The project intends to enhance the efficiency and reliability of the country’ s electricity distribution network.
The national power grid is experiencing new problems associated to the rapid rise in demand for electricity, which has increased by an average of 13% per year.
The state owned electricity utility, Electricité du Laos (EDL) will initially undertake the project in Xaythany district, which is around 10km north of Vientiane city center.
Xaythany had a distribution loss of about 24% in 2014. The project will be expanded to other areas in the future with the experience gained from enhancing the Xaythany district’s electricity network.
World Bank country director for Southeast Asia Ulrich Zachau said: "Laos has made great strides, including with past World Bank Group support, in bringing electricity to the vast majority of the population.
"The new financing will help improve the quality of electricity services, while keeping prices at affordable rates, benefiting low-income customers."
EDL owns and operates Laos’ transmission and distribution assets, and manages electricity imports and exports.
