Part 12/15:
The rapid expansion of hydropower has led to an unprecedented debt burden. According to the World Bank, Laos' foreign debt now exceeds 14.5 billion USD—around 89% of its GDP—making it one of the most heavily indebted countries in Southeast Asia. Much of this debt is linked to infrastructure projects, notably dams financed predominantly by China.
This debt-driven model raises questions about long-term economic sustainability. If hydropower projects underperform or environmental impacts force further costly mitigation efforts, Laos could face financial instability. Repairing, maintaining, and managing dam safety—especially given seismic risks—adds further financial strain.