Introduction

Lao PDR is largely a rural and mountainous, landlocked country bordered by China, Vietnam, Myanmar, Thailand and Cambodia. Lao PDR covers an area of 236,800 square kilometers. It has a population of about 5.091 million (est.1999), which over 80% live in rural areas and are engaged in rice-based agriculture. The capital city is Vientiane. Its economy is one of the least developed in Asia with an approximate per capita gross domestic product (GDP) at current price of US$ 260 per annum (1999). In 1999, the agriculture sector contributed about 51.76% to GDP, followed by the services sector at about 25.32% and the industrial sector about other share by import duties of about 1.06%.

Several years ago due to international environment was giving an opportunity for the country to develop Hydro resources. Particularly, is development of the some Hydro power plants to supply domestic consumption and others for the export revenue. By implementation of renovation of government policy, power development
is became a significant force to contribute to the socio-economic development in the short term as well as medium term and long term in the lao PDR. Lao PDR has a total hydro potential of about 26,500 MW, most of which is untapped, and is centrally located in the sub-region, which is characterized by expanding electricity demand. However, the Lao power sector is still in its infancy. Of the estimated 18,000 MW of exploitable hydropower potential, only 627 MW has been harnessed so far. This capacity is 98% of the country's total installed capacity for 2000 (642 MW).