Major Achievements

In 2001 a draft strategy for the power sector was released by the Government which recommended, in addition to other matters, a clarification of institutional roles, improved efficiency, strengthened regulatory framework, expansion of access to reliable electrical services and the development the power sector to enable trade. In 2004, the Power Sector Development Plan was released for the Lao People’s Democratic Republic. It considers that strategic planning for the power sector in the Lao People’s Democratic Republic should be to both meet the domestic need and for export. (27)

Hydro power is the most significant power source in the Lao People’s Democratic Republic though the Ministry of Industry and Handicraft estimates that less than 5 per cent of hydropower potential is utilized. The export of electricity to neighbouring countries is considered a major source of income for the Government.

The main issues in the energy sector that Electricity du Laos (EDL) and the Government of the Lao People’s Democratic Republic have focused on are to achieve the main targets of the strategic plan for the period up to 2005. Those targets were the construction of 115 transmission and distribution systems from the central to the north and south, with a household electrification rate of 45 per cent for the whole country.

Rural electrification

The 7th National Convention stipulated that electrical networks should be extended so that 70 to 90 per cent of the total population will receive electricity by 2010 and 2020 respectively. This is planned to be achieved through both off-grid and on-grid programmes.

Environmental Impact

For the year 2005, EDL committed to solving various environmental issues affected by the power development with an expenditure of up to 1.52 billion Kips. The spending went into donation of rice to villages, construction of an irrigation system in the province of Vientiane, construction of bore wells including electric pumps, and compensation for the transmission line routes to those affected by the project. EDL puts aside a budget to promote better living conditions and to reduce the destruction of forest for the people in the area surrounding power plants.

In 1999, EDL set up an Environment office to implement environmental regulations, such as the Environmental Protection Law, Law on Water, Law on Forestry, Law on Electricity and other regulations and guidelines regarding social and environmental management. Their role also includes evaluating procedures on environment in power development projects.

Stakeholders

Electricity du Laos
Ministry of Industry and Handicraft

(27)Powering Progress, website for the Lao National Committee for Energy, Ministry of Industry and Handicraft, http://www.poweringprogress.org/energy_sector/power_system_dev_vol_a.htm, accessed in October 2007.