Unofficial Translation

Lao People's Democratic Republic
Peace Independence Democracy Unity Prosperity


Prime Minister's Office                                                               No. 7 1 /PM


DECREE OF TIIE PRIME MINISTER ON THE
ADMINISTRATION OF NON-GOVERNMENTAL
ORGANIZATIONS (NGOs) IN THE LAO PEOPLE'S
DEMOCRATIC REPUBLIC


        - Based on tile Constitution of the Lao People's Democratic Republic,
        - Pursuant to Law 0 1/95 of March 8, 1995, on the Government of the Lao PDR,
        - At the proposal or the Minister of Foreign Affairs,

The Prime Minister decrees the following:

CHAPTER I
General Provisions

Article 1. This Decree on the Administration of Non-Governmental Organizations in the Lao People's Democratic Republic outlines regulations pertaining to tile organization, operations, rights and obligations of Non-Governmental Organizations, and aims at creating conditions favorable and suitable for their operations and ensuring external contributions to socio-economic development and environmental protection in the Lao PDR.

Article 2. Non-Governmental Organizations, hereinafter called NGOs, refer to entities holding the legal status of NGOs and conducting development or humanitarian development activities without any profit-seeking or any other purposes inconsistent with tile policy guidelines, laws, regulations and fine traditions of the Lao PDR.

Article 3. NGOs allowed to operate in the Lao PDR shall meet the following conditions,

1.  Status of juridical entity in compliance with the laws and regulations of their country of origin where their headquarters are based-

    2.      Clear by-laws,

    3.      Sound financial status-,

    4.   Acknowledgment by tile international community.

 

CHAPTER II
Issuance, Extension, Amendment and Withdrawal of Permits

Article 4. NGOs preparing to conduct assistance activities in the Lao PDR shall require a permit from the Ministry of Foreign Affairs under different forms according to the following scope and features:

    1. Operation permit;

    2. Project office permit; and

    3. Representative office permit.


Article 5. The Operation Permit allows the relevant NGO to operate In the Lao PDR as follows:

1.      Contact and inquiries with the relevant organizations of tire Lao PDR to assess needs and
        draft project documents to be submitted for approval;

2.      Monitoring of assistance projects executed by Lao agencies.

Article 6.  The Project Office Permit allows NGO representatives executing assistance projects to open their project offices at the central and / or local levels in Laos for the implementation of project activities.

Article 7. The Representative Office Permit allows NGOs to establish representative offices in Vientiane in view of ensuring efficient operations.

NGOs which will be authorized to set up representative offices shall have adequately and efficiently implemented assistance projects in the Lao PDR for at least 5  years, provided that projects are suitably budgeted ( of a minimum of US Dollar five hundred thousand per project, excluding salaries , office, travel and insurance expenses and may be implemented in the long-term ( at least 2 years ).

Article 8. On-going projects shall be monitored and assessed on-site on a regular basis by the relevant Lao agencies and NGOS.  Each evaluation and assessment shall be recorded and signed by both parties concerned.

Article 9. NGO personnel shall be made of expatriates authorized by the Ministry of Foreign Affairs as requested by NGOs to conduct activities in tile Lao PDR according to the conditions mentioned under Article 4 of this Decree.

Lao citizens employed by NGOs shall be considered as local staff.


Article 10.  NGOs wishing to apply for permits mentioned Under Article 4 of this Decree shall be required to submit complete documentation to the Ministry of Foreign Affairs for consideration.  Upon receiving such application, the Ministry of Foreign Affairs shall notify its decision to the relevant NGOs within:

    1.  Thirty (30) days in the case of an operation permit;

    2.  Sixty (60) days in the case of a project office permit; and


    3.  Ninety (90) days in the case of a representative office.

Article 11.  A permit issued for the first time shall be effective for a period not exceeding:

    1.      Six (6) months in the case of NGO operations as provided under Article 5.1;

    2.      One (1) year for NGO operations as provided under Article 5.2;

    3. Two (2) years in the case of a project office permit; and

    4.      Four (4) years in tile case of a representative office permit.

        Where the extension of any of the above mentioned permits is required, NGOs shall submit an application to the Ministry of Foreign Affairs within thirty (30) days prior to the permit's expiry.  Each extension shall not exceed the first permit's period of effectiveness.

       NGOs shall notify the issuance and/or extension of permits within thirty (30) days to the central and/or local level lure agencies in charge of their projects.

Article 12.  NGOs intending to amend issued permits, - such as changes in names and positions, new address of the project office or representative office, replacement of the project director or representative, changes in the number of personnel , transfer of personnel from one project to another and modification to the scope and nature of their operations, - shall apply to the Ministry of Foreign Affairs.  The Ministry of Foreign Affairs shall provide an answer In Writing within thirty (30) days from the application's receipt.

