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

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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, Capital Divisions of Public Works and
Transport
Article 61 Rights and Duties of District, 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

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 Chapter VII
Final Provisions

Article 75 Uniform, Sign and Seal

Article 76 Implementation
Article 77 Effectiveness

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 LAW ONF WATER SUPPLY

Chapter I

General Provisions

Article 1 Objectives
The Law on Water Supply determines the principles, regulations and
measures on organization, activities, promotion, 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.

Article 2 Water Supply

Water Supply is water treated from surface, underground and spring water
sources, and from other water sources into clean, safe and standardized water
in compliance with technical processes and procedures without any toxic
substances, bacteria and over-authorized combination of chemical substances
to provide to the consumers for using in various targets.

Article 3 Definition of Terms

Terms used in this Law shall have the following meanings:
1. 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;
2. Water supply Infrastructure means buildings, installations, water supply
production plants, reservoirs, transmission and distribution pipelines system
together with facilities which are constructed, installed and used by water
supply service providers for the purpose of supplying to service users and
firemen;
3. Surface water source means rivers, watercourses, ponds, marshes, lake and
others;
4. Process means methods, procedures and stages of water supply production;
5. Qualified water means standardized water in terms of cleanness and safety
for consumption accordingly to regulations issued by the Ministry of Public
Health;
6. Sanitation means carrying out of storage, displacement, disposal and
treatment of wastewater from households and sewages from various water
uses, 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;
7. 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;
8. Water supply service provider means concessionaire or person received
authorization to operate water supply business;

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 9. 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;
10. 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;
11. Water supply network means water supply transmission system for sending
water supply from production places to consumption places, which is
comprised of transmission pipelines, distribution pipelines, water gates, water
pumping stations and pipes connected to the premises of water supply users;
12. Water supply activities facilities mean all things that support management,
operation, maintenance and repair of water supply system, such as: fields,
roads, workshops, electrical transformer stations, valve manholes, water meter
boxes, reservoirs, pumping stations, offices, water analysis laboratories,
warehouses and others;
13. Water supply equipment means water meter, water measure and control
pressure meter, water leakage control meter, pipes, pumping machines,
components, accessories and others;
14. 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;
15. 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.

Article 4 State Policy on Water Supply Activities

State promotes public economic sectors as well as others economic sectors,
both domestic and foreign sectors, including community organizations to
invest in water supply infrastructure construction, network expansion, human
resource development, maintenance, business operation in towns and in rural
areas , particularly in remote areas, by implementing policies on credits,
customs, taxes, data and information providing.
State recognizes the property of investors in water supply infrastructure
pursuant to socio-economic plan in various regions throughout the country.
Moreover, State encourages and mobilizes all people in the society to take part
in planning, construction, 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.
State supports good management and use of modern technology in water
supply production to increase quantity, to improve quality and to enable the
exportation.

Article 5 Principles of Water Supply Activities

Water supply activities shall be carried out in compliance with following
main principles:

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 1. Comply with National Socio-Economic Development Plan and Urban
Plan, ensure the targets and socio-economic effectiveness and
environment protection;
2. Ensure the efficient and regular supply of water to users in service
areas;
3. Ensure water supply technical and economic specification, services,
cleanness and safety of water for users, harmonization between
rights, obligations and benefits of service providers and service users;
4. 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;
5. 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, both domestic and
foreign, relating to water supply production, services and uses in towns and in
rural areas.
This Law does not cover spring water, well-water, drilling well-water and
rainfall water which are not passed through comprehensive technical
production processes and procedures.

Article 7 International Cooperation

State widely opens external, regional and international relations and
cooperation on water supply activities and sanitation in exchange of lessons,
data and information, science, technology, capacity building and training of
technicians, assistance, investment participation, implementation of
agreements and treaties of which Lao PDR is a Party.

Chapter II

Water Supply Activities Operation

Section 1
Water Supply Activities

Article 8 Water Supply Activities

Water Supply Activities are comprised of development planning,
feasibility study, survey and design, construction and installation of water
supply and sanitation infrastructures, operation, maintenance and
establishment of National Water Supply Data and Information System.

