EDL signs Shareholders' Deal for Don Sahong project
EDL signs Shareholders' Deal for Don Sahong project
The state-owned Electricite du Laos (EDL) has signed a shareholders' agreement with the Malaysian developer Mega First Corporation Bernhard and two of its subsidiary companies which form part of Don Sahong Holdings Ltd, a unit of MFCB.
The agreement was announced to shareholders of Mega First, the developers of the Don Sahong project in Laos, which saw an upward spike in the publicly listed company's shares on the Malaysian stock exchange. Director General of EDL Mr Sisavath Thiravong represented the company to sign the agreement with Mega First Corporation Bernhard in Malaysia on Tuesday.
Under the agreement, EDL will hold a 20 percent share in the Laos-incorporated Don Sahong Power Company Ltd (DSPC) while Ground Roses and Silver Acreage will hold 79 per cent and one percent respectively.
The DSPC will eventually sign a concession agreement with the Lao government to develop, build and operate the Don Sahong Hydropower Project, according to a report from the National News Agency of Malaysia - Bernama. DSPC will have an initial registered and paid-up capital of US$3 million, of which US$53.79 million will be eventually paid-up, according to the Bernama .
EDL officials told Vientiane Times yesterday that the electricity from this project will be generated for supply to southern provinces of Laos and also export to neighbouring countries.
The Don Sahong Hydropower Project is a run-of-river hydropower project located on the Hou Sahong channel of the Mekong River in Khong District, Champassak province.
The feasibility study for the project began in 2006. The government began sharing information with neighbouring countries when it gave notification to the MRC in September 2013.
In 2014, the government agreed to elevate the dialogue to a formal six-month Prior Consultation process as stipulated in the Mekong Agreement signed by the member countries. The Prior Consultation process came to an end in January.
Ministry of Energy and Mines' Energy Policy Department Director General Dr Daovong Phonekeo said the decision has been made to move ahead with the development of this project to bring greater economic opportunity in Laos.
Don Sahong project will have a capacity of 260 megawatts and be capable of generating 2,000 gigawatt hours of electricity per annum.
The shareholders' agreement will not have any material effect on the earnings and net assets of the MFCB Group for the financial year ending December 31, 2015, according to Bernama .
Both Ground Roses and Silver Acreage are wholly-owned by Don Sahong Holdings Ltd, in turn a wholly-owned subsidiary of MFCB.
