Laos has experienced strong economic growth in recent years driven by foreign investment in hydropower, mining and construction. The economy relies heavily on agriculture, which accounts for about 30% of GDP and 75% of total employment. Laos is developing its potential as the "battery of Southeast Asia" through investments in hydropower projects, with over 10 dams currently under construction or planning. China has been a major investor in these projects such as the Nam Khan 2 dam being built by Chinese company Sinohydro.
2. Key Facts
Geography: land-locked country
Capital: Vientiane
Climate: tropical monsoon climate
Religion: Theravada Buddhism
Language: Lao
Economy: benefited from high foreign investment in hydropower, mining, and
construction.
Agriculture: about 30% of GDP, 75% of total employment.
3. Economy
GDP - real growth rate:
8.3% (2011) 7.9% (2010) 7.6% (2009)
GDP - composition by sector:
agriculture: 27.8%
industry: 34.8%
services: 37.4% (2011)
2007 GDP: US$ 4,053 (agricultural 40.3%, industry 34.1%, service 25.6%) -- World
bank, 2008
Inflation rate (consumer prices):
7.8% (2011)
5.7% (2010)
Note: Industries (copper, tin, gold, and gypsum mining; timber, electric power,
agricultural processing, construction, garments, cement, tourism)
13. Laos-economy
Requirements for the World Trade Organization (WTO) accession in 2012
New Seventh National Socioeconomic Development Plan (2011–15) : broaden
tax income, including the full rollout of value-added tax.
Financial system: shallowed with high levels of non-performing loans.
Slow bureaucracy is an impediment and demands for kickbacks are frequent.
Laos’s investment: hydropower and mining sectors.
Hydropower: Thailand and Vietnam as key markets.
Mining: 50% of total export value (mineral and mental ), copper(27%).
15. Laos-hydropower Ownership
From total of hydropower plants, 304MW (45%) are under EdL’s
responsibility and another 360MW (54%) are owned by Independent
Power Producer-IPP ( 2 projects) and the rest of 7MW (1%) under
provincial authority.
16. Laos-hydropower
In 2007 the Lao Government said that by 2015 it was committed to supply
7,000MW to Thailand, 5,000MW to Vietnam and 1,500MW to Cambodia.
Laos plans to build 10 hydroelectric dams over the next five years as part of
plans to become the "battery of South-East Asia
Of the 10, five are currently under construction:
Nam Ngum 5 in Vientiane province is 60 per cent complete
Theun Hinboun expansion in Khammouane province is 78 per cent complete
Nam Xong in Vientiane province is 30 percent finished
Nam Nhone in Luang Namtha is 91 percent complete
Xekhaman 3 in Xekong province is 90 percent complete
By January, 2012
17. Laos-hydropower
Controversial Xayaburi Hydropower Project Positions Laos Against
Other Mekong Countries
1,260MW Xayaburi hydropower project, the first hydropower plant to be built in the
Lower Mekong Basin.
11 other hydropower projects proposed on the main flow of the Mekong River.
18. Xayaburi Hydropower Project
CH. Karnchang, a Thai company
based in Bangkok, would lead
construction, with financing from
four Thai banks, and 95% of the
electricity will be sold to Thailand.
What is more, a positive decision
could also have given the go-ahead to
eight other dam projects in Laos, and
two in Cambodia
19. Hydropower – Chinese Company
Hydropower plant:
NEWS: On August 11, 2009, Sinohydro Corporation Limited and EDL signed
contracts for Nam Khan 2, Nam Khan 3 , the total value (around USD 559 million)
Nam Khan 2: on the part of Nam Khan river 30 km southeast of Luangprbang city in
the northern party of the Laos.
Nam Khan 3: 70 km east of Luangprbang city.
Xeset 2: completed on September 9th, 2009 Sinohydro, in the Saravan province,
Sinohydro served as EPC contractor
Completed Xeset 1
Planned Xeset 3
20. Conclusion-Laos Hydropower
Three under construction:
Nam Long & Nam Ngiep 2: in Luang Namtha and Xieng Khuang provinces
Nam Khan 2: in Luang Prabang province.
Two under planning: Nam Khan 3, Xeset 3
21. Nam Khan 2 hydropower plant
Expected to commence in 2015.
136 metres high and 365 metres long.
“Construction work on the project is now 15 percent complete.” Electricity du
Laos (EDL) Managing Director Mr Sisavath Thiravong said.(by December 28, 2011 )
Total investment of about 2.4 trillion kip (US$308 million)
Exim Bank of China (95 %)
EDL’s coffers(5 % )
Construction by the Chinese company Sinohydro.