Article 9 Water Supply Activities Development Planning

Water supply activities development planning is a research technical,
socio-economic and environmental data and information to determine a master
plan, strategic plans and investment plans for water supply construction,

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 improvement, expansion and services in towns, rural areas and intensive
development points.
Water supply activities development plans shall be harmonized with socio-
economic development plans of others sectors and of local authorities
concerned.

Article 10 Feasibility Study for Water Supply Project

Feasibility study for water supply project is a collection of data and
information, a socio-economic and environmental analysis, and then, a
preparation of report to all sectors concerned showing technical options,
effectiveness of investments, appropriate water supply tariffs and project
sustainability, including methods of remedies social and natural environments
impacts.
Every water supply project shall have a feasibility study with the
participation of all sectors and local authorities concerned and of people.

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, analysis,
conceptual design determination, initial design, detailed design in accordance
with technical standards and objectives of the project, including cost
evaluation and duration of the construction.

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,
installation of machines and equipments for water production and water
quality analysis, reservoirs construction, installation of transmission and
distribution pipelines to the residences, buildings and premises of service
users, installation of water meters, including extension of pipes, installation of
components and accessories within the residences or buildings and premises in
service areas in towns and rural areas.
Construction and installation of sanitation infrastructure is construction of
infrastructure, installation of machines and equipments for storage,
displacement, disposal and treatment of wastewater from households and
sewages from various water uses, including water-closet construction and
human excrements disposal.

Article 13 Operation
Operation is water supply production, services and maintenance in regular
manner, improvement and expansion of water supply infrastructure in service
areas of concessionaires, service providers to ensure the economic, technical
and service effectiveness.

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, assembly, analysis, summary of technical,
economic, financial and accounting data and information in order to support

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 the development, monitoring, assessment of implementation of policies,
strategic plans and operation relating to water supply activities operation.

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.
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.

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, health safety
and durability; and shall be suitable to the actual conditions.
The Ministry of Public Work and Transport determines water supply
equipment standards. Others sectors concerned supervise the quality of water
equipments domestically manufactured or imported from abroad for water
supply infrastructure construction and installation.

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 3
Water Sources and Environment

Article 18 Water Sources for Water Supply Production

Water sources for water supply production are surface water, underground
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, operation and
maintenance of water supply infrastructure.
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 concessionaires and
service providers shall reasonably use the water sources and shall have

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 necessary measures to avoid or to reduce the social and natural environments
impacts within the concession or business operation areas.
The entrepreneurs, individuals and organizations shall take part in
environment protection. No wastewater and sewerage to be left behind and no
damages to be caused to water sources.

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, damages and breakage in order to
ensure the regular operation and the sufficient supply of qualified water
supply.

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.

Article 22 Water Supply Development Fund

To ensure the effectiveness and sustainability of maintenance,
improvement and development of water supply infrastructure, mainly in
intensive development areas and in rural areas, the Government authorizes to
establish the water supply development Fund.
Sources of the water supply development Fund is derived from State
budget, assistance, contribution of individuals and organizations, both
domestic and foreign, including service providers.
Management and use of the proceeds of Fund shall be complied with laws
and regulations on State budget and others laws and regulations concerned.

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. State investment;
2. Joint venture investment between State and private sectors, domestic or
foreign;

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 3. Private investment, domestic or foreign.

Article 24 Establishment of Enterprises

Individuals or organizations, domestic or foreign, wishing to establish the
water supply enterprises shall apply for business running as provided for in the
Law on Investment Promotion.
Individuals or organizations having an intention to establish the water
supply enterprises shall have the following conditions:
1. Have experiences or technicians relating to business operation;
2. Have technicians with technical capacity on water supply and other
technicians concerned in a certain number suitable to the size of
activities, such as: analysts, electrical technicians, managing
technicians, accounting technicians and others;
3. Have enough and appropriate funds, vehicles, machinery and
equipments for construction and installation water supply
infrastructure and for provision for service in their own service areas;
4. Have service areas officially agreed and approved by water supply
management authorities;
5. Have water sources agreed by water resources and environment
authorities.

