relating to business operation. 4. domestic or foreign. Have a good and reliable business background. machinery and equipments for construction and installation water supply infrastructure and for provision for service in their own service areas. Article 24 Establishment of Enterprises Individuals or organizations. 2. vehicles. Individuals or organizations having an intention to establish the water supply enterprises shall have the following conditions: 1. Have service areas officially agreed and approved by water supply management authorities. . Article 28 Conditions for concessionaires Concessionaires of water supply business shall have the following conditions: 1. 12 . 2. 3.Build. Article 25 Investment in Water Supply Business Investment in water supply business is investment in construction. operate and transfer. improvement and development of water supply infrastructure to supply the water for widely use to people in towns. managing technicians. own and transfer.000 persons shall be approved by Provincial. Have enough and appropriate funds.Other forms. maintenance. Article 27 Concession Legal entities wishing to request for water supply concession shall apply for with the planning and investment sectors as provided for in the Law on investment promotion.Build. Investment may be done by: . Have water sources agreed by water resources and environment authorities. intensive development areas and rural areas. accounting technicians and others. such as: analysts.Build. domestic or foreign. City Divisions of Public Works and Transport. Private investment. . electrical technicians. own and operate. 5. Have technicians with technical capacity on water supply and other technicians concerned in a certain number suitable to the size of activities. 3.

8. Train. 2. including water supply infrastructure. 3. Lease. Own and Operate. technicians and workers. Use the land for water supply infrastructure construction. At the end of the concession duration the concessionaires shall transfer all business of themselves to the State in working condition without any compensation. Enjoy benefits from concession. health or to properties of the people. pay compensation for losses in case of causing damages to life. mainly. 9. to keep them in good conditions in terms of duration and technical principles. repair machinery an water supply equipments. Own water supply infrastructure constructed by oneself during the concession period. Pay duties. 3. economic and technical feasibility study and socio-environmental impacts assessment. 2. Run water supply business in conformity with concession agreement. 13 . 6. 2. 4. except in case of investment in the form of Build. 8. Protect water resources and environment. 5. 5. technical capacity building and ensure social welfare of officers. taxes and others obligations to the State and discharge debts of oneself completely and on time. 7. Operate water supply business in accordance with concessionary license. Receive legal protection. Article 29 Rights of Concessionaires Water supply concessionaires have the main rights as follows: 1. Have capital for registration which shall be complied with the Law on investment promotion. Receive technical and technological recommendations and others relating to water supply activities. transfer water supply business for the concession remaining period of time to other persons in accordance with the laws and regulations. Maintain. Article 31 Concession Duration The maximum duration of concession shall not over thirty years from the date of receiving the concession license. Coordinate and cooperate in taking part in socio-economic development of localities in which the project is located. 6. Article 30 Obligations of Concessionaires Water supply concessionaires have the main obligations as follows: 1. Submit the request for extension of concession duration. 4. Have financial and technical capacities. Hand over the project together with the economic and technical feasibility study and other project documents to the State without any compensation at the end of concession term or in case of non continuation of water supply business running by the concessionaires. Repair vehicles and machinery to be in working condition before the hand over of water supply business to the Government. 7. receive compensation of damages resulting from any installation removal made by other constructed activities projects which are not related to water supply infrastructure.

