Authorities may call a halt to Kasy hydropower project
Authorities may call a halt to Kasy hydropower project
Authorities in Vientiane province may order a halt to a proposed 15MW-hydropower project on the Sana river in Kasy district after only limited progress has been made on the feasibility study.
The authorities have granted permission for a local company known as Kasihoungheuangxap Architecture, Road and Bridge Company to conduct the feasibility study for the dam project within 18 months.
The feasibility study began in May 2013 and will end within two months but progress on the project has not progressed as anticipated.
In theory, the company should have reported the progress of their feasibility study with five months left to run on the study period but has so far failed to do so, according to the provincial authorities.
The company finally presented their report for the project last week in response to an invitation from the Vientiane Provincial Department of Energy and Mines.
The Department Director Mr Khambong Khonsavanh said the company still did not have enough information to satisfy the requirements of the provincial authorities.
In fact the company needed to produce a socio-environmental impact assessment, measure the water flows and quantities in the river, rainfall in the catchment area and provide figures on the total cost of the proposed investment project.
A senior official from Vientiane Provincial Department of Energy and Mines, Mr Houngthong Khamlasy said authorities may revoke the memorandum of understanding (MOU) signed with the company if it does not show its intention to further develop the project.
“We will give the company another chance by extending the period of the feasibility study by another nine months, which should be sufficient for them to formulate a detailed plan and compile all the necessary documents,” he said.
It is still unclear as to why the company has not been able to complete their feasibility study according to the schedule set out as the company is unwilling to talk about the problems they have encountered.
If the Kasihoungheuangxap Architecture, Road and Bridge Company fails to follow the agreement signed with the authorities, their guarantee money of US$15,000 will be confiscated and the project will be granted to other companies.
So far, the Vientiane provincial authorities have granted permission for feasibility studies on a total of ten 15MW-hydropower projects to be undertaken by private companies before the project development agreements can take place.
vientiane times
