Project Reference Profiles – Lao PDR(LA04) Business Case for Electric Vehicle Dissemination in Vientiane, Lao PDR

At a Glance

Strategic Outcomes SO1 Reduced GHG emission, SO2 Creation of green jobs, SO3 Increased access to sustainable services, SO4 Improved air quality
Start Date Q1  Jan 1 2019
End Date q1 Dec 31 2020
Funding Source Core
Actual Budget (USD) 65,171
Budget Percentage 98%
Actual Expenditure (USD) 63,987
Status Active
GGGI Share (USD) 65,171
Poverty and Gender Policy Markers gender
Name of Client (Lead/Prime implementer if GGGI is part of a consortium) Department of Transport under Ministry of Public Works and Transport
Participating Organization (Funding/donor)
Name of consortium members, if any
Thematic Area
  • Green Cities
GGGI Project Code :
Project Manager and Staff +

Project context, objectives and description

According to the data from MPWT, the number of vehicles increased from 1 million in 2010 to 1.85 million in 2016 at an average annual growth rate of 9.41%. As there is no domestic fuel source, the country fully relies on imports, and more than 80% of imported fuel is used in the transport sector, especially in household transport. Considering that most of the fossil fuel products are consumed in transportation, especially in cities like Vientiane, there is high potential for positive green growth impact by switching conventional vehicles to greener alternatives. Transitioning away from ICEs (Internal Combustion Engine) to EVs will contribute to reduce GHG emissions in the congested urban area, together with significant co-benefits such as improvement in air quality, reduction of noise, and positive impacts on public health. In addition, reducing demands for fossil fuel will contribute to address other macroeconomic issues such as energy security and balance of payments, as the country suffers from a trade deficit and fuel demand represents 32.7% of total imports. 

The project objective is to develop a business case for an Electric Vehicle Program for Vientiane and mobilize financing in order to reduce GHG emissions utilizing ample supply of electricity from clean renewable hydroelectricity, instead of imported fossil fuel. 

The project team will work towards the components of i.) Business case development based on detailed assessment of technical/economic/financial/ environmental/social feasibility of EV dissemination ii.) Policy and regulatory gap analysis and recommendations iii.) Design of financial mechanism – EV lending/subsidy program, GCF, carbon finance, etc. iv.) Identification of potential private and public funding sources v.) Development of Information, Education, and Communication (IEC) Strategies. 

Type of services provided, and results achieved

Impact: Air quality improved and reduction of GHG emissions from increased use of EVs in Lao PDR. 

Outcome: N/A 

Project Outputs completed in 2019: 

i. Green Growth Policies:N/A

ii. Green Investments:N/A

iii. Capacity Building and Knowledge Products: N/A 

Number of staff provided

Project Manager: Christophe Assicot 

Annaka Peterson, Jason Lee, Lah Soukkaseum, Sengvida Manichanh, Stella Lee