Dr Sonexay Siphandone.

Govt looks to electricity, mining to solve economic woes

The revenue earned from electricity exports and mineral excavation is a key factor in efforts to resolve the nation’s economic and financial woes.
Laos now has total installed energy capacity of 6,437MW and, since August last year, exports of electricity have increased by 150MW, Deputy Prime Minister Dr Sonexay Siphandone told a sitting of the National Assembly’s 3rd Ordinary Session on Monday.
Laos sold 5,415MW of electricity to Thailand, 572MW to Vietnam, 445MW to Cambodia, and 5MW to Myanmar, he said.
In the middle of this year, Laos will sell another 514MW to Thailand and 100MW to Singapore via Thai and Malaysian transmission lines.
Another 30-35MW will be transmitted to Myanmar, and more electricity will be sold to China under a cooperation project using a high voltage 115kV transmission line, Dr Sonexay said.
Laos has also signed agreements on the sale of 1,608MW sourced from 22 power projects, of which 600MW will be wind power.
Meanwhile, Lao authorities have negotiated a boost in electricity supply to Thailand from 9,000MW to 10,500MW.
In the mining sector, the government has authorised 50 companies to explore various sites for the presence of minerals, for which it will collect US$52 million and 321 billion kip in guarantee fees. 
Eighteen companies propose to sell 9.97 million tonnes of iron ore in 2022. Of these, nine companies plan to sell 515,000 tonnes to Vietnam and China, and export another 81,609 tonnes, with taxes and royalties paid to the government on these sales amounting to US$8 million, Dr Sonexay said.
Up until June this year, mining companies have exported 133,607 tonnes of minerals extracted under a pilot scheme. 
As the price of gold and iron ore on the global market rises, the government is hopeful that mining operations will increase revenue and attract more foreign direct investment (FDI), providing a much-needed boost to economic growth.
In another bid to generate more revenue from the mining sector, the Ministry of Energy and Mines is working with the Ministry of Finance’s Customs Department to upgrade the database on mining companies.
This is aimed at bolstering transparency in the payment of taxes and will enable customs authorities to access information about mining companies and their operations, as well as facilitating the payment of taxes and royalties to the government, Minister of Energy and Mines Dr Daovong Phonekeo told the National Assembly.
Hydropower in Laos benefits from the country’s mountains and abundant water resources.
With strong government support, the electricity sector has expanded exponentially and has rapidly become the main driver of economic development.

By Times Reporters
(Latest Update June 21, 2022)