Statement of Ministry of Lao Foreign Affairs

Spokesman

''The Government of the Lao People's Democratic Republic welcomes the decision by the Boards of the International Development Association ( IDA ) and Multilateral Investment Guarantee Agency to provide, in the case of IDA, a partial risk guarantee of a syndicated commercial loan and a development grant for social and environmental measures for the Nam Theun 2 hydro-electric project and to provide, in the case of MIGA, guarantees to investors and lenders to the project.

Nam Theun 2 project has long been regarded by government as an essential component of the long-term development plans for the Lao PDR. the project has an important role to play in funding key elements of the National Growth and Poverty Eradication Strategy (NGPES) and activities undertaken through the Poverty Reduction Fund.

The Government of the Lao PDR further wishes to emphasise its ongoing commitment to ensuring that project implementation adheres to the criteria laid out in the World Bank 'Decision Framework', particularly in respect of the continued involvement of local communities, mitigation of social and environmental risks, regular communication with international stakeholders, and the need to ensure that revenues from the project are transparently managed and directed towards appropriate poverty-reduction and environmental conservation programs.''

The revenue from the project will help implement measures for poverty reduction and environmental conservation programs as outlined in the Government's National Growth and Poverty Eradication Strategy

(NGPES) and intended to improve the quality of life of the people of the Lao PDR. The Project will also generate about 4,000
job opportunities in the country during the construction period.