Seven new power plants on schedule

Seven new power plants on schedule

Seven major power plant construction projects with a total installed capacity of 3,770.9 megawatts (MW) in seven provinces are expected to be completed before or around 2020.

The projects, which will have installed capacities from 150MW to 1,878MW, are joint investments between the Lao government and foreign companies.

The projects are Hongsa Lignite plant in Xayaboury and the hydropower projects of Nam Kong 1 in Attapeu, Nam Ngiep 1 in Borikhamxay, Nam Ngum 3 in Vientiane and Xieng Khuang, Xe Pian-Xe Nam Noi in Attapeu and Champassak and Xekong 4 and Xekong 5 in Xekong.

“Construction of the Hongsa Lignite plant is now 19.7 percent complete, which is 3.4 percent ahead of schedule,” Lao Holding State Enterprise (LHSE) General Manager Dr Somboune Manolom said in Vientiane at the company's meeting to review the first half of the year last Friday.

LHSE is a business entity of the Lao government focused on investment in the electricity sector.

“The Hongsa construction project is scheduled to be completed by the end of 2015. It involves the resettlement of 452 families and they have all now moved to their new homes,” Dr Somboune said.

Nam Ngum 3, Xe Pian-Xe Nam Noi and Nam Ngiep 1 are now negotiating concession agreements, financial agree-ments and power purchase agreements with the Electricity Generating Authority of Thailand (EGAT) with the balance going to Electricite du Laos (EDL).

Nam Ngum 3 started construction in 2010, including the building of access roads to the project site, the powerhouse, dormitories, offices, substation and transmission line installation. It is expected to be completed in 2018.

The Xe Pian-Xe Nam Noi has also started early construction works such as access road upgrades and the building of roads to the project site and dormitories. The project is also slated for completion in 2018.

The Nam Ngiep 1 has completed the clearance of unexploded ordnance (UXO) at the project site and undertaken relevant studies. It will also be completed in 2018.

The other three projects of Xekong 4, Xekong 5 and Nam Kong 1 are under preparation, including the negotiation of concession agreements and power purchase agreements. Their commercial operation dates are still to be determined.

LHSE was established in February 2005 and its first investment was in the Nam Theun 2 (NT2) hydropower project, in which it holds a 25 percent share.

It has undergone rapid growth in the power sector during the seven years it has been in operation. Now it is a shareholder in nine power plant construction projects with a combined installed capacity of 5,393MW and the ability to generate about 29,220 million kWh annually.

LHSE holds equity of between 20 to 25 percent in each project. The nine projects represent an investment of about 86 trillion kip (US$10.7 billion), including US$715 million from LHSE.

vientiane times