The document summarizes the achievement of Laos' 5-year energy and mining development plan from 2006-2010 and outlines the plan for 2011-2015. Key points: 1) From 2006-2010, the energy and mining sector grew at an average of 20% per year. Electricity capacity increased to 1,830 MW through new dams and transmission lines expanded to 70% of households. 2) The 2011-2015 plan aims to increase contribution of the energy and mining sector to 25% of GDP through 12% annual growth. New dams would add 3,436 MW of capacity and 80% of households would gain electricity access. 3) Transmission networks and export of electricity to neighboring countries like

1. The Achievement of 5 years Plan (2006-2010)
Implementation and 5 years plan (2011-2015)
of MEM
Presented by: Mr. Chaleurn INTHAVY
Deputy Director of MEM Office
Vientiane Capital, date 15 July 2010

2. The Presentation consists of 3 parts
Part I: Energy and Mining Development in the
previous 5 years(2006-2010)
Part II: Energy and Mining Development Plan
in the next 5 years(2011-2015)
Part III: Implementation Measurement

3. Part I: Energy and Mining Development in
the previous 5 years(2006-2010)
• The rate of growth within 5 years is
increased with the average 20.02 % per
year, which includes:
- Electricity increased 21.12%/year
- Mining increased 19.91%`year
• In 2005 the contribution to GDP from
Energy and Mining sector is 5.8%, and
12% in 2010.

4. 1. Electricity sector
• There are 69 projects have invested in energy sector :
CA 7 projects, PDA 20 projects, MOU 41 projects
• In past 5 years(2006-2010), 3 dams have finished
construction, with about 124 MW (Nam Mang 3,
NamTheurn 2, Xeset 2)
• Now, the total installed capacity is 1830 MW, under
administration as following:
- EDL covers 394 MW (21%)
- Joint Venture Company 1442 MW (78%)
- Local Electricity Company 4 MW ( 1%)

5. 1. Electricity(Cont)
• Some Small hydropower dam constructions have been
accomplished for local utilization(Huay Sae dam-
Oudomxay province, Nam gna dam-Phongsaly province,
grant aid from Japanese government), Off-grid Projects.
• Focused on constructing the electricity network to serve
domestic use and link to external (NARP, REP projects,
500kv, 230 kv,115kv,0.4kv transmission lines).
• Electricity consumption rate has reached 70% of the
whole household over the country in 2010, increased
from 49% in 2005.

6. 1. Electricity Sector(Cont)
• Energy Needs:
- 2005 increased 1521 million KWH (309 MW)
- 2010 increased 2570 million KWH (499 MW)
- 2020 increased 4664 million KWH (997 MW)
- consumption average increased 10-12% /year
• Constraints
- Energy Source construction does not follow the
planed target, some projects are delayed due to the
tariff negotiation, funding sources, impact of
economic regression and others.
- Electricity supply is insufficient with needs,
electricity consumption rate is still low, especially in
rural area

7. 2. Geology and Mining Sector
• Basic initial geology mapping scale 1:1,000,000 has finished
100%, scale 1:200,000 has finished 60%
• Now, there are 154 companies and 269 entrepreneurs, which
118 are foreign companies and 36 are domestic companies
• Main products: gold is exported 55 tons, equals 582 million
USD, copper 272 tons calculated as 1,667 million USD (since
starting until now).
• In 2009, Mining sector has put to the national obligation budget
over than 100 million USD.
• The new potential products in the future are: Potassium
Chloride, Bauxite, metal,…
Constraint
• Development the mining source as the capital has less of
number
• Mining entrepreneur management was not strictly enough, eg.,
gold was precipitated.
• Government has insufficient capital to develop mining sector

8. 3. Macro Management of Lao
Government
• Legislation
- Finished Amended Electricity Law . Drafting Decree is in the
process
- Finished Amended Mineral Law. Drafting Decree is in the
process
- Decree on Off-grid Trust Fund
- Provision on Electrical Technique Standard
- Provision Chemical Substances Management
- Regulation on Mining Investment
• Macro Management of the government
- Decentralized management
- Improve Electricity Sector ( EDL and Electricity Construction
and Installation State Company )
- Others

9. Part 2: Electricity and Mining
Development Plan (2011-2015)
• Energy and Mining Development plan should relate
with the delivered National Social–Economics
Development Plan
• Emphasizing to cross over the least development
country, national economic growth continuously,
people living condition is getting better
• Energy and Mining Development Strategy “Develop
into Industrialization and modernization”

10. Development Trend
• Energy and Mining Development should
prolong and relate to national social-
economics growth. 5 years plan(2011-2015)
has amended from strategy plan which
authorized by the government in August 2009
• Ensuring using water resources and mineral
ores effectiveness
• Boosting the cooperation and investment both
domestic and exterior
• Ensuring the sector development is bonded
with natural protection, ecology, economy and
society

11. Expectation Outcome 2011-2015
• In 2015, the contribution of Energy and Mining sector
to GDP will cover 25%
• Sector Growth average 12% per year, which includes:
- Electricity sector 30%/year
- Mining sector 9%/year
- 80% of all households across the country could
access to electricity
- Emphasizing to accomplish the 7 hydroelectric power
dams construction, equals to 3436 MW

