1 July 2008
Australia to help improve reliability of Mekong rural electricity supplies
Australia will help the Asian region meet its rapidly growing energy demands in a sustainable way the Australian Foreign Minister, Mr Stephen Smith, announced today during his two-day visit to Vietnam.
Australia will provide over A$30 million through the World Bank over the next four years to improve electricity supplies, reduce power losses in transmission and promote renewable energy in Vietnam, Laos and Cambodia
In Laos, Australia will provide A$15 million to help extend electricity supply throughout Lao PDR. This includes: connecting 11,500 households in 170 villages to the nation electricity grid; providing solar electricity to 20,000 households; and installing efficient meters to help reduce electricity losses. Funding will also be provided to assist in the completion of feasibility studies for two high-value small (100kW to 5MW) hydropower sites in northern Laos.
Australian funds will be provided for loans to eligible Lao households to pay for the connection charges and to buy house wiring and electricity meters.
Australia is likely to provide additional funding over the next four years, subject to performance and agreement with countries in the Mekong region
The announcement was made by Australia’s Foreign Minister, the Honourable Stephen Smith MP during his visit to Vietnam and Thailand from 1-4 July.
This new initiative builds upon Australia’s already strong development cooperation program in Laos. The Australian Government will provide an estimated $AUD 27.8 million ($US 26.8m) in development assistance to Laos in 2008-09 (July 2008 to June 2009). Priority areas for cooperation include education, trade and investment and rural development.
Media contacts: Mr Michael Hassett
First Secretary, Development Cooperation
Australian Embassy Vientiane
Phone: 020 5520273