Prime Minister Bouasone Bouphavanh has congratulated the energy and mining sectors on their 20 percent growth last year, exceeding the target set by the government.
“The target for expansion was set at only 15 to 16 percent,” Mr Bouasone told participants at the annual meeting of the energy and mining sectors held in Vientiane yesterday.
“Outputs exceeded the target because of the good administration and promotion of these sectors.”
In the energy sector, the government plans to supply electricity to about 70 percent of the population in 2010 and 90 percent in 2020, focusing on the remote areas.
“It won't be easy to reach these targets,” Mr Bouasone added. He advised the sectors concerned to study to what extent people already had access to electricity.
To reach its goals, energy developers should not only focus on hydropower but should also consider sources such as the sun and wind. He pointed out that Xieng Khuang province had strong winds which may be able to be harnessed for energy generation.
Hydropower and mines depend on natural resources which, if exploited by developers in the right way, will be sustainable.
“We try to protect trees around reservoirs and in Nationally Protected Areas to preserve our rivers and keep rainfall stable. It is essential that farmers give up slash and burn cultivation,” Mr Bouasone said.
By 2020 Laos hopes to have energy generation with an installation capacity of 30,000MW. This figure may be higher if energy production involves a variety of methods.
In the past the government tried to attract investors in energy and mines but few developers showed interest.
“Now we are attracting many more investors because of our current policies,” Mr Bouasone said.
The annual meeting was held to study and discuss improvements to regulations and laws governing these sectors, with particular attention paid to the work of projects after they have been granted government concessions.
The meeting also reviewed the implementation and achievements of projects in these sectors over the past year and produced a development strategy from the present until 2020.
The World Bank says Laos is now more attractive to investors due to new laws which make it easier to do business. “Improvements to the financial sector's legal framework through recently passed laws on commercial banking are attracting new investors to the banking sector and extending financial services more widely,” World Bank Vice President Michael Klein said. His statement was released yesterday after an earlier meeting with Planning and Investment Minister Soulivong Daravong, about improving the business environment in Laos. Mr Klein said it would be easier for entrepreneurs to access investment loans if the Lao government continued to reform its financial institutions. Regulations should be developed to give borrowers other ways of accessing loans if they could not pledge land or buildings as collateral, he said. Mr Klein said the Lao government was making good progress, but there was still action needed to ensure policies, laws and regulations were geared towards promoting business opportunities.He also said the government should focus on better management of natural resources, something which would have benefits for the whole community. Mr Soulivong welcomed Mr Klein's comments, saying it was important for the government to continue improving this sector. “The government is strongly committed to encouraging private enterprise because we can see the results in rising incomes and falling poverty rates,” he said. The gross domestic product was 8 percent in 2007, up from 7.5 percent in 2006. Mr Soulivong said it was necessary to continue reform in order to encourage greater investment. Mr Klein said the government could help prioritise its reform agenda by encouraging more public-private dialogue. While in Laos , Mr Klein met with government officials to discuss the World Bank's continued support for developing the natural resource financing sector and the potential privatisation of state-owned enterprises. “Through our assistance, the World Bank Group plans to continue to support the government and private sector leaders in Laos so the country can realise its economic potential and goal of becoming a middle income country by 2020,” he said. Mr Klein is also the International Finance Corporation's (IFC) chief economist.
Yes, I like it when I heard from our PM, saying: "In the past the government tried to attract investors in energy and mines but few developers showed interest. Now we are attracting many more investors because of our current policies"
It means many things.
1. He is sincere, unlike someone who never accepted that was not good, although outcome is bad. It appeared they could not accept their weakness. Last time we were always taught that our leaders are really clever in all field, but the outcome showed nothing different. No wonder clever people all say, no one on earth would be perfect. Problems are the things need to solved, but not the things need to be feared.
I really appreciate that our current PM can bravely accept that in the past our policy was not good enough.
2. Our policy seems to be OK now, otherwise investors are coming more and more.
Oh! It was good that this person has left Laos, otherwise Laos would not able to develop itseft. While Lao people do business with our partners to develop Laos, some people like this person feel bad.
I don't know what is the reason behind?
Probably, for him it would better to keep all resources for American or French.
