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Hydropower Advisory

Hydropower Advisory > Our Services  > Environmental & Social Risk Management: Companies 

Environmental & Social Risk Management for Companies


Developers, utility and construction companies, and suppliers all play an important role in shaping directions for the hydropower sector in Lao PDR.


Together, these stakeholders can develop commercially viable hydropower that also achieves good international and industry practices. IFC provides the private sector with the tools, skills, and expertise to develop and implement risk management systems for their projects.


In Lao PDR, IFC is contributing to the sustainability of the hydropower sector through the provision of a $15 million loan to state-owned Electricity du Lao . This financing is expected to provide access to reasonably priced electricity for 37,000 rural households.


IFC is also providing hands-on advice to hydropower companies aiming to improve environmental and social risk management practices surrounding their hydropower investments. Together with theLao National Chamber of Commerce and Industry, IFC is working to ensure that exchange is fostered between hydropower companies and that sector-related concerns are raised with the Lao government.


By investing in sustainability, companies are more prepared, lowering costs through improved operational efficiency and ensuring that environmental and social issues are addressed upfront. Companies that are more prepared are often standard setters in dam safety, experience a smoother construction phase, and have a higher rate of project completion. 


How does IFC manage risk and opportunity?

IFC’s diverse global portfolio includes more than 30 hydropower projects from around the world. Drawing on many years of experience in this sector, IFC understands the risk and opportunities of hydropower development.


Sustainability of the hydropower sector is key to IFC’s strategic priorities. This includes working to addressing climate change, ensuring environmental and social sustainability, and good corporate governance.


IFC aims to eliminate constraints to private sector growth in infrastructure, health, education, and food security. By doing so, we are developing local financial markets and building long-term client relationships in emerging markets.



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