| Project Name |
Northern Area Rural Power Distribution |
| Project Number |
31341-013 |
| Country / Economy |
Lao People's Democratic Republic
|
| Project Status |
Closed |
| Project Type / Modality of Assistance |
Loan
|
| Source of Funding / Amount |
| Loan 2005-LAO: Northern Area Rural Power Distribution |
| Asian Development Fund |
US$ 30.00
million
|
| Loan: Northern Area Rural Power Distribution |
| Nordic Development Fund |
US$ 13.04
million
|
|
| Strategic Agendas |
Inclusive economic growth
|
| Drivers of Change |
Gender Equity and Mainstreaming Governance and capacity development
|
| Sector / Subsector |
Energy /
Electricity transmission and distribution |
| Gender |
Some gender elements |
| Description |
The project objectives are to (i) extend the transmission and distribution system in the northern rural area to provide electricity to rural low-income communities; and (ii) promote power sector restructuring, strengthen EdL's project management ability and improve operational efficiency. The project scope includes (i) reinforcement and extension of the existing high voltage (115 kV) power grid; (ii) construction of associated medium (34.5/22 kV) and low [400 volts (V)] voltage distribution system, and (iii) provision of consulting services to assist Electricite du Lao in detailed Project design, implementation supervision and other capacity building support. |
| Project Rationale and Linkage to Country/Regional Strategy |
The Lao PDR is one of the least developed countries in Southeast Asia. As 80% of the country's population is rural, rural development is needed to reduce poverty. Bringing electricity to rural areas, especially poor villages, is key to promoting rural development. Despite the country?s comparative advantage in producing power and the low cost of production, low population density makes initial capital investments in rural electrification expensive. The Lao PDR thus has one of the lowest electrification rates in the region, which hinders the country?s ability to attract investments and to develop rural areas. Less than 20% of villages have electricity, which limits commercialization and diversification of the economy. Poverty incidence strongly correlates wit the lack of electricity. The government thus gives electrification high priority, particularly in rural areas, and expects that by 2010 about 70% of the population will have electricity. The project will electrify 342 villages and towns, and directly benefit poor households (about 43% of the total rural population). These households will substantially reduce their expenditure on energy, and improve their income and quality of life. The indirect benefits include improved health and education and other benefits form rural development. Access to reliable and good electricity services will improve the ability of the rural population to generate economic growth and better benefit form it |
| Impact |
|