Officials mull private sector participation in power industry
 
Vientiane Times, 20 Nov 2009
 
Government officials have discussed how to better coordinate their
work to support private participation in power development in Laos .
 
Energy Promotion and Development Department Director General
Xaypaseuth Phomsoupha of the Ministry of Energy and Mines addressed a
Workshop on Independent Power Project Development to debate the issue
this week.
 
According to a press release issued by the department, the demand for
power is increasing and has become the basis of socio-economic
development in Laos .
 
This sector is now seen as a driver in building national revenue from
the export of electrical power to neighbouring countries.
 
“In defining the conditions for capital and technical skills in the
development and implementation of hydropower projects in Laos , the
Independent Power Project is one of many options for joint-venture
development between the state and private sectors to ensure reasonable
profits for investors and the government,” the press release stated.
 
So far, the government has signed memorandums of understanding (MOU)
or is undertaking feasibility studies on more than 70 power generation
projects.
 
Fifteen of these are either operational or under construction,
according to the department's website on www.poweringprogress.org.
 
Currently, 10 projects are already operational, including the private
investment projects of Theun Hinboun with 210MW and Houay Ho with
150MW of power.
 
Laos has signed an MOU to provide 7,000MW of energy after 2015 to
Thailand , and 3,000MW of electricity from now until 2020 to Vietnam .
 
Representatives of the energy sectors in Laos and Cambodia have signed
a purchase agreement for the supply of about 5MW by the end of 2009.
However, to date there is no MOU to officially certify the terms of
the sale.
 
The government intends to use the profits from hydropower sales to
fight poverty in Laos .
 
The two-day workshop is being attended by 60 participants from the
ministries of Energy and Mines, Justice, Finance, and Labour and
Social Welfare, as well as the Bank of the Lao PDR and other related
organisations.
 
Participants are sharing ideas about the implementation of the project
as it relates to their organisation, with a view to maximising the
benefits of the project.
 
The Asian Development Bank is supporting the workshop.