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Former Electricité du Laos Officials, Contractors Face Prosecution Over Corruption

This Week

A former Deputy Director of Electricite du Laos (EDL) and four contractors, including one foreign national, are facing prosecution for corruption and fraud involving state property in connection with the Nam Hinboun Hydropower Project in Thonglom village, Khounkham district, Khammouane Province.

The project, managed by EDL, involves an investment of nearly USD 90 million, financed by Krungthai Bank. The 30-megawatt hydropower plant is expected to generate over 155 million kilowatt-hours annually, supplying electricity to central Laos via 155-kilovolt transmission lines connected to the Khonsong substation in Pakkading, Borikhamxay.

The Lao State Inspection has monitored the process of the project construction, resulting in suspicion of the delay of the project. 

Authorities discovered that the construction was only 76 percent complete, despite the project owner having already paid the contractor a total of USD 88,750,341 (98.64 percent of the total contract value of USD 89,970,000). This raised concerns about the project’s progress relative to the funds disbursed. 

The original contract stipulated a three-year timeline, with completion expected by 2016. However, the project has not been finished as planned. The project owner granted an additional three years for construction, but despite the extension, the project is still incomplete and has not begun generating electricity as intended.

These delays have resulted in significant financial losses for the Lao government, which has not received the expected returns from electricity production. In addition, the government is responsible for repaying the loans borrowed from foreign banks to finance the project, placing a financial burden on the country.

Authorities are currently detaining all individuals involved, and they will be transferred for further legal proceedings in accordance with the law.

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