Laos Energy Security (LES) Activity Quarterly Progress Report FY2021 Q1

The activity has three main objectives: improving energy sector planning, strengthening the energy sector's policy, legal, and regulatory environment, and improving the performance of the state-owned utility. The activity is led by Numark Associates, Inc. and is funded by the United States Agency for International Development (USAID). The formal kick-off of the Laos Energy Security Activity took place on December 3, 2020, with the Ministry of Energy and Mines (MEM) and USAID. Following this meeting, Numark conducted a series of informal meetings to start the Memorandum of Understanding (MoU) preparation and negotiation process. The major accomplishment during the reporting period was the completion of the Annual Work Plan: Year 1, which was approved by USAID on December 24, 2020. Numark also hired the first three personnel for the Laos Energy Security Activity, including the Chief of Party (CoP), Host Government Liaison Officer, and Administrative Manager. The CoP arrived in Cambodia on December 23, 2020, to obtain a Lao visa and authorization letter, but the mobilization into Laos remains uncertain due to travel restrictions and flight cancellations. The main next steps for the following quarter are to complete the CoP's mobilization, continue the MoU negotiations, and begin implementing pre-MoU activities outlined in the Work Plan. The activity has made significant progress in completing the business registration process, hiring local staff, and initiating MoU discussions with MEM and other counterparts. The Laos Energy Security Activity has also secured an Enterprise Registration Certificate, company seal, and tax ID number, and has begun setting up an in-country corporate bank account. Additionally, the activity has held introductory meetings to discuss activity coordination with other USG-supported projects and has initiated mobilization of the CoP. The activity has utilized subcontractors, including Crown Agents-USA, Energy and Security Group (ESG), and IMPAQ, to support the preparation of the Annual Work Plan: Year 1. The summary of Level of Effort (LOE) planned and expended to date is appended in Annex 1. The major ongoing activities from the start-up phase are finalizing the business registration process and mobilizing the CoP. The local attorney is finalizing the licensing process, and Numark is awaiting the completion of the CoP's mobilization. The Laos Energy Security Activity has made significant progress in its first quarter, and the next steps will focus on completing the CoP's mobilization, continuing MoU negotiations, and implementing pre-MoU activities. The activity will continue to work closely with the Government of Laos and other stakeholders to achieve its objectives and contribute to the national goal of green and sustainable economic growth. The activity's progress is aligned with the USAID's goals and objectives, and it is expected to make significant contributions to the energy sector in Laos. The activity's success will depend on the completion of the CoP's mobilization, the continuation of MoU negotiations, and the implementation of pre-MoU activities. The Laos Energy Security Activity has the potential to make a significant impact on the energy sector in Laos, and it is expected to contribute to the country's goal of achieving a resilient and financially viable power sector. The activity's progress will be closely monitored, and adjustments will be made as necessary to ensure its success.