Laos and Myanmar signed a Joint Development Agreement on July 4, 2026, to conduct a feasibility study for a proposed 2,790-megawatt hydropower project along their shared stretch of the Mekong River. The study, to be completed within 34 months, will assess technical and economic viability only and does not authorize construction.
Key Facts At A Glance
- Agreement signed July 4, 2026, at the Crowne Plaza Vientiane
- Signatories: Phongsupthavy Group Sole Co., Ltd. (Laos) and Primus Sapphire Power Co., Ltd. (Myanmar)
- Proposed capacity: up to 2,790 megawatts
- Feasibility study timeline: 34 months
- Location: along roughly 234 kilometers of Mekong River border between eastern Shan State, Myanmar, and northern Laos
- Ceremony witnessed by Lao Deputy Minister of Industry and Commerce Manothong Vongxay and Myanmar Deputy Minister of Electricity and Energy Aye Kyaw
- Builds on a 2018 bilateral electricity MOU, extended in 2023
- Agreement covers feasibility assessment only; construction is not authorized under its terms
Laos and Myanmar have agreed to jointly study the feasibility of a 2,790-megawatt hydropower project on the Mekong River, a step officials in both countries described as a milestone in bilateral energy cooperation. The Joint Development Agreement was signed July 4, 2026, at the Crowne Plaza Vientiane by Phongsupthavy Group Sole Co., Ltd. of Laos and Primus Sapphire Power Co., Ltd. of Myanmar.
Scope Of The Agreement
The agreement commits the two companies to a comprehensive feasibility study evaluating the technical and economic viability of the proposed scheme, with completion expected within 34 months, according to Laos’ Ministry of Industry and Commerce. The project would sit somewhere along the roughly 234-kilometer stretch of the Mekong that forms the border between eastern Shan State in Myanmar and northern Laos. The agreement authorizes only the study phase; it does not commit either government to construction.
Official Statements
Myanmar’s Deputy Minister for Electricity and Energy, Aye Kyaw, said the project holds special significance for strengthening bilateral ties and, once completed, could help meet regional electricity demand while contributing to ASEAN’s renewable energy targets. He noted that because the Mekong is a shared border river, the project must comply with the customs, laws, and procedures of both countries, and said Myanmar’s government would provide close supervision to ensure the study’s success. Lao officials framed the venture as a benefit not only to border communities but to the wider Greater Mekong Subregion.
Background
The feasibility agreement builds on a bilateral electricity-sector memorandum of understanding the two countries first signed in 2018, which was extended for a further five years in 2023. Laos has positioned itself regionally as a hydropower exporter, branding itself the “Battery of ASEAN,” while Myanmar’s participation marks an expansion of its role in cross-border Mekong energy development.
