Part 4/15:

The development of hydropower has become a vital component of Laos' economy, contributing approximately 15% to the national GDP. The influx of foreign investments—more than $7 billion directed toward hydropower alone—has transformed the country into a regional energy hub. Electrification rates have soared from roughly 30% before 2000 to over 95%, significantly improving access to electricity for rural populations.

Loans and investments, especially from China, have financed large-scale dam projects, often structured through debt-for-equity swaps that involve Laos selling its transmission infrastructure. The revenue from exporting electricity, primarily to Thailand, provides a key financial resource that the government hopes can be channelled into poverty alleviation and broader development.