Laos, Russia sign US$700 million hydropower deal

Laos, Russia sign US$700 million hydropower deal

Laos and Russia have signed a US$700 ( Ђ 563 million) deal allowing a Russian company access to three hydropower projects in the Southeast Asian nation, the state news agency said Thursday.

The agreement calls for the Regional Oil of Russia company to tap into hydropower from the Sekong 5 and Namkong I and II dams, one of a number constructed or on the planning boards in Laos, the KPL news agency said.

Impoverished Laos hopes to become a major exporter of electricity.

The agreement was signed during the visit this week of Russian Deputy Foreign Minister Alexander Alekseev who said his country was interested in investing in the electricity, mining, food processing and other sectors in Laos.

The former Soviet Union was a key supporter and aid-giver to Laos, reports the AP.

I.L.