of the Law on investment promotion. The concession duration may be extended. Section 2 Investment Promotion Article 33 Policy on profits Taxes Investment in water supply business shall be classified among activities of first promoted level and received such policies as provided for in Article…. but not more than ten years accordingly to competent authorities. 5..compliance with the laws and regulations. Article 36 Specific Promoting Policy Investment in water supply business shall receive policy on exemption of fees payment on State land lease or concession as provided for in Article…. 4. 14 . Article 32 Termination of the Concession The concession shall be terminated in the following cases: 1. Section 3 Business Regulation and Water Supply Tariffs Determination Article 37 Objectives of Water Supply Business Water supply business regulation has the purpose to create an environment that encourages and facilitates water supply business operators to run business with high efficiency and also to ensure that the service users to receive sufficient and qualified water at reasonable and payable tariffs.. of the Law on investment promotion. Withdrawal of concession rights due to severe violation of laws and regulations and non-performance of obligations as provided for in the concession agreement or non. Cessation of concession before term on the proposition of concessionaires and on the consent of the State. Termination of the concession duration. Article 35 Policy on Access to Sources of Funds Domestic and foreign investors running water supply business may access to the sources of funds by loans from the business banks and other financial institutions in the Lao PDR and in abroad in accordance with the laws and regulations. Damaged concession project cannot be repaired or rehabilitated. investors shall receive policies on duties and other taxes as provided for in Article…. 2. Article 34 Policy on Duties and Others Taxes Apart of policy on profits taxes.. of the Law on investment promotion. The request for extension of concession shall be made five years before the termination of the concession. Cancellation of concession agreement. 3.

Water supply tariffs shall be determined accordingly to the following structures: expenditures for energy. can pay for. . and at the same time to ensure that the service users shall consume qualified. targets of uses. locality. technical standards and activities achievements indicators with the view to ensure the production and service of water supply. Water supply tariffs in rural areas shall be determined referring to the proposition of investors on the basis of the approval of local authorities 15 . effective and sustainable business. Water supply tariffs shall be stable and shall ensure the State policy implementation for consumption targets and user categories. proceeds of loans. Article 41 Water Supply Review and Adjustment To rationalize the water supply tariffs for each period of socio-economic development. Ministry of Public Works and Transport in collaboration with other sectors and local authorities concerned studies and determines the structure of water supply for each target of uses and category of users and then. submits such tariffs review for technical consideration to Ministry of Public Works and Transport in order to enable the users.Technical regulation that business operators shall complied with the specifications. the Divisions of Public Works and Transport in collaboration with other sectors and local authorities concerned studies and reviews the water supply tariffs proposed by the business operators in each period and then. chemical substances. and target of uses and category of users for each period on the proposition of the Ministry of Public Works and Transport. safe and sufficient water supply. clean. Article 39 Policy on Water Supply Tariffs The Government approves the policies of water supply for each region.Article 38 Water Supply Business Regulation Water supply business has two aspects: . user incomes and other matters concerned. submit to the Government for consideration. interests. depreciations. The Government determines water supply regulation system in line with the socio-economic situations of each period on the proposition of the Ministry of Public Works and Transport. and at the same time to ensure that the service users shall enjoy water supply at reasonable and payable tariffs and pay for water supply in according with the real volume consumed on due time. Article 40 Determination of Water Supply Tariffs Determination of water supply tariffs shall be in line with National Socio- economic Development Plan in each period. administration.Economic regulation that business operators shall complied with service and tariffs specifications to enable the investors to run smooth. and shall support the mechanism of market economy with the State regulation. particularly poor people. turnover taxes. and the water supply business operators can effectively run their business. specific profits.

4. and notify the service providers. Ensure the safety and social welfare of water supply officers. Provide recommendation on principles of water supply utilization to service users. fairly and on time. 2. 5. Warn the service users who violate water supply service regulation and suspend the supply of water in case of severe violation. 5. such as: . Service Users and Firemen Article 43 Rights of Service Providers Water supply service providers have the following rights: 1. Receive compensation for losses of water supply infrastructure caused by individuals or organization accordingly to the laws and regulations. State and private offices and agencies and other premises for construction. maintenance. In case of reasonable deficiency of investors. pipes. Article 42 Tariffs authorization The governors of provinces and capitals issue the Decision on authorization for water supply for each period on the basis of policies and water supply structure approved by the Government on the proposition of the provincial. Collect water supply fees accordingly to water consumed volume and to laws and regulations. regularly report on data. taxes and various fees in accordance with the laws and regulations. 4. Hold the accounting as provided for in the law on accounting. Share opinions to water supply development plans in their own service areas. Provide regularly services of qualified. 16 .Do not pay the service charge regularly after three times of warnings . State shall appropriately compensate for such.Modify water meters to make the figure of the consumed water volume reduced less than the actual consumed water volume. clean and safe water supply to service users accurately. statistics and achievements of their own business to water supply management authorities and to other sectors concerned. capital Divisions of Public Works and Transport after receiving the approval from the Water Supply Business Regulation Committee. Section 4 Rights and Obligations of Service Providers. service users and the public for implementation. together with water supply tariffs calculation. duly. Pay customs duties. 3. 3. Water supply activities management authorities of each level shall disseminate such Decision. repairs and replacement of water supply equipments. Receive authorization to inter into residential areas. 2. meters and record the volume of consumed water. Article 44 Obligations of Service Providers Water supply service providers have the following obligations: 1. concerned.

