Myanmar and Laos have agreed to conduct a feasibility study for a hydropower project on the Mekong River, which forms part of the border between the two countries, with a planned generating capacity of up to 2,790 megawatts.
The joint agreement on the feasibility study was signed in Vientiane on July 4 during junta leader Min Aung Hlaing’s three-day state visit to Laos.
Under the agreement, Myanmar’s Primus Sapphire Power Co., Ltd. and Laos’ Phongsupthavy Group Sole Co., Ltd. will complete the feasibility study within 34 months.
The agreement does not authorize construction of the project. Instead, it covers the preliminary stage of assessing the project’s technical feasibility, economic viability and overall implementation.
Myanmar’s military-backed government said the project could help meet regional electricity demand once completed while contributing to ASEAN’s renewable energy goals.
The Mekong River forms nearly 150 miles (about 240 kilometers) of the border between eastern Shan State in Myanmar and northern Laos.
Myanmar and Laos first signed a memorandum of understanding on cooperation in the electricity sector in 2018. Following Myanmar’s 2021 military coup, the agreement was extended for another five years in 2023.
The eastern Shan State border town of Tachileik relies heavily on electricity imported from Thailand and Laos. After Thailand cut electricity supplies in 2025, the town became increasingly dependent on power imports from Laos.
Laos has long pursued a strategy of becoming the “Battery of ASEAN” by expanding hydropower generation and exporting electricity to neighboring countries. However, dam projects along the Mekong have raised concerns among regional and international organizations over their potential impact on river flows, fish populations, agriculture and the livelihoods of local communities.
The announcements released so far do not specify the exact location of the proposed project, its investment value, profit-sharing arrangements, or details of its environmental and social impacts.