Article 25 Investment in Water Supply Business

Investment in water supply business is investment in construction,
maintenance, improvement and development of water supply infrastructure to
supply the water for widely use to people in towns, intensive development
areas and rural areas.
Investment may be done by:
- Build, operate and transfer;
- Build, operate, own and transfer;
- Build, own and operate;
- Other forms.

Article 26 Technical Approval on Water Supply Infrastructure Construction

Technical approval on water supply infrastructure construction is divided
into two levels as follows:
1. Water supply infrastructure serving from and less than 20.000 persons
shall be approved by Provincial, City Divisions of Public Works and
Transport;
2. Water supply infrastructure serving more than 20.000 persons shall be
technically approved by Ministry of Public Works and Transport.

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.

Article 28 Conditions for concessionaires

Concessionaires of water supply business shall have the following
conditions:
1. Have a good and reliable business background;

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 2. Have financial and technical capacities.

Article 29 Rights of Concessionaires

Water supply concessionaires have the main rights as follows:
1. Use the land for water supply infrastructure construction;
2. Operate water supply business in accordance with concessionary license;
3. Own water supply infrastructure constructed by oneself during the concession
period;
4. Enjoy benefits from concession;
5. Receive legal protection, mainly, receive compensation of damages resulting
from any installation removal made by other constructed activities projects
which are not related to water supply infrastructure;
6. Receive technical and technological recommendations and others relating to
water supply activities;
7. Submit the request for extension of concession duration;
8. Lease, transfer water supply business for the concession remaining period of
time to other persons in accordance with the laws and regulations.

Article 30 Obligations of Concessionaires

Water supply concessionaires have the main obligations as follows:
1. Run water supply business in conformity with concession agreement,
economic and technical feasibility study and socio-environmental impacts
assessment;
2. Have capital for registration which shall be complied with the Law on
investment promotion;
3. Pay duties, taxes and others obligations to the State and discharge debts of
oneself completely and on time;
4. Protect water resources and environment, pay compensation for losses in case
of causing damages to life, health or to properties of the people;
5. Train, technical capacity building and ensure social welfare of officers,
technicians and workers;
6. Maintain, repair machinery an water supply equipments, including water
supply infrastructure, to keep them in good conditions in terms of duration and
technical principles;
7. Repair vehicles and machinery to be in working condition before the hand
over of water supply business to the Government;
8. 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;
9. Coordinate and cooperate in taking part in socio-economic development of
localities in which the project is located;

Article 31 Concession Duration

The maximum duration of concession shall not over thirty years from the
date of receiving the concession license. At the end of the concession duration
the concessionaires shall transfer all business of themselves to the State in
working condition without any compensation, except in case of investment in
the form of Build, Own and Operate.

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 The concession duration may be extended, but not more than ten years
accordingly to competent authorities. The request for extension of concession
shall be made five years before the termination of the concession.

Article 32 Termination of the Concession

The concession shall be terminated in the following cases:
1. Termination of the concession duration;
2. Cessation of concession before term on the proposition of concessionaires and
on the consent of the State;
3. 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- compliance with the laws and regulations;
4. Damaged concession project cannot be repaired or rehabilitated;
5. Cancellation of concession agreement.

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…..
of the Law on investment promotion.

Article 34 Policy on Duties and Others Taxes

Apart of policy on profits taxes, investors shall receive policies on duties
and other taxes as provided for in Article….. of the Law on investment
promotion.

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.

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…..
of the Law on investment promotion.

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.

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Article 38 Water Supply Business Regulation
Water supply business has two aspects:
- Technical regulation that business operators shall complied with the
specifications, technical standards and activities achievements
indicators with the view to ensure the production and service of water
supply, and at the same time to ensure that the service users shall
consume qualified, clean, safe and sufficient water supply;
- Economic regulation that business operators shall complied with
service and tariffs specifications to enable the investors to run smooth,
effective and sustainable business, 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.