Article 13.  NGOs shall terminate their activities in the following cases:

    1.  Expiry of the permit.

    2.  Decision by the Ministry of Foreign Affairs to cancer the permit as provided under Article 17 of this Decree.

    3.  The assistant project is completed.

        NGOs still be responsible for the complete settlement of all issues related to their operations in the Lao PDR within thirty (30) days prior to the expiry of then- permits or within (30) days from the notice of termination.


CHAPTER III
Rights and Obligations of NGOs in the Lao PDR

    Article 14.  NGOs authorized to set up project offices or representative offices shall be entitled to:
            
    - Rent premises as office residence;

    - Employ expatriate personnel as provided under Article 9, I of this Decree to work in their offices and projects in the Lao PDR as authorized;

    - Employ a reasonable number of local staff as provided under Article 9.2 of this Decree according to the scope of work in offices and projects; and

    - Import the necessary equipment and materials for their offices, projects and personal belongings into the Lao PDR to meet the working and living requirements of representatives and personnel.  The import of such materials, equipment and supplies shall be subject to the laws and regulations of the Lao PDR.

Article 15. NGOs authorized to operate in the Lao PDR shall have the following obligations:

    - Operate in compliance with the Lao Government's policy guidelines in respect with the laws, regulations and fine traditions of the Lao PDR;

    - Operate within the scope and nature of activities provided by permits, agreements, memorandums of understanding and/or assistance projects signed by the relevant authorities of the Lao PDR and the relevant officers of the assistance agencies;

    - Be responsible for their activities in the Lao PDR;

    - Submit semi-annual and annual reports on the joint implementation of their assistance projects with the relevant Lao agencies to the Ministry of Foreign Affairs;

    - Prepare reports or explanatory documents in relation with issues pertaining to their
    activities to the Ministry of Foreign Affairs when requested; and

    - Prepare final reports in collaboration with the relevant line agencies of the Lao PDR on project implementation to the Ministry of Foreign Affairs.

CHAPTER IV
Awards and Sanctions

Article 16. NGOs and NGO personnel providing appropriate and efficient assistance in the Lao PDR shall be awarded by the Lao Government.
 
Article 17.  NGOs failing to conduct activities in compliance with their permits, the relevant regulations and/or to consistently abide by the provisions of this Decree shall be ordered to temporarily suspend the implementation of their projects, terminate their projects, or their permits shall be withdrawn according to the nature of such failure.

Article 18. NGO personnel conducting activities inconsistent with the Lao Government policy guidelines, in breach of the laws, regulations and fine traditions of the Lao PDR shall be subject to proceedings as provided by the laws of the Lao PDR.


CHAPTER V
Final Provisions

Article 19.  NGOs and their personnel performing assistance activities in tile Lao PDR before and after, the entry into force of this Decree shall all comply with its provisions.

Article 20.  NGOs conducting assistance activities in the Lao PDR prior to the entry into force of this Decree shall apply for permits as follows:

    1. NGOs authorized to open representative offices shall not be required to reapply, but shall submit an application to the Ministry of Foreign Affairs within sixty (60) days from this Decree’s effective date in view of issuing permits as provided under Article 11 of this Decree.
     
    2. NGOs operating through their project offices in the Lao PDR shall submit an application to the Ministry of Foreign Affairs within sixty (60) days from this Decree's effective date for the issuance of permit as provided under Article 11 of this Decree.

Article 21.  The Ministry of Foreign Affairs shall outline regulations and recommendations on the application of this Decree.  The Ministry of Foreign Affairs shall be entitled to convene meetings between officers of the relevant governmental agencies to assess the implementation of projects by NGOs and give the necessary guidance to officers of concerned line agencies and  local administration for the proper implementation of this Decree.

Article 22.  Ministries, central level organizations, provinces, Vientiane Municipality and Special Zone shall have the duty to extend close cooperation to the Ministry of Foreign Affairs in the proper and efficient implementation of this Decree, and shall be directly responsible for NGOs' activities within their sectors and localities.  Where this Decree is breached, reports shall be made to the Ministry of Foreign Affairs in view of' timely solutiont.  In the case of prominent achievements and proper compliance with the laws and regulations of the Lao PDR., reports shall be similarly made in view of considering appropriate award.

Article 23.  The Decree is effective 30 days from its signing.  Any provisions and regulations inconsistent with this Decree are superseded.

 Vientiane, 28 April 1998
Prime Minister

Sisavath Keobounphanh