Vientiane, Lao PDR, July 27, 2010—IFC,
a member of the World Bank Group, through its joint World Bank-IFC sub-national
initiative is providing Electricite du Laos, the largest utility company
in Lao PDR, with a $15 million loan to expand its electrical grid, benefiting
37,000 rural households in central and southern parts of the country.
The groundbreaking investment represents
the first time IFC has extended a loan to a state-owned enterprise in Lao
PDR. The project supports phase two of the country’s Rural Electrification
Program, which has a goal of providing electricity to 90 percent
of Lao households by 2020, in turn improving social welfare, spurring economic
growth, and creating jobs.
“Partnering with IFC strengthens the
capacity of EDL and will allow us to fulfill our commitment toward the
government’s ambitious electrification goal,” said Khammany Inthirath,
Managing Director of EDL. “We have made good progress toward this mission,
thanks to continued support from the World Bank Group and other development
partners.”
In addition to grid expansion, the second
phase of the Rural Electrification Program involves promoting techniques
to minimize energy losses in the distribution system and increase energy
efficiency.
“This project marks the start of a
long-term partnership between IFC and EDL,” said Simon Andrews, IFC’s
Regional Manager for Lao PDR, Cambodia, Thailand and Vietnam. “The loan
supports the initiative by the Lao government and EDL to seek diversified
sources of funding in implementing their plans for economic growth and
development.”
The loan is part of a larger financial
support package from the World Bank Group that includes a direct International
Development Association loan as well as financing from other development
partners, including Norway’s Agency for Development and the Australian
Agency for International Development.
“The loan builds on the World Bank
Group’s existing strong partnership with EDL and will further boost
EDL’s credentials as a well run commercial entity and also contribute
to the socio-economic development of the Lao people by expanding electrification
in the country,“ said Patchamuthu Illangovan, Country Manager of the World
Bank in Lao PDR.
About IFC
IFC, a member
of the World Bank Group, is the largest global development institution
focused on the private sector in developing countries. We create opportunity
for people to escape poverty and improve their lives. We do so by providing
financing to help businesses employ more people and supply essential services,
by mobilizing capital from others, and by delivering advisory services
to ensure sustainable development. In a time of global economic uncertainty,
our new investments climbed to a record $18 billion in fiscal 2010. For
more information, visit www.ifc.org.