Background
                                                                                                      Location
The energy policy in Lao PDR focuses making energy supplies affordable and reliable while
also ensuring the exploitation of energy resources is done in an environmentally -friendly,           Xaythany District,
efficient and sustainable manner. The power sector in Lao PDR is undergoing a rapid                   Vientiane Capital
expansion, and has achieved major success in increasing local electrification. While the
electrification program nears its completion, the power grid is increasingly facing new
challenges related to the fast growth of electricity demand. The main challenges are
persistently high distribution losses, (averaging about 13 percent with some areas
experiencing losses of over 20 percent) and sub-standard electricity services, including low
reliability of electricity supply due to overloading of the distribution grid particularly in major
load centers such as Vientiane capital, Khammouane, Savannakhet, Champassak provinces.

The Power Grid Improvement Project aims to help improve efficiency and reliability of power           Financiers
distribution in the Xaythany District of Vientiane capital, which had a distribution loss of 24
percent at project preparation in 2015. The project mainly targets 10 points distribution loss        World Bank (International
reduction and associated cumulative energy savings of 2.3TWh by 2040. This can serve as a             Development Association):
pilot for replication in other districts.                                                             $30 million




                                                                                                      Implementing Agency
                                                                                                      Electricité du Laos (EDL)




                                                                                                      Approval Date
                                                                                                      June 23, 2015
                                                                                                      Closing Date
                                                                                                      March 31, 2020
 About the Project
 The project aims to help improve efficiency and reliability of power distribution in the
 selected load areas served by Electricité du Laos (EDL). This is achieved through the
 following components:
 •    Smart metering, distribution improvement and distribution losses reduction
      supports rehabilitation, improvement and automation of power distribution and metering
      infrastructure and equipment in the selected load areas to introduce smart metering,             Contacts
      improve the reliability of power supply and reduce distribution losses.                          Mr. Leopold Sedogo
                                                                                                       World Bank Task Leader
 •    Electric utility information system supports development of an improved information
      system; extension of the geographic information system; and supply and installation of
      an updated corporate financial management information system.
 •    Institutional capacity building and project implementation support provides
      technical and operational assistance to enhance EDL’s institutional capacity to utilize
      new technologies in addressing distribution losses and improving power grid efficiency,
      and to carry out the day-to-day management, monitoring and evaluation of project
      activities.
                                                                                                        worldbank.org/lao
 Beneficiaries
                                                                                                               @WorldBankLaos
 Direct beneficiaries of the project are residential, commercial and industrial consumers
 served by EDL in Xaythany district of Vientiane Capital. There are currently about 46,000                     @WB_AsiaPacific
 residential and 1,100 non-residential customers in Xaythany.

 Indirect beneficiaries include all consumers; low income customers in particular will benefit
 from reduced distribution losses and improved quality of supply.