IED Consulting assists the ADB team in the preparation of the energy sector assessment, focusing on the power sector to support Lao PDR in planning and addressing emerging risks and challenges and developing energy market reforms.

Services Provided:

IED Consulting team has prepared country energy reform case study with lessons learned and recommendation.

IED Consulting team analyzed the sector performance, problems, and opportunities focusing on the power sector:

  • Presented an overview of the sector’s performance and strategic direction, including key sector indicators compared with regional and international industry benchmarks.
  • Summarized major issues, constraints, challenges, opportunities, reforms, strengths, and risks affecting the sector performance and sustainability.
  • Summarized assessments of physical and nonphysical investment opportunities from a sector strategic perspective.
  • Indicated the types and sequencing of the priority investments in the sector and whether they may be financed from public, private or public-private sources, based on the extensive work already done by the government and development partners. Highlighted the main investment and noninvestment bottlenecks, risks, and mitigation measures.
  • Identified structural constraints to sector development and on policy dialogue with the government to determine the means to address these constraints. This work included potential for sector restructuring and developing a new market model for Lao PDR’s power sector in the context of “green energy hub” for GMS.
  • Briefly narrated the importance and contribution of the sector’s development to the country’s growth, poverty reduction, and inclusiveness objectives (or the extent to which it is a binding constraint).

The team provided an analysis of Lao PDR’s power sector strategy and plans.

  • Summarized the government’s power sector strategy and sectoral reform and investment plan and discuss the feasibility of implementing it.
  • Summarized the factors that promote and/or limit successful sector performance and service delivery, including the government’s policy, institutional, legal, and regulatory frameworks; the role and capacity of concerned agencies (including for managing the results), the critical areas
    for developing capacity, and the commitment to institutional reform; recent trends in current and capital expenditures, including the type and composition of expenditures (developmental, recurrent, and others); the roles of the public and private sectors; tariff policy; the sustainability of
    investments; and the possibility of resource allocation with the sector.

The team also developed analysis of donor’s sector experience and assistance programs.

  • Summarized development partner engagement and lessons learned. Proposed strategic vision for the power sector, citing current and planned development assistance and identifying possible investment opportunities and interventions for ADB, as well as prospects for cooperation with other development partners.