VIENTIANE, Nov. 11 (Xinhua) -- State-run energy giant Electricite du Laos (EDL), on behalf of the Lao government, has completed more than 80 percent of a power grid extension that will deliver electricity to a Cambodian transmission line on the border of the two neighbors.

(File photo: VCG)

This follows the signing of an electricity purchase agreement between Laos and Cambodia during a working visit by Lao Prime Minister Thongloun Sisoulith to Cambodia in September, local daily Vientiane Times reported on Monday.

The visit took the two countries' relationship to new heights, with the signing of several important documents, including the electricity purchase agreement.

Cambodia agreed to buy 2,400 MW of electricity from Laos in four phases over a period of 30 years, according to a report by the Phnom Penh Post.

The first phase is set to start by the end of 2024 and generate 300 MW, and the second phase will go into operation by 2025, generating an additional 600 MW.

The third phase will be launched in 2026 with the capacity to produce 600 MW, and the fourth phase will be in operation by 2027 and produce an additional 900 MW for a total of 2,400 MW, the Post reported.

Lao Deputy Minister of Energy and Mines, Thongphath Inthavong, told the local daily that more than 80 percent of the work to install the transmission line that will carry electricity to Cambodia has been done.

"Currently, EDL is working on grid development in collaboration with a foreign joint-venture company. The Ban Hat Substation in Khong district, southern Laos' Champasak province, is the main substation for distributing power and connecting to the power grid system in Cambodia's Stung Treng province," he said.

Laos already exports electricity to neighboring Cambodia, Vietnam and Thailand. Laos also plans to export power to other ASEAN members via the regional power grid.