EDL and CSG sign agreement to establish transmission line firm


Electricite du Laos (EDL) and China Southern Power Grid (CSG) on September 1 signed a shareholders agreement to jointly establish Electricite du Laos Transmission Company Limited (EDLT).

     In future, EDLT plans to invest about US$2 billion in building Laos’ national backbone power grid and cross-border power grid interconnection for Laos and its neighbouring countries, to move forward projects such as the Laos-Cambodia power grid interconnection project and Laos-China power grid interconnection project, and in purchasing from EDL the right to use EDL’s existing power transmission assets at 230kV and above voltage levels.

     The official signing of the agreement marks significant and substantive progress in enhancing win-win cooperation between Laos and China in the power industry.

     Founding the EDLT is an important measure for building the Community of Shared Future between Laos and China with strategic significance. It is the implementation of the Memorandum of Understanding on power cooperation signed between the energy authorities and witnessed by the State Leaders of both countries in November 2017 and is also the latest achievement of the Vientiane Declaration of the Third Mekong-Lancang Cooperation (MLC) Leaders’ Meeting.

     According to the Shareholders Agreement, EDLT will operate under the regulation of the Lao government, taking advantage of CSG’s financial strength and mature experience on power grid construction, operations and management to move forward the construction of the national backbone power grid of Laos.

     EDLT will provide a power transmission service to EDL with safety, reliability, efficiency, accessibility and sustainability. The EDLT is ambitious in driving social and economic development and improving living standards in Laos. It will also promote Laos to strengthen power grid interconnection with its neighbouring countries for transforming its water resources into economic benefits to support Laos’ efforts to build itself as the clean energy in Southeast Asia.