(Yicai Global) Aug. 10 -- China Southern Power Grid and Lao authorities have penned an agreement to study the possibility of a national transmission grid in the Southeast Asian nation.

CSG, Laos' Ministry of Planning and Investment and Electricite du Laos are looking at building a grid to improve the efficiency and reliability of power transmission across the country, state-owned news agency Xinhua reported. The pair will also expand the country's hydropower market to better exploit water as an energy source, the report added.

The power firm has been a major player in the Belt and Road Initiative, China's plan for a vast infrastructure and trade route spanning most of the world's continents. It has already connected with grids in Vietnam, Burma and Laos. CSG also made donations at the latest signing ceremony, held in Laos' capital Vientiane, to help the Lao government rebuild homes for victims of recent floods in the south of the country.

On July 23, a dam backed by South Korean, Thai and Lao companies burst, flooding mountain water to 13 villages downstream of the Xe Pian River in Sanamxay district. Six were submerged by the muddy water and 13,000 villagers were affected.

Electricite du Laos, controlled by the Ministry of Finance, owns and operates power transmission and distribution facilities across the country and is responsible for managing Laos' energy imports and exports.

Editor: James Boynton