New hydro plant in pipeline as Savannakhet
New hydro plant in pipeline as Savannakhet
Lao and Chinese energy companies will commence a feasibility study on a proposed hydropower plant development project in Savannakhet province next month following an agreement made Friday.
Simuong Group Co Ltd signed the agreement with Chinese engineering company, the Survey and Design Institute of Bureau 14, Sinohydro Co Ltd on the study.
The agreement allows the Chinese company to conduct the study and dam design of Xelanong 3 hydropower project in Nong district of Savannakhet.
The agreement will see Simuong engage the Chinese company at a cost of 17.6 billion kip (US$2.2 million) to conduct the FS with an expected completion date of 18 months, a Simuong Group representative said.
The Xelanong 3 project site is about 60km from the town of Savannakhet.
Once the project is developed, it is expected to have an installed capacity of about 80 megawatts (MW) with an expected generation of 305.62GWh annually.
The project is expected to see an investment of about 1.3 trillion kip (US$162.88 million), according to a handout.
Simeung Group signed the project memorandum of understanding (MOU) with the Planning and Investment Ministry in October last year.
Preliminary studies were undertaken by Hydro Lao earlier this year.
The MOU includes provisions for the investor to conduct studies including assessments of the potential social and environmental impacts of the plant as well as other issues.
The company will receive permission to start development immediately should the study yield positive results, with a concession by the government to operate the project for 30 years.
Simeung Group signed an agreement with the Savannakhet provincial administration to conduct an initial feasibility study on the dam in 2011.
The project is expected to generate energy for local supply.
The signing ceremony was also attended by officials from the Energy and Mines Ministry, Planning and Investment Ministry and the two companies.
The Simuong Group Co Ltd was established in September 2001. Since its inception, the company has successfully executed many projects, both under government and internationally funded programmes.
Since 2001, the company has brought together diverse concerns in road-bridge and building construction, survey design, energy and mining consultation, real estates, automotive, import-export and banking under the umbrella of Simuong Group Co Ltd of Laos.
vientiane times
