At a national level

The Nam Theun 2 project is an outstanding example of how the Lao government is working with the private sector and multilateral organisations for sustainable development with a strong focus on economic, social, and environment requirements. NT2 is recognised by independent experts as having the potential to greatly contribute to the country's development objectives.

NT2 is forecast to generate average annual revenues of US$80 million to the Lao PDR in the form of taxes, royalty charges and dividends over the life of the concession. Over the period of operation income revenues will amount to more than US$2 billion. At the end of the concession, the Project will be transferred to the Government free of charge with all revenues thereafter accruing to the Lao state. NT2 will be one of the largest single sources of foreign exchange income to Lao PDR.

To optimise use of these revenues, the World Bank, other multilateral institutions and the government are working together to establish and ensure that the Project's revenues will effectively serve the long-term development of the country.

The government has agreed with the World Bank to implement a Poverty Reduction Fund that is being initially sourced from International Development Agency funds, and then from the government's taxes, royalties and dividend revenues once the Project commences operation. Special administrative units are being established to deal with both the implementation of the Project and the effective management and allocation of the financial resources gained from the Project. The revenue from NT2 will enable the Lao government to further its poverty alleviation goals for the country and help bring much needed investment in areas such as education, health and infrastructure development.