The agreement was signed between Laos's Ministry of Finance and the Export-Import Bank of China during the Asean Summit in Vientiane last week, witnessed by Lao Prime Minister Thongloun Sisoulith and Chinese Prime Minister Li Keqiang.The project will maximise the efficiency of the Nam Ngum River's hydropower cascade development and boost national foreign exchange reserves, greatly contributing to the economy and the livelihood of the people of Laos.The signing of the loan agreement is the result of joint efforts by the government and relevant agencies, such as the Ministry of Finance, Ministry of Energy and Mines, Electricite Du Laos (EDL), and China's Ministry of Commerce and Export-Import Bank.The government had previously granted permission to a local company to build the Nam Ngum 4 Dam, with construction expected to take five years before electricity is generated.As the company failed to make progress in the project, the government handed it over to EDL to carry out the development, EDL deputy managing director Komonchanh Phet-asa told the Vientiane Times yesterday.With a generating capacity of 220 megawatts, the dam will cost some $700 million to build, he said.The initiative is in line with the government's policy to generate more electricity to meet local demand and to cater for the growing industrial sector.Officials say the project will play an important role in socio-economic development and will improve the lives of people in the northern provinces.Laos has considerable potential for hydropower development and has many rivers that are suitable for this type of project.The government believes strongly that hydropower development will help to alleviate poverty and enable Laos to graduate from the Least Developed Country status by 2020.

Source: The Nation Bangkok September 14, 2016 15:00 UTC