Electricite du Laos Transmission Company Limited (EDL-T), a joint venture between China Southern Power Grid (CSG) and Lao state-run Electricite du Laos (EDL), has signed a concession agreement with the Laotian government. The two companies signed the shareholders' agreement to jointly establish the EDL-T in September 2020. A formal signing took place on March 11 in Vientiane.

EDL-T will build and run a high-voltage transmission network above 230 kilovolts under a 25 year concession. EDL will continue to operate the transmission lines under 230 kilovolts.

The joint venture will help increase the country's utilization of hydro power. It has a number of hydro projects under development, and the network will enable the export of power to neighbouring countries. China brings with it not only technical expertise, but also financing.

Xinhua reported that the signing was attended by Sonexay Siphandone, Lao deputy prime minister and minister of planning and investment, and Jiang Zaidong, Chinese ambassador to Laos.

According to the agreement, under the supervision of the Laotian government, the company will serve as the country's national power grid operator to invest in, construct and operate the 230kV-and-above power grids in Laos and implement grid interconnection projects between Laos and its neighbouring countries.

Khamchanh Vongsengboun, Lao deputy minister of planning and investment, said at the signing ceremony that EDL-T will enable the systematic management and operation of the Lao national grid, provide more stable power supply, and facilitate large-scale industrial development in the country.