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Introduction of current situationand policy on energy and natural
resources of Lao PDR
Soulivong DARAVONG
Minister of Energy and Mines
Lao PDR
Vientiane, 6 May 2009
Ministry of Energy and Mines___________________________________________________
_______
Introduction of Power Sector in Lao PDR
Presented by: Bounsy DETHAVONG
Deputy Director of DEMManila, 4th June,2012
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Title of Presentation
1. Introduction of Power sector
2. Power Sector policy
3. Power Sector management
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Background of Lao PDR
Area of 236,800 km sq;
16 Provinces + Capital and 139districts;
Population of 5.8 million (2007);
GDP of USD 4.1 billion (2007);
GDP per Capita of USD 701(2007);
Mountainous area with major
tributaries of the Mekong River
covering 35% of total MekongRiver basin.
Relatively high annual rainfall.
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Background of Lao PDR (cont)
Hydropower potential: 23,000MW
Existing installed capacity of 672MW (3%)
Produced energy of 3,500
GWh/Y Produced energy per capita of
700 kWh/Y
Exported energy per capita of320 kWh/Y
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History of Power Sector Development
Memorandum of Understanding on the power exchange
program was signed with the Royal Thai Government in1993 and 1996 under which 3,000 MW is to be suppliedto Thailand and subsequently increased 7,000 MW isagreed;
In 1998 and 2006 MOUs were signed with theGovernment of Vietnam for 3000 MW and subsequently5000 MW is agreed;
In 1999 Agreement on Cooperation in Power Sector wassigned with Cambodia;
Power Sector Strategy developed and updated fromtime to time;
Power sector opened to private foreign directinvestment;
Legal framework has been improved from time to timeto meet international financing requirements.
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2. Power Sector Policy
Maintain and expand affordable, reliable and sustainableelectricity supply to promote economic and socialdevelopment;
Promote power exports as well as domestic power supply toearn revenues to meet Government development objectiveswith particular emphasis on poverty eradication;
Develop and enhance the legal and regulatory framework tofacilitate power sector development by either public, private orpublic private partnership;
Gain capacity building through international technical know-how and expertise;
Ensure accountability and transparency of environmental andsocial impacts and thereby achieve sustainable development
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Objective of the Power Sector Development
Propovide a source of foreign exchange to fundeconomic and social development and alleviate poverty;
Meet the commitments under intergovernmental MOUsand Agreements with Thailand, Vietnam and others;
Extend rural electrification to promote better socio-economic development and reach the government targetof 70% and 90% by year 2010 and 2020 respectively;
Integrate power sector and maintain its economicdevelopment as a whole with international communitiestrough its power exchange programs and foreign directinvestment.
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Renewable energy Policy
Increase a share of bio-fuel consumption inTransport Sector up to 30% by 2020;
Establish a National Policy of Renewable
Strategic Policy; Establish a National Strategic Plan for Bio-
fuel development.
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Development Status
65 Projects with estimated installed capacity of 20,000 MW
Projects at Feasibility Study stages/with Memorandum of
Understanding (MOU): 35 Projects with estimated installed
capacity of 7.270 MW
Projects at Preparation stage/with Project Development
Agreement (PDA): 27 projects with estimated installed capacity of
7.618 MW
Projects under Construction / with Concession Agreement (CA):
10 Projects with installed capacity of 4.360MW
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For electric generation and consumption, hydropowertype comprises of 99.8% of total, the rest is diesel
generation and solar photovoltaic sets.
Electrification ratio is estimated at 60% in 2008.
Development Status (cont)
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Ownership of Generation
- 2004
44.6%
52.5%
2.9%
- -
-
-
EDL IPP PROVINCES
IPP EDL
PROVINCES
Installed Capacity: 2,534.2 MW: EdL 875 MW
IPP: 1.639.2 MW, Provincial: 20 MW
34.52
64.68
0.789
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Power Sector monitoring, inspection and examinationwere followed by Legal system for example
Electricity Law, Water and Water resources Law,
Environmental Law, Land Law, Forestry Law,Lao
Electric Power Technical Standards and so on and sofort.
3. Power Sector management
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Instructions: LEPTS Procedure of Electric Power Project in Lao P.D.R.
Memorandum ofUnderstanding (MOU)
Project Activity
Project DevelopmentAgreement (PDA)
Concession Agreement(CA)
Feasibility Study (FS)
Agreement betweenGovernment & Project
Interim Letter ofApproval to FS
(if any or as necessary)
Government Activity(MEM Activity)
( planning stage )
( detail design stage )
Final Letter ofApproval to FS
Feasibility Study (FS)
( construction stage )
Commencement ofOperation
Completion Certificate
Construction
Design Criteria withBasic Design
(Form2 and Drawings)
Tender Documents(Detailed Technical
Specifications)
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