22. Laos-construction
House Construction before dam construction
NEWS: About 300 homes and more than 4,000 hectares of rice and other crops in low-
lying areas along Nam Ngum River in Thoulakhom district, Vientiane province, have
been flooded after the Nam Ngum I Hydropower Plant released water from its reservoir
over the weekend.
August 23, 2011
23. Construction - Tourist attraction and cultural centre
In December 2011, Wan Feng Shanghai will spend 12,000 billion kip
(more than US$1.5 billion) to develop the marsh into a tourist attraction and
cultural centre.
303 hectares and leave 62 hectares undeveloped.
Includes six villages in Xaysettha and Sisattanak districts
Nonvai, Meuang Noi, Nonkhor Neua, Phonthan, Phonpapao & Donekoi.
Contains open spaces, a public park, lagoon, drainage, roads, a sports
centre, and trade, service centers and a residential area that contain five-
star hotels, shopping centers and entertainment venues.
Development period: 15 to 20 years
Lao Embassy, January 3, 2012
24.
25. Laos-mining
Sepon Project
ONGOING drilling at and around Minmetals Resources’ Minerals and Metals Group
(MMG) Sepon project in southeast Laos has returned encouraging results in
shallow oxide gold.
Vientiane Potash Project
ASIABASEMETALS has agreed to terms for the acquisition of a 90% interest in a
16.5sqkm potash exploration property in the Huaxieng - Xaithany area of Vientiane
Province.
The Vientiane Potash Project is currently being expanded to 55sqkm. The resource of
potash salt may be as high as 50 billion tonnes.
26. Laos-mining
SAMPLING at Argonaut Resources’ Xekong concession in southern Laos
has identified five new gold drill targets peripheral to the Ban Khlong gold
discovery. A possible polymetallic skarn has also been identified in the Ban
Bak area also at Xekong.
Drill testing in the upcoming Laotian dry season.
Notes de l'éditeur
Laos has a tropical monsoon climate, with a wet season from June to September/October. Temperatures are coolest during December and January and highest in April and May.Theravada Buddhism is the state religion of Laos and is followed by approximately 65 percent of Lao people.Agriculture - products: sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, cattle, poultry
The four members of the Mekong River Commission—Cambodia, Laos, Thailand and Vietnam1,260MW Xayaburi hydropower project, the first hydropower plant to be built in the Lower Mekong Basin. While Laos wants to move into the construction phase, as the plant is expected to generate significant foreign-exchange earnings and boost its socio-economic development, others have voiced their concerns over the project's sustainability credentials. The pending final decision is viewed as highly significant as it could give legitimacy to plans for 11 other hydropower projects proposed on the main flow of the Mekong River.
http://www.economist.com/node/21542480By January, 2012Observers in the region, and in Washington, think that if the Xayaburi project were to go ahead, the next dams in Laos will be built by Chinese companies, taking China deeper into South-East Asia. American concerns are not just environmental, after all.
On August 11, 2009, the Electricite Du Laos and Sinodydro Corporation Limited signed EPC (Engineering, Procurement and Construction) Contract on the Nam Khan 2 hydropower project.from March 19 to 20,2010, the preferential buyer’s credit loan agreement for Nam Khan 2 Hydropower Project in Laos was signed between the EXIM Bank of China and the Ministry of Finance of Lao witnessed by the Chinese Vice Premier HuiLiangyu and the Vice Prime Minister of Lao Songsawatlengsawat
http://laovoices.com/khan-river-to-be-dammed-in-luang-prabang/The company has been operating in Laos for more than 16 years, undertaking both hydropower and mining development projects.
The government has given the green light for a Chinese company, Wan Feng Shanghai Real State to develop the 365-hectare That Luang marsh area of Vientiane as a specific economic zone, to stimulate socio-economic development in Laos.
Hitachi plans to expand supply of excavators weighing at least 120 tonnes by 60% to 360 units by March 2014 and more than double output to 510 units in the following five years. A company spokesman also says sales of dump trucks weighing at least 140 tonnes will probably triple in three years.
Hitachi, Japan’s second-largest maker of construction equipment, holds 40% of the global share for mining excavators weighing between 120 tonnes and 800 tonnes. A 550-tonne excavator, which is twice as heavy as an Airbus SAS A380 superjumbo and as high as a three-storey building, is used to scoop ore and load to dump trucks.Of the five new target zones, three that are south of the Ban Khlong discovery are supported by rock chip sampling with gold up to 10.95 grams/tonne in recently acquired rock chip samples. Four of the zones are supported by high order soil samples.