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.

Article 39 Policy on Water Supply Tariffs

The Government approves the policies of water supply for each region,
locality, and target of uses and category of users for each period on the
proposition of the Ministry of Public Works and Transport.

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.
Water supply tariffs shall be stable and shall ensure the State policy
implementation for consumption targets and user categories, and shall support
the mechanism of market economy with the State regulation.
Water supply tariffs shall be determined accordingly to the following
structures: expenditures for energy, chemical substances, depreciations,
administration, interests, proceeds of loans, specific profits, turnover taxes,
targets of uses, user incomes and other matters concerned.
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, submit to the
Government for consideration.

Article 41 Water Supply Review and Adjustment

To rationalize the water supply tariffs for each period of socio-economic
development, 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, submits such tariffs review for technical consideration to Ministry of
Public Works and Transport in order to enable the users, particularly poor
people, can pay for, and the water supply business operators can effectively
run their business.
Water supply tariffs in rural areas shall be determined referring to the
proposition of investors on the basis of the approval of local authorities

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 concerned. In case of reasonable deficiency of investors, State shall
appropriately compensate for such.

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, capital Divisions of Public Works and Transport after receiving the
approval from the Water Supply Business Regulation Committee.
Water supply activities management authorities of each level shall
disseminate such Decision, together with water supply tariffs calculation, and
notify the service providers, service users and the public for implementation.

Section 4
Rights and Obligations of
Service Providers, Service Users and Firemen

Article 43 Rights of Service Providers

Water supply service providers have the following rights:
1. Receive authorization to inter into residential areas, State and private offices
and agencies and other premises for construction, maintenance, repairs and
replacement of water supply equipments, pipes, meters and record the volume
of consumed water;
2. Collect water supply fees accordingly to water consumed volume and to laws
and regulations;
3. Warn the service users who violate water supply service regulation and
suspend the supply of water in case of severe violation, such as:
- Do not pay the service charge regularly after three times of warnings
- Modify water meters to make the figure of the consumed water volume
reduced less than the actual consumed water volume.

4. Share opinions to water supply development plans in their own service areas;
5. Receive compensation for losses of water supply infrastructure caused by
individuals or organization accordingly to the laws and regulations.

Article 44 Obligations of Service Providers

Water supply service providers have the following obligations:
1. Provide regularly services of qualified, clean and safe water supply to service
users accurately, duly, fairly and on time;
2. Provide recommendation on principles of water supply utilization to service
users;
3. Ensure the safety and social welfare of water supply officers;
4. Hold the accounting as provided for in the law on accounting, regularly report
on data, statistics and achievements of their own business to water supply
management authorities and to other sectors concerned;
5. Pay customs duties, taxes and various fees in accordance with the laws and
regulations;

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 6. Compensate for losses in compliance with the laws and regulations in case of
causing damages to life, health and property of the people, public and
environment;
7. Monitor, supervise and resolve water leakage along the pipelines, buildings
and in various public places, including resolution of any problem proposed by
the service users in reasonable manner;
8. Improve, upgrade and modernize the technology of water supply production
step by step;
9. Notify on suspension of provision of water supply in case on construction and
reparation;
10. Construct and install sanitation infrastructure by using appropriate technology.

Article 45 Rights of Service Users

Service users have the following rights:
1. Receive sufficiently, speedily, accurately, duly and fairly service of qualified,
safe and clean water supply;
2. Request the service providers to supervise and correct the technical mistakes,
and to remedy unclear and incorrect service charges;
3. Submit the proposition to water supply management authorities in case of
receiving inaccurate, non-speedy, undue and unfair services of insufficient,
unqualified, unsafe and unclean water supply;
4. Receive data and information on water supply activities;
5. Receive compensation for losses resulting from water supply services
accordingly to the laws and regulations.

