Lao People's Democratic Republic: Northern Cross-Border Power Trade and Distribution Project
The proposed transaction TA will help the government to identify all project components and prepare the investment project though completion of the project feasibility study, least-cost electrification analysis, front-end engineering design, and preparation of bid documents for the engineering, procurement and construction (EPC) contract for the transmission and distribution systems recommended.
Project Details
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Project Officer
Tharakan, Pradeep J.
Southeast Asia Department
Request for information -
Country/Economy
Lao People's Democratic Republic -
Sector
- Energy
Related Projects
Project Name | Northern Cross-Border Power Trade and Distribution Project | ||||
Project Number | 51329-002 | ||||
Country / Economy | Lao People's Democratic Republic |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships Private sector development |
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Sector / Subsector | Energy / Electricity transmission and distribution |
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Gender Equity and Mainstreaming | Some gender elements | ||||
Description | The proposed transaction TA will help the government to identify all project components and prepare the investment project though completion of the project feasibility study, least-cost electrification analysis, front-end engineering design, and preparation of bid documents for the engineering, procurement and construction (EPC) contract for the transmission and distribution systems recommended. The investment project will help address Lao PDR's need to: (i) expand access to low-cost, reliable power in rural areas and (ii) develop priority power interconnections between Lao PDR and its neighbors to increase power trade. As originally envisaged, the proposed project would support the national electric utility, EDL (the executing agency of the project) to (i) expand distribution lines and provide off-grid alternatives in the select provinces (Originally envisaged as Luang Namtha, Bokeo and Phongsaly. A change in project locations was discussed during the meeting on 30 April 2018 and confirmed during the meeting on 11 July 2018. The distribution component will now focus on Phongsaly, Huaphanh, and Xieng Khuang); (ii) provide at least 8,000 household electricity meters for newly-connected customers; and (iii) construct one or more high-voltage transmission line(s) connecting Lao PDR with regional neighbor(s). The project builds on lessons learned from the GMS Northern Power Transmission Project and previous regional transmission support by the Asian Development Bank (ADB), and it is included in the country operations business plan, 2018 -2020 and the GMS Regional Investment Framework 2022. |
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Project Rationale and Linkage to Country/Regional Strategy | In recent years, Lao PDR has seen tremendous growth in economic development, averaging 7.6% from 2010-2016. Poverty has been reduced from 46% in 1992/93 to 23% in 2013. The energy sector has been a major contributor to the country's development. As the _battery of Southeast Asia,_ Lao PDR's hydropower development and electricity exports have been a critical source of revenue for the country. In 2016, electricity accounted for 21% of the country's exports. At the same time, the government's effort to expand access to electricity within its borders has led to the early achievement of its target of 90% electrification by 2020. Currently, 92% of households have access to electricity through an on-grid connection, off-grid system or solar home system (SHS). The government has since reset its objective to 95% electrification by 2020. Despite the government's achievements, challenges remain in the energy sector. EDL's fragmented transmission and distribution system does not yet cover the entire country. As a result, there is great disparity in electrification rates between urban and rural areas. For example, regional data from 2014 shows that northern provinces of Bokeo, Luang Namtha and Phongsaly had only attained a combined electrification rate of 79% of households, with Phongslay province alone achieving only 46%, while Vientiane had reached over 99%. Poverty remains high in these provinces, with an estimated 24% of households classified as poor in 2013, compared with 5.9% in Vientiane. Unconnected rural households must choose between expensive off-grid electricity (primarily diesel) or none at all. However, the government realizes that expanding access to the few remaining unconnected households via grid connection may not be economically feasible. Therefore, ADB recommends a least-cost electrification approach, whereby alternative options, such as renewable-based mini grids, battery storage, and SHS will be evaluated along with grid extension. The lack of a unified