Laos: Reasons revealed for slow power grid expansion

Laos: Reasons revealed for slow power grid expansion

A number of unapproved power grid expansion projects have been suspended
stemming from the fact that there has been no progress on the projects, a
minister recently told the National Assembly (NA).

Minister of Energy and Mines Dr Khammany Inthirath made the comment while
responding to questions raised by NA members during the parliament's recent
ordinary session.

Beforehand, parliament members noted that some power grid expansion
projects, which were already in the under construction phase, had made no
progress.
"Implementation of these projects had not been included in our plans," Dr
Khammany told the NA.

The minister added that some authorities, who had no eligible right to
approve or carry out such projects, had implemented them.

The projects have now been put on hold as the ministry has taken action to
better regulate projects, channelling monies into implementing approved
projects instead.

To ensure those approved projects are carried out in line with the plans, Dr
Khammany said his ministry has instructed provincial and district
authorities in charge of the energy and mines affairs to survey and collect
information to find out exact numbers of approved projects whose concessions
were granted but no action had been taken to implement.

However, the minister admitted that the expansion of the power grid is not
being done quickly enough to meet the growing need of the energy sector that
has seen fast development of electricity plants, notably hydropower plants,
in recent years.

Construction of 44 hydropower plants, a coal-fired power plant and a solar
power plant have been completed. These plants that have been operational
have a combined installed capacity of 6,490 megawatt.

"The development of the power plants has gained a fast pace but development
of the power grid has not met this pace," Dr Khammany said.

So far, some 52,000 km of low, middle and high voltage transmission lines
have been installed with about 60 electricity power stations now
operational. Such expansion has enabled 92 percent of the total families in
Laos to access home-grown electricity, according to the minister.

Electricite Du Laos (EDL) has invested heavily to develop the power plants
and expand the power grid in order to maximise resources and widen its
electricity coverage. Statistics from the state enterprise showed that it
has a total debt of over 7,290 billion kip including longer term debt as it
has borrowed for its investment needs.

EDL's Deputy Managing Director, Mr Komonchanh Phet-Asa, told Vientiane Times
this week that the money has been borrowed for investment in the expansion
of the electricity network as well as for the development of new hydropower
plants.

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Link to Original Article:
http://www.vientianetimes.org.la/FreeContent/FreeConten_Reasons.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com