Article 46 Obligations of Service Users

Service users have the following obligations:
1. Follow technical recommendations and regulations on water supply equipment
utilization and on water supply;
2. Give favorable conditions to service providers in construction, installation and
repairs of water supply infrastructure, in supervision and records the volume
of consumed water supply;
3. Pay the water supply fees regularly , completely, accurately and on time;
4. Assist in water supply infrastructure protection, such as: reservoirs, pipelines,
distribution pipelines, water meters and other water supply-related equipments
to be in good conditions. If damages or water leakage and abnormalities
occurred, service providers shall be notified for prompt repairs;
5. Do not create contamination and pollution to water sources;
6. Pay compensation for losses caused by themselves to the service providers and
organizations or individuals concerned in accordance with the laws and
regulations.

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, time and volume of water supply
pumped for fire extinguishment.

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 Chapter IV

Prohibitions

Article 48 General prohibitions

Individual or organization is prohibited to perform the following acts:
1. Impede, not facilitate or cooperate unreasonably water supply activities,
mainly, laying water pipes through their land by the project which have been
legally approved after the officers concerned have already explained;
2. Destroy or damage the water supply infrastructure, such as: water reservoirs,
transmission pipelines, distribution pipelines, water meters and other water
supply-related equipments;
3. Invade water sources for water supply production, discharge toxic substances
and create contamination to water sources and water supply;
4. Steal water supply, get water by connecting the transmission or distribution
pipelines directly without passing through water meters;
5. Destroy forests in natural water sources areas and those areas determined by
local authorities to ensure water supply production.

Article 49 Prohibitions for Service Providers

Service providers are prohibited to perform the following acts:
1. Lease or transfer the enterprise registration certificate or concession
registration certificate on water supply to other persons without any
permission;
2. Impede the audit and supervision performance of water supply activities;
3. Conceal, falsify data and information on technical, accounting, financial,
business, water quality performances;
4. Provide water supply which is not in conformity with water quality standards
determined by the Ministry of Public Health;
5. Lack responsibility in their own duties, mainly technical aspects, such as:
monitoring, maintenance and repairs of water supply infrastructure, accurate
record consumed water volume and on time, 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.

Article 50 Prohibitions for Service Users

Service users are prohibited to perform the following acts:
1. Alter or destroy water meters;
2. Steal water by connecting the pipes without passing through water meters;
3. Install pumping machines by direct connection to transmission or distribution
pipelines system;
4. Contaminate water supply in transmission or distribution pipelines system;
5. Lay down the pipes on the surface of ways obstructing the traffic;
6. Unreasonably impede or no to cooperate the service providers in performing
their duties.

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.

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 Chapter V

Disputes Resolution

Article 52 Forms of Disputes Resolution

Dispute Resolution may be undertaken by the following forms:
1. Mediation or conciliation;
2. Administrative resolution;
3. Arbitration;
4. Resolution by court;
5. International character resolution

Article 53 Mediation or Conciliation

In case of water supply business disputes occurrence, the parties may enter
into negotiation, mediation and conciliation between themselves.

Article 54 Administrative Resolution

In case of failure to resolve the disputes by means of mediation or
conciliation, the parties have the rights to address the case for resolution to the
sectors where authorization was granted.

Article 55 Arbitration
In case of that the sectors concerned failed to mediate and resolve the
disputes, the parties have to rights to address the case for resolution to
arbitrational economic disputes resolution panel accordingly to the laws and
regulations.

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
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.

Article 57 International Character Resolution

The disputes on water supply business operation between the domestic
investors and foreign investors, or between foreign investors in the Lao PDR,
or between foreign investors and the State, shall be resolved by domestic,
foreign or international arbitrations as agreed by the parties.

Chapter VI

Water Supply Activities

Management and Supervision

Section 1
Water Supply Activities Management

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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, such as: planning and investment
sector, industry and commerce sector, water resources and environment sector,
public health sector, financial sector and local authorities concerned.
Water supply management authorities are comprised of:
1. Ministry of Public Works and Transport;
2. Provincial, capital Divisions of Public Works and Transport;
3. District, municipality Offices of Public Works and Transport.

