Laos and China announced a joint venture to build the $135-million Seset 2 hydro-electric power project, with construction to start this year and expected to be completed in 2008.
The project will be able to generate 329 million kilowatts hours per year to meet the energy demand in southern Laos, with the remainder to be sold to Thailand.
In another development, Laos and Thailand have launched bus routes between Vientiane-Nongkhai and Vientiane-Udorn.