Lao PDR is in the midst of an economic transformation that comes with great development opportunities but also presents important challenges. Primary among these challenges is the sustainability of hydropower development for the Greater Mekong Sub-region (GMS) power market. Independent power producers (IPPs) and other private-sector investors have been engaged in power-generation activities in Lao since 1998. As a result, the development of the hydropower sector has been ad hoc and investor driven rather than strategic, which would require a clear policy framework and sector strategy. In order to address these challenges ensure that the rapid development of hydropower happens in a sustainable manner, the Government of Lao PDR has been working on establishing relevant laws and regulations, such as investor law and energy law (Introduction).