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• Subsidies on unit product price depending on energy type and times period. Additionally, the investors can obtain also non-fiscal incentives, such as: • Up to 75 years leasing term (for enterprise construction land); • Permission to expatriate earnings to home or third countries; • Right to employ foreign workforce (not more that 10% of the enterprise’s total labors). Financial mechanism The Government will provide support by seeking assistance from international organizations, commercial banks and low interest loans sources for funding renewable energy projects; to encourage private commercial banks in understanding and interests to investment into renewable energy projects. Besides, the government shall issue the investment guidelines and development roadmaps to attract internal and foreign investments in renewable energies. The Government will establish a one-stop service centre for disseminating information and facilitate investments on renewable energies. 2.7.3 Renewable Energy Fund To harmonize the support to renewable energies in Lao PDR, the Government will establish a Renewable Energy (REN) Fund as sub-account to the existing Rural Electrification (RE) Fund. The Fund will be used for the following: • Financial assistance for the development of renewable energy and biofuel industry and market in Lao PDR; • Finance barrier removal activities such as resource assessment; research, development, and demonstration activities; project preparatory studies, etc; • Fund capacity building activities, promotional activities, dissemination of knowledge on effective renewable energy use, etc. The Fund will be sourced from the following: • Government budget; • International organizations and donor countries, international financial organizations and NGOs; • Financial contribution or investment from social organizations and from domestic and foreign investors. Though the REN Fund is a sub-account of the RE Fund, the Government ensures that there is a clear separation between the two accounts. The existing management of the RE Fund will also manage the REN Fund whose functions are the following: • account, control and disburse funds; • monitor loans and grants. The Government will establish a Steering Committee who will be responsible for making decisions on the use of funds with MEM acting its Secretariat. Each Province will be represented in the Steering Committee to ensure development of renewable energy markets in the provinces. 25PDF Image | Renewable Energy Development Strategy in Lao PDR
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