Logo of Phnom Penh Post newspaper Phnom Penh Post - EdL revamp set as part of Lao economic revival

EdL revamp set as part of Lao economic revival

Content image - Phnom Penh Post
The Lao government has formed a committee to overhaul the operations of Electricite du Laos (EdL) as part of its efforts to strengthen business operations across all state enterprises. VIENTIANE TIMES

EdL revamp set as part of Lao economic revival

The Lao government has formed a committee to overhaul the operations of Electricite du Laos (EdL) as part of its efforts to strengthen business operations across all state enterprises.

The committee will suggest measures that will enable EdL to earn more revenue and pay off the debts it has accumulated.

The new committee was established under a Prime Ministerial Decision, with Deputy Minister of Finance Phouthanouphet Xaysombath appointed as head of the committee.

Deputy Minister of Energy and Mines Thongphath Inthavong has been appointed deputy head, while senior officials from other relevant bodies including EdL managing director Chanthaboun Soukaloun are also on the committee.

A ceremony to announce the new committee was attended by Minister of Energy and Mines Dr Daovong Phonekeo, Minister of Finance Bounchom Oubonpaseuth and other senior officials.

Dr Daovong said EdL, as a key state enterprise, plays a significant role in the national economy. Reform of the enterprise is essential to enable the enterprise to fulfil its duties and respond to the needs of local people.

The reform of EdL is taking place after the government witnessed a large number of state enterprises performing poorly, making huge losses and creating massive public debt.

National Assembly members have pushed for further reform of state enterprises in Laos after learning that state enterprises in China and Vietnam have become the engines driving success for their countries, while in Laos they continue to make losses.

The minister said the overhaul of EdL aims to prevent the loss of assets, create conditions that are conducive to strong business performance and comply with the rules of a market-based economy, and reduce the number of subsidies granted to certain individuals and groups.

Dr Daovong said the Ministry of Energy and Mines and EdL must strongly participate in the reform process to ensure that the enterprise generates more income to repay its debts.

The minister said he believed that the dedication and contributions of the reform committee would help to strengthen EdL’s operations and contribute significantly to the country’s socio-economic development.

He called on the sectors responsible to join forces to overcome the difficulties and challenges facing the nation.

In February, EdL announced its intention to significantly reduce expenditure in 2022 compared to 2021 in a bid to support government efforts to tackle economic and financial difficulties and stabilise macroeconomic growth.

Addressing the company’s annual meeting at its headquarters in Vientiane recently, Chanthaboun said EdL had faced a number of challenges in recent years but was preparing to make sweeping changes to improve performance.

VIENTIANE TIMES/ASIA NEWS NETWORK

MOST VIEWED

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • Honda shutters Siem Reap football club

    Japanese football legend Keisuke Honda, the owner of Siem Reap football club Soltilo Angkor FC, has been forced to shut the club down, after it failed to attract sponsorship for the upcoming season. Honda, the former manager of the Cambodia men's national football team, said

  • Hun Sen warns of regional tensions

    ASIA is becoming a dangerous geopolitical hotspot, with several countries announcing that they intend to send naval vessels towards Southeast Asia and on to the South China Sea, warned Prime Minister Hun Sen. “Heated geopolitical issues can easily escalate, namely to war. I am not

  • PM declares ASEAN Para Games open

    The 12th ASEAN Para Games officially kicked off on the evening of June 3 at Morodok Techo National Stadium in Phnom Penh, with a spectacular opening ceremony featuring fireworks and performances by some of the Kingdom’s most accomplished talents. Tens of thousands of sports fans