environmental reports, and regulating agencies to curtail or modify activities that are having an adverse effect on the environment.
WREA has a significant role in IPP project development. It evaluates IPP feasibility studies and EIAs and, if approved, it issues environmental certificates. It performs these responsibilities in cooperation with DOE. WREA then monitors environmental management plans of IPP projects and issues and revokes environmental licenses of IPP sponsors.
(For more information: www.wrea.gov.la)

Central Bank of Lao PDR (BOL)
he BOL was established in June 1990 through the Central Banking Law. The Central Banking Law provides for:
   * Regulation and supervision of commercial banks, regional banks and other providers of financial services;
   * Managing foreign exchange reserve; and
   * Issuing money and managing the money supply;
The BOL has sole responsibility for setting and managing the exchange rate. Banque pour le Commerce Extérieur Lao is a subsidiary of the BOL and acts in this capacity.
Currently the BOL role in IPP is limited. The BOL approves the establishment of foreign exchange accounts of the project companies in line with provisions of the various project agreements. The BOL also holds accounts on behalf of the MOF to receive soft loans from IFIs.
As it is required by Electricity Law (Article 12), the GOL shall” participate in the shareholding when there is a concession for an electricity enterprise”. The GOL designate Electricité du Laos (EdL) and Lao Holding State Enterprise (LHSE) to be a shareholder in different IPP project companies.

Electricité du Laos (EdL)
EdL is a state-owned corporation under MEM that owns and operates the mains generation, transmission and distribution assets in Lao PDR, and manages electricity imports to its grids and electricity exports from its generating stations. EdL answer to its board which includes GOL appointees.
EdL has a project development role as the implementing agency for GOL’s main generation, transmission and distribution projects. EdL’s system planning office performs system expansion planning and analyses potential generation and transmission projects.
EdL is involved in the Lao IPP program in several capacities:
   * EdL is an off-taker from IPP projects. Through EdL off-take from IPP projects has been small to date, it will become an increasingly important     source of generation for EdL in future and larger commitments from new projects are planned.
   * Historically, EdL has been designated by GOL to hold its shares in IPP investments. It is the current holder of shares in the Theun-Hinboun Power     Company and Houay Ho Power Company, which have been in operation since 1998 and 1999 respectively.

Lao Holding State Enterprise (LHSE)
The LHSE was established under the Business Law as a State Enterprise. Prime Ministerial decision of 27 January 2005 empowered MOF to establish the LHSE.

LHSE is governed by a Board of Directors.

LHSE’s role is initially to represent the GOL’s shareholder interests and to establish the revenue management framework for Nam Theun 2. As a holding company it could own shares in other projects and could establish them in a separate legal entity.