Vientiane, Sep 26 (IANS): The Asian Development Bank (ADB) approved a 3 million US dollar technical assistance project to enhance power sector reform in Laos, aiming to create a sustainable and reliable clean electricity supply in the Greater Mekong Subregion.

The project will also help pave the way for increased investment and private sector participation in renewable energy, Lao News Agency reported on Thursday.

Laos has significant potential to scale renewable energy to generate revenue and mitigate climate change impacts, but it needs to promote private sector investment through sound macroeconomic management and structural reforms, said the report.

The country's energy sector is challenged by reform gaps and financial issues, hindering investments in transmission and distribution infrastructure, as well as the country's ability to meet regional energy transition goals.

The project will assist the Lao government in modernizing power sector regulations, tariff reforms, and governance arrangements, Xinhua news agency reported.

It will improve market access for private sector participation in expanding clean energy generation, enhance power utilities' environmental and social safeguard management system, and strengthen human resource capacity development for implementing power sector reforms.