Lao People's Democratic Republic: Northern Area Rural Power Distribution

Sovereign Project | 31341-013 Status: Closed

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Project Name Northern Area Rural Power Distribution
Project Number 31341-013
Country 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 Governance and capacity development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming 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

Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location The Project covers five provinces in the Northern part of Lao including Louang Nam Tha, Louang Phrabang, Oudomxay, Xiengkhouang, Xaignabouli, and Vientiane.

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services International consulting services will be required for assisting EdL in Project engineering, procurement, supervision of installation and construction, and final testing and commissioning. Consultant services will be financed from Nordic Development Fund (NDF) loan. Consultants will be recruited by EdL, in accordance with the Guidelines of Nordic Competitive Bidding, and in full consultation with ADB.
Procurement Procurement of goods and services financed by ADB will be carried out in accordance with ADB's Guidelines for Procurement, while procurement for components financed from other sources will be in accordance with the guidelines of the corresponding cofinancing agencies. To accelerate the implementation of the Project, approval of advance procurement action is recommended.

Responsible Staff

Responsible ADB Officer Phommachanh, Phoxay Pho
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Electricite du Laos
Mr. Siprasith Boupha
[email protected]
Samsenethai Road, P.O. Box 309
Lao People's Democratic Republic


Concept Clearance 08 Mar 1999
Fact Finding 23 Apr 2002 to 07 May 2002
MRM 30 Aug 2002
Approval 18 Sep 2003
Last Review Mission -
PDS Creation Date 30 Nov 2006
Last PDS Update 01 Sep 2010

Loan 2005-LAO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2003 09 Dec 2003 08 Mar 2004 30 Sep 2008 31 Mar 2010 23 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 38.51 Cumulative Contract Awards
ADB 30.00 18 Sep 2003 30.96 0.00 98%
Counterpart 8.51 Cumulative Disbursements
Cofinancing 0.00 18 Sep 2003 31.57 0.00 100%
Title Document Type Document Date
Northern Area Rural Power Distribution Project Project/Program Completion Reports Jun 2011
Northern Area Rural Power Distribution Reports and Recommendations of the President Aug 2003

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Lao People’s Democratic Republic: Northern Area Rural Power Distribution Project Validations of Project Completion Reports Dec 2012

Related Publications

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