KPL
Laos’ state-owned power utility, Électricité du Laos (EDL), has reduced its annual debt repayment burden by between $250 million and $300 million following a major organizational overhaul, according to company officials.
(KPL) Laos’ state-owned power utility, Électricité du Laos (EDL), has reduced its annual debt repayment burden by between $250 million and $300 million following a major organizational overhaul, according to company officials.
Speaking at the 2025 Annual Meeting of the State Enterprise Reform Committee on Dec. 17, EDL Director Akhomdet Vongsay said the restructuring marked a fundamental transformation of the utility, aimed at improving efficiency, transparency, and financial stability.
EDL implemented four key structural reforms, including the elimination of 395 management positions to reduce costs and create a more flexible management structure aligned with international standards.
The company also established four new units focused on internal auditing, legal contracts, information and communications technology, and performance measurement using KPI and OKR systems. In addition, EDL introduced smart electricity meters and launched the EDL Mobile application to improve transparency and customer service.
As a result of the reforms, operating expenses fell by 21 percent in 2025, Akhomdet said.
EDL’s annual debt repayment obligations have declined from about $600–700 million to roughly $350–400 million. The reduction was achieved through refinancing high-interest loans, extending repayment periods, collecting outstanding debts from cryptocurrency mining operations, and improving cross-border electricity trading with Thailand, which generated $22 million in profit.
Akhomdet also said EDL successfully renegotiated debt linked to the Nam Ou hydropower project with PowerChina, leading to the withdrawal of a lawsuit previously filed in a Singapore court.
The utility is currently negotiating with 55 power generation projects to reduce electricity purchase prices, a move expected to save about $20 million annually. Over the longer term, EDL plans to redirect electricity from export-oriented projects whose concessions expire to the domestic market at lower costs, with the goal of eliminating losses by 2030.
Akhomdet said social obligation debt, including costs associated with extending electricity to remote areas, should be separated from commercial debt. Outstanding arrears of about $56 million owed by state entities are expected to be offset against EDL’s debts to the Ministry of Finance.
In the first half of 2025, EDL reduced power losses from 9.91 percent to 6.33 percent, generating savings equivalent to approximately $35 million per year, he said.
KPL
