Hydro and construction companies have met in Lao PDR in a bid to advance commercially viable and environmentally sustainable hydropower across the Mekong region.
Hydro and construction companies have met in Lao PDR in a bid to advance commercially viable and environmentally sustainable hydropower across the Mekong region.
More than 60 representatives from industry met yesterday for the first time as part of a working group hosted by the International Finance Corporation and the Lao National Chamber of Commerce and Industry.
Lao PDR has immense hydropower potential, with only 15% tapped so far through approximately 20 projects, with up to 50 more hydro schemes expected to be placed into operation by 2025.
"Hydropower development is one of our country’s answers to poverty alleviation," said Sisavath Thiravong, President of the Lao National Chamber of Commerce and Industry. "Now, our challenge is to make sure project sustainability is a priority for all companies. The turnout for the working group demonstrates that we all have a common interest – to develop hydropower projects in Lao PDR more sustainably."
Role of the Working Group
The Hydropower Developers’ Working Group has been set up to help hydropower and construction companies channel their concerns to the government, tackle business challenges, and develop hydropower that meet environmental and social best practices.
"The Hydropower Developers’ Working Group is a good opportunity to share our common concerns of sector-related issues," explained Milo Tang, Assistant Director of the Lao Project Department at China Southern Power Grid International. "By raising environmental and social standards, we hope to lower risk and improve our financial performance."
During a seminar held after the meeting, participants also had the chance to learn more on sustainable project financing and investment, and how to manage risks while addressing social and environmental responsibilities. Future seminars are expected to address dam safety, environmental and social risk management, and technical and financial policies.
"We are encouraged by the strong interest and support from stakeholders including project developers, utilities, and the government in establishing the Hydropower Developers’ Working Group," said Simon Andrews, IFC Regional Manager for Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam. "We expect the working group to help form a partnership between the government and companies to tackle issues affecting the sector and develop hydropower efficiently and sustainably."