12. Electricity

13. Increase Electricity Generation
Table 2.2Œ-1: Summary of expectation of electricity needs
across the country
Items Unit 2003 2005 2010 2015 2020
Energy Consumption (GWh) 1,102 1,521 2,570 3,504 4,664
Increase rate (%) 17 11 6 6
Maximum Need (MW) 231.3 309.2 488.9 666.6 887.3
Increase rate (%) 16 10 6 6
Load Factor (%) 54.4 56.2 60.0 60.0 60.0
from 2011 to 2015
Sepon 3 (75 MW), Nam Sim(8 MW), Nam Lik1/2 (100
MW, Nam Ngum 5 (120 MW) and other projects

14. Extension of transmission line for
domestic usage
In 2010 transmission
lines 115 KV
• From Luangprabang to
Oudomxay, Luangnamtha
• From Paksan - –Thakhek –
Savannakhet
• Hinherb -– Vanvieng ,
Luangprabang
• Paklai – Xayyabury, Non
hai

15. Electricity Development for Export
Predication of Electricity Need of the Great Mekong Sub region Members
Country Electricity Maximum Need(MW) Energy Need(GWH)
2000 2005 2010 2020 2000 2005 2010 2020
Thailand 152,54 20,818 28,912 51,359 97,858 132,228 184,213 328,429
Vietnam 4,487 7,802 11,653 28,739 24,763 44,766 68,731 169,428
Yunnan, China 3,371 4,715 6,326 16,231 21,857 30,569 41,241 91,689
Myanmar 1,125 1,628 2,124 3,280 6,905 9,627 12,094 16,378
Lao PDR 169 368 543 887.3 871 1,839 3,503.7 4,663.8
Cambodia 150 304 477 1,156 678 1,200 1,900 5,720
Electricity Development Strategy for Export:
* Development of Electricity Generation Source for Export
* Development of Grid network Linkages to outside country

16. Electricity Production Source for Export
• MOU with Thailand
Yunnan
until 2020 : 7000
Lao Vietnam
Myanmar
PDR MW
T hailand
Existing and Planned
• MOU with Vietnam
Hydropower
Hydropower Cambodia until 2020: 5000 MW
under Discussion
Lignite-fired
T hermal Power
Natural Gas

17. Electricity Production Source for
Export(Cont) 2011-2015
• Nam Ngum 2 (615 MW)
• Nam Ngum 3 (460 MW)
• Hongsa liknai (1800MW)
• Nam Ngiep 1 (240MW),
• Sekamane 3 (250MW),
• Nam Mo (105 MW),
• Sekamane 1 (468MW),
• SepienSenoy(390MW),
• ThernHinboun Phase2 (210
MW)
• Nam Thern 3 (237 MW). ,

18. Grid linkage with Outside country
• Saving capital by supporting private investor to construct and
use high voltage transmission line together.
• Reduce negative impacts on environment around the grid
projects.
• Facilitate the production mangement together.
Electricity Grid 500 KV
• Nam Ngum dam to Lao-Thai border -
• Nam Thern 2 to Savannakhet (Lao -Thai border ) -
• Ban Sok/Pa Aum to Lao - Vietnam border
• Ban Sok/Pa Aum to Lao --Thai border
• Hongsa lik nai to Lao -Thai border

19. Geology-Mining Sector
• Plan until 2015
- Focus on joint-venture investment, encourage domestic investment
- Turn into reduction of export raw materials
• Expectation outcome
- Emphasizing to produce geology mapping scale 1:200,000
- building the conditions to discover and process the important mineral
ores (gold, copper, potassium chloride)
- Making revenue to national budget more than 100 million USD/year
• Main Activities to achieve
- Making clearly and strictly regulations
- Avoid to loss national beneficiaries
- Encouraging to invest in the model of joint-venture between domestic
and foreign, particularly capital and advance technology
- Some ores will be reserved for domestic usage such as phosphorus,
coal,…

20. Quantity of Mineral
- Coal discovered quantity 370 million tons
- Limestone discovered quantity 1,645 million tons
- Gold ton metal 143 tons
- Copper ton metal 3 million tons
- Silver discovered quantity 49 tons
- Potassium chloride discovered quantity 400 million tons
- Lead ton metal 6,900 tons
- Aluminum ton metal 31 million tons
- Gypsum discovered quantity 128 million tons
- Tin-Zinc ton metal 170 million tons
- Iron ton metal 6,9 million tons

21. Part III: Implementation Measurement
• Improving organization structure, study to establish some
institutes(Discovery and survey Institute, electricity
modeling, Mining institute)
• Emphasizing to build infrastructure in order to meet with
international Standard (Roads, Railways, Electricity, water
supply...)
• Human Resources Development, upgrading working
efficiency, using advance technology (project WB, AusAID,
ADB, JP...)
• Boosting commercial linkage with international
• Monitoring and Evaluation in electrical and mineral
investments.
• Improving coordination

22. Thank you