8. duly and fairly service of qualified. 9. distribution pipelines. 2. Follow technical recommendations and regulations on water supply equipment utilization and on water supply. pipelines. service providers shall be notified for prompt repairs. Compensate for losses in compliance with the laws and regulations in case of causing damages to life. 5. 4. unqualified. Article 46 Obligations of Service Users Service users have the following obligations: 1. unsafe and unclean water supply. such as: reservoirs. 3. Improve. buildings and in various public places. Receive sufficiently. water meters and other water supply-related equipments to be in good conditions. Monitor. in supervision and records the volume of consumed water supply. Article 47 Rights and Obligations of Firemen Firemen have the rights to pump the water supply from the fire hydrants installed in various points during twenty four hours and have the obligations to report to the relevant water supply activities management authorities and service providers on the details on date. Request the service providers to supervise and correct the technical mistakes. 10. 7. public and environment. Receive data and information on water supply activities. Construct and install sanitation infrastructure by using appropriate technology. If damages or water leakage and abnormalities occurred. non-speedy. accurately and on time. 6. including resolution of any problem proposed by the service users in reasonable manner. Submit the proposition to water supply management authorities in case of receiving inaccurate. supervise and resolve water leakage along the pipelines. Receive compensation for losses resulting from water supply services accordingly to the laws and regulations. speedily. Assist in water supply infrastructure protection. Pay the water supply fees regularly . 17 . and to remedy unclear and incorrect service charges. Notify on suspension of provision of water supply in case on construction and reparation. completely. accurately. 3. 5. undue and unfair services of insufficient. 4. Give favorable conditions to service providers in construction. safe and clean water supply. time and volume of water supply pumped for fire extinguishment. Article 45 Rights of Service Users Service users have the following rights: 1. 2. upgrade and modernize the technology of water supply production step by step. installation and repairs of water supply infrastructure. Do not create contamination and pollution to water sources. Pay compensation for losses caused by themselves to the service providers and organizations or individuals concerned in accordance with the laws and regulations. 6. health and property of the people.

