Investors urged to comply with Lao hydropower standards

 

THE Ministry of Energy and Mines has introduced its first hydropower technical plant standard, aiming to use it as a tool to encourage greater transparency in this area of development.

A workshop on the Lao Electric Power Technical Standard was held on Friday at Don Chan Palace in Vientiane.

Deputy Minister of Energy and Mines Somboun Sasasombath and Director General of Electricity Department Viraphonh Viravong were at the workshop to explain the the standard to 95 representatives of foriegn companies that had showed an interest in investing in hydropower in Laos.

Speaking at the opening ceramony, Mr somboun said that the standard woukd be a useful guideline for both a government officials and investors in working through the process of seeking permission from the the government to build and operate a dam.

" The standard will improve transparency in the business environment for foreign investors, " he told workshop participants, adding that if investors comply with the Lao standard , the project will run smoothly and be beneficial for both the government and investors in the long run.

The technical standard on Lao hydropower plants, drafted with the assistance of the Japan International Cooperation Agency, came into effect in 2007 as a ministerial decree. It clarifies the procedures and requirements at all stages, including planning, design, construction and operation.

Because there were no guidelines officials could say anythings they wanted, he said that with the introduction of the new standard, both government officials and investors would have to follow set rules and this would help to reduce the opportunities for corruption.

Mr Somboun said that in the past investors had no written reference or guideline about what they needed to do obtain the government permission to build the operate a dam in Laos. This meant they had to seek help from the government official concerned.