Power generation, largely from hydropower, has the greatest potential for private sector investment in the Lao PDR. Not only does the mighty Mekong and its tributaries run through the country, but Laos also has considerable supplies of gas and coal.

Several hydropower stations are already operational, and the development plans for Laos call for continued strong expansion in this area. The stretch of the Mekong that flows through the country offers Laos the potential to generate 20,000 MW. Currently, only about 2% of that potential energy has been tapped. There are efforts under way to garner an additional 5,000 MW within the next 15 years.

The Nam Theun 2 hydroelectric project (NT2) will be the largest of its kind in Laos so far. It will have the capability to produce 920 MW and generate US$235 million in gross revenues from yearly sales to Thailand.

The Theun-Hinboun Power Company Ltd holds a unique position in this market, as it is the first independent power project (IPP) in the hydropower sector in Laos. The company is jointly owned by the Government and foreign investors. Turn the newly minted 20,000 kip note over, and you will see a picture of the THPC power station.

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