The signing will take place on the day the two prime ministers inaugurate the second Lao-Thai Bridge linking the Lao town of Savannakhet to Thailand's Mukdahan. The new agreement will increase the amount of electricity Thailand will purchase from Laos from the current 3,000 Megawatts to 5,000 MW from 2007 to 2016.
To meet Thailand's demand, Laos says it will try to attact more foreign investment in the hydro-power sector, hoping to have 25 dam-building projects to produce up to 8,000 MW of electricity by the year 2015, and to become the "battery" of the Greater Mekong Sub-Region and eventually of ASEAN.
The second Lao-Thai bridge is now 98% completed, and the opening ceremony will take place on December 20.
Listen to our Laos Today report for more more details.