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. Study and research policies, strategic plans, laws and regulations on
water supply and sanitation to submit the Government for
consideration;
2. Disseminate and publish policies, strategic plans, laws and regulations
on water supply and sanitation throughout the country;
3. Direct and monitor the implementation of policies, strategic plans,
laws and regulations on water supply and sanitation, investment plans,
development, water supply and sanitation infrastructure expansion;
4. Develop policies, strategic plans, government decisions on water
supply and sanitation into detailed plans, programs and projects of the
own sector;
5. Study, determine specification, activities achievement indicators,
standards; study and select appropriate technology together with
instruction of implementation;
6. Study, share opinions on investment, expansion, suspension and
cancellation water supply activities;
7. Build, train and enhance the levels of water supply personnel;
8. Coordinate other sectors and local authorities concerned relating to
water supply activities performance;
9. Enter in external, regional and international relations and cooperation
on water supply and sanitation activities;
10. Summary and regularly submit the report on achievements of water
supply activities organization and implementation to the Government.

Article 60 Rights and Duties of Provincial, Capital Divisions of Public Works and
Transport
To manage water supply activities the provincial, capital Divisions of
Public Works and Transport has the main rights and duties as follows:
1. Develop policies, strategic plans and water supply infrastructure and
sanitation development plans issued by the Ministry of Public Works
and Transport;
2. Disseminate and publish policies, strategic plans, laws and regulations
on water supply and sanitation within their own provinces, capitals;
3. Direct and monitor the implementation of water supply activities and
sanitation within their own localities;

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 4. Survey, data and information and statistics on water supply, sanitation
and water sources which shall be protected for water supply
production;
5. Study, share opinions on investment, expansion, suspension and
cancellation water supply activities within their own provinces and
capitals;
6. Collaborate with other sectors concerned in studying water supply
tariffs within provinces, capital to submit to Ministry of Public Works
and Transport for technical consideration before proposition to the
governors of provinces and capitals for authorization;
7. Resolve the disputes between service providers and service users
within their own provinces, capitals;
8. Enter in external, regional and international relations and cooperation
on water supply and sanitation activities as assigned by the higher
ranking authorities;
9. 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, capital authorities.

Article 61 Rights and Duties of District, municipality Offices of Public Works and
Transport
To manage water supply activities the District, municipality Offices of
Public Works and Transport has the main rights and duties as follows:
1. Organize and implement plans, projects, regulations and instructions of
provincial, capital Divisions of Public Works and Transport on water
supply and sanitation activities;
2. Disseminate laws and regulations on water supply and sanitation
activities within their own districts, municipalities;
3. Study and share opinions on water supply and sanitation infrastructure
in intensive development areas and in rural areas to submit for
consideration to provincial, capital Divisions of Public Works and
Transport;
4. 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,
municipalities;
5. 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, capital
authorities.

Article 62 Rights and Duties of Other Sectors Concerned

Other water supply activities-related sectors concerned, such as local
authorities, public health sectors, water resources and environment sectors,
have the rights and duties to participate in water supply activities accordingly
to their own roles.
Village authorities have the main rights and duties as follows:
1. Disseminate and implement laws and regulations on water supply and
sanitation activities within their own villages;

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 2. Organize and implement plans, projects, regulations and instructions of
public works and transport sectors on water supply, sanitation activities
and water sources and environment protection;
3. Facilitate service providers together with mobilize the people to
participate in planning, construction and protection of water supply and
sanitation infrastructure within their own villages;
4. Submit the report to the district offices of public works and transport
and service providers on water supply activities, creation of damages
to water supply and sanitation infrastructure, water sources and
environment within their own villages;
5. Submit suggestions to service providers and organizations concerned
on services, improvement and water supply and sanitation
infrastructures within their own villages.

