Small and Mini Hydroelectric Development Project

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The Project proposes to assist the MEM in (i) preparing a policy for implementing sections of the amended Electricity Law related to tariff setting, to encourage development of medium to mini hydroelectric power projects to provide electricity from a clean and renewable source of energy for domestic use, and to allow the Government to approve such development proposals; (ii) after screening and ranking identified projects, prepare a feasibility study of one or two small or mini hydropower (with an installed capacity of up to 5 MW each) projects that would benefit from the work under (i); and (iii) preparing the necessary documentation for Clean Development Mechanism (CDM) registration that would serve as a model for replication by other small-scale hydroelectric power project developments. This is in line with ADB's Strategy 2020 and the country strategy and program for Lao PDR, which encourages the development of environmentally friendly generating facilities to tackle climate change and promote clean energy, and is also consistent with the Government's energy sector plan to provide electricity to 90% of the population by 2020, and EdL's energy strategy and road map on power generation.