Southern hydro plant gets green light
Southern hydro plant gets green light
A concession agreement for the Xe-Pian Xe-Namnoy hydroelectric power project between the Lao government and Xe-Pian Xe-Namnoy Power Company (PNPC) was signed in Vientiane on Friday.
The project spans several catchments in Champassak and Attapeu provinces and will take water from the Xe-Namnoy reservoir, with an installed capacity of 410MW.
“Construction work on the dam is expected to take about 60 months and involves an investment budget of about 8 trillion kip (US$1 billion),” the CEO of PNPC, Mr Yong Soo Na, said at the signing ceremony.
The ceremony was attended by officials from the ministries of Planning and Investment and Energy and Mines, as well as from the Korean and Thai embassies to Laos, and officials from Champassak and Attapeu provinces.
The budget will be secured from a combination of loans and financing from the stakeholders, with the loan capital expected to make up 70 percent of the total, according to a press release.
A recent report from Lao Holding State Enterprise said project construction will start next year and will be finished in 2018.
“We are currently doing preconstruction work, including building camps and an access road to the project site. Construction of the dam will get underway next year,” a PNPC official said.
The project will require the installation of a 110km double circuit 230kV transmission line from the powerhouse to the Pakxe substation, and a 60km 500kV double circuit transmission line from the Pakxe substation to the delivery point in Thailand, the report noted.
Once complete, the project is expected to supply about 1,880GWh of electricity per annum, providing revenue to Laos through taxes, royalties and dividends.
“Ninety percent of the electricity generated will be sold to Thailand, while the other 10 percent will be used for local consumption,” the PNPC official said.
“The project will generate over 1 trillion kip (US$135 million) in earnings per annum over its 27 years of operation,” Mr Yong said.
PNPC was formed by SK Engineering & Construction Co Ltd (SKEC) and Korea Western Power Co Ltd (KOWEPO), Rachaburi Electricity Generating Holding PCL (RATCH) of Thailand, and the Lao Holding State Enterprise (LHSE).
LHSE holds a 24 percent stake in the venture, RATCH has a 25 percent shareholding, SKEC holds 26 percent, and KOWEPO 25 percent.
Since the consortium concluded the project development agreement in November 2008, PNPC shareholders have carried out all of the necessary procedures required for the feasibility studies, including basic design survey and socio-environmental impact assessments.
They have also initiated the required provincial and district public hearings for socio-environmental impact assessment.
vientiane times