get water by connecting the transmission or distribution pipelines directly without passing through water meters. mainly. Contaminate water supply in transmission or distribution pipelines system. put the surface in its original situation after digging down the ways to lay the pipes and take necessary measures safety of the vehicles and ways users. Impede. Article 50 Prohibitions for Service Users Service users are prohibited to perform the following acts: 1. 3. such as: monitoring. 5. Lay down the pipes on the surface of ways obstructing the traffic. Provide water supply which is not in conformity with water quality standards determined by the Ministry of Public Health. 2. Conceal. maintenance and repairs of water supply infrastructure. water meters and other water supply-related equipments. Alter or destroy water meters. Article 49 Prohibitions for Service Providers Service providers are prohibited to perform the following acts: 1. Unreasonably impede or no to cooperate the service providers in performing their duties. business. falsify data and information on technical. not facilitate or cooperate unreasonably water supply activities. Steal water supply. 3. distribution pipelines. water quality performances. Invade water sources for water supply production. laying water pipes through their land by the project which have been legally approved after the officers concerned have already explained. Lack responsibility in their own duties. Steal water by connecting the pipes without passing through water meters. 2. accurate record consumed water volume and on time. Impede the audit and supervision performance of water supply activities. transmission pipelines. 4. 18 . discharge toxic substances and create contamination to water sources and water supply. 5. Lease or transfer the enterprise registration certificate or concession registration certificate on water supply to other persons without any permission. accounting. Destroy forests in natural water sources areas and those areas determined by local authorities to ensure water supply production. such as: water reservoirs. financial. Install pumping machines by direct connection to transmission or distribution pipelines system. 6. 4. 5. 3. Chapter IV Prohibitions Article 48 General prohibitions Individual or organization is prohibited to perform the following acts: 1. mainly technical aspects. Article 51 Prohibitions for Firemen Firemen are prohibited to pump water supply out from the fire hydrants to use for other purposes as prescribed for in Article 47 of this Law. Destroy or damage the water supply infrastructure. 2. 4.

or between foreign investors in the Lao PDR. Arbitration. Resolution by court. Article 55 Arbitration In case of that the sectors concerned failed to mediate and resolve the disputes. International character resolution Article 53 Mediation or Conciliation In case of water supply business disputes occurrence. or administration. or arbitration. any of the parties has the rights to address such disputes to the people courts for judgment in accordance with the laws and regulations. foreign or international arbitrations as agreed by the parties. 2. 4. shall be resolved by domestic. the parties may enter into negotiation. the parties have to rights to address the case for resolution to arbitrational economic disputes resolution panel accordingly to the laws and regulations. mediation and conciliation between themselves. Article 54 Administrative Resolution In case of failure to resolve the disputes by means of mediation or conciliation. 3. Administrative resolution. Chapter VI Water Supply Activities Management and Supervision Section 1 Water Supply Activities Management 19 . 5. the parties have the rights to address the case for resolution to the sectors where authorization was granted. Article 57 International Character Resolution The disputes on water supply business operation between the domestic investors and foreign investors. Mediation or conciliation. Chapter V Disputes Resolution Article 52 Forms of Disputes Resolution Dispute Resolution may be undertaken by the following forms: 1. Article 56 Resolution by Court In case of failure to resolve the arising disputes resulting from water supply business running by means of mediation or conciliation. or between foreign investors and the State.

2. District. 10. investment plans. government decisions on water supply and sanitation into detailed plans. standards. capital Divisions of Public Works and Transport. 20 . Build. capital Divisions of Public Works and Transport has the main rights and duties as follows: 1. expansion. Study. activities achievement indicators. public health sector. development. strategic plans and water supply infrastructure and sanitation development plans issued by the Ministry of Public Works and Transport. strategic plans. 3. 5. Provincial. laws and regulations on water supply and sanitation to submit the Government for consideration. municipality Offices of Public Works and Transport. Coordinate other sectors and local authorities concerned relating to water supply activities performance. Direct and monitor the implementation of water supply activities and sanitation within their own localities. Capital Divisions of Public Works and Transport To manage water supply activities the provincial. Study. 9. Article 59 Rights and Duties of Ministry of Public Works and Transport To manage water supply activities the Ministry of Public Works and Transport has the main rights and duties as follows: 1. laws and regulations on water supply and sanitation. determine specification. Disseminate and publish policies.Article 58 Water Supply Management Authorities The Government manages water supply throughout the country by assigning public works and transport sector is the direct and principal manager in coordination with other sectors concerned. suspension and cancellation water supply activities. Direct and monitor the implementation of policies. 7. regional and international relations and cooperation on water supply and sanitation activities. Article 60 Rights and Duties of Provincial. 3. share opinions on investment. capitals. train and enhance the levels of water supply personnel. Water supply management authorities are comprised of: 1. Study and research policies. water resources and environment sector. such as: planning and investment sector. laws and regulations on water supply and sanitation within their own provinces. Enter in external. Develop policies. study and select appropriate technology together with instruction of implementation. Ministry of Public Works and Transport. 6. programs and projects of the own sector. 3. 2. laws and regulations on water supply and sanitation throughout the country. strategic plans. water supply and sanitation infrastructure expansion. strategic plans. Disseminate and publish policies. industry and commerce sector. 2. Develop policies. strategic plans. financial sector and local authorities concerned. strategic plans. 4. 8. Summary and regularly submit the report on achievements of water supply activities organization and implementation to the Government.

