Lao electricity developer earns double dividend
Lao electricity developer earns double dividend
The Lao Holding State Enterprise (LHSE) received its dividend last year from Nam Theun 2 Power Company Limited (NTPC)'s electricity generation business, which amounted to more than double the amount shown in the company's annual plan.
The company planned to earn a dividend of about US$15 million from NTPC in 2013 but actually received US$30.8 million, LHSE General Manager Dr Somboun Manolom reported at the annual meeting in Vientiane yesterday.
In 2013 the company had shares in four hydropower projects with a total capacity of 3,658MW at an investment cost of US$6,899 million, of which US$537 million came from LHSE, he said.
The company had also repaid the capital and interest to the government under the loan agreement, a total of US$4.78 million and a further US$19.55 million in tariff obligations.
Nam Theun 2 hydropower plant project, of which LHSE holds 25 percent, has an installed capacity of about 1,080MW and cost almost US$1.3 billion to build, said Dr Somboun.
The previous year NTPC exceeded expectations by supplying 5,896 GWh of electricity to the Electricity Generating Authority of Thailand for about US$242.3 million, which was 4.61 percent over target.
It also provided 378 GWh to Electricite du Laos for US$15 million, 26 percent over plan, he explained.
The Lao government received US$12 million in royalties from the project last year. Construction of the Hongsa Lignite Power Plant located in Hongsa district, Xayaboury province, which will have an installed capacity of 1,878 MW, is currently about 77.6 percent complete, Dr Somboun said.
The cost of construction for this project will be around US$3.7 billion, of which LHSE holds shares for US$220 million, and the government is expected to receive about US$2.3 billion in royalties from it over the 25-year concession period.
The Xepian-Xenamnoy hydropower plant in the south of Laos, of which LHSE has a 24 percent shareholding, will have an installed capacity of 410MW and requires an investment of US$1 billion to build. It is currently under construction and expected to be finished in 2019.
LHSE also has a 25 percent shareholding in the Nam Ngiep 1 hydropower project, which will have an installed capacity of 290MW and needs investment of around US$871 million. Construction of this facility will begin this year.
The company will continue to focus on development this year in order to grow its business and increase its contribution to the government's budget each year.
The company expects to receive a dividend of around US$15.5 million from NTPC this year, with US$7.70 million coming in May and a further US$7.80 million in November.
The meeting was attended by the Minister of Energy and Mines, Dr Sourivong Daravong, along with representatives of the industry and commerce sector and LHSE officials.
vientiane times