Section 2
Water Supply Activities Supervision

Article 63 Supervision Authorities

Water supply activities supervision authorities are comprised of two types
as follows:
- Internal supervision authorities which are the same as of water supply
activities management authorities as specified in Article 58 of this
Law;
- External supervision authorities.

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.

Article 65 Contents of Supervision

Contents of supervision activities are as follows:
1. Supervision of organization and implementation of strategic plans, policies,
laws and regulations, investment plans, development, water supply and
sanitation infrastructure expansion;
2. Supervision of progress and implementation of water supply activities
implementation technical standards, including construction and installation
equipments of water supply and sanitation infrastructures;
3. Supervision of implementation of safety standards and social welfare of
workers in water supply business operation;
4. Supervision of management and protection of water sources for water supply
production and environment;
5. Supervision of water quality standards;
6. Supervision of the use of impact prevention and remedies measures, and
compensation for harmful effects to life, health and properties of the people,
public and environment whilst water supply business operation;
7. Supervision of implementation of plans and finance of water supply business;
8. Supervision of bidding, contracts on water supply and sanitation infrastructure
construction and installation, implementation of various contracts.

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Article 66 Forms of supervision
Water supply supervision consists of three forms as below:
1. Regular supervision which is a supervision undertaking systematically
in accordance with the plans and has a fixed period.
2. Prior notification supervision which is a supervision undertaking out of
plans when necessary with notification in advance to persons to be
supervised.
3. Emergency supervision which is a supervision undertaking in case of
urgency without any prior notification to persons to be supervised.

During the supervision of water supply activities process, the officers of

supervision authorities shall comply strictly with the laws and regulations.

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, transparent, fair and effective.
External supervision consists of as follows:
1. Supervision of the National Assembly as prescribed in the Law
on supervision of the National Assembly;
2. Supervision of State inspection authorities as prescribed in the
Law on State Inspection;
3. Audit of the State auditing authorities as prescribed in the Law
on State Audit;
4. Supervision with the participation of National Construction
Front, Mass Organizations, people and Mass Media.

Chapter VII

Awards and Sanctions

Article 68 Awards
Individuals or organizations having an excellent achievement in
implementing this Law, such as in construction, improvement, development,
expansion, production, operation, maintenance and service of water supply
with effectiveness and quality, shall be awarded and benefited other policies as
appropriate.

Article 69 Measures against Violators

Individuals or organizations breaching this Law shall be educated,
disciplined, fined, 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, mainly, prohibitions of character which
are not criminal offences, shall be educated or warned.

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Article 71 Discipline Measures
Water supply officers or personnel violating the laws and regulations
on water supply or sanitation, mainly, prohibitions of minor character which
are not criminal offences, causing no severe damages and not honestly
reporting on their own acts, evading their own wrong acts, shall be disciplined
accordingly to the regulations, such as: warn on wrong acts, upgrade
suspension or remove from job.

Article 72 Fining Measures

Individuals or organizations violating the laws and regulations on
water supply or sanitation activities, causing damages which have not
constituted elements of criminal offences, shall be fined due to the main acts
as follows:
1. Operate water supply business without permission;
2. Construct and install water supply equipments and accessories for
business without permission;
3. Connect water supply to houses without permission;
4. Let other persons connect water supply from their own houses
without permission;
5. Alter water meters;
6. Do not comply with water supply technical standards and safety
standards;
7. Render service and consume water supply without compliance with
environment protection standards;
8. Do not pay duties, taxes and other obligations on water supply and
sanitation in accordance with the laws and regulations.

Tariff of fines shall be determined in specific regulation.

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.

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.

Chapter VIII

Final Provisions

Article 75 Uniform, Sign and Seal

Water supply service providers have uniforms, signs and seals to be
use in their activities performance and determined by Ministry of Public
Works and Transport.

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Article 76 Implementation
Government of the Lao PDR is in charge of implementing this Law.

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.

Vientiane Capital, 10 July 2009

President of National Assembly

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