9. capital authorities. regulations and instructions of provincial. have the rights and duties to participate in water supply activities accordingly to their own roles. Summary and regularly submit the report on achievements of water supply and sanitation activities organization and implementation to the Ministry of Public Works and Transport and to provincial. municipality Offices of Public Works and Transport has the main rights and duties as follows: 1. Disseminate and implement laws and regulations on water supply and sanitation activities within their own villages. Study. Collaborate with other sectors concerned in studying water supply tariffs within provinces. Article 62 Rights and Duties of Other Sectors Concerned Other water supply activities-related sectors concerned. municipalities. 3. 5. share opinions on investment. Resolve the disputes between service providers and service users within their own provinces. such as local authorities. 6. capital Divisions of Public Works and Transport on water supply and sanitation activities. capital authorities. municipality Offices of Public Works and Transport To manage water supply activities the District. water resources and environment sectors. 5. 8. 2. Village authorities have the main rights and duties as follows: 1. Collaborate with other sectors concerned in water supply and sanitation activities management and resolve the disputes arising between service providers and service users within their own districts. 4. 7. 4. projects. public health sectors. capital to submit to Ministry of Public Works and Transport for technical consideration before proposition to the governors of provinces and capitals for authorization. 21 . Study and share opinions on water supply and sanitation infrastructure in intensive development areas and in rural areas to submit for consideration to provincial. capitals. Survey. expansion. Article 61 Rights and Duties of District. Disseminate laws and regulations on water supply and sanitation activities within their own districts. Organize and implement plans. data and information and statistics on water supply. Enter in external. sanitation and water sources which shall be protected for water supply production. municipalities. Summary and regularly submit the report on achievements of water supply activities organization and implementation to the Ministry of Public Works and Transport and to provincial. suspension and cancellation water supply activities within their own provinces and capitals. regional and international relations and cooperation on water supply and sanitation activities as assigned by the higher ranking authorities. capital Divisions of Public Works and Transport.

. water sources and environment within their own villages. public and environment whilst water supply business operation. Supervision of implementation of plans and finance of water supply business.Internal supervision authorities which are the same as of water supply activities management authorities as specified in Article 58 of this Law. laws and regulations. water supply and sanitation infrastructure expansion. projects.External supervision authorities. health and properties of the people. 2. Article 64 Rights and Duties of Internal Supervision Authorities While performing water supply activities the supervision authorities at each level have the rights and duties to comply with the contents and forms of supervision as specified in Article 65 and Article 66 of this Law. Supervision of organization and implementation of strategic plans. Supervision of implementation of safety standards and social welfare of workers in water supply business operation. Facilitate service providers together with mobilize the people to participate in planning. Supervision of bidding. 2. contracts on water supply and sanitation infrastructure construction and installation. 4. Supervision of management and protection of water sources for water supply production and environment. implementation of various contracts. Supervision of progress and implementation of water supply activities implementation technical standards. 4. Organize and implement plans. regulations and instructions of public works and transport sectors on water supply. 3. Submit suggestions to service providers and organizations concerned on services. sanitation activities and water sources and environment protection. Supervision of the use of impact prevention and remedies measures. 5. Article 65 Contents of Supervision Contents of supervision activities are as follows: 1. investment plans. Submit the report to the district offices of public works and transport and service providers on water supply activities. 3. 8. Section 2 Water Supply Activities Supervision Article 63 Supervision Authorities Water supply activities supervision authorities are comprised of two types as follows: . 5. including construction and installation equipments of water supply and sanitation infrastructures. and compensation for harmful effects to life. 6. Supervision of water quality standards. creation of damages to water supply and sanitation infrastructure. 22 . policies. 7. improvement and water supply and sanitation infrastructures within their own villages. construction and protection of water supply and sanitation infrastructure within their own villages. development.

