The Government of the Lao People's Democratic Republic welcomes the decision by the World Bank to support the development of the Nam Theun 2 Hydroelectric Project.

The Nam Theun 2 Project has long been regarded by the 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 World Bank through the International Development Association and the Multilateral Investment Guarantee Agency will provide a partial risk guarantee to the commercial lenders and a development grant for social and environmental measures for the Nam Theun 2 Hydroelectric Project.

The Government of the Lao PDR is committed to ensuring implementation of the Nam Theun 2 Project 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.