Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
1995
Effective End Year: 
2010
Scope: 
National
Document Type: 
Programme
Economic Sector: 
Power
Energy Types: 
Power, Renewable, Hydropower, Solar
Issued by: 
World Bank and Electricité du Laos
Overall Summary: 
Rural Electrification Project (Program) Phase I (REP I) supports the development of the Laotian power sector, extending the electricity grid to rural households, which account for 68% of the total population, while also promoting off-grid renewable energy throughout the country. Between 1995 and September 2010, electricity access across Lao PDR has steadily increased to 71% from 16%, reaching 730,000 households.
Access
Bi-, multi-lateral mechanisms to expand access: 
The Bank’s programs in the power sector in Lao PDR have combined investments with policy assistance and capacity building. They support EdL, the state-owned power utility, which is steadily expanding the power grid throughout the country. ---The World Bank Group is directly contributing US$83.9 million to connect about 200,000 households through the program, comprising US$65 million in International Development Association (IDA) grants and US$18.9 million in loans from the International Finance Corporation (IFC).---Given limited IDA resources, the Bank focused on mobilizing co-financing from other donors, including Australia’s AusAID (US$10.1 million), Norwegian Agency for Development Cooperation - NORAD (US$14.0 million), the Global Environment Facility (US$6.3 million), and the Energy Sector Management Assistance Program (US$500,000). The Lao Government contributed US$15.7 million and local communities US$8 million, for total financing of US$138 million.---Building on the success of the program, IDA plans to continue its support to the Government through rural electrification projects, a regional power trade project, and various technical assistance initiatives to build capacity in the sector. These projects will further broaden electrification access in rural areas, as well as related systems that service the regional power trade goals.
Energy access priorities: 
[M]aking sufficient, reliable and affordable electricity widely available.
Energy access action plan: 
The program was established to provide electricity to the seven southern provinces of Lao PDR, to strengthen the capacity of the country's power utility (Electricité du Laos or EdL), to expand its reach to the rural poor, and to help EdL operate on a commercial basis. It also aimed to support the Department of Electricity within the Ministry of Energy and Mines in off-grid electricity supply and rural electrification planning.---Village screening program that ensures that villages with clinics, schools, irrigation systems and higher potential for economic growth are prioritized.---Productive Use of Electricity program provides support to local communities and rural households to use electricity for income generation
Energy access targets: 
The Government faces the major challenge of connecting 90% of the country's households to reliable electricity supplies by 2020.
Consumer subsidies: 
Cross-subsidies in the tariff system covering 20% of the cost of supply to rural households to ensure that electricity costs for rural households are not higher than alternatives for lighting (kerosene and rechargeable batteries).---Power to the Poor, a component that provides interest-free credits for poor families to connect to the grid. It particularly benefits female-headed households, since these are usually the poorest and most vulnerable in rural communities.
Trade
Energy trade priorities: 
Building on the success of the program, IDA plans to continue its support to the Government through [...]a regional power trade project, a[...] These projects will further broaden electrification access in rural areas, as well as related systems that service the regional power trade goals.