such as in construction. 23 . External supervision consists of as follows: 1. Audit of the State auditing authorities as prescribed in the Law on State Audit. Chapter VII Awards and Sanctions Article 68 Awards Individuals or organizations having an excellent achievement in implementing this Law. fined. prohibitions of character which are not criminal offences. Article 67 External Supervision External supervision has the purpose to supervise the performance of duties of the water supply activities management and supervision authorities to be strengthen. development. Emergency supervision which is a supervision undertaking in case of urgency without any prior notification to persons to be supervised. production. improvement. fair and effective. 4. expansion. Article 69 Measures against Violators Individuals or organizations breaching this Law shall be educated. During the supervision of water supply activities process. Supervision of the National Assembly as prescribed in the Law on supervision of the National Assembly. Regular supervision which is a supervision undertaking systematically in accordance with the plans and has a fixed period. 2. the officers of supervision authorities shall comply strictly with the laws and regulations. operation. shall be awarded and benefited other policies as appropriate. Supervision with the participation of National Construction Front. Mass Organizations. mainly. compensated for damages or punished according to minor or severe cases. Article 70 Educational Measures Individuals or organizations violating the laws and regulations on water supply or sanitation activities. 2.Article 66 Forms of supervision Water supply supervision consists of three forms as below: 1. shall be educated or warned. maintenance and service of water supply with effectiveness and quality. transparent. disciplined. 3. Prior notification supervision which is a supervision undertaking out of plans when necessary with notification in advance to persons to be supervised. Supervision of State inspection authorities as prescribed in the Law on State Inspection. people and Mass Media. 3.

Article 74 Penal Measures Individuals or organizations violating the laws and regulations on water supply or sanitation activities which constituted a criminal offence shall be subject to criminal proceedings accordingly to criminal laws. signs and seals to be use in their activities performance and determined by Ministry of Public Works and Transport. shall be disciplined accordingly to the regulations. Do not comply with water supply technical standards and safety standards. Sign and Seal Water supply service providers have uniforms. prohibitions of minor character which are not criminal offences. 6. causing no severe damages and not honestly reporting on their own acts. mainly. causing damages which have not constituted elements of criminal offences. 3. 24 . Construct and install water supply equipments and accessories for business without permission. such as: warn on wrong acts. evading their own wrong acts. 5. Operate water supply business without permission. Article 73 Civil Measures Individuals or organizations violating the laws and regulations on water supply or sanitation activities and causing damages to others shall compensate for losses occurred. Alter water meters. 2. 7. 4. Tariff of fines shall be determined in specific regulation. Article 72 Fining Measures Individuals or organizations violating the laws and regulations on water supply or sanitation activities. Do not pay duties.Article 71 Discipline Measures Water supply officers or personnel violating the laws and regulations on water supply or sanitation. taxes and other obligations on water supply and sanitation in accordance with the laws and regulations. 8. Connect water supply to houses without permission. Chapter VIII Final Provisions Article 75 Uniform. shall be fined due to the main acts as follows: 1. Let other persons connect water supply from their own houses without permission. upgrade suspension or remove from job. Render service and consume water supply without compliance with environment protection standards.

10 July 2009 President of National Assembly 25 . Article 77 Effectiveness This Law comes into effects after one hundred and twenty days from the date upon which the President of the Lao people’s Democratic Republic issue the Decree on promulgation of this Law. Any provisions in contradiction with this Law shall be abrogated.Article 76 Implementation Government of the Lao PDR is in charge of implementing this Law. Vientiane Capital.