national electricity grid also contributes to increased system losses and affects reliability of supply. The current grid capacity is insufficient to meet peak demand in urban centers or keep up with growing demand. In addition, Lao PDR's reliance on hydropower leads to seasonal imbalances: during the wet season, hydropower is abundant and EDL has excess capacity; during the dry season, EDL experiences shortages of supply and must import power. Regional power trade can solve these imbalances and support expanded access in neighboring countries, benefiting the GMS as a whole. The government's objectives are to further reduce poverty and alleviate fiscal sensitivities. In its Eighth National Socio-Economic Development Plan (NSEDP), 2016 -2020, the government targets Lao PDR's graduation from least-developed country status by 2020 through sustainable and inclusive development. Thus, improving electrification to households in rural areas and adding to the hydropower export capacity are two critical governmental objectives. ADB has provided extensive support to the development of the Lao PDR electricity infrastructure since 1992. The ongoing GMS Northern Power Transmission Project , nearing completion, is extending 115 kV transmission lines and distribution systems in Xaiyabuli, Phongsaly, and Vientiane provinces, and supporting an interconnection with the Electricity Generating Authority of Thailand (EGAT) Provincial Electricity Authority system. |
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Project Outcome | |
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Description of Outcome | |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Nation-wide |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | The national utility, Electricite du Laos, provincial and district government agencies, local communities, APs/IPs will be consulted for the proposed project. They will participate in the project planning, implementation, and monitoring through various ways including (i) consultations with stakeholders (government and non-government entities) to get inputs on the project design, required permits, and mitigation measures for APs/IPs; and (ii) public consultation meetings and focus group discussions with communities and APs/IPs to get their view and suggestions on the project potential impacts and mitigation measures. |
During Project Implementation |
Business Opportunities | |
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Consulting Services | A consulting firm was engaged to assist in project preparation activities for a proposed Cross-Border Power Trade and Distribution Project, including completion of the project feasibility study, least-cost electrification analysis, front-end engineering design, and preparation of bid documents for the engineering, procurement and construction (EPC) contract for the transmission and distribution systems recommended. The firm is working closely with EDL, the executing agency (EA), and directly support ADB. |
Responsible ADB Officer | Tharakan, Pradeep J. |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Energy Division, SERD |
Executing Agencies |
Electricite du Laos Samsenethai Road, P.O. Box 309 Vientiane Lao People's Democratic Republic |
Timetable | |
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Concept Clearance | - |
Fact Finding | - |
MRM | - |
Approval | 22 Nov 2017 |
Last Review Mission | - |
Last PDS Update | 31 Mar 2019 |
TA 9426-LAO
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
22 Nov 2017 | 05 Mar 2018 | 05 Mar 2018 | 31 Dec 2019 | 30 Sep 2020 | 16 Jun 2021 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
800,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 800,000.00 | 17 Jun 2022 | 714,574.03 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Title | Document Type | Document Date |
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Northern Cross-Border Power Trade and Distribution Project: Technical Assistance Completion Report | TA Completion Reports | Dec 2021 |
Northern Cross-Border Power Trade and Distribution Project: Project Data Sheet (Lao translation) | Translated PDS | Mar 2018 |
Northern Cross-Border Power Trade and Distribution Project: Technical Assistance Report | Technical Assistance Reports | Nov 2017 |
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Energy Specialist | Individual - Consulting | Closed | 14 Jun 2018 | 20 Jun 2018 |
PPTA Consulting Firm | Firm - Consulting | Closed | 25 Oct 2017 | 13 Nov 2017 |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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Project Preparatory | Technical Assistance 9426 | 09 Mar 2018 | Ricardo-AEA Ltd(UNITED KINGDOM) in association with ES SAFEGUARDS COMPLIANCE SERVICES PRIVATE LIMITED(INDIA) | The Gemini Building, Fermi Avenue, Harwell IBC Didcot, Oxfordshire OX11 0QJ United Kingdom | Electricite du Laos | 720,000.00 | — |
Procurement Plan
None currently available.