Korean investors eye Lao energy sector
Korean investors eye Lao energy sector
The Republic of Korea is eyeing future investment in the energy sector in Laos after noting good results from investment in the sector in other overseas energy markets.
The 2nd Korea-Asia Project Plaza was held by the Ministry of Trade, Industry and Energy, Korea Trade-Investment Promotion Agency and Korea Plant Industries Association in Vientiane last week.
The forum aimed to prov ide important information to Korean entrepreneurs on the rules and investment policies relating to the energy sector in Laos and potential in producing electricity as well as domestic supply and export.
It will be a great opportunity to establish networks between Lao and Kore an construction compa nies, plant and equipment owners, contractors and engineering and finance companies as well as boost collaboration between the Lao and Korean governments.
Also participating in the meeting were entrepreneurs from Thailand, Malaysia and Indonesia, along with government organisations, major international clients, developers, and finance institutions with competitive Korean companies.
We choose hydropower as our principal means of energy production because it is clean, renewable, zero-carbon emissions, a non-consumptive and non-polluting use water resources, Deputy Minister of Energy and Mines, Mr Viraphonh Viravong said at the meeting.
Hydropower plants also create opportunities for irrigation, recreation, protection against floods and droughts, water for human consumption and the possibility of improved fish stocks, he explained.
Laos is lucky to have identified hydropower potential of 26,000MW, far more than it needs for domestic use.
The Lao power sector strategy is to develop all hydropower potential as rapidly and responsibly as practical, while meeting sustainability criteria with respect to technical, economic, environmental and social aspects, said Mr Viraphonh.
When we first set out to develop the hydropower resource s, we used the international lending model, relying on multinational institutions like the World Bank and Asian Development Bank. Using this model we developed several landmark projects, like Nam Ngum I, Nam Theun II and Theun Hinboun, he said.
More recently, the government has moved to the private investment model that relies on private capital and private developers to build and operate dams for the country during an initial concessionary period of 2 0 years or more.
The country currently has 29 projects in operation, 19 of them larger than 15MW, 25 projects larger than 15MW under construction and nine more projects larger than 15MW in development, he reported.
In total, Laos will have 10,000MW of capacity ready by 2020 and 20,000MW of capacity in operation by 2030.
Thailand isn't our only cus tomer; in fact Laos is showing Asean the way toward energy integration with a list of MOUs for power export and trade throughout the region, Mr Viraphonh said.
Vietnam will buy 5,000MW by 2030 while Laos w ill trade between 1,000 MW and 2,000MW with Cambodia and Myanmar by 2030 and is already trading power with border regions of China.
With Thailand, we have initialed a pilot project to send 100MW a year to Malaysia beginning next year with the likelihood of extending the supply to Singapore in the near future, he added.
Laos and Korea have extended cooperation in many areas and the energy sector has a lot of potential for further cooperation, said Korean Ambassador to Laos, Mr Ri Sang Gun.
