Cash-strapped Laos turns to privatisation to reduce debt, Budget deficit
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[VIENTIANE] With Laos’ public debt at 122 per cent of its gross domestic product (GDP) and Budget deficits of as much as 6 per cent, the country has been busy privatising or leasing some of its state-owned enterprises (SOEs) to reduce spending on subsidies and raise cash.
Two weeks ago, Electricite du Laos Transmission Co (EDL-T) was officially launched, following a joint venture (JV) between state-owned national power company Electricite du Laos (EDL) and China Southern Power Grid (CSPG), with the new entity occupying office space at the upmarket Vientiane Centre mall.
The JV grants CSPG a concession to serve as Laos’ national power grid operator, to invest in, construct and operate certain power grids in the country. EDL-T will also implement grid connections to neighbouring countries in the region under the supervision of the Lao government.
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