Signing a Memorandum of Understanding on the contract to develop Savan wind power project (PDA)

On August 30, 2023, the signing ceremony of the PDA project development agreement took place between representatives of SD Vietnam Construction Investment Joint Stock Company, Vinacom Commercial Investment Company Limited and the Government of Lao PDR.

Accordingly, the Lao government creates the most favorable conditions for the joint venture of SD Construction Investment Joint Stock Company and Vinacom Trading Investment Company Limited (hereinafter referred to as the investor) to conduct surveys and implement projects. Savan wind power project in Phin district, Savanakhet province.

The Lao government creates special incentives for project development. Investors are allowed to use necessary land for surveying and project implementation purposes. The government also creates legal advantages that allow investors to conduct project development activities as quickly as possible. When the project is implemented, it will create both economic and social development. The project will give priority to individuals or organizations established in Laos in supplying materials for the project. The project will also enjoy some tax incentives.

The Memorandum of Understanding was signed to establish a legal framework to facilitate enhanced development cooperation in the field of renewable energy on the basis of equality and mutual benefit.

The Memorandum of Understanding will also facilitate project research and development. The Memorandum of Understanding is valid for 2 years.

This is an important document with practical significance for both sides.