Electricity, mining to generate more revenue, minister says
Electricity, mining to generate more revenue, minister says
The predicted increase in mineral prices on the global market combined with the expected hike in energy output as more hydropower plants become operational this year will enable the energy and mining sector to contribute more to Gross Domestic Product (GDP), a minister has said.
The sector expects to contribute between 15-16 percent of the planned 2017 GDP of 129,683 billion kip, up from the 12 percent it contributed last year. GDP in 2015-16 amounted to 108,709 billion kip.
Mineral prices on the global market have increased slightly, according to a government report.
With prices expected to rise further and more hydropower plants scheduled for completion this year, the sector should be able to generate more revenue and contribute more to GDP, Minister of Energy and Mines Dr Khammany Inthilath told local media recently.
The mining sector has set a target to generate 15,000 billion kip this year, up from 14,054 billion kip in the 2015-16 fiscal year when 20 types of minerals were excavated including gold, silver and copper, according to the 2017 socio-economic development plan.
Though mineral prices are forecasted to increase, Dr Khammany said the government will continue to suspend the consideration and approval of new mining projects as it wants to ensure proper management of the 942 existing mining activities/projects, with excavations and surveys being carried out by 657 companies.
In 2017, the electricity sector is aiming to generate 30,000 million kWh, up from the 23,120 million kWh generated in the 2015-16 fiscal year.
At present 42 power plants (each with installed capacity of 1MW or more) are operational with combined installed capacity of 6,390MW. Of these, 39 are hydropower plants, one a coal-burn lignite plant, and two are sugarcane-powered.
The government aims to complete construction of 12 hydropower plants this year, according to the 2017 socio-economic development plan.
The electricity sector will continue to be one of the major drivers of the Lao economy in the years to come, with 53 hydropower plants under construction or in the planning stage, including those set to be completed this year.
Construction of all 53 plants will be completed between now and 2020. By 2020, there will be more than 90 hydropower plants in Laos with combined installed capacity of almost 14,000MW, according to the minister.
As more power plants become operational, the ministry is extending the electricity grid to provide wider coverage. Currently, almost 92 percent of families across the country have access to electricity.
