The Nam Theun 2 Hydroelectric Project (NT2) has taken crucial steps forward in recent weeks and construction is now set to start on the dam which will generate much needed revenue for the Government of Lao PDR to use for vital poverty reduction measures.

 

The Executive Board of the World Bank recently made its decision to support NT2, with the Asian Development Bank quickly following suit. The support of these two organisations, critical for the success of the project, means that the way is now clear, after a decade of waiting, for Nam Theun 2 to finally become a reality.

 

The green light for NT2 from the World Bank and ADB is an undisputable indicator of the importance of this project for Laos , one of the world's poorest nations. Their support, in the form of loans, grants and risk guarantees, means that commercial lenders now have the assurance necessary to enable them to back the project. The World Bank and ADB will finalise their agreements with the government on the 25 th of April and it is expected that the commercial lenders and NTPC will be conclude their agreements in May. Full construction activities, including works at the dam and powerhouse sites, are therefore expected to get underway by June.

 

Recent visits to the NT2 site by high profile dignitaries such as head of the World Bank James Wolfenshon and the French Deputy Foreign Minister illustrate the central importance of this project to the economic and social development of Laos. The Government of Lao PDR is grateful for the support of the World Bank, the ADB and all other institutions involved in making sure that NT2 and the benefits which it will provide become a reality for the people of Laos .