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Lao People's Democratic Republic - Nam Theun 2 Hydropower Project update : revenue management (English)

This note explains recent updates on the Project’s Revenue Management Program, one of the five key areas of the Nam Theun 2 Social and Environment Project. The Revenue Management Program (RMP) is a key dimension of the Nam Theun 2 Hydropower Project (NT2), the objective of which is to assist the Government of Lao PDR to implement priority poverty reduction and environmental programs using revenues from the Nam Theun 2 Hydroelectric Power facility. Net revenues from the Nam Theun 2 project come from royalties, dividends, profit taxes, and dividend taxes. The Government of Lao PDR then identifies eligible programs and projects in the national budget, which comply with the RMP criteria (poverty alleviation or environmental management) for budget allocation. The RMP seeks to ensure and monitor compliance of this requirement by tracking revenue sources and the allocation and disbursement to eligible projects and programs, including audits. Eligible projects are public investment projects selected by the Ministry of Planning and Investment and implemented by sector specific ministries, such as Education, Health, and Energy and Mining. Examples include reforestation, school and dormitory construction, supply of medical equipment to health centers, and rural access road construction, among others. Eligible programs include poverty programs such as school block grants, free maternal and child health scheme, poverty reduction fund, and health equity fund, which are under the oversight of the Ministry of Finance, Ministry of Health, and Ministry of Education and Sports.




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Lao People's Democratic Republic - Nam Theun 2 Hydropower Project update : revenue management (English). Washington, D.